Zeta Global Holdings Corp.

Thank you for standing by. This is the conference operator. Welcome to the Zeta Q2 2021 earnings conference call. As a reminder, all participants are in listen-only mode and the conference is being recorded. After the presentation, there'll be an opportunity to ask questions. To join the question queue, you may press star then one on your telephone keypad. Should you need assistance during the conference call, you may signal an operator by pressing star and zero. I would now like to turn the conference over to Idalia Rodriguez, partner with Arbor Advisory Group. Please go ahead.

Thank you. Joining me on the call today are David Steinberg, ZEDA's co-founder, chairman and CEO, and Chris Greiner, chief financial officer. Before we begin, I'd like to remind everyone that statements made on this call contain forward-looking statements. The same forward-looking statement notices found on the AK and earnings release filed with the SEC apply to this call as well and can be found on the other portion of ZEDA's website. In addition, our discussion today will include references to certain supplemental non-GAAP financial measures, which should be considered in addition to and not as a substitute for GAAP results. Reconciliations to the most comparable gap measures are available in today's 8K and exhibited materials, which are available on our investor relations website at investors.zetaglobal.com. Now, I'd like to turn the call over to David Sandberg. David?

Thank you so much. Good afternoon, and thank you for joining Zeta's first earnings call as a public company. We appreciate your interest. Before we dive into the details of our very strong second quarter, I'd like to take a few moments to talk about Zeta, who we are, what we do, how our technology platform is unique and valuable in the marketplace, and why we're excited about the accelerating momentum of our business. What do we do? 14 years ago, my partner John Sculley and I set out to build a next generation marketing platform to help brands acquire, grow, and retain customers more efficiently and effectively. The mission is more critical today than ever before. Modern marketers are struggling to keep up with the rapid pace of digital innovation and are seeking solutions that help them to get to the market quickly, identify and engage their target customers with precision, deliver personalized experiences across all channels, and improve ROI with sophisticated deterministic measurement that comprehends the impact of every program. That is what our tech stack, the Zeta Marketing Platform, or ZMP, was purpose-built to develop and deliver. In fact, a recent study by Forrester has proven something that we have known for quite some time. Enterprise marketers taking advantage of the ZMP's identity-based omnichannel activation capabilities achieved 50% better results than without it. The ZMP is rooted in our proprietary data. We've made a number of high-impact acquisitions to build over time one of the largest opted-in identity-based datasets in the world. On top of this identity bedrock, we built a patented artificial intelligence engine that analyzes billions of structured and unstructured data signals to discern consumer intent in a way never before possible, which allows us to create higher-value audiences that unlock new possibilities for personalized omnichannel engagement. In the second quarter, our data set expanded from 500 million to over 515 million individuals globally, and from 220 million to over 225 million in the United States alone. We combine our proprietary data with first-party data provided by our customers to understand unique insights, uncover new use cases, and accelerate growth for many of the world's largest brands. However, data is not our product. Data is the electricity that powers our software business. Our customers use the ZMP to orchestrate and execute targeted marketing programs across all addressable channels. The patented AI at the core of the ZMP gets smarter over time, enabling customers to achieve both greater scale and higher ROI, a rare and powerful combination. We believe this drives strong retention as well as expand and extend sales motion. Our annual net retention rate for our largest customers was 122% in 2020. up from 104% in 2019. Today, we serve a diverse customer base, including one in three Fortune 100 Enterprise customers across a variety of vertical markets, with no one customer accounting for more than 7% of revenue and no one industry accounting for more than 14% of revenue in the second quarter. Our customers consist of many of the world's most well-known blue chip brands across every major industry vertical. Enterprise customers choose Zeta for our ability to help them deepen connections with their customers. The ZMP creates a true 360-degree view of the consumer, enriched with our proprietary data signals while keeping Zetas and each customer's data technically separated a key differentiator in the market. This provides enterprises with a single source of truth that improves their understanding of consumer needs, attitudes, and behaviors far beyond what they could derive on their own. Each month, in the United States alone, our platform analyzes over 50 billion web pages and online discussion forum interactions, 3 billion visits to real-world locations, over 1 billion purchase signals, and up to 2,500 demographic and behavioral attributes to determine behavioral intent at an individual deterministic level so that our customers can deliver the right message to the right consumer at the right time. Because the market is consistently evolving, the ZMP is flexible so it can respond quickly to technological advances and seamlessly connects with emerging digital platforms and new services. For example, CTV is our fastest growing channel, growing by almost 500% year over year in the second quarter. From a demand standpoint, We're seeing an acceleration in the pace of digital transformation in marketing and the adoption of data-driven marketing. We're seeing a digitization of marketing channels, the growing importance of identity-based deterministic targeting data, and an increase in demand for measurable marketing spend and return on investment. We believe we're seeing the market come to us, and I'm confident that the investments we've made over the last two years and continue to make position us to capitalize from these tailwinds. Last year, we successfully launched Opportunity Explore, a campaign planning tool that provides brands with proprietary insights on segments and personas in conjunction with a comprehensive view of an available addressable channel for each consumer target. And we are able to stand up instances of the Opportunity Explorer in a matter of days. And now it serves as an effective go-to-market wedge product for new net customer acquisition, as well as a gateway for broader platform adoption. Chris and our President and Chief Operating Officer, Steve Gerber, have done an exceptional job this past year in expanding and reorganizing our sales organization, to support and accelerate growth across multiple dimensions. In readying to scale our growth even more aggressively, I'm proud to announce that we have hired Zeta's first chief marketing officer. Crystal Eastman has joined us in June from the trade desk, where she was the head of global marketing. Through that senior role and other senior roles she has held throughout her career at American Express and BlackRock, Crystal deeply understands the increasingly sophisticated needs of enterprise markers. I'm thrilled to welcome Crystal to our team. For our Q2 business commentary, before I turn it over to Chris to fully walk you through the numbers, let me touch on some highlights. Q2 capped a very strong first half for Zeta during the quarter we delivered. Record revenue for a second quarter of 106.9 million, an increase of 39% year-over-year compared to revenue growth of 25% year-over-year in the first quarter of this year. Solid profitability on a non-GAAP basis with adjusted EBITDA of $11.4 million. Adjusted EBITDA year-over-year growth was 106% and adjusted EBITDA margin of 11%. Since the beginning of the year, our revenue growth expectations for the second half of this year have improved, driven by a more favorable outlook and our high level of revenue visibility. During Q2, we won business with over 30 new customers while simultaneously achieving record net revenue retention rates for total Zeta and Zeta-scaled customers. The sum of the parts of Zeta, our marketing cloud, our data cloud, and our activation capabilities are resonating with customers and differentiating us from competitors. We're also significantly accelerating momentum in product innovation and customer wins, which establish a strong foundation for future growth. Let me expand on each and share some highlights. First, our recent product advances. We've made our CTV offering even more sophisticated with CTV genre and content targeting, which allows marketers to reach their targeted audiences in specific contexts within specific shows. This solves for a key barrier to entry as linear buyers contemplate the shift to CTV, as TV buyers have been accustomed to control at the content level. We've also developed a CTV Content Consumption Household Index to provide clients with deep insights into what content their target households are watching to inform their go-forward media plan and creative strategy. Our CTV enhancements this quarter provide a unique and differentiated combination of actionable insights and activation controls that will accelerate advertiser shift from linear to CTV and improve ROI for Zeta customers in this increasingly important marketing channel. We continue to scale our identity graph, adding over 5 million customers bringing our precision reach to over 225 million in the United States. We also continue to fortify our deterministic graph, which, as a reminder, is not reliant on third party cookies. And we launched a new identity resolution service that acts as a backbone for ensuring addressability and accuracy in how we apply Zeta's data and artificial intelligence to individuals intent in our predictive campaign recommendations. We will continue to invest in the resilience of our identity solution, which is core of the Zeta marketing platform to ensure we are future proof for the evolution of a digital landscape. Lastly, we've created a new way for brands to rapidly onboard their first party data at a faster, more automated path to campaign automation. This new functionality, which we call low-code onboarding, eliminates the implementation dependency on enterprise IT resources and reduces our time to get started with new customers from weeks or months to mere days. With more and more brands looking to maximize their use of one PDB to power more productive acquisition and engagement programs, we are well positioned to be the partner of choice as they embark on their digital transformations. Now I'd like to share a few of our notable customer wins in Q2. First, with respect to our omnichannel capabilities, a longstanding insurance customer that has worked with us in messaging for over five plus years expanded across paid channels in Q2. Leveraging the same targeted audiences and campaign infrastructure, the customer worked seamlessly through the ZMP to expand reach and improve impact. We forecast this relationship expansion to increase this customer's ARPU by up to 20 additional percent. We believe this model could be repeated and scaled across more than 50% of our customer base in the next 18 to 24 months. Second, with respect to how we win with Operativity Explorer, using the first-party data of a major retailer, we were able to isolate browsers from buyers, retarget them across multiple channels through an AI-powered trigger-based program, This solution displaced a major competitor and put this retailer on a path to becoming one of our largest customers in 2022. Third, with respect to the CDP, a longstanding travel client who had primarily focused on omnichannel activation, but relied on a third party legacy database services model. They were aligned with our vision of moving into an omnichannel model driven by a single view of the consumer. But they challenged us to onboard and migrate them within eight weeks. Through the Data Conductor, the low-code solution I mentioned earlier, we launched this quarter. We were able to ingest all data feeds and stand up a world-class CDP in a week so that they could capitalize on post-COVID bookings. Finally, we announced a new partnership with Dun & Bradstreet to bring our core solution to the B2B market. As a part of the agreement, D&B will become a multi-year important scaled customer. They look at every competitor in the marketplace and ultimately chose Zeta because of the capabilities of our software, our data, our ability to combine inflows seamlessly, our omnichannel marketing capabilities, and our ability to deliver measurable results. In summary, it's been an exciting last few months for Zeta. Our recent IPO marks a new and exciting chapter, providing us with additional capital to further strengthen our platform for our blue-chip clients, as well as attract and retain more talent. We're proud of the results we've delivered to date. We're even more excited about the future as we continue to execute strongly upon our strategic growth plan. I would like to really thank the Zeta team for everybody's hard work, dedication, and perseverance. I'd also like to thank our customers, partners, and investors for the support they've given us throughout this journey. And with that, Let me hand it off to Chris to discuss our results in greater detail. Chris?