ZETAZeta Global HoldingsNeutralZeta Global Holdings

Yesterday on

Zeta Global $ZETA: Revenue Growth Accelerates to 46%, Athena AI Drives Customer Expansion. Can Growth Sustain Its Momentum in 2027? Zeta delivered strong Q3 2026 results, with revenue reaching $492.7M (+46.1% YoY), accelerating from 43.6% growth in Q2. Excluding Marigold and political candidate revenue, growth accelerated from 28% to 30% YoY. Profitability improved: Gross margin remained stable at 60% (-0.2 PPs YoY), while operating margin expanded 6.7 PPs to 9%. Operating income surged 421.6% YoY to $45.9M. Net income reached $38.3M, with an 8% net margin. FCF increased 73% YoY to $82M, supported by operating leverage and improving cash conversion. Athena AI is Zeta's primary growth catalyst. More than 50% of Super-Scaled Customers actively use Athena monthly, up from over 40% in Q2. Athena adopters generate over 70% of total revenue, and the top 25 Athena users delivered revenue growth exceeding 70% YoY. Their net revenue retention exceeds company-wide retention by more than 500 basis points. Customer expansion is accelerating: Super-Scaled Customers increased 17.8% YoY to 212, while quarterly ARPU reached $2M, according to management. Customers using five or more channels increased over 60% YoY, and cross-sell and upsell deals grew 38% YoY. AthenaOS opens a larger enterprise opportunity. Zeta plans to expand beyond marketing into inventory management, supply chains, fraud detection, and cybersecurity. General availability is expected in Q1 2027. Its Palantir partnership could generate over $100M in incremental annual revenue in the coming years, although commercialization remains at an early stage. Management raised FY2026 guidance: Revenue is now expected at $1.853B–$1.857B, above the $1.82B consensus. Adj EBITDA guidance increased to $414.1M–$415.2M, and FCF guidance rose to $270.6M–$271.6M. Q4 underlying revenue growth guidance of 23% implies deceleration from Q3's 30%. Shares outstanding increased 5.3% YoY, highlighting dilution concerns. At 4.7x EV/Sales and 29.5× forward P/E, valuation requires sustained execution.

NeutralZETAZeta Global HoldingsZeta Global HoldingsAPPAppLovinAppLovinAXONAxon EnterpriseAxon EnterpriseCRWDCrowdStrikeCrowdStrikeDDOGDatadogDatadogDOCNDigitalOcean HoldingsDigitalOcean HoldingsFIGFigmaFigmaGOOGAlphabetAlphabetGOOGLAlphabetAlphabetIOTSamsaraSamsaraNETCloudflareCloudflareORCLOracleOraclePANWPalo Alto NetworksPalo Alto NetworksPLTRPalantirPalantirSHOPShopifyShopifySNOWSnowflakeSnowflake

2d ago on

Fastest-Growing SaaS and Software Companies by Analyst-Estimated NTM Revenue Growth $PLTR Palantir: +62.3% $DOCN DigitalOcean: +53.8% $ORCL Oracle: +37.6% $SNOW Snowflake: +32.0% $AXON Axon: +31.4% $SHOP Shopify: +27.7% $GOOGL Alphabet: +27.3% $NET Cloudflare: +26.7% $APP AppLovin: +25.9% $ZETA Zeta Global: +24.5% $PANW Palo Alto: +23.4% $CRWD CrowdStrike: +23.3% $FIG Figma: +23.1% $DDOG Datadog: +22.0% $IOT Samsara: +20.9%

ZETAZeta Global HoldingsBullishZeta Global HoldingsDOCNDigitalOcean HoldingsBullishDigitalOcean HoldingsORCLOracleBullishOracleCRWDCrowdStrikeNeutralCrowdStrikeNETCloudflareNeutralCloudflarePLTRPalantirNeutralPalantir

3d ago on

Which SaaS Stocks Offer the Most Growth per Unit of EV/GP? Forward NTM revenue growth estimates matter because investors are paying for future growth rather than historical performance. Gross profit margin adds product efficiency to this comparison. A high gross profit margin indicates a strong competitive position and efficient product economics. Combining both metrics helps show how much investors are paying for high-quality and efficient growth. 🟢Undervalued: $ORCL Oracle estimated +36.7% NTM revenue growth and a Forward EV/GP multiple at 10.8x. $ZETA Zeta Global also below the trendline, with +24.5% est growth and 8.1x multiple. $DOCN DigitalOcean trades at 17.5x multiple, with +53.8% est growth. 🟡Premium valuations: $NET Cloudflare trades at 50.7x Forward EV/GP with 26.7% NTM growth, $CRWD CrowdStrike at 53.8x with 23.3% NTM growth. $PLTR Palantir - the highest 62.3% NTM growth and highest valuation 62.9x. I also include Operating Margin data in the chart. Companies with a high positive operating margin are usually valued higher than companies with a negative operating margin. Selection criteria: software companies with >50% of revenue from subscriptions, EV >$1 billion, and GM >40%.