As AI Gains Traction, Will Zeta Global Make A Comeback?

(RTTNews) - Shares of Zeta Global (ZETA) have gained more than 20% over the past week and are currently trading at $14.16. However, the stock remains well below its 52-week high of $38.20, reached last November.

Zeta Global, an AI-powered marketing technology company, operates the Zeta Marketing Platform or ZMP, which helps enterprises acquire, grow, and retain customers by unifying consumer identity, intelligence, and omnichannel engagement.

The company recently posted its financial results for the first quarter ended March 31, 2025, which marked its 15th consecutive "beat and raise" quarter."

Q1 2025 Performance

For the first quarter of 2025, Zeta reported total revenue of $264 million, compared to the total revenue of $194 million in the same period last year, a 36% year-over-year increase.

Adjusted EBITDA was $46.7 million, up 53% from the adjusted EBITDA of $30 million in the same period last year.

Net loss narrowed to $21.6 million or $0.10 per share from $39.5 million or $0.23 per share in the first quarter of 2024.

The company recently published findings from an independent study that revealed a gap between planning and enterprise readiness, reinforcing the need for new tools and technologies that make AI easier to adopt and scale

Strategic Insights from Zeta's AI Adoption Study

The findings are from a Forrester Consulting study titled "It's Time to Get Serious About AI's Business Value".

The study, based on 300 North American marketing tech leaders, revealed that 62 percent of respondents rate their current AI maturity as either "limited" or "moderate." While 64% expect AI to increase ROI and 63% believe it will improve customer retention, significant hurdles remain.

These include fragmented data systems, legacy infrastructure, and a lack of AI-specific skills.

Forrester emphasizes that success in AI marketing will depend on high-quality, accessible data, robust governance, and skill-building — all areas where Zeta's unified AI platform claims to deliver strong differentiation.

The Road Ahead:

For the second quarter of 2025, the company expects revenue to range between $295 million and $298 million, reflecting 30%-31% year-over-year growth, compared to the total revenue of $228 million in the second quarter of 2024.

Adjusted EBITDA is now expected to come in between $54.6 million and $55.2 million, representing a 42%-43% year-over-year increase, compared to the Adjusted EBITDA of $38.5 million in the second quarter of 2024.

For the full year 2025, Zeta now expects revenue of $1.237 billion to $1.247 billion, compared to the total revenue of $1.006 billion in the full year of 2024.

Adjusted EBITDA for 2025 is anticipated to be in the range of $257.5 million to $259.5 million, compared to the adjusted EBITDA of $193 million in the full year 2024.

Cash position:

The company ended the first quarter of 2025 with cash and cash equivalents of about $364.4 million.

Currently, ZETA is trading at $14.50, up by 14.97 percent on the Nasdaq. In the last 1 year, the stock has traded in a range of $10.69 to $38.20.