Zeta (ZETA) Reports Earnings Tomorrow: What To Expect

Advertising and marketing company Zeta Global (NYSE:ZETA) will be reporting earnings tomorrow after market hours. Here’s what to expect.

Zeta beat analysts’ revenue expectations by 7.2% last quarter, reporting revenues of $227.8 million, up 32.6% year on year. It was an exceptional quarter for the company, with an impressive beat of analysts’ billings and EBITDA estimates.

Is Zeta a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Zeta’s revenue to grow 33.6% year on year to $252.5 million, improving from the 24.1% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.17 per share.

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Zeta has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 5.8% on average.

Looking at Zeta’s peers in the advertising software segment, some have already reported their Q3 results, giving us a hint as to what we can expect. AppLovin delivered year-on-year revenue growth of 38.6%, beating analysts’ expectations by 5.9%, and The Trade Desk reported revenues up 27.3%, topping estimates by 1.2%. AppLovin traded up 46.1% following the results while The Trade Desk was down 5.6%.

Read our full analysis of AppLovin’s results here and The Trade Desk’s results here.

There has been positive sentiment among investors in the advertising software segment, with share prices up 11% on average over the last month. Zeta is up 15.7% during the same time and is heading into earnings with an average analyst price target of $35.92 (compared to the current share price of $35.93).

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