ZETA Stock Forecast & Price Target

Zeta Global Holdings reported a robust 49.6% year-over-year revenue growth in 4Q, with key metrics showing a 31% increase when excluding contributions from LiveIntent and political revenue. The average revenue per user (ARPU) for scaled customers grew 27% year-over-year to approximately $577,000, driven by significant growth in super-scaled customer ARPU, which rose 31% to $1.73 million. Furthermore, Zeta's direct platform revenue mix increased to 74%, contributing to a substantial 52% year-over-year rise in direct platform revenue, while adjusted EBITDA margins expanded for the 16th consecutive quarter, underscoring the company's strengthening financial performance.

Zeta Global Holdings Corp faces a challenging financial outlook due to multiple factors, including a projected $44 million revenue headwind in 2025 related to declining political and advocacy revenues, which are expected to drop significantly. Additionally, the company reported a non-GAAP gross margin of 60.1%, falling short of estimates and indicating potential struggles in maintaining profitability, compounded by the identification of a material weakness in internal financial controls. Moreover, the risk of increased competition in the data-driven marketing sector and potential changes in shareholder ownership could further weaken Zeta’s stock performance.