Zeta Global Holdings Corp at RBC Capital Markets Technology, Internet, Media and Telecommunications Conference Transcript

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

Question: Matthew Swanson - RBC Capital Markets Wealth Management - Analyst : So I guess we'll just lead right off with it. So addressing the news in the headlines last week, you reported earnings, but you also had to deal with a short report. And the company released a response to some of the accusations in the report. For investors who haven't gotten a chance to see the report or the response, do you want to start off by addressing kind of the elephant in the room?

Question: Matthew Swanson - RBC Capital Markets Wealth Management - Analyst : Thank you for coming, by the way.

Question: Matthew Swanson - RBC Capital Markets Wealth Management - Analyst : I lost my mic; you guys can all go home now. No, that was very helpful. And I think from the analyst community, we appreciate the transparency. We appreciate the fact that you're actively showing that you think the stock is undervalued by participating in share repurchase and then the announcement yesterday. And then I think the third piece that you're addressing is the idea that you see the rebuttal. You understand that this is what it's not. But to your question, if people are still asking, well, what is the right answer then? And it sounds like that's what's coming now. Transitioning back to the business. So I think Amazon's kind of entry and then rapid growth in advertising really opened a lot of enterprises' eyes to just what the power of their data was. And for those newer to Zeta, can you just kind of frame up your position in the market and how customers utilize your services? And then that Amazon idea, how is that driving some new momentum in the market?

Question: Matthew Swanson - RBC Capital Markets Wealth Management - Analyst : And when we think about driving growth in Zeta, you just mentioned that with the Q4, we're going to get a '25 guide, but we're also going to get a new long-term guidance. So the previous long-term guidance -- and the model is kind of made up of two variables: scaled customer and scaled customer ARPU. How do you think about the drivers of those two variables for both next year but then also as you start to think about a long-term model?

Question: Matthew Swanson - RBC Capital Markets Wealth Management - Analyst : And when we're thinking about where your budget comes from, there's always this question: is it marketing, or is it advertising? How do you think your customers think about that distinction? And then does it really matter? At the end of the day, it's about $1 in, $1.20 out regardless of where it goes?

Question: Matthew Swanson - RBC Capital Markets Wealth Management - Analyst : And then maybe switching to competition, and I want to ask this in two different ways because, Chris, you were talking about displacements. So that's part of the conversation is who you're displacing. But in terms of who someone would be evaluating Zeta against to come in for that same opportunity, if you just kind of think of competition in those two buckets.

Question: Matthew Swanson - RBC Capital Markets Wealth Management - Analyst : And then you were just talking about the customer data platform. It seems like a really strategic position within the customer. Can you talk about the competitive moat that a CDP offers and then also the cross-sell opportunity that kind of comes off of that central area?

Question: Matthew Swanson - RBC Capital Markets Wealth Management - Analyst : And then kind of thinking more about core value propositions, so we've been hearing more and more this year about CMOs seeing pressure from CFOs in terms of being able to prove the efficacy of their spend. If you think about that dynamic from Zeta customers or maybe even just from the single dashboard across advertising and marketing, how important is it now to be able to both deliver metrics but also the usability of metrics.

Question: Matthew Swanson - RBC Capital Markets Wealth Management - Analyst : That's extremely helpful. We have a really full room here. Are there any questions from the audience? All right. Back to me then. So again, we kind of talked about the two variable model. When we're thinking about the land and expand flywheel -- but what are your primary investments to drive both sides of that model?

Question: Matthew Swanson - RBC Capital Markets Wealth Management - Analyst : And when we're thinking about the investments needed to expand revenue growth, you've hit Rule of 50 for consecutive quarters, Rule 60 with political in this most recent quarter. How are you thinking about balancing growth and profitability?

Question: Matthew Swanson - RBC Capital Markets Wealth Management - Analyst : And then the way we typically like to end these is for both of you, what's the thing that you're most excited about, I'd say, over the next five years?

Question: Matthew Swanson - RBC Capital Markets Wealth Management - Analyst : All right. Well, this has been great, and we all look forward to your upcoming events and the Data Summit in December.