ZETA Stock Forecast & Price Target

Zeta Global Holdings Corp exhibited substantial financial growth, with total revenue increasing by 49.6% year-over-year in the fourth quarter, driven by broad-based expansion and a 31% increase when excluding specific revenue contributions. The scaled customer average revenue per user (ARPU) showcased impressive growth, rising 27% year-over-year to approximately $577,000, bolstered by significant gains in super-scaled customer ARPU, which reached $1.73 million. Additionally, the company demonstrated continued operational efficiency, achieving adjusted EBITDA margins of 22.4%, marking the 16th consecutive quarter of year-over-year margin expansion, alongside a record high free cash flow conversion rate of 48%.

Zeta Global Holdings Corp's financial outlook is negatively impacted by a projected revenue decline, specifically a $44 million headwind from non-repeating political revenues in 2025 and a significant decrease in advocacy revenues expected to fall from $36 million in FY24 to a range of $20 million to $25 million in FY25. The company also faces operational challenges, as evidenced by a material weakness in its internal controls over financial reporting, which could undermine investor confidence and lead to further volatility in stock performance. Additionally, increasing competition in the data-driven marketing sector may pose risks to Zeta’s ability to maintain a competitive value proposition, potentially affecting both profitability and overall market position.