Zeta Global Holdings

ZETA

Software - Application · Technology

Price

$21.68

+0.28 (+1.31%)

Market Cap

$5.42B

Winston Score

Winston is serious

Below-average fundamentals — multiple weak pillars.

Share count rising — dilution

+73.9% over 4y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 127.9M (2021) → 222.4M (2025)

Zeta Global is a marketing technology company that helps businesses find and reach customers using data and artificial intelligence. Its main product is a cloud-based platform called the Zeta Marketing Platform, which collects data about consumers and uses it to send targeted ads and messages across email, mobile, and the web. The company serves large brands in industries like financial services, insurance, retail, and automotive.

Zeta makes money by charging clients based on how much data and how many messages they use through its platform, a model it calls "scaled" usage. It operates primarily in the United States and had roughly $900 million in revenue in 2024, competing against larger players like Salesforce and Adobe. The company owns a large proprietary consumer data set of over 200 million profiles, which it considers a key competitive advantage, but its very thin operating margin means it has little room for error if growth slows or costs rise.

Winston Score History

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+25.4% YoY

YoY Growth Rate

Strong revenue growth

EPS Growth

-60.2% YoY

YoY Growth Rate

Earnings declining

R&D Spend

$117M/ year

↑ Rising (+29% vs prior year)

9.0% of revenue

Below sector average (15%)

R&D investment increasing — building for the future

Insider Activity

2.4%ownership

↓ Declining

Insider ownership declining — could be dilution or selling

Cash Position

Cash flow positive

$320M cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

Company generates more cash than it spends — no dilution risk from fundraising

Strong grower

Zeta Global Holdings is growing revenue at 25% year-over-year. The Winston Score penalises unprofitable companies, but revenue at this pace tells a different story — this is a company still in "build mode."

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

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Quality

Gross Margin

72.7%

Premium pricing power — 72.7% gross margin

Operating Margin

2.1%

Thin — 2.1% operating margin

ROCE

0.8%

Weak — 0.8% return on capital

ROIC between 0% and 5%. They earn a few cents back per dollar invested in the business.

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Growth

Sales YoY

+29.7%

Fast-growing sales (29.7% YoY)

EPS YoY

N/A

Data not available

EPS Consistency

0/8 quarters

Earnings rarely grow — volatile business

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Cash Flow

Cash Conversion

N/A

Data not available

FCF Margin

14.2%

Converts sales into free cash efficiently (14.2%)

FCF margin between 10% and 20%. Every $100 in sales becomes $10 to $20 in real cash.

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Stability

Debt / Equity

0.24

Conservative — low debt load (0.24)

Interest Cover

7.35x

Adequate interest coverage (7.3x)

Interest coverage between 3 and 8. Profits cover interest several times over.

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Valuation

P/E Ratio (TTM)

N/M

Negative earnings — P/E not meaningful

P/E vs Forward

N/A

not available

Data not available

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Dividends

Not applicable for this business.

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