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Earnings To Watch: Zeta (ZETA) Reports Q1 Results Tomorrow

StockStory - Sun May 5, 2:00AM CDT

ZETA Cover Image

Advertising and marketing company Zeta Global (NYSE:ZETA) will be reporting earnings tomorrow afternoon. Here's what you need to know.

Zeta beat analysts' revenue expectations by 1.3% last quarter, reporting revenues of $210.3 million, up 20.1% year on year. It was a mixed quarter for the company, with full-year revenue guidance beating analysts' expectations but a decline in its gross margin. It added 12 enterprise customers paying more than $100,000 annually to reach a total of 452.

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

This quarter, analysts are expecting Zeta's revenue to grow 18.8% year on year to $187.2 million, slowing from the 24.8% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.08 per share.

Zeta Total Revenue

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Zeta has a history of exceeding Wall Street's expectations, beating revenue estimates every single time over the past two years by 5.7% on average.

Looking at Zeta's peers in the sales and marketing software segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Sprout Social delivered year-on-year revenue growth of 28.7%, meeting analysts' expectations, and VeriSign reported revenues up 5.5%, in line with consensus estimates. Sprout Social traded down 40.1% following the results while VeriSign was also down 4%.

Read our full analysis of Sprout Social's results here and VeriSign's results here.

Growth stocks have been quite volatile since the start of 2024, and while some of the sales and marketing software stocks have fared somewhat better, they have not been spared, with share prices down 3.1% on average over the last month. Zeta is up 6.7% during the same time and is heading into earnings with an average analyst price target of $15.4 (compared to the current share price of $12.85).

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