Zeta Global: The Full-Stack Adtech Powerhouse Hiding in Plain Sight
This deep dive breaks down the product, data advantage, growth, risks — and why the market might be missing the story.
Introduction: What Is Zeta and Why It Deserves Your Attention
In a world where digital advertising is losing effectiveness, third-party cookies are disappearing, and brands demand clear returns on every marketing dollar spent, Zeta Global is quietly emerging as a highly effective solution.
Few people know this Nasdaq-listed company. But behind the scenes, Zeta is becoming the backbone of modern marketing for hundreds of brands and agencies. What it offers is simple to describe yet hard to replicate: a full-stack, AI-powered marketing platform fueled by first-party data.
While others talk about AI, Zeta is already executing. While competitors rely on rented data, Zeta builds with its own. That’s why this company might be brutally undervalued.
What initially caught my attention was the fact that Zeta doesn’t rely on anyone else—it owns its data:
245 million individuals in the US
535 million individuals worldwide
Then I noticed it was trading at just 2.8x P/S—low, in my opinion, for the kind of growth it's still showing. So I decided to dig deeper.
1. Full-Stack Integration: The Foundation of Competitive Advantage
Zeta offers a true end-to-end ecosystem—where data, decision-making, and execution happen under one roof.
Most competitors operate in silos: one platform for data management (like Segment), another for media buying (like The Trade Desk), and another for campaign orchestration (like Salesforce). Zeta combines all of that into a single, unified solution.
That’s the power of being full-stack: fewer integrations, more automation, deeper personalization, and a clearer return on investment.
2. The Product: Zeta Marketing Platform (ZMP)
At the core of Zeta’s model is the Zeta Marketing Platform (ZMP)—an AI-powered marketing cloud built on a massive base of first-party data. The ZMP has three key components:
Data Cloud (CDP): Aggregates, unifies, and analyzes first-party data to create rich customer profiles
AI Cloud: A decision engine that uses predictive models, AI agents, and automation tools to spot opportunities and generate campaigns
Omnichannel Activation (DSP): Runs personalized campaigns across paid and owned channels, programmatically and in real time
With over 500 AI agents, a decision engine called Opportunity Engine, and a new tool called Zeta Answers, the platform not only automates campaigns but also answers strategic business questions based on live data.
What impressed me most was how Zeta stacks up against competitors. Some are strong in Martech (Marketing + Tech), others in Adtech (Advertising + Tech). Zeta is strong in both.
3. The Secret Weapon: First-Party Data at Scale
Zeta’s true strength lies behind the scenes: its data.
245M identities in the US
535M globally
2,500+ signals per person
95% of identifiers are first-party
With cookies disappearing and privacy regulations increasing, first-party data is the new gold. Zeta is one of the few companies that owns this kind of data at scale—with full consent and control.
This allows for precise targeting, real-time personalization, and superior ROI. Competitors relying on rented data or third-party cookies simply can’t compete.
Sometimes it feels like the market doesn’t truly understand how valuable it is to own your data. But more importantly, it’s about knowing how to use it. Just look at companies that excel at this—Meta, Palantir, Tesla, Lemonade, Hims, Spotify, Duolingo... Zeta is on the same track.
4. Competitors Can’t Replicate It
Companies like Salesforce, Adobe, HubSpot, or The Trade Desk are respectable players—but each is missing a critical piece:
Adobe doesn’t execute
Salesforce doesn’t buy media
Trade Desk doesn’t own data
Zeta does all three: data + intelligence + execution. That gives it a rare position in the market.
While the giants lean on brand power, Zeta leans on performance—and the numbers show it's starting to win.
From what I’ve seen so far, the product clearly delivers. The tech is world-class. The data is powerful. But the real question is: does all of this translate into a great business?
5. Consistent, Underrated Growth
In Q1 2025, Zeta reported $264M in revenue—up 36% YoY. Even excluding the LiveIntent acquisition and the impact of political campaigns, organic growth was still 26%—a strong pace for a company generating over $1B in annualized revenue.
With 15 consecutive quarters beating guidance, management is quietly building a reputation for consistency—something rare in tech.
That track record made me more optimistic. I always prefer when management gives us “conservative-for-them” numbers and then consistently overdelivers. Here’s what they’re guiding for:
2025 revenue: $1.24B (+23%)
2028 targets:
Revenue: $2.1B (20% CAGR)
EBITDA: $525M (25% margin, up 170% vs. 2024)
FCF: $340M (16% margin, 65% FCF conversion)
6. Clients and Agencies
The number of scaled customers (> $100K/year) reached 548 in Q1, up 19% YoY. Excluding LiveIntent, growth would’ve been 9%—a deliberate slowdown, according to management.
But it’s not just about quantity—it’s about quality:
Scaled ARPU: $467K (+12% YoY)
Super Scaled Clients (> $1M/year): 159
Mini Scaled Clients: 389 with potential to 10x revenue
Clients who’ve been with Zeta for over 3 years spend, on average, 3x more than new ones. That’s strong retention and expansion.
Agencies are a quiet growth engine. Each agency is counted as a single customer—even if they represent dozens or hundreds of brands. Every new brand onboarded doesn’t increase the customer count, but it increases platform usage.
The world’s largest ad agencies already use ZMP. It’s a powerful distribution model:
Zeta signs a deal with the agency
The agency deploys ZMP across dozens of brands
This model is accelerating adoption—even if headline customer numbers don’t reflect it.
7. Margins and Operating Leverage
Gross margin: 61% (stable)
Adjusted EBITDA: $47M in Q1 (18% margin)
Free Cash Flow: $28M (11% margin)
FCF Conversion: 60%
Despite still-elevated stock-based compensation ($42M in Q1), the company is showing real operating leverage. Operating and net income are improving quarter after quarter.
One thing that stood out to me: the company looks close to being profitable across several metrics—and I personally love identifying companies right before that inflection point.
Free cash flow is especially meaningful to me—and it's positive. That doesn’t mean GAAP profitability yet, but it means the engine is working.
And despite high SBC, Zeta is rewarding shareholders with aggressive buybacks.
8. Share Buybacks and Dilution Control
$46M repurchased in just 25 days
Over 89% of Q1 FCF used for buybacks
Offsetting dilution from LiveIntent and SBC
Total share count has started to decline
9. Valuation: The Hidden Opportunity
EV/Revenue: 3.2x
Historical range: 1.9x to 9.4x
Current price: ~$14
With consistent results, profitable growth, and a CEO who owns 11% of the company (insiders own 18%), it’s hard to justify this discount.
Insiders bought shares in November between $18–$19, investing $3.2M of their own money (169,171 shares).
This is not a company at risk of bankruptcy—not even close. It has $364.3M in cash and equivalents, with $196.5M in debt.
Yet it's priced like a mediocre company. For comparison: other marketing platforms with less integration, lower margins, or slower growth trade at 6x, 7x, even 10x revenue. Salesforce, with slower growth, trades above that.
10. Risks? Yes—but They’re Managed
Massive competition: Adobe, Salesforce, Meta, Klaviyo—they all play here. Zeta’s edge is full-stack execution with owned data. But one aggressive move (e.g., a strategic acquisition or bundling) could pressure margins.
Macro sensitivity: Marketing budgets are often the first cut in a downturn. Zeta sells performance, but it’s still part of that cycle. The good news? In tough 2022, Zeta still accelerated growth.
Dilution: Since IPO, the share count has climbed, with 2024 especially dilutive. The good news: Zeta has started real buybacks using real FCF. My focus now is on the pace of those buybacks and how SBC evolves.
Short report: In Nov 2024, a brutal short report hit the stock—dropping it 37% in one day. I reviewed the report. They accused Zeta of aggressive practices and misconduct. Management responded transparently, reported a strong following quarter, and initiated buybacks. The reputational damage is there—but to me, it felt more like noise than substance.
11. Conclusion
After studying Zeta in depth, my conclusion is simple: there’s value here.
The company has a solid product, proprietary data at scale, high-quality customers, and it’s generating real cash. Growth remains strong, margins are expanding, and the valuation appears discounted—especially if they deliver through 2028.
That said, it’s not a company I’m excited to hold for the long haul. I see a clear window for potential upside over the next few quarters, but not a long-term asymmetry like I see in some of my core portfolio convictions.
I considered a swing trade, but as a Portuguese tax resident, holding for a year only to sell and pay a flat 28% tax… doesn’t appeal to me. And I’m not interested in holding just to avoid taxes.
So, for now, I’m staying out—but not uninterested.
I’m keeping an eye on the price, market sentiment, and management execution. The opportunity could get more interesting. And even if I never invest, studying this business was a masterclass in data, adtech, and distribution.
For now, I haven’t initiated a position—but it’s firmly on my watchlist.
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— Montana