Amit Singh
4 min read
In This Article:
Zeta Global (ZETA), an AI-powered cloud platform offering consumer intelligence and marketing automation software, has had a rocky start to 2025. While its stock is down over 10% year-to-date and trading under $20, Wall Street predicts a significant rebound over the next 12 months. Analysts’ average price target of $24.77 implies about 40% upside potential for Zeta stock. Its Street-high price target of $44 implies shares could gain as much as 160%.
Zeta’s fundamentals remain healthy. Moreover, strong demand, its growing customer base, and management’s focus on lowering share dilution augur well for growth, suggesting that this under-$20 stock could witness a solid recovery.
The momentum in Zeta’s business has sustained despite macro uncertainty. The company kicked off 2025 with impressive revenue of $264 million, up 36% year-over-year. Moreover, its adjusted EBITDA jumped 53% year-over-year to $47 million. Its Q1 marked the 15th consecutive quarter where Zeta exceeded management’s guidance and raised its outlook. This shows the growing demand for its services and solid execution.
Zeta’s well-diversified customer mix is a key strength. It serves large enterprises, which tend to have more stable marketing budgets than small businesses. These enterprise clients are sticky, with over 90% of Zeta’s annual revenue coming from customers who have been with the company for more than a year. And the numbers continue to grow.
At the end of the first quarter, Zeta had 548 “scaled customers”—those generating at least $100,000 in annual revenue for Zeta — an increase of 19% year-over-year. The company also reported 159 “super scaled” customers, who each bring in more than $1 million annually. That’s up 10% year-over-year. These customers are spending more and staying longer on its platform, driving solid recurring revenue.
Average revenue per scaled customer reached $467,000, up 12% year-over-year, while super scaled customers brought in $1.4 million on average, a 23% increase. These trends indicate that Zeta is acquiring new clients and increasing its wallet share within existing accounts.
Zeta recently launched AI Agent Studio, a new suite of generative AI tools, reflecting the company's focus on innovation to accelerate growth. By providing marketers with tools that enhance productivity and effectiveness, Zeta strengthens its value proposition and deepens customer engagement.
