Zeta Global Holdings Corp.

Thank you for standing by. This is the conference operator. Welcome to the Zeta fourth quarter 2022 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 Scott Schmitz, Senior Vice President, Investor Relations. Please go ahead.

Thank you, operator. Hello, everyone, and thank you for joining us for Zeta's fourth quarter 2022 conference call. Today's presentation and earnings release are available on Zeta's Investor Relations 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 earnings 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 in the company's earnings release and other filings with the SEC and speak only as of today's date. 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 these non-GAAP measures in managing the business and believe they provide useful information for our investors. Reconciliations of the non-GAAP measures to the corresponding GAAP measures, where appropriate, can be found in the earnings presentation available on our website, as well as our earnings release and our filings with the SEC. With that, I will now turn the call over to David.

Thank you, Scott. Good afternoon, everyone, and thank you for joining us today. 2022 was a stellar year for Zeta, which we capped off with an incredible Q4 that once again exceeded our expectations. For the full year 2022, we delivered revenue of $591 million, up 29% year over year, with adjusted EBITDA of $92 million, up 46% year over year. The leverage in our model resulted in 180 basis points of adjusted EBITDA margin expansion to 15.6% in 2022. And importantly, we generated $78 million of cash from operations with free cash flow of $39 million, up 123% year over year. On the back of this momentum, we are providing initial 2023 revenue and adjusted EBITDA guidance above current consensus, which Chris will discuss in detail shortly. The strength of our results highlight the power of Zeta's patented AI and proprietary data to help large enterprise brands improve their ability to acquire, grow, and retain customers more efficiently and effectively than ever before. And evidenced by our 48 new scaled customer additions in 2022, it is clear that chief marketing officers who are under pressure to do more with less are willing to make changes to improve the effectiveness of their marketing programs and lower their total cost of ownership. The Zeta Marketing Platform or ZMP was purpose-built to improve marketing efficiency and effectiveness by unifying identity, intelligence, and activation to create better experiences for our customers and deliver better outcomes for brands. As we look forward, we believe our competitive position has never been stronger. The market continues to move in our direction as foundational elements of the ZMP are now boardroom topics. Artificial intelligence has exploded and is now vital to setting corporate strategy. First-party data and CDPs are essential for making mission-critical business decisions. And greater personalization and addressability are crucial to improving the efficacy of marketing campaigns. The underpinnings of our competitive position started 15 years ago with a focus on reducing complexity by making data actionable and eliminating multipoint solutions. We assemble one of the largest proprietary opt-in databases to improve an enterprise's understanding of its customers, identify potential new customers, and grow existing customers. We made very early investments in machine learning and artificial intelligence, which are combined with our data cloud and is the foundation of the ZMP. AI is in our DNA. Our goal at Zeta is to create actionable intelligence. Our AI technology and deep learning capabilities have become progressively better at distinguishing signal from noise, making it easier for marketers to make smart decisions. As an example of our innovative approach, We recently introduced Chatbot Zeta, which incorporates Zeta's proprietary data cloud with ChatGPT's generative AI capabilities to produce conversational attributes and descriptions of individuals. As we incorporate this functionality into the ZMP, it will allow Zeta to operate even more efficiently and become a more strategic partner to enterprises by replacing more of their existing tech stack. Most of the legacy marketing clouds we compete against are non-core assets buried within larger technology conglomerates. And as technology peers change their investment priorities and initiate cutbacks, these non-core assets are likely to see deeper cuts, causing them to fall even further behind us. As it currently stands, legacy marketing clouds are no longer good enough. And as a result, point solutions that plug into traditional stacks are also feeling the pinch. We believe the opportunity to gain share has never been greater. In this uncertain macro environment, we are capitalizing on the replacement cycle of legacy solutions and point products within enterprise environments. Let me give you an example. We recently replaced the legacy marketing cloud at a leading specialty retailer. Not only did the ZMP deliver more personalized audiences with strong intent signals resulting in higher ROI, but we substantially lowered the total cost of ownership by consolidating four different point solutions. In a short amount of time, We built a strong relationship with this retailer who views Zeta as an extension of their marketing team and have now signed a five-year agreement. In addition to being complex and expensive to integrate, legacy marketing clouds are also ill-suited for emerging marketing channels. At Zeta, orchestrating an omnichannel journey across all addressable channels is another area where we stand out. A good example is our continued rapid growth in CTV, which grew over 300% again this quarter, accounting for a double digit percentage of usage on our platform versus low single digits last year. And when we combine more addressable channels with our always-on intelligence, the results are even better. For instance, we are currently helping one of the leading U.S. pharmaceutical companies reduce wasted spend from their linear TV budget by leveraging our data cloud and AI capabilities to better target in-market consumers that could benefit from their drugs and therapies. It is difficult to find another single company that could have solved this problem for them. Traditional solutions require a system integrator to stitch together multiple point solutions, an expensive and error-prone approach that is no longer sustainable in today's environment, in which CMOs seek both greater efficiency and greater effectiveness. Our disruptive and differentiated approach is also creating the strongest hiring environment we have seen in years. We are attracting and retaining exceptional people while many of our peers are undergoing workforce reductions. In summary, 2022 was a stellar year for Zeta with results exceeding even our expectations. We have maintained a balanced growth and profitability profile while continuing to invest in our people, products, and go-to-market initiatives. This is resulting in better experiences for consumers and better outcomes for enterprises, in addition to creating a better place for people to work. We're extremely proud to share that Zeta was recently recognized as one of built-in best places to work in both New York and LA. We believe our one Zeta culture has been critical to our success, and we continue to invest time and resources to build an inclusive, innovative, and collaborative environment for all employees. We also achieved our goal of carbon net neutrality in 2022, which is an incredibly important achievement to prospective and existing clients as well as our employees. We intend to be a leader in this critical area, and we will continuously work to reduce our admissions. I would like to sincerely thank our Zeta team, our customers, our partners, and our shareholders for their ongoing support of our vision. And while we have come a long way on our journey, as we like to say at Zeta, we are just getting started. Now let me turn it over to Chris to discuss our results in greater detail. Chris?