Zeta Global : Supplemental 1Q'24 Earnings Presentation

Supplemental

Q1'24 Earnings

Presentation

May 6, 2024

Forward-looking statements and non-GAAP measures

This presentation, together with other statements and information publicly disseminated by the Company, contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The Company intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995 and includes this statement for purposes of complying with these safe harbor provisions. Any statements made in this presentation or during the earnings call that are not statements of historical fact, including statements about our second, third, and fourth quarters and full year 2024 guidance, the Zeta 2025 targets, and the timing of when we will achieve such targets, our ability to execute on KPIs and grow our scaled and super scaled customers, expected political candidate revenues, anticipated stock based compensation reductions, the capabilities of AI and Zeta's platform, and the growth and expansion of the Zeta Marketing Platform, are forward-looking statements and should be evaluated as such. Forward-looking statements include information concerning our anticipated future financial performance, our market opportunities and our expectations regarding our business plan and strategies. These statements often include words such as "anticipate," "expect," "suggests," "plan," "believe," "intend," "estimates," "targets," "projects," "should," "could," "would," "may," "will," "forecast," "outlook, "guidance" and other similar expressions. We base these forward-looking statements on our current expectations, plans and assumptions that we have made in light of our experience in the industry, as well as our perceptions of historical trends, current conditions, expected future developments and other factors we believe are appropriate under the circumstances at such time. Although we believe that these forward-looking statements are based on reasonable assumptions at the time they are made, you should be aware that many factors could affect our business, results of operations and financial condition and could cause actual results to differ materially from those expressed in the forward-looking statements. These statements are not guarantees of future performance or results. The forward-looking statements are subject to and involve risks, uncertainties and assumptions, and you should not place undue reliance on these forward-looking statements. These cautionary statements should not be construed by you to be exhaustive and the forward- looking statements are made only as of the date of this presentation. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law.

The second quarter and full year 2024 guidance and Zeta 2025 targets provided herein are based on Zeta's current estimates and assumptions and are not a guarantee of future performance. The guidance provided and Zeta 2025 targets are subject to significant risks and uncertainties, including the risk factors discussed in the Company's reports on file with the Securities and Exchange Commission, that could cause actual results to differ materially. There can be no assurance that the Company will achieve the results expressed by this guidance or the targets.

This presentation contains non-GAAP financial measures such as adjusted EBITDA, adjusted EBITDA margin, and free cash flow ("FCF"). These measures are not prepared in accordance with generally accepted accounting principles in the United States of America ("GAAP") and have important limitations as analytical tools. Non-GAAP financial measures are supplemental, should only be used in conjunction with results presented in accordance with GAAP and should not be considered in isolation or as a substitute for such GAAP results. Refer to the Appendix of this presentation for (i) the definitions of the non-GAAP measures used in this presentation and (ii) a reconciliation of the non-GAAP financial measures used herein to the most directly comparable financial measures calculated and presented in accordance with GAAP.

The contents and appearance of this presentation is copyrighted and the trademarks and service marks are owned by Zeta Global Corp. All rights reserved.

2

1Q'24 Earnings Summary

1		2		3
2024	Growth		Generating Strong		Increased Guidance Calls
Catalysts	Are Scaling		Return On Investment		For Accelerating Growth Y/Y

• Both Automotive and the Insurance industries returned to growth in 1Q
• Political candidate spending pipelines are starting to build
• Winning new business & rapidly expanding with large Agency HoldCos

• Launched 300 intelligent agents in 1Q'24
• Connecting the mobile channel to the intelligence within our Data Cloud
• Driving productivity gains with sales headcount and marketing investments, as well as through the expansion of our partner ecosystem

• Increasing guidance for each quarter of 2024
• Increasing 2024 revenue guidance by $25M to $900M, up 24% Y/Y
• Increasing 2024 Adjusted EBITDA1,2 guidance by $5M to $171M, up 32% Y/Y

	REVENUE3	CASH FROM OPS	ADJ. EBITDA1,2	ADJ. EBITDA MARGIN1,2
RESULTS	$194.9M	$24.7M	$30.5M	15.6%
1Q'24
	24% Y/Y GROWTH	23% Y/Y GROWTH	27% Y/Y GROWTH	40 BPS Y/Y EXPANSION
See slide 32 for footnote definitions

See appendix for definitions of non-GAAP metrics used herein and reconciliations to the most directly comparable GAAP metric

3

Kicking off the year with strong

underlying fundamentals

Scaled Customer Count

Scaled Customer ARPU

Industry Verticals

TOTAL SCALED4

460

+12% Y/Y

4Q'23: 452

1Q'23: 411

SUPER-SCALED5

144

+31% Y/Y

4Q'23: 131

1Q'23: 110

TOTAL SCALED6

$416K

4Q'23: $454K

1Q'23: $374K

SUPER-SCALED7

$1.1M

4Q'23: $1.3M

1Q'23: $1.2M

5 of the Top 10

Verticals Grew

Greater Than 30%

GAAP Cost of Revenue13

39.4%

4Q'23: 40.2%

1Q'23: 34.5%

See slide 32 for footnote definitions

Direct Revenue Mix8

67%

4Q'23: 73%

1Q'23: 71%

Quota Carrier Headcount

142

FY'23: 136

1Q'23: 130

See appendix for definitions of non-GAAP metrics used herein and reconciliations to the most directly comparable GAAP metric

4

9 straight quarters of >20% revenue growth and 13

consecutive quarters of expanding Adj. EBITDA margins Y/Y

Revenue Growth

Adjusted EBITDA1,2 Growth

$195	$24	$31
$158	15.6%

15.3%	of Revenue
of Revenue

1Q'23 1Q'24

1Q'23 1Q'24

See slide 32 for footnote definitions

See appendix for definitions of non-GAAP metrics used herein and reconciliations to the most directly comparable GAAP metric

5

Expecting to achieve our Zeta 2025 targets early

2025 REVENUE TARGET

$1B+

$25M or 3% above	$1B+
initial 2024
guidance9	$900

$729

$591

$458

$306$368

'19	'20	'21	'22	'23	'24*	'25

2025 ADJ. EBITDA1,2 TARGET

$200M+

$	250	$5M or 3% above		$200+25%
		initial 2024								21%
		guidance9						19%
				18%
$	200			$171		20%
					16%
$150		14%	$129				15%
		11%
				$92
$100									10%
			$63
$50	$40										5%
$	-													0%
		'19	'20	2	'21	3	'22	4	'23		'24*	'25
		1					5		6
			ADJ. EBITDA $			ADJ. EBITDA Margin

FCF2	TARGET
$110M+
			Operating Leverage				$110+
$120		Increasing Free				55%+ 60%
			Cash Flow2							47%		55%
$100													50%
							42%	43%		$80		45%
$80
															40%
										$55
$60												35%
				27%
		25%			$39								30%
$40														25%
					$17
			$10										20%
$20
														15%
$0															10%
	'20	'21	'22			'23	'24*	'25
		1		2		3	4		5		6
					FCF
						FCF to Adj. EBITDA Ratio16

See slide 32 for footnote definitions | *See FY'24 Guidance outlined on slide 16

See appendix for definitions of non-GAAP metrics used herein and reconciliations to the most directly comparable GAAP metric

6

KPIs powering the early achievement of Zeta 2025

AS OF FY'23

SALES

SCALED

SCALED

DIRECT

NET

CUSTOMER

CUSTOMER

PLATFORM

REVENUE

HEADCOUNT

COUNT4

ARPU6

REVENUE MIX8

RETENTION12

MODEL

MODEL

MODEL

MODEL

MODEL

~185-200

8-12% Growth

8-12% Growth

~75%

110-115%

452

136

+12% YTY

$1.57M

2023

+10% YTY

2022

123

403

$1.43M

72%

100

355

$1.24M

111%

2021

2020

72

336

$1.05M

See slide 32 for footnote definitions

2022: 77%	2022: 112%
2021: 76%	2021: 113%

See appendix for definitions of non-GAAP metrics used herein and reconciliations to the most directly comparable GAAP metric

7

Scaled customer count continues to track

ahead of the Zeta 2025 target

180

160

140

120

100

80

60

40

20

-

12 Consecutive Quarters of Sequential

Scaled Customer Expansion

						440	452	460
					425	131	144
			403	411	124
			118
		389	110
	373	103
	106
359
100					316	321	316
99		283	300	301	307
260	273
Q1'22	Q2'22	Q3'22	Q4'22	Q1'23	Q2'23	Q3'23	Q4'23	Q1'24
			$100K - $1M	$1M+

Y/Y Growth:

12%

ZETA 2025

MODELED CAGR:

8-12%

See slide 32 for footnote definitions

See appendix for definitions of non-GAAP metrics used herein and reconciliations to the most directly comparable GAAP metric

8

Consistent Y/Y scaled customer ARPU expansion

Y/Y ARPU Growth %

18% 19% 19%

15%

10%

10%

10%

7%

11%

Y/Y Growth:

11%

			$424			$418	$454	$416
		$382	$374	$392
$341	$355
				1Q'24 ARPU for $1M+ is
					12X
				the $100K - $1M Cohort
Q1'22	Q2'22	Q3'22	Q4'22	Q1'23	Q2'23	Q3'23	Q4'23	Q1'24

ZETA 2025

MODELED CAGR:

8-12%

See slide 32 for footnote definitions | $ in thousands, unless otherwise noted

See appendix for definitions of non-GAAP metrics used herein and reconciliations to the most directly comparable GAAP metric

9

Multi-channel adoption by scaled

customers is driving ARPU expansion

	$100K to $1M
	321	316
Scaled	301
Customer
Count

	1Q'23	4Q'23	1Q'24
Quarterly ARPU	$88	$104	$95
Avg. Channels Per	1.8	1.8	1.8

Greater than $1M

144

131

110

1Q'23	4Q'23	1Q'24
$1,158	$1,313	$1,120
2.8	3.0	2.9

Total Scaled Customers

1Q'23: 411

4Q'23: 452

1Q'24: 460

1 2 X O P P .

~ 6 0 %

See slide 32 for footnote definitions | $ in thousands, unless otherwise noted

See appendix for definitions of non-GAAP metrics used herein and reconciliations to the most directly comparable GAAP metric

10