Zeta Global Holdings Corp Live Investor Day Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: David E. Hynes - Canaccord Genuity Corp., Research Division - Analyst : David Hynes from Canaccord. Can you just double-click on the mobile opportunity? What's changing there? What does Zeta need to do? And does the competitive set change at all? Unidentified Company Representative What's changed there is going back, call it, 5 years, some window companies had to get into mobile. There were a few major players in the space. And the thing with mobile is it's not just a delivery channel, it's also the way you kind of collect data and it has a little bit to do with identity graphs. And a couple of those companies rose to the top. Problem with them is they're not really enterprise ready. They're not ready to deal with how complicated data can be not ready to deal with the changing identity landscape. And so they've been running all of their marketing on one platform. Then they're running their mobile through another platform. Those things need to converge. The market today doesn't have a mobile leader with enterprise jobs, full stop. Zeta has strong mobile capabilities, but I got to be honest with ourselves, we are not the leader that we can be. Generative AI has also changed the future of conversational mobile interactions. So it's the coexistence of those 2 investments that's going to make us a leader. We work in pods, as I said earlier, the -- what needs to be done, which you need to invest in the pod and get the product to market. The good news is all that data and identity pipeline that needed to exist is 100% native to the way we built the platform from the ground up. So for us, it's really easy to have fresh routes there. Unidentified Company Representative I think it's fair to say some of those newer platforms are from yesterday's era as well. So the same forces that we've talked about that are affecting the enterprise across the broader marketing platform or Marketing Cloud are zeroing in on mobile back to the modern CMO does not want to distinguish between platforms. They want to deliver personalized experiences across every touch point at scale. Unidentified Company Representative Yes. And I'll share a quick tidbit. We were on a call 2 weeks ago, the company is running an RFP. They selected one of the major mobile first marketing platforms out there. They were with them for a year. They never got live. They just didn't get the enterprise support they needed. And we're going to see more and more of this in 2024. And we'll have -- as I said, we've got a solution on the market today. Our solution will get better and better throughout 2024. Unidentified Company Representative All right. We'll take one more, and then we're going to move to the next section. Unidentified Analyst This is [Amin Golan] from Barclays. You mentioned that converting the SI channel is a key part of your market share expansion. Can you just elaborate where that stands today? And maybe what percentage of revenue you expect to become over time? Unidentified Company Representative We're not getting into some of the revenue, but it's, again, very early innings. We just started that this year. And as I was saying, we built out a 3-year plan and the culmination of that was a set of SIs that you would know. And we've found them coming to us. So the motions are happening faster. The conversations are deeper than we would have expected. We're pursuing all 3 primary sales motions with them. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 27, 2023 / 12:00PM, ZETA.N - Zeta Global Holdings Corp Live Investor Day One is a referral basis. The second is a co-sell basis. And then the third, which is being built out is more of the traditional SI operating on selling in and operating our platform, which is newer for us, which is an evolution of our value proposition and go-to-market as well. We look to that as being an accelerator of growth and a driver for that 2x to 3x market share over the course of the replacement cycle. Unidentified Analyst Do you believe that the SIs are coming to you because customers are asking about data functionality? Is that the reasoning? Unidentified Company Representative I think it's a combination of factors. But back to the core premise that today's technology or yesterday's technology is not solving the today problem. They're seeing that as well. So their customers or the CIOs or sometimes the CMOs, and they know that they have that personalization gap. So they are looking more broadly at the marketplace. SIs are also trying to be more client-focused and less vendor focused, moving away from a practice around a particular vendor to them to trying to have better solutions for their customers. And so they look at us as part of that set of solutions. Unidentified Company Representative All right. I think just in the interest of time, gentlemen, thank you. We're going to move on to the next section. So now we're going to bring on stage Tina McCain, who's the Executive Vice President of our Client Partnerships, and she has an exciting partnership that we've alluded to on conference calls, so I'll let her do the rest of the introductions Tina. PRESENTATION