Zeta (ZETA) Reports Earnings Tomorrow. What To Expect

Adam Hejl /
2023/05/03 3:33 am EDT
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Advertising and marketing company Zeta Global (NYSE:ZETA) will be reporting earnings tomorrow after market hours. Here's what you need to know.

Last quarter Zeta reported revenues of $175.1 million, up 29.9% year on year, beating analyst revenue expectations by 9.06%. It was a decent quarter for the company, with an impressive beat of analyst estimates but underwhelming guidance for the next year.

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% year on year to $150.3 million, slowing down from the 24.4% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.05 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 7.07%.

Looking at Zeta's peers in the sales and marketing software segment, some of them have already reported Q1 earnings results, giving us a hint what we can expect. VeriSign delivered top-line growth of 5.04% year on year, missing analyst estimates by 0.8% and Braze reported revenues up 40.1% year on year, exceeding estimates by 3.05%. Both companies (VeriSign and Braze) traded flat on the results. Read our full analysis of VeriSign's results here and Braze's results here.

There has been a stampede out of high valuation technology stocks and while some of the software stocks have fared somewhat better, they have not been spared, with share price declining 9.49% over the last month. Zeta is down 13.7% during the same time, and is heading into the earnings with analyst price target of $13.4, compared to share price of $9.24.

One way to find opportunities in the market is to watch for generational shifts in the economy. Almost every company is slowly finding itself becoming a technology company and facing cybersecurity risks and as a result, the demand for cloud-native cybersecurity is skyrocketing. This company is leading a massive technological shift in the industry and with revenue growth of 70% year on year and best-in-class SaaS metrics it should definitely be on your radar.

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