Shares of Zeta Global Holdings Corp. (ZETA) jumped 5.14% in after-hours trading on Tuesday, following the company's release of impressive second-quarter results and an upward revision of its full-year guidance. The AI Marketing Cloud company continues to demonstrate robust growth, marking its 16th consecutive "Beat and Raise" quarter.
Zeta Global reported Q2 revenue of $308 million, surpassing the IBES estimate of $296.7 million. The company's strong performance extended to its bottom line, with a reported free cash flow of $34 million for the quarter. Building on this momentum, Zeta has raised its full-year 2025 revenue guidance to a range of $1.258 billion to $1.268 billion, representing a year-over-year growth rate of 25% to 26%.
In addition to the revenue boost, Zeta also increased its adjusted EBITDA guidance for the full year to between $263.6 million and $265.6 million. This $6 million increase at the midpoint from prior guidance indicates a year-over-year growth rate of 37% to 38% and an adjusted EBITDA margin of 20.8% to 21.1%. The company's optimistic outlook is further reflected in its Q3 revenue forecast, which has been raised to a range of $327-329 million.
CEO David A. Steinberg attributed the company's growth to recent product releases, platform expansions, and new client wins. CFO Chris Greiner expressed confidence in meeting the company's ambitious revenue and free cash flow goals set for 2028, citing strong execution and a robust pipeline. The market's positive reaction to these results and forward-looking statements underscores investor confidence in Zeta Global's growth strategy and its position in the competitive AI-powered marketing landscape.