Zeta Global Holdings Corp at Morgan Stanley Technology, Media & Telecom Conference Transcript

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

Question: Elizabeth Elliott - Morgan Stanley & Co LLC - Analyst : Great. And the company reported earnings last week, growing 30% organically, and that just excludes spend from some of the political cycles, from M&A. And you hit $1 billion in annual revenue about a year ahead of your initial plan that you had laid out in 2022. Would be great to get your key observations from the print and what you're hearing in conversations with shareholders coming out of earnings?

Question: Elizabeth Elliott - Morgan Stanley & Co LLC - Analyst : Oh, 2020.

Question: Elizabeth Elliott - Morgan Stanley & Co LLC - Analyst : Great. Okay. And before we get into more of the financials of the business, which I certainly want to dig into, I want to start off with a bigger kind of picture question of you've talked a lot about these replacement cycles happening at customers as centralized data just becomes more and more important. So where are customers coming from? And what are they going to when they replace? And where are we within this replacement cycle?

Question: Elizabeth Elliott - Morgan Stanley & Co LLC - Analyst : And with that move, you've also talked about your opportunity to expand the addressable wallet. Right now, you're addressing about 1% of the available marketing and advertising.

Question: Elizabeth Elliott - Morgan Stanley & Co LLC - Analyst : For your existing customers and an opportunity to clearly kind of move that up. So what are the strategic advantages that you have right now to accelerate that $2 million average spend on the platform right now, isn't an insignificant amount. So how are you kind of moving that forward? And what gets customers to fundamentally shift more of their spend to Zeta?

Question: Elizabeth Elliott - Morgan Stanley & Co LLC - Analyst : And the 15% of customers that are only on one use case today, what has been the friction for that number not to be higher? Is it, "Hey, I already have a stack and so that's replacement or different buyer personas?"

Question: Elizabeth Elliott - Morgan Stanley & Co LLC - Analyst : Great. And another place for the business that [has] been working particularly well has been agency and holdcos. And so just beyond -- and that really exposes the customer base beyond just your traditional enterprise brands. So first, just why do the agency-holdcos want to work with Zeta? What use cases are they landing with? And how do they differ in terms of their spend versus the traditional customer?

Question: Elizabeth Elliott - Morgan Stanley & Co LLC - Analyst : Great. And you also mentioned targeting this long tail of 1,000 independent agencies. How do you actually go after this? I would imagine this long tail of customers, potential customers. So what's your strategy for actually penetrating that market segment? And how do you see the mix between your traditional enterprise brands and agencies evolving over the next couple of years?

Question: Elizabeth Elliott - Morgan Stanley & Co LLC - Analyst : Great. And I want to switch a little bit to kind of the data aspect and how it was built. You guys have clearly talked about a lot of the advantages that people get when they use your data, that's why they're coming to you. But just take a step back and help us understand how the data was compiled? And then you've also done some technology tuck-ins for data, including LiveIntent. So it would be great just to get an update on that partnership as well and what you're hearing from customers.

Question: Elizabeth Elliott - Morgan Stanley & Co LLC - Analyst : Great. I'm going to ask another question, and then we will have the microphone go around. But I wanted to get on to the 2028 long-term targets that you guys announced just the other week. So can you walk us through the levers of your 2028 plan, where you're looking to make incremental investments? And what are the areas that you feel like you have the most confidence in? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MARCH 03, 2025 / 10:35PM, ZETA.N - Zeta Global Holdings Corp at Morgan Stanley Technology, Media & Telecom Conference

Question: Elizabeth Elliott - Morgan Stanley & Co LLC - Analyst : Great. Do we have any questions in the audience? So I wanted to go back to some of the product initiatives that you guys have. And two key ones were mobile and AI with Intelligent Composer. As you mentioned, AI and automation have long been central to the Zeta business model. So how are you making AI actually more actionable with the Intelligent Agent Composer. And you mentioned you're on kind of version three of your AI versus many are still launching their products.

Question: Elizabeth Elliott - Morgan Stanley & Co LLC - Analyst : No, you gave them to me in the transcript. What are the key learnings from kind of your earlier versions? And how has that informed your current offering?

Question: Elizabeth Elliott - Morgan Stanley & Co LLC - Analyst : Great. And when we think about the guidance for revenue growth, it was about 21% when you back out some of the things like LiveIntent M&A and the political cycles. So within that kind of 21% growth rate, what does the guidance actually contemplate in terms of some of these newer initiatives, whether it's the AI or mobile opportunities?

Question: Elizabeth Elliott - Morgan Stanley & Co LLC - Analyst : Another one over here. Unidentified Participant I have a question. How do you view the opportunities in the Open Internet space? For example, what's the time share or revenue share of the Open Internet compared to other walled gardens like Meta and Google? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MARCH 03, 2025 / 10:35PM, ZETA.N - Zeta Global Holdings Corp at Morgan Stanley Technology, Media & Telecom Conference

Question: Elizabeth Elliott - Morgan Stanley & Co LLC - Analyst : Any other questions? I think we've run quite a bit over for our slot. So thank you so much for taking the time with us today, and we're looking forward to seeing everything in 2025.