Zeta Global Holdings Corp.

Greetings and welcome to the Zeta fourth quarter 2024 earnings conference call. At this time, all participants are in a listen-only mode. A brief question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Matt Faltz, Senior Vice President of Investor Relations. Thank you, sir. You may begin.

Thank you, operator. Hello, everyone, and thank you for joining us for Zeta's fourth quarter and full year 2024 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 today on the call 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, 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 our 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 other filings with the SEC. With that, I will now turn the call over to David.

Thank you, Matt. Good afternoon, everyone, and thank you for joining us today. 2024 was a record year for Zeta, capped by a strong fourth quarter where we once again exceeded expectations. Marketing is at the front lines of the AI revolution, driving an unprecedented replacement cycle across the marketing technology ecosystem. At Zeta, we've consistently skated to where the puck is going. Our early investments in AI and first party data are resonating with customers and prospects, fueling our record fourth quarter results and contributing to our market share gains. We believe these investments will propel us to over $2 billion in annual revenue by 2028, as outlined in our Zeta 2028 plan. In the fourth quarter of 2024, we generated record revenue of $315 million up 50% year-over-year, with record adjusted EBITDA of $70 million, up 57% year-over-year, both well ahead of our guidance. For 2025, we are guiding to our sixth consecutive year of 20-plus percent growth, alongside another year of free cash flow margin expansions. Our Zeta 2028 plan forecasts a similar trajectory, 20% organic revenue kegger between 2024 and 2028, adjusted EBITDA margin improvement of 580 basis points to at least a 25% margin, and free cash flow margin expansion of 700 basis points to at least 16%. over this timeframe. 2024 was an exceptional year for Zeta. And as we enter 2025, our momentum is accelerating. The business has never been stronger and the opportunity has never been bigger. Our vision of an all-in-one marketing platform with AI and data at its core is resonating more than ever. While most AI products either drive efficiency or drive revenue gains, we believe Zeta's AI does both, creating a powerful competitive advantage and delivering measurable impact. In Q4, the dollar value of our RFPs reached a record high, up close to 40% year over year, with the total pipeline growth of almost 60%. Our US NPS score increased eight points year over year to 55. We saw significant traction with our One Zeta initiative, which focuses on expanding customer use cases, extending our solutions to become more indispensable. A prime example is a Fortune 500 retailer who was an existing retention-based CDP client that added a customer acquisition use case, which should more than double their investment with us. Now let's talk about AI and agentic AI adoption across our platform. As a reminder, our Gen AI products empower customers in three ways. Productivity, automating marketing tasks with intelligent AI agents, personalization, enhancing customer experiences with AI-driven audience insights, and precision, enabling marketers to interact conversationally with Zeta's marketing platform for faster, more complete answers. But AI isn't just a tool. It's an extension of the marketing team. Our agentic AI performs specialized roles within an enterprise, seamlessly integrating into workflows to drive efficiency and superior performance. For example, operations specialist agents. We are working with multiple financial institutions to automate their quality assurance processes for marketing campaigns. These AI-driven QA agents replace a manual 10-step process. integrating with QA systems of record to track completion, agent ownership, and results, ensuring compliance and improving efficiency. Your own virtual data scientist agents. Clients can bring their own predictive models into our platform, but aligning those models with ingested events and data structures can be complex. Our agents automate the data mapping process, ensuring seamless integration by intelligently matching fields, normalizing formats, and resolving discrepancies. This removes manual effort and accelerates time to value for clients. Creative agents. Our visual composer acts like a world-class creative director, helping marketers to go from a blank slate to a fully designed campaign in minutes. It leverages existing templates and uses AI to generate images, body content, subject lines, and content blocks, reducing iteration cycles and accelerating campaign deployment. While for some companies, AI is just a press release or an add-on, for Zeta, it is foundational to our platform. We have been investing in AI for more than seven years, not seven months, and we have the results to prove it. In 2024, AI adoption across our platform surged. 126 brands adopted our data cloud AI within its first year of launch. AI agent usage grew nearly 200% sequentially from in Q4 as more enterprises embedded automation. Over a thousand behavioral taxonomies were created using AI alone, doubling the number of taxonomies in our platform. We are truly shaping the future of AI-powered marketing. Rather than charging separate fees, we monetize our AI products through increased consumption. accelerating adoption across our customer base. Although we are still early in AI adoption across our platform, we saw a meaningful impact to our consumption revenue, which increased over 40% in 2024, a significant acceleration from 2023. And unlike other software companies, we do not need to pivot our business model to monetize our AI innovations. We are already doing so as evidenced by our 2024 results. Zeta's leadership in AI continues to attract top-tier talent. Pam Lord recently joined us as president of CRM from Oracle, where she ran their B2B and B2C marketing cloud businesses. Ed See, our new chief growth officer, was previously a partner at McKinsey & Company's marketing and sales practice. We also continue to enhance both our team and our platform. We are happy to report that we completed the live intent integration in early January, well ahead of our schedule, and it's already delivering incremental value to our customers. We have already launched our first synergistic product from the acquisition Zeta Direct. This solution combines live intense premium publisher network with the Zeta Data Cloud, enabling marketers to deliver personalized ads directly within newsletter emails. This innovation enhances publisher monetization while driving a higher ROI for marketers and Zeta, a true win-win-win. As I reflect on nearly four years as a public company, Zeta's trajectory has never been clearer. We have beat and raised guidance for 14 consecutive quarters, outperformed our Zeta 2025 plan a year ahead of schedule, and strengthened our AI data leadership. We remain confident in our ability to be a rule of 40 business for many years to come. We are truly building a one-of-a-kind company. As always, I would sincerely like to thank our customers, our partners, Team Zeta, and all of our shareholders for their ongoing support of our vision. Now let me turn it over to Chris to discuss our results in greater detail. Chris?