Zeta Global Holdings' Data Machine Is Gaining Power

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Summary

  • Zeta Global Holdings posted 36% YoY revenue growth in Q1 to $264 million, marking its 15th straight beat-and-raise quarter.
  • Super-scaled customer ARPU rose 23%, while scaled ARPU increased 12%, confirming deeper cross-sell and enterprise adoption.
  • Free cash flow rose 87% YoY to $28 million, with a strong 60% conversion rate, showing real operating leverage.
  • Trading at 2.84x EV/Sales and a 24.2x P/E, Zeta remains undervalued despite 30%+ growth in a 25% CAGR market.

Data analysts are leveraging AI technology to revolutionize data analysis and problem-solving.

Prae_Studio/iStock via Getty Images

Zeta Global (ZETA) isn't just another AI marketing stock, it's one of the few building a real business around durable growth, not hype. While peers chase impressions and experiment with third-party data, Zeta's AI-native platform uses verified first-party

This article was written by

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I’m a self-taught, full-time investor with years of personal capital at work in the stock market. My approach centers around identifying stocks with high upside potential and tightly managed downside risk. I specialize in inflection-point investing, often looking where the market isn’t: misunderstood companies, ignored and/or disruptive sectors, or narrative-dislocated opportunities. My focus is not limited to any one sector, but I naturally gravitate toward businesses with scalable economics, strong reinvestment potential, and the ability to surprise the market over time. I’m particularly drawn to technology, fintech, industrials, and platform-driven models, especially when they trade below intrinsic value. Having learned by doing, I’ve built a disciplined framework through years of research, market observation, and application of mental models from successful investors. I’ve also taken various courses in stock valuation, risk management, and tech sector fundamentals to strengthen my foundation.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in ZETA over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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