Earnings To Watch: Zeta (ZETA) Reports Q4 Results Tomorrow

Kayode Omotosho /
2023/02/22 4:24 am EST

Advertising and marketing company Zeta Global (NYSE:ZETA) will be announcing earnings results tomorrow after the bell. Here's what to look for.

Last quarter Zeta reported revenues of $152.3 million, up 32.2% year on year, beating analyst revenue expectations by 7.94%. It was a solid quarter for the company, with an impressive beat of analyst estimates and strong top line growth. The company added 16 enterprise customers paying more than $100,000 annually to a total of 389.

Is Zeta buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting Zeta's revenue to grow 19.1% year on year to $160.6 million, in line with the 17.8% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.09 per share.

Zeta Total Revenue

Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company has a history of exceeding Wall St's expectations, beating revenue estimates every single time over the past two years on average by 6.73%.

Looking at Zeta's peers in the advertising software segment, some of them have already reported Q4 earnings results, giving us a hint of what we can expect. LiveRamp delivered top-line growth of 12.8% year on year, beating analyst estimates by 0.55% and The Trade Desk reported revenues up 24% year on year, missing analyst estimates by 0.22%. LiveRamp traded  up 4.99% on the results, The Trade Desk was up 5.13f4%. Read our full analysis of LiveRamp's results here and The Trade Desk's results here.

There has been positive sentiment among investors in the software segment, with the stocks up on average 5.79% over the last month. Zeta is up 2.45% during the same time, and is heading into the earnings with analyst price target of $12.7, compared to share price of $9.2.

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The author has no position in any of the stocks mentioned.