Zeta (ZETA) Reports Earnings Tomorrow. What To Expect

Kayode Omotosho /
2023/08/01 4:04 am EDT

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

Last quarter Zeta reported revenues of $157.6 million, up 24.8% year on year, beating analyst revenue expectations by 4.89%. It was a mixed quarter for the company, with a significant improvement in its gross margin compared to the previous quarter but decelerating growth in large customers. The company added 8 enterprise customers paying more than $100,000 annually to a total of 411.

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 18% year on year to $162 million, slowing down from the 28.4% 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 6.78%.

With Zeta being the first among its peers to report earnings this season, we don't have anywhere else to look at to get a hint at how this quarter will unravel for sales and marketing software stocks, but there has been positive sentiment among investors in the segment, with the stocks up on average 9.07% over the last month. Zeta is up 13.3% during the same time, and is heading into the earnings with analyst price target of $13.40, compared to share price of $9.22.

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