Latest news with #DavidSteinberg
Yahoo
21-06-2025
- Business
- Yahoo
Zeta Global (ZETA) Jumps 12.6% on Untapped AI Opportunities
Zeta Global Holdings Corp. (NYSE:ZETA) is one of the Zeta Global Holdings rallied by 12.63 percent on Friday to end at $14.18 apiece as investors snapped up shares following a study that marketing companies are lagging behind AI execution vis-a-vis its ambitions. In its study called 'It's Time to Get Serious About AI's Business Value,' Zeta Global Holdings Corp. (NYSE:ZETA) said that while many marketing organizations have begun implementing AI, most are still in the early stages of building the data, skills and systems required to scale it effectively and realize its full enterprise potential. Based on a survey of 300 North American marketing technology decision-makers, the study found that 62 percent of organizations described their current AI deployment as 'limited' or 'moderate.' The study was viewed by investors as a huge potential and opportunity for Zeta Global Holdings Corp. (NYSE:ZETA) to tap. 'Marketing should be at the front lines of the AI revolution, but many teams are held back by fragmented data, legacy systems, and skills gaps,' said Chairman and CEO David Steinberg. A marketing manager looking at the data dashboard of a marketing automation software showing successful campaign results. 'This study reinforces what we hear every day: marketers don't need more AI promises; they need practical, scalable ways to turn AI into better performance.' While we acknowledge the potential of ZETA as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
16-05-2025
- Business
- Yahoo
ZETA Q1 Earnings Call: AI, Agency Expansion, and Conservative Guidance Define Results
Advertising and marketing company Zeta Global (NYSE:ZETA) reported Q1 CY2025 results topping the market's revenue expectations , with sales up 35.6% year on year to $264.4 million. The company expects next quarter's revenue to be around $296.5 million, close to analysts' estimates. Its non-GAAP profit of $0.09 per share was 22.6% below analysts' consensus estimates. Is now the time to buy ZETA? Find out in our full research report (it's free). Revenue: $264.4 million vs analyst estimates of $254.1 million (35.6% year-on-year growth, 4.1% beat) Adjusted EPS: $0.09 vs analyst expectations of $0.11 (22.6% miss) Adjusted Operating Income: $29.03 million vs analyst estimates of $25.73 million (11% margin, 12.8% beat) The company slightly lifted its revenue guidance for the full year to $1.24 billion at the midpoint from $1.24 billion EBITDA guidance for the full year is $258.5 million at the midpoint, above analyst estimates of $256 million Operating Margin: -6.1%, up from -18.4% in the same quarter last year Free Cash Flow Margin: 10.7%, similar to the previous quarter Net Revenue Retention Rate: 96.6%, in line with the previous quarter Billings: $260.1 million at quarter end, up 32.6% year on year Market Capitalization: $3.28 billion Zeta Global's first quarter performance reflected ongoing customer adoption of its artificial intelligence-driven marketing platform and growing relationships with both large enterprises and independent agencies. Management attributed the revenue gains to deeper use case expansion among existing customers and highlighted success stories in telecommunications, insurance, and finance, where Zeta helped clients lower customer acquisition costs and secure multi-year agreements. CEO David Steinberg also pointed to the company's new AI Agent Studio and agentic workflows as key contributors, describing how these tools streamline marketing tasks and deliver measurable return on investment. Looking ahead, Zeta adopted a cautious approach to full-year guidance despite a robust sales pipeline and strong results through April. CFO Chris Greiner explained that, while underlying demand remains solid, guidance factors in 'prudent conservatism' for the second half of the year due to macroeconomic uncertainty. Management emphasized its focus on performance-based marketing and highlighted steps taken to increase free cash flow conversion and reduce stock-based compensation, aiming to balance ongoing investment in innovation with shareholder returns. Management emphasized that Zeta's revenue growth was driven by deeper integration with existing clients, expansion of AI-powered solutions, and increased adoption by agencies. The following points summarize the main factors shaping Q1 performance and Zeta's operational trajectory: AI Platform Expansion: The launch of AI Agent Studio and agentic workflows enabled marketers to automate complex tasks across multiple channels. Management highlighted strong early adoption, with customers utilizing these tools experiencing faster revenue growth and improved marketing efficiency. Agency Channel Growth: Zeta doubled its independent agency business quarter-over-quarter and secured multi-year contracts with both independent agencies and large holding companies. This led to more stable, long-term revenue streams and increased visibility for future quarters. Customer Upsell Momentum: Existing Super Scaled customers, particularly in telecommunications, insurance, and financial services, expanded their commitments with Zeta after achieving lower customer acquisition costs and measurable ROI. Multiple clients signed agreements that more than doubled their annual spend. Business Model Resilience: The company's focus on lower funnel, performance-based marketing spend insulated it from discretionary budget cuts. Management noted that more than 90% of annual revenue is tied to customers with at least a year of tenure, and Zeta's net revenue retention rate has consistently exceeded 111% since 2021. Capital Allocation Shift: Zeta increased free cash flow generation, repurchased shares, and introduced new measures to reduce dilution from stock-based compensation. Leadership stated that these steps were taken in response to investor feedback, aiming for a more shareholder-friendly capital strategy. Management's outlook for the coming quarters centers on continued adoption of Zeta's AI solutions, deeper agency partnerships, and operational discipline to protect margins if macroeconomic conditions worsen. AI Tools Driving Adoption: Ongoing investment in generative AI and agentic workflows is expected to support upsell opportunities and increase revenue per user as clients automate more of their marketing operations. Agency Channel Expansion: Growth among independent agencies and multi-year commitments with large holding companies are anticipated to provide more predictable revenue and reduce exposure to short-term budget cycles. Operational Flexibility: Management highlighted its ability to pull back on sales, marketing, and R&D expenses if revenue growth slows, supporting margin preservation. Risks include potential macroeconomic headwinds and slower than anticipated customer expansion among key verticals. Terry Tillman (Truist Securities): Asked about the pace and success of the One Zeta cross-sell strategy; management stated the approach is ahead of schedule, with increasing numbers of customers expanding to multiple use cases and channels, contributing significantly to growth. Jason Kreyer (Craig-Hallum): Inquired about the impact of macro uncertainty on demand; Zeta responded that no clients had paused or reduced spend, but the company remains cautious in guidance to account for broader market volatility. DJ Hynes (Canaccord Genuity): Questioned which customer verticals Zeta monitors most closely for risk; management cited automotive and retail but noted these segments showed continued growth rather than weakness through April. Elizabeth Porter (Morgan Stanley): Sought clarity on the mix shift from integrated to direct agency business; executives explained that agencies are migrating to direct, on-platform relationships for better ROI, accelerating the trend. Brian Schwartz (Oppenheimer & Co.): Asked about customer adoption of agentic AI and whether early adopters are scaling usage; management reported that customers using agentic AI tools are growing revenue from Zeta faster than others, with multi-agent workflows in beta driving significant interest. In the coming quarters, the StockStory team will watch for (1) broader adoption of AI Agent Studio and measurable customer productivity gains, (2) continued expansion of independent agency partnerships and the conversion of integrated agency business to direct engagements, and (3) Zeta's ability to maintain margin improvements amid any macroeconomic headwinds. Progress on multi-agent workflow adoption and the pace of upsells within key verticals will also be important markers for evaluating execution. Zeta currently trades at a forward price-to-sales ratio of 2.3×. In the wake of earnings, is it a buy or sell? See for yourself in our free research report. Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs. While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 176% over the last five years. Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.
Yahoo
05-05-2025
- Yahoo
La Crosse County implements AI platform to take non-emergency calls
LA CROSSE, Wis. (WLAX/WEUX) – Starting today (May 5th), La Crosse County Public Safety Communications (LCPSC) will implement a new Artificial Intelligence (AI) platform to help manage non-emergency calls for service. They are hoping this change will help clear communication avenues and allow dispatch staff to focus on emergency calls. According to La Crosse County Public Safety Communications Administrator, David Steinberg, 'This change will not impact staffing levels or reduce the quality of service residents and public safety agencies rely on. This is about creating more capacity in our system to better serve the community. Especially during periods of high call volume.' Last year alone, the LCPSC handled (approximately) 140,00 non-emergency calls. The AI platform is designed to significantly reduce the workload for dispatchers without sacrificing service to the public. However, for those who still crave a human being to talk to in these situations, LCPSC has you covered. Steinberg said callers will have the option to request a live person at any time during the call. Furthermore, the AI is designed to detect when the call is an actual emergency and transfer the caller to the correct dispatcher for assistance. The system has also undergone several months of intensive training and is proficient in Spanish. Steinfeld concluded, 'The most important takeaway is that this technology will allow our telecommunicators to focus on what they do best: managing 911 emergencies.' Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
