Zeta Global Holdings Corp. (NYSE: ZETA) saw its shares plummet 6% in pre-market trading on Friday, continuing the downward trend that began after the company released its first-quarter earnings report. Despite beating revenue expectations, the market's reaction suggests investors are concerned about the company's future prospects and profitability.

The cloud-based marketing technology company reported impressive first-quarter results, with revenue of $264.42 million, surpassing analyst estimates of $254.19 million. Zeta's adjusted earnings per share (EPS) came in at $0.21, significantly outperforming the consensus estimate of $0.11. However, when accounting for non-recurring items, the company's EPS was $0.07, falling short of the Zacks Consensus Estimate of $0.12.

Despite the strong top-line performance, investors seemed to focus on other aspects of the report. Zeta Global reported a net loss of $22 million for the quarter, which likely contributed to the negative sentiment. Additionally, while the company provided guidance for Q2 and full-year revenue and adjusted EBITDA, the market's reaction suggests that these projections may not have met investor expectations. The pre-market drop indicates that market participants are reassessing Zeta Global's growth trajectory and profitability potential, overshadowing what would otherwise be considered a strong quarterly performance.