Zeta Global Holdings Corp. (ZETA) shares surged 6.75% in pre-market trading on Friday, rebounding from an earlier dip following the release of its impressive first-quarter 2025 results. The company reported strong financial performance and raised its guidance for the year, showcasing continued growth and market share gains.

Zeta's Q1 revenue rose 35.6% year-over-year to $264.4 million, surpassing analyst expectations of $254.2 million. The company also reported adjusted earnings of 11 cents per share, meeting consensus estimates. Notably, Zeta achieved significant improvements in key metrics, including a 53% increase in adjusted EBITDA to $47 million and an 87% surge in free cash flow to $28.2 million.

The market's positive reaction appears to be driven by Zeta's strong customer growth and raised guidance. The company increased its full-year 2025 revenue projection to a range of $1.24 billion to $1.25 billion, up from its previous outlook. Additionally, Zeta reported a 19% year-over-year increase in its scaled customer count and a 12% rise in scaled customer quarterly ARPU. The company's continued success with its AI-driven platform and the launch of new initiatives like AI Agent Studios further bolster investor confidence in Zeta's growth trajectory.