ZETA - Earnings call transcript Q3 2021 | Zeta Global Holdings Corp.

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Operator

Good afternoon, and welcome to the Zeta Third Quarter 2021 Earnings Conference Call. [Operator Instructions].

As a reminder today’s conference is being recorded. I would like to turn the conference over to Scott Schmitz, SVP of Investor Relations. Please go ahead.

Scott Schmitz

operator. you, Thank thank quarter and joining for us Hello conference you call. third XXXX Zeta’s everyone for

Before I Zeta’s and to about press where we Zeta. today’s will our release that begin, you with are would SEC like filings, available other find on also website along www.investors.zetaglobal.com mention at links to information presentation

Joining Chairman Chief Officer, Executive Greiner, Zeta’s and Financial the and today David are call on Chief me Steinberg, Co-Founder, Officer. Zeta’s Chris

from in that only update file any or statements and Any Securities as to well under those forward-looking that we call SEC. time this X, our Form risks on no Exchange our presentation our differ speak everyone are we forward well in recent the most call, company’s events include may Risk potential of I’d risks goals with are to potential obligation financial on to and statements time Factors as documents Before and on future and looking about the strategies. and press market products, contain Report uncertainties and and of subject those developments, plans filed may the from These and objectives, statements our each prospectus, to as remind in release that Commission, dated Quarterly uncertainties and the statements forward-looking XXXX, results presentation and begin, regarding the the cause as with assume outlook, today’s final date as the June actual made business revenues including and that other made other XX-Q to like competition, These heading press release. statements and today’s we described projected. and materially of products statements our

our supplemental and In in operate the Appendix business. non-GAAP results. presentation, the of end We not manage at discussion found those which references these for GAAP the to addition considered be each are measure, measures to will you to are a in reconcile addition, describe examine the to certain release. way as measures comparable financial GAAP press the We to, and which to and encouraged use and today which in non-GAAP the measures, substitute most directly should of include our our we reconciliations,

Now to I turn will the call David. over

David Steinberg

earnings Scott. you, dollars, a record second and when public Cycle. Thank drove our afternoon the of your for guidance We quarter. $XXX of strategic million against executed XX% results revenue Zeta We initiatives Zeta’s call strong sincerely ahead company. and you up up our had year-to-year a generated joining Good XXXX thank and interest. very the appreciate We XX% Presidential for quarter. for adjusting as

marketplace; results: shortly. by operating market Stepping two, year-to-year. have visibility in million will confidence from there Adjusted pipeline, our year the and our place; we three executing dollars. started. strategic of details in supported back, getting themes into million $XX.X dollars $XX.X the are Chris in more are One, winning to strong are those position three our million and key a dive we just We the dollars from we XXXX and full revenue good also million are growing we leverage drove in quarter With up Adjusted range EBITDA of EBITDA million strong our dollars dollars, $XXX the to XX% $XXX.X outlook $XX up with raising and of guidance midpoint

where campaigns. activate companies of in our themes are their data and this starting Zeta at Artificial in and is This more position. each prepare fits rethinking Let how make data ingest, with digital perfectly. center strategic increasingly how detail, Intelligence the me they Companies decisions. of dive synthesize, these into are In to marketing world,

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expertise platforms. under-invested modern Artificial to digital that outcomes Zeta, versus vision in platform enterprises their execution. our products is point that Our Intelligence solutions can in have drives who our help legacy of customer retention, data, With add through by their technology, investing and customers software accelerate acquisition, transformation and eliminate growth our our better from competitors our complexity and

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beginning back the go-to-market major stronger, tailwinds are theme just quarter; we’re getting investments. been see from to data the we’re and platform Going this our accelerating, and just third never our to have benefits started. Industry

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confidence And to work Zeta journey. hand And of Greiner customers to their would to greater You they I gotten on our to us point. has and trust our thank I and hard for can that people, place Chris. us. to investors Chris our also thank and this like for register all to now let thank on I www.zetaglobal.com. supporting our with for results partners detail. in the website, like at this dedication it us would off our in that, would discuss you, me like

Chris Greiner

And quarter highlights P&L, of Zeta, sales Scott, leverage. was from mix end toward beat positive third we’re want plan, Good powerful Zeta, trend is continued QX margin and transformation results welcome the high half had running break-through another we included: operating our guidance of and all solutions. to shift everyone. first elements ahead a to record revenue year. step understanding: contributors higher you. we There our our quarter to Our Major of bookings, outstanding three the the you, generated the are of First, Thank recurring investors continuing afternoon, the of David. have thrilled we to away quarter for through quarter the

of are midpoint $XX.X guidance and $X.X million million XXXX On million. of this full we guidance by EBITDA adjusted by $XXX.X momentum, increasing to increasing the $XX.X revenue year the million back to

Second, clouds way. a customer head-to-head new robust we In resounding the expansion. and saw we wins beating customer in third again largest existing quarter, are once the marketing

over for with growth contracts. quarter total quarter and deals subscription five drivers. alone, of the Our software with revenue. $XX focus strong of XX% booked contract in execution levels usage recurring is on third, million third on minimum driving over value another in we more higher our six core we multi-year wins And And multi-year had

Our growing to our customers, core EBITDA sustained internationally. Explorer, leveraging year-to-year and drivers building revenue long-range new blocks drivers margins. our products, growth Zeta’s span target are XX% launching at core and growth plus the least adjusted customers, new Opportunity expanding XX% growth existing adding of

to the We last build momentum upon year. continue from quarter last and

about $XXX year-to-year growth in these year-to-year. not We $X revenue growing generated set with of million the briefly each of markets. record XX% a delivered our XX% came XXXX, more that was detail. Normalized to talk our Cycle diverse Presidential me Let quarter did up quarter of for third growth million prior Starting of at in repeat revenue, last execution results, year end quarter, highlights three was in X% across demonstrative in the and Similar of in third quarter-to-quarter. market.

more to largest grew our verticals of positive revenue In the shift out fact, Platform year-to-year, XX continued. than six and industry XX% Direct

our revenue Platform the months mix are year nine XXXX. being basis, directly end first XX% Direct a of of compared the on we compared to year-to-date on XX% XX% XX% at mid-XXs. track to through On delivered Platform, is goal quarter Third the and Zeta revenue to of last was year Marketing

percentage revenue Over period, revenue lowering the of generated primarily to by our a Zeta nine-month XXXX are seeing from XX% driven channels. of XX% year-to-date and from operated XXXX, year-to-date owned same we cost direct

points year-to-year cost quarter basis of basis XXX XXX revenue was Third XX.X% stock-based points quarter-to-quarter, an excluding percentage representing and compensation. improvement of

more XX% basis With our from XXX greater percentage. more appreciated, is driving creating full of we the We XXXX, revenue power is of pricing an the our of third mind, guidance. of opportunity percentage generated and to Zeta force sizes becoming at cost our therefore seeing improving versus platform revenue more the reduce Platform. and least larger behind expect the we of are year directly deal quarter in revenue strength cost competitive Marketing for is use and by the for XXXX prior channels. This now of strength feel the points This the our improvement on

quarter GAAP On expense. $XX.X structure, revenue includes of down flowed $X.X The even net $X.X million in our better our Our $XX.X third we increase sales Adjusted EBITDA, and million million to million through invest revenue as was quarter-to-quarter, leverage. stock-based marketing. continued loss to flowed expense increased and XX% operating line top than direct of in compensation

the the compared million, up are up with offer For $XX to-year marketing $XX.X flow adjusted million, third ownership proprietary Platform increase beating is accomplish this The Marketing up, perspective, by marketing At and significantly the and is lowers new a return quarter-to-quarter. XX.X% From representing can outperforms on reason respectively. quarter the XXX acquired quarter, total we year-to-year From million our Marketing quarter, free EBITDA, year-to-year was XXX investment generated was to their years platform, and because up Completed an Zeta cash the and significantly XXXX, as quarter an generation ago. clouds, XX% simple. EBITDA in $XXX.X competition single compete of end $X.X basis $X.X both a We points our intelligence, basis omnichannel balance a and assets, is the from On software and second record rebuilt competition million why year- other adjusted points of the cost cash the quarter-to-quarter. million. ROI activation attribution in of where margin to against a early we marketers. artificial operating identity models. data, XX% of in cloud highlight for Zeta in platform my Platform perspective, generation we cash the backed sophisticated legacy the of cash bottoms $X.X by million third the

Salesforce’s board the and continues Our six win the recurring and multi-year, we times: from the six third core other competed accelerated rates a Target, Neolane, we cross-selling. a revenue newest Adobe’s our for multi- new introduced Responsys, Exact highlighted customers with others. against the across new I I multi-year contracts contracts and Oracle’s along five numerous in were earlier, it are to our and opportunities with wins won the many RFPs But we the we out of drivers. winning. is showing up are all Four Opportunity of to have earlier continue Our in potential through year be the These on winning. to be of to is names engagements also become we and sales number it just are and primary up the highlighter beating, highlight HOW six Wrapping not who These WHO larger growth execution came Explorer, of open much product doors of accelerator. which the quarter: beat

in a moment highlight take particular. two me Let to

customers, existing the scaled XXX to XXX in quarter. quarter second the we on in increased from third Focusing first customer count

count, increased customers scaled third adding ARPU In ARPU scaled also increase by ago, XX% increasing X% a from quarter-to-quarter. last $XXX,XXX to and for the or and we cases. channels from quarter, up more more to $XXX,XXX, addition customers use year we quarter for or In $XXX,XXX year-to-year, up saw

rep fronts, sales the of scale to on Platform. was are on adding than development platform revenue in of more productivity motivating we new mentioned and it and from from investment. I Zeta sales making And, best we year quarter from customers, hunters We Shifting benefit our and our More to-year to in a half the Zeta. on largest even of platform them usage pace. new placed of quarter even of up of which growth noted year- entirety customers, number growth is driven a the a successful, by-product incremental driving front, ahead our on Marketing two-thirds directly seeing as our track of our customers revenue different the was and XQ XXXX, to the continue further the to third first came acceleration focus

and in is we for also in market a hiring added attracting sellers, great and success and hunters three talent. the quarter. the In environment seven Our Enterprise marketers tough new sales farmers marketing

Wrapping We revenue within year. raising the and ending now the enablement two-thirds XX are approaching better hired deal, in to with guidance, this us, understand from and finally, full XX% We carriers, months quota and programs. the EBITDA from up are we our with up hiring three last momentum of quarter already last guidance quota internal and have nearly expectations. than XX quarters quickly carriers measure of And strong our new fourth of quarter, adjusted up year. behind XX first their closed efficacy last

increasing midpoint. $XXX guidance We million million million $XXX full million an $XXX increase to to million of to $XXX are year $XX.X revenue from the at

quarter Presidential revenue a Cycle $X of Presidential quarter accurate of from XX% guidance at last headwind. a adjusting Included fourth created growth for for XXXX, fourth of the XX-point fourth is million revenue million year is more midpoint million $XX growth XXXX which after of As comparison, midpoint Normalizing Full XX%. Cycle reminder, of Zeta had fourth a the revenue in at quarter is year-to-year $XX in in XXXX, Apptness. year. year-to-year guidance XX%, and quarter outlook third the the our of growth and of

midpoint. million, increasing million million million also the $XX.X million up EBITDA $X.X $XX adjusted $XX.X to are $XX.X guidance now from to We at to

growth a our ramp are marketing investment. continuing sales, of to while conversion fund incremental and to R&D strong seeing of even We adjusted EBITDA,

basis XXX year-to-year. year full of points adjusted at Zeta XXXX, XX.X% representing is midpoint, the guiding of margin to the For EBITDA expansion

guidance. slides for details our on the ’XX Earnings quarter year presentation to XQ, and can in nine and fourth full Supplemental You refer eight

the Before started. up David handing call operator, where wrap I’ll over the

strong a place. have the position strategic We market in

We hand marketplace, in me take are just are and, to me your started. winning operator the David for that, the let call getting we and the to back Operator. With questions.

Operator

first Thank go you. And Please is ahead. Instructions]. question Blair. from Bhatia our the William of [Operator with Arjun line

Arjun Bhatia

mostly guys. you good prepared sit quarter your is in very the maybe made on a wanted I’m Awesome! legacy of CDP that commentary you curious Thank about not the go-to-market of solutions and replace kind reduces some given some preference friction having put the you’re and ready rip remarks to touch if clouds. purposeful the in this are customer the some I or much pursuing, the another of data. congrats if they to strategy it alongside depend that maybe process on of buying of in to just legacy on some

us perspective. help just dynamic thinking understand Thank go-to-market how replace and alongside these versus rip you’re from crowds sitting of integrating the and some of that you. legacy So

David Steinberg

First say your and Arjun, key is success The of what let kind our you thank is me success all flexibility. for we to today words. think future

large in are not they’re a RFP of are the have these until alongside an with sit clients an working ability contracts, remember, they start cycle. when longer wait immediately to to and cloud RFP to because ability the term in process, So us not gives

our an A of lot to cycle, sitting it our able to a of do. wins of when flexibility, we relationship, out. almost of we’re do work believe a wins our alongside two, go every saw and enterprise were we where with to We be and rip they both strategy what number build others and RFP can enterprises we we a can where three spawn others ability relates in can only we’ve Now, after in go-to-market position is clouds. be replace, that work then four as and number into to this is were But rip and to begun flexible marketing whereas years, can they our large both, rip and real-time, have certain quarter. them to and goal to are certainly leaves attempting very that not, and replace, the or replace, with that any

incorporated alongside percentage We of period them good them technology how of into a show are we CDP we were internal can ultimately build incredibly in the have the we are. not how during show seamless the where process. RFP an in which plus can the we win So we that competitor high activation with RFPs data sponsorship; come differentiator, the the an in such they can

Arjun Bhatia

use think That’s vis-à-vis like dynamic us mentioned Wonderful! maybe which already customers I of understand terms most primary Just channels channels in cases driver. coming about I Chris, very in expansion expand a that, help you mentioned if help And you channels the were you of Chris, traction you channel I can. you can When seeing from? that helpful. expansions, customer think us wonder new is as your that look where understand email? that to own, and

Chris Greiner

customer cycle. email you again use XX% XX% were We successful quarter the our average per optimization, growing if to to end Like evidenced channels growing nicely was digits. growing in major Arjun. really as number presidential all per once CTV, exclude though, site by right to double across from it per, the digital video, of You’re the cases last distributed revenue reported channels, and and scaled display

fact quarter-over-quarter. revenue In CTV doubled

So broad-based in going that’s how terms of and market. to we’re purposeful it’s

were sellers Our to all platform. on channels the sell able

Arjun Bhatia

you Perfect! and congrats very again! Thank much

Chris Greiner

Thanks, Arjun.

Scott Schmitz

you, Arjun. Thank

question please. Next

Operator

is with with Our next Hynes Canaccord. go ahead Please from your question. line question of David the

Luke Hannan

taking for This Thanks question. on DJ. Hey guys! is the for Luke

of – but channel customer today much of driven that of driven how that, channels sorry, is versus your And hear is case the talk ARPU using tell, – reword and I’m your just in think one, increases probably more to the about to by average using in broadly being number expansion So then existing channels. is just versus last use it’s is usage and hard where Thanks. increases today maybe off you time? scale over dovetail could curious you go could maybe many to to that channels customer just how also

Chris Greiner

the Hey I followed Luke! Yeah, question.

that we and go X.X, the hunters Where to from higher. now. over expanded to talked how customers, a farmers, credit lot focus we average that last are over well, of one and about we making per to going grew we more A the So market that one with where two channel little to Where just quarter, a – sales the created scaled XXXX is we’re a was team our back to hair ended one we let’s customer kind here? of of between the about the you half. how and we’re I, know focus something one. kind from approaching year, reverse Last successful. It’s in them it how can again

In terms expansion, the driving of this what’s ARPU the channels. to expansion still it’s of point

further than I in we in are increasing think we’re that of number journey ahead use cases.

So for example, doing still their precludes XX% use three. and that nothing on of platform are our scaled first there’s them customers our Zeta all of using case from

that’s think So to on. frankly could further I theoretically, a we’re probably we’re XX along. a per to But this focused something bit journey, it’s that channels be very even We more. but take going

we with satisfied. but pleased where we’re are, not think certainly I

Luke Hannan

Great to hear! Thanks.

Chris Greiner

Thanks Luke.

Scott Schmitz

you. Thank

question, Next please.

Operator

question next Oppenheimer. from Schwartz line our of is the And with Brian Please ahead. go

Brian Schwartz

Thanks and really on hi! quarter. for Yeah, taking a nice congratulations my question

the platforms companies. Is deals, pilots be know model that could large rate in deals. show win It these the in you these marginal more that you release press are the better ask these some some legacy question a driving cost and to attribution about is for the you’re ask in highlighted going big with like ways seems and to able to the Explorer. Opportunity a part wanted about that against deliver model you when you’re better you some to the of The of is IDFA-impacted? that Explorer, is, a question potentially Opportunity as of bigger Just wanted I lower these in attribution

David Steinberg

you Well first Brian, your for of kind all words. thank

question sort that companies, already of in coming for cookie phasing elimination of third-party Second, yeah, at number large remarks, meaningful the a there’s because don’t creating said IDFA use and in including our Zeta, of I the of we I we cloud. data opportunities are out tech the prepared the the mean no and as changes very the

with ecosystem position very showcases companies new do how does nothing I and would and how So us part our Opportunity new it of the that large a deal puts in engagements and unique Explorer. tell that data than better you a that around our

things: Opportunity So is you data. Explorer One, major to two gives attribution think the better figured substantially which deterministic us down it does out, intuitively modeling I

building So purchase. that have started model building a this did And might journey person this you’re person purchased, this not model a their here. person you’re that

Here’s journey, completed and where through the where here’s they went journey. they the

thing very quickly to what doing, that but it it competitors the The their understand not doing what are allows what they and customers doing. does is just other enterprise are are their

So an it perspective are begins what the journey entire what their customers ecosystem, to gives across through which where their data discovery are real out process, deterministic full meaningful all figure way then potential from doing. and the the and doing analytics customers can they in It leads attribution. complete the

been customer more today, than happening of capable been has in than to as a has about and and this important customer the this a know past digital never talked it is and you more transformation. never So together, we’ve creating move and marketing efficiency lowering it in keeping of cost

through more to to we’re the companies So see it at starting digital Explorer as which and allows us quickly. we see accelerating, move look transformation, move their that Opportunity

Chris Greiner

multiyear the four six recurring the of Explorer being deals that In booked were them of revenue closed Brian, this front the quarter, Opportunity through XX% fact with door. were

David Steinberg

the large of we customers of scaled And lot and quite until other frankly, is sort closed that a very we into quarter a this opportunities flow process closed quarter, next probably we with won’t was Zeta this when Explorer. large then began percentage of it half, than A works in internal greater with the up. – that how percentage pilot also which the opportunities those, quarter, Opportunity scale of the and start

Brian Schwartz

housekeeping for I have Chris, just really one question you. sounds That good.

contribution from if you terms the Thanks. revenue in think With what guidance, of the XQ closed? is that Apptness should about we acquisition any, there

Chris Greiner

million fourth the Great we’ve $X quarter. our line in Apptness earnings nine and contribution showing included we slides Brian! a in item on supplemental, of expect eight Apptness, that as from

Brian Schwartz

you taking questions. Thank for my

Chris Greiner

Thank you, Brian.

Scott Schmitz

you, Brian. Thank

question, Next please.

Operator

And instructions] our ahead. from Ryan go [Operator Needham. Absolutely! Please next is question MacDonald with

Ryan MacDonald

one Hi! my questions an the maybe excellent first on and congrats David, you. for taking quarter. Thanks for

perhaps I’d portfolio be other but IDFA versus in approach they to realize curious need more talked your drive take move customers as expansion channels sort revolving omnichannel acceleration of you with with more not and into channel some email or impacting the of of particular, term know changes? about the that if maybe adoption of in You impacted that’s starting near mobile, to which a might that obviously conversation, an Zeta these be or customers

David Steinberg

of it. you all first appreciate thank Ryan. once Yes, again, I

affecting and the particularly affecting would say your of raise would and turn I what’s a because of us through IDFA been happening is and for really the obviously we’ve that results question elimination We’re quarter what’s enough, is IDFA. of of happening Interestingly positive, has proud ability is companies, just used Zeta. disrupted some of never the to the sort I seen little the lot around ecosystem a bit by we’ve the as the It’s guidance. other just because

down synthesize the platform. data ID using our We’re to deterministic Zeta to able

that number We’re able to of longer other in a ways were attribution to and that deliver on marketing no are IDFA able companies the dependent do.

market are helped transom, ecosystem, consumers some post-IDFA world number it’s question, I third wins and cookie on you in the a of in us party are the with answer post a we that quite web and over RFPs in types and will the world ready I RFPs that. of very think particularly how we’re of we really in do those which quarter large, a to come you, very, third absolutely expanding your mobile in saw are and for opportunity us, for yes, the the focused So tell seeing identify

a losers. we Obviously are net both an it’s disruption We from we’re major a there’s So changes. think there there winner those winners anytime are and opportunity. think

Ryan MacDonald

you enhancements provide? of but you lower as the contribution, acquisition well. cost guess $X of then then a of that as announced million to a looks part it bit more some are wanted enhance of your It And just rationale but I about a can interesting cloud, help Apptness the can talked to a talked I about potential those strategic around like as you it acquisition. to can when Chris, that where there follow-up, ask talk components and about I And revenue data for you a revenues perhaps think

of you think Thanks. benefit Just that how we fiscal fourth that from thinking about or layers quickly can about into how quarter as ‘XX? sort guidance

David Steinberg

Great that more But already that a the They’ve employees been is of you start the data this know out incredible platform. generated sort focused data find is from and dataset helping employees very and company in data and for jobs to large questions. don’t I’ll cloud then efficiently The coming opportunities to Why an give creating to market, very there valuable punch line. an of strategically there, Chris in new number and you I of company. helping let employers incredibly seeing we’re is work. customers our our adoption find Apptness

that The are the other margins. let in with I’ll commensurate Chris gross our is good margins gross news business get or which into on-platform higher

revenue. its that, seeing already we’re So subscription plus

good we is So going and feel business Zeta. as where about in that of where to a fit it’s part

we that pretty can pretty quickly. business also think dramatically We grow Chris.

Chris Greiner

he hit points. Yeah, all the

more to surprisingly expansion, gross and year-to-year accretive. the nice in the But David both is higher I led what to work the mentioned Platform margin gross was reduction the really on-platform. all about which direct XXX or basis emphasize of to the even to Marketing yes, of in margin equal meaningfully Apptness going as Zeta of more of expansion profile and revenue margin to cost be gross to growth maybe we’ll is said basis generated drive quarter-to-quarter, points. XQ direct the continuing more continue and ZMP, it’s Just more XXX than remarks, prepared the move Ryan, points on on even not the

farmers our and customers that for us tailwind operated expansion. to help, are of a data is to the So more Apptness channels owned in and more continue but moving will also certainly

Ryan MacDonald

Talk] Congratulations! [Cross Excellent!

Chris Greiner

Thanks Ryan.

Scott Schmitz

much, so Ryan. you Thank

Next question, operator.

Operator

question Stanley. line comes Morgan Zlotsky the go of from Our Stan next Please with ahead.

Stan Zlotsky

revenue how the that’s Perfect! in you much reoccurring Very so of standpoint? What the of $XX the you’re product impressive from are guys. TCV million Thank end. of the doing questions selling my deals terms six A contractual versus and afternoon contracting of this with it, and to from XX% revenue all couple good recurring a revenue. of drive recurring and you

David Steinberg

have thank work first we our customers. sales ability motion we’re Well sales to evidence we when And we with contracts, that we’ve listen, know the on Stan, subscription and been you to to trying a and joining focus we of able change all for pivoted have you said longer-term and right. that from us, perspective

need the is going is saying you long-term third-party we’re help IDFA to clients elimination the yes. this marketplace the cookies to we good relationships do but Now, in news and of of problem, it, around lot really fix the go if the together, we yes, say, ability disruption a the the and meaningful giving are us clients can to and

our that important of You think a and see continue think long-term that to I evolution is We’ve quite know, our this frankly trend of contracts on number clients trend as including on. the we’re that think is we platform sales continue clear as of we’ll an to a focused people, accelerate. this focus see you’re that really to that business and motion and this with is I continue and I shift a trend you, loud heard metric we on are think going will subscription

Stan Zlotsky

it, Got it. into deals then big you Got that and these, wanted mentioned. dig six the to just

kind So three contract math like a six we about deals, incremental million on of life. let’s TCV, if average do assume $XX year the

logos, deal existing right what’s and between would signed of were in you why maybe this Can you Kind logos Let’s of – call reported of being you ACV the six four $X know like expansion. – help us customers know, and new some customers these dynamics scaled the that million flow just being of them the of six added through net us about it logos you added. this the and through walk was just quarter?

us of bridge numbers. kind help these Just

Chris Greiner

I’m you Yes question and great, great Stan, it. asked glad

about with, you his start remarks So I things. know prepared first let’s David three think talked in

like started’ total know it’s and model, under as think You getting category to. we this the ‘just said, wanted the you first we working David put when off, think about I

reflection out recurring count scaled And revenue the even larger. were our fact only in mentioned customers was a scaled customer one larger making the our So of that scaled this or customers quarter quarter. increasing you multiyear just more of contracts in the six

in it is a did and David term expect then layering the as of quarter by on in plan about are But value head the kind customers on layering great per I than and a the average you’d doing. did this the these the that driving, math the is productivity -- become about going you fourth think when sales those way, deals therefore right. will to are So our The nice And revenue mentioned, right. average into start as is we’re new speaks higher scaled. creates we’re to you adding existing customers transformation What that expansion new the is average those at coming math customer the was revenue. us, we’re

David Steinberg

to quarter. these seeing customers scaled Yeah, about the all new, and not they fourth be What the scale just signed these Stan, that. in all will all we results of for the of in were And you’re six that in are clear quarter clients the quarter.

think that’s Chris So what I was…

Chris Greiner

than which rest Yeah, be XXXK in become the scaled six clear, will scaled out the in the basis so greater just in one The fourth. means TTM is of a to quarter. third so

David Steinberg

all new it, customers. Got But yeah. they’re

Chris Greiner

Yeah. Yes.

Stan Zlotsky

Thank guys. you helpful. Very Perfect!

Chris Greiner

Thanks, Stan.

Scott Schmitz

Stan. Thanks,

question, Next please.

Operator

ahead. Richard Please line ROTH next from Capital. with Baldry Our of go the question comes

Rich Baldry

bottom-line feel curious, You’re to at disproportionately rate your strong think is on which need with think, been, same congrats of of growth and and capture of are broaden any or that you pipeline I can sort EBITDA climbing maybe. top to kind sort fund win you strategy same so quarter. win on as XXXX, in to about bottom the feel I’m fast obviously that share on time? rates Do numbers specifics strong you your the much market how do you tact invest, balancing as Thanks, possible adjusted but stay is asking for like because enough without do there’s and the operations you’ve terms your top-line of accelerating, and line?

David Steinberg

much. think as Well, XX-plus it comments. there’s talk first went the Rich, that quota can It’s really great Listen, thank make saw I on we’re we XX from we I you if to accelerate you carriers. all, to won’t of focused we growth us investment to that. so no help the And appreciate think evidence you.

quota trying market this And really in thing is can Chris, are amazing the hire and out other every carrier pointed I me think to keep interesting here. get, honest that We Chris possibly really we that right?

I sales sale. their a of think first the reps in was year number our have exact XX% created now

Chris Greiner

from XX%. up That’s right,

David Steinberg

Up from XX%.

and that and of that want of easier it the reps I win It’s mean, people of be a is minimum said we you new in, is to to almost, think that, Rule that’s not relates it some a just is We is the sales to there’ll do rates to us. the and simpler of order Explorer we’re call over.’ quarters So are when are But XX% from closer really increase marketing sale. publicly for the a I at quarters Opportunity cool. because end know getting make increase ‘Wow! we’d see very and the What get them to to from So place XX% stealing the you and large is strategy, get there. head-to-head we out where XX, for come sales we’re think who have necessary. lot reps come how we’re growth like we we up that to like, leave to work in I a investments calls that from balance, then figure to some What out the It’s come win, as we the long-term right there to of got a people clouds side amazing! the of other going think to Rule XX are and we a compete

probably made at the look Zeta marketing. investment Live, ever it’s as we’ve you a into company biggest If

to Fanatics, Khan, most of of the Strategy is he interesting Rubin Snap; Imran and Michael Singolda, coming, and of speakers; coming; doesn’t the Chief going so Officer have which Adam Sculley John coming; CEO some is things; these former do Sir partner Martin of so on Head a and chairman world’s Taboola my We’re the is forth. of the lot Sorrell

more We’re really the to going we investing the Zeta win. brand, RFPs building the into because more we’re get,

I continue accelerate to to something but we’re that we’re going relates I and like act, balancing very So to focused that feel invest that’s very, on, continue growth to we’re as it to don’t If and mean Chris, money the we’re to we to… stupidly. think not going do profit. can drive invest see growth, you really to incremental we something want going create save

Chris Greiner

teams. Yeah Rich, what I to David hires, XX-month and to on Gerber Their deals and sellers. example at average win that experienced XX%. And problem, sellers, with Steve last the average the two-thirds than data-driven with credit we’re done are tempting on quality the rather well as most it’s most their on The really have best think is I is first number that mentioned, that par of par them of of each team, the carrying are of we’ve so the deal think size. but our experienced sales their quantity in productivity rates throw their are is our already deal his closed up as

So function I hiring a it’s think experienced, experienced of professionals. really industry

customers, with easy the continue We’ll them as we’re soon we training margins, and throttling make data-driven happy. growth and expand just to their investment in is very way. the but get to getting model can as really great lives to do to We’re XXXX accelerate trying contracts enough, so

David Steinberg

clear, the we’re simplifying be me let message. And

capabilities We’re company evidence and proof in faster. makes our simplifying the easier for message the sales close salespeople Opportunity and simplifying from motion real-time a a perspective of is the as of which it concept, single we deals example we’re Explorer the to message a best how

Chris Greiner

Rich. Thanks,

Rich Baldry

win Maybe me, really your your on is that for direct improving building last, rates well.

off seeing? to seeing with maybe So marketplace a rates that there’s partner? can positioning successes are on maybe you partners changing, your are pretty the Bradstreet people, vendors from your interest as the piggyback you’re so how win specific Dun about other and with any work you’re But that more broadly, talk growing strength they clear, to your update with if you in try other being &

David Steinberg

Yeah.

year relates day. give cloud as made great and a being from our sort were with do years a are We to the is think place the BXB joking ago it’s stood I them think cloud public a a number build don’t of to working a you’re decisions Dun that if in them And see around of course reality major massive a job. acceleration grown, lot a with if And take a old it to I’m willing grow, who know has company it’s which from I time continue continues and cloud that brand, company, mean partner. it’s plus I up centralized a cloud one been The people and was love Zeta they on other investing. enterprise Rich. partnerships five interest it and exciting different to of private business-to-business, we’re stood chip inbound where of and as additional in is calls personal to where with & it or the buyer, XXX-degree really, Bradstreet, to around perspective. seeing velocity transition data partnership seen to view a to a strategic the that question, my really and each the going industries, we starting up on So starting marketing I global we great really of We And have verticals spend there. XXX the a right blue strategic with the lot we partner. I a partner

Rich Baldry

the Congrats quarter! Great! on

David Steinberg

Thanks so much, Rich.

Scott Schmitz

please. more we’ll Thank you, one question, Operator, take Rich.

Operator

ahead. And our question America. line is Ikeda with Bank the last go from of of Please Koji

Koji Ikeda

you around my end, question question my anything or if of questions. I my calls, a lots taking guess I’ve recently. know – on yet couple did just for to from other asked, been – Thanks of is, anybody this guys! that IDFA jumping get was noise around Hey and Apologies from ask

all? can should we you guys know with that any Global You effect remind there know us or headwinds potential is be no Zeta you about is how to or just You thinking tailwinds IDFA? at

David Steinberg

no. Yeah,

had said on talked But basis. just couple we to out So I point a about of synopsis it what earlier times. it a

in never our cookie used a not anybody not the have now. and data third-party cloud. do use We identify we do to IDFA, We

giving we’re be frank. for creating a happening what’s it’s in opportunity us tailwind is us So what an and seeing to very strong

But seeing it’s in as said a it a earlier I earlier call, massive us. fact busy In inbound for is call, opportunity in we understand appreciate joining. your so we the listen, day, we’re the as said and I

and you we’re know we it We’re certain we’re with deal were I seeing opportunity We been it. had I quarter how wins it’s to we’ve companies are is party on seeing to us in world never dependent post-third would a a don’t been ID to companies as of That in world a and me IDFA that the lot on us. third-party post-IDFA in of the marketing how of earlier. can it. to a in cookie third used lot figuring heavily tailwind deterministic number you need use of do was an identify I that and to out tough and flowing We a for because interested it velocity. individual. that the the on cookies, for the a RFPs don’t tell marketing prepare getting, RFP used more to. There again expand Zeta we use has really it if so because

Koji Ikeda

this margin last noticed you the that No, those recurring that’s business were And of press Maybe for said was And It good. more was know release, and in less on And does refocusing lower-margins just the in higher-margin, help one reading bit shift. I reading your and expansion right? future? sound the strategy a I recurring. one little Is a there. you does what David, like parts business? Thanks I for Chris, quote then me.

Chris Greiner

Yes. Not shift emphasis. margin a Koji,

David Steinberg

a Not shift. strategic

Chris Greiner

Not the revenue. When data about shift, talked TCV, XX% early at of to few right. things there but we I’d number contracts, days, $XX six were demonstrate emphasis and recurring want of that call a them, it just strategic in a multiyear point. We million

First, it, more early of said, be as I there’s going to days.

continues Responsys, came hub sales be a theme next and giving six opportunity those accelerator the a beaten were side us, some out in in Opportunity and a the us which either of to time bids each from major taking are marketing all with or of combination to in hub wins, you Salesforce’s the right bids, know these ExactTarget, for we four Explorer, seeing times. these or names we’ve Oracle’s Second, beat Adobe’s CDPs they them. by all multiple nice and compete we’re sitting to Neolane, the same side, and engagements

David Steinberg

it’s Koji, emphasis. I’d quite And shift wouldn’t I know you say frankly, a strategic it an call

longer-term, we the Yes, a Street, be implemented frankly, IDFA with unique know But Zeta work first the say help are you saying quickly. to not question, relationship a need to to to this. our new disruption, You of really are and your for us customers, Yes, understand, lot but of we a hear of meaningful we harder. pushing make back to deeper created opportunity the resolves because customers cookie, our the this can IDFA a we quite has and we can CDP ID, or yes, elimination yes. CDP more in

definitely but a So focus. getting Chris think It’s and emphasis strategic I said we started. are perfectly, just it not a shift, it’s an

to I you’re think going and subscription continue. We trend that have see revenues to changed our sales more motion on focus

Koji Ikeda

Got it. I Thanks Thanks questions. guys! really my for appreciate taking it.

Chris Greiner

Thanks Koji. great night! Have a

David Steinberg

Koji. Have evening! a Thanks good

Scott Schmitz

joining. everybody Thank you for

Operator

you that for you for and you Thank call please And that conference evening. a have great lines. conclude does and We ask thank the today. disconnect your participation your

Zeta Global (ZETA) 11 Nov 212021 Q3 Earnings call transcript