Zeta Global Holdings Corp.

Good afternoon and welcome to Zeta's third quarter 2021 earnings conference call. During the presentation, all participants will be in a listen-only mode. Afterwards, we will conduct a question and answer session. At that time, if you have a question, please press the 1 followed by the 4 on your telephone. If at any time during the conference you need to reach an operator, please press star 0. As a reminder, today's conference is being recorded. I would like to turn the conference over to Scott Schmitz, SVP of Investor Relations. Please go ahead.

Thank you, Operator. Hello, everyone, and thank you for joining us for Zeta's third quarter 2021 conference call. Before we begin, I would like to mention that today's presentation and press release are available on Zeta's website at investors.zetaglobal.com, where you will also find links to our SEC filings along with other information about Zeta. Joining me on the call today are David Steinberg, Zeta's co-founder, chairman, and chief executive officer, and Chris Greiner, Zeta's chief financial officer. Before we begin, I'd like to remind everyone that statements made on this call, as well as in the presentation and press release, contain forward-looking statements regarding our financial outlook, business plans and objectives, and other future events and developments, including statements about the market potential of our products, potential competition, and revenues of our products and our goals and strategies. These statements are subject to risks and uncertainties that may cause actual results to differ materially from those projected. These risks and uncertainties include those described under the heading Risk Factors in our most recent quarterly report on Form 10-Q and the company's financial perspectives dated June 9, 2021, each filed with the Securities and Exchange Commission. as well as other documents that we may file from time to time with the SEC. Any forward-looking statements speak only as of today's date, and we assume no obligation to update any forward-looking statements made on today's call or that are in the presentation and press release. 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 our GAAP results. We use non-GAAP measures to describe the way in which we manage and operate our business. We reconcile each of these measures to the most directly comparable GAAP measure, and you are encouraged to examine those reconciliations, which are found in the appendix to the presentation and at the end of the press release. Now I will turn the call over to David.

Thank you, Scott. Good afternoon, and thank you for joining Zeta's second earnings call as a public company. We sincerely appreciate your interest. Zeta had a very strong quarter. We executed against our strategic initiatives and drove results ahead of our guidance for the quarter. We generated record revenue of $115 million, up 21% year over year, and up 25% when adjusting for the 2020 presidential cycle. We also drove strong operating leverage in the quarter with adjusted EBITDA of $16 million up 30% year over year. With good visibility and confidence in our growing pipeline, we are raising the midpoint of our full year 2021 revenue guidance range to $446.5 million, up from $434 million and our adjusted EBITDA outlook to $61.3 million from $56.5 million. Chris will dive into more of those details shortly. Stepping back, there are three key themes supported by our results. One, we have a strong strategic position in the marketplace. Two, we are executing and winning in the marketplace. And three, we are just getting started. Let me dive into each of these themes in more detail, starting with our strategic position. In this increasingly digital world, data and artificial intelligence are at the center of how companies make decisions. Companies are rethinking how they ingest, synthesize, and prepare data to activate their marketing campaigns. This is where Zeta fits in perfectly. Our customers use Zeta software, the core of which is the Zeta Marketing Platform, or ZMP, to orchestrate and execute targeted marketing campaigns across all addressable channels. The patented artificial intelligence native to the ZMP synthesizes Zeta's first-party proprietary data along with our customers' first-party data and gets smarter over time. enabling our customers to achieve both greater scale and higher return on investment. This partnership with our customers in turn results in very strong customer loyalty. Our vision is to help enterprises accelerate their digital transformation of customer acquisition, retention, and growth through our technology, our data, our expertise, and our execution. With Zeta, customers can eliminate point solutions that add complexity by investing in our modern software and artificial intelligence platform that drives better outcomes versus products from legacy competitors who have underinvested in their platforms. As a reminder, our goal is to be the largest marketing cloud in the next five years. Powering our marketing cloud is a leading customer data platform, or CDP, which serves as the backbone of our data-driven ecosystem. While many companies claim to have CDPs, few offer the full suite of data assembly, analysis, segmentation, and activation as our platform does. Central to our vision is unifying data as the critical step for enterprises to adopt data-driven marketing across all addressable touchpoints. Our CDP is the manifestation of this vision. As a standalone product, CDPs connect disparate data elements into an identity and ingest behavioral and transactional signals to create a true, 360-degree view of the consumer for both perspective and existing customers. We believe CDPs are the foundation of more personalized experiences and more precise measurement. With marketers elevating the importance of CDPs, Zeta is becoming more central to every marketing technology conversation. Importantly, CDPs can be bundled with the ZMP for activation, or they can sit adjacent to an incumbent marketing cloud, providing Zeta with incremental sales opportunities to partner with large enterprises and expand over time. And this is all translating into results in the market, which brings me to my second point. We are beating the competition. Our customers are excited about how our assets and capabilities unlock their ability to acquire, retain, and grow customers at an attractive return on investment. We are executing both with new customers and existing customers. In fact, we saw our win rates improve during the quarter, highlighted by the fact that we booked an incremental $16 million in total contract value with over 90% of that being recurring revenue. Let me give you a few examples to illustrate how and why we're succeeding across different environments. First, we are engaging new customers as the central hub of the data-driven ecosystems. This quarter, a leading children's retailer chose our CDP to be the backbone of all of their data-driven marketing activities. across all touch points, including in-store. We competed against both legacy providers as well as small upstarts. In the end, we ultimately won by providing a single platform to serve as the center of their digital transformation, unifying disparate data elements and connecting the dots across their business. Second, we are creating opportunities adjacent to an incumbent marketing cloud as part of our land and expand strategy. A top 100 global marketer chose us to develop an innovative trigger-based messaging program, leveraging Zeta's unique insights that are taken to a new level when combined with the data set of this marketer. Importantly, our strategy does not require us to rip and replace legacy competitors upfront. But instead, we can sit adjacent to them, building bigger internal client relationships that allow us to take additional market share over time. Third, we are expanding use cases within current customer environments. At a top luxury retailer, which is a major user of our CDP, we are expanding our solution into activation. Again, we are taking share from the major marketing cloud, which should set the stage for future expand and extend opportunities. Going back to the third major theme this quarter, we are just getting started. Industry tailwinds are accelerated. Our platform and data have never been stronger, and we're just beginning to see the benefits from our go-to-market investments. While we view these as long-term trends, we are benefiting today with Q4 off to a great start. With a higher mix of recurring revenue, our visibility is improving. With broader awareness and more sales capacity, our pipelines are expanding. And with competitive differentiation, our win rates are increasing. In summary, the migration to digital is accelerating. As the world comes out of the pandemic, companies see the current environment as one of the biggest opportunities to affect change. They are looking at digital, artificial intelligence, and new technologies to identify, engage, and build customer loyalty. Disruption in the digital ecosystem creates a critical need for marketing technology as enterprises look to help navigate changes like the elimination of Apple's IDFA or the elimination of the third-party cookies, neither of which Zeta relies on to identify individuals today. Let me reiterate, we do not use Apple's IDFA or third-party cookies in our identity graph. This disruption creates a unique opportunity for Zeta as we benefit from these changes. We help companies rethink their data strategies and gain more control over their own first-party data. Our software helps companies respond to changes from gatekeepers so they can measure customer behavior and market with greater precision. Our true 360-degree view of the customer across all media using the Zeta ID creates a single deterministic identity of prospects and existing customers. As some of the walled garden providers continue to tighten their grip, we expect customers to find it will be more difficult to work with them and that marketers will increasingly look for alternatives. We believe Zeta is well positioned to benefit from a combination of our data, artificial intelligence, and deployment capabilities. We're seeing this manifest itself in our results and our visibility into our business. which is leading us to increase guidance for the full year 2021. To further understand the massive opportunity in front of us and why we're winning in the market, we invite you to hear directly from our customers, partners, and industry luminaries at our inaugural Zeta Live conference on November 16th and 17th. Zeta Live will convene some of the industry's most forward-thinking business leaders for insightful discussions on the future of marketing and technology, along with opportunities to hear from Zeta's customers on how they are leveraging our software and data, as well as hearing from Zeta technologists about future product innovation and where it's headed. You can register now on our website at ZetaGlobal.com. I would like to thank our customers and our partners for the confidence and trust they place in us. I would also like to thank our Zeta people for the hard work and dedication that has gotten us to this point. And I would like to thank all of you, our investors, for supporting us on this journey. And with that, let me hand it off to Chris Greiner to discuss our results in greater detail. Chris?