Zeta Global Holdings (NYSE:ZETA) Raises Revenue Guidance With Improved First Quarter Results

Zeta Global Holdings (NYSE:ZETA) has recently raised its revenue guidance for the second quarter and full year of 2025, reflecting positive growth expectations amidst an already improved first quarter earnings report. In the past week, the company's stock price experienced a 7.4% increase, coinciding with a surge in the broader market driven by strong job reports and optimism around potential trade talks between China and the U.S. While the broader market rose 1.8%, Zeta's enhanced financial outlook may have added weight to the positive sentiment, aligning the company's performance with the overall upward market trend.

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The recent news of Zeta Global Holdings raising its revenue guidance sends a positive signal to investors, likely reinforcing the expectation of robust growth from the company's AI investments and strategic initiatives. Over the past three years, the company's total return, which includes share price and dividends, was 56.13%, indicating strong longer-term performance. However, Zeta underperformed the US Software industry in the past year, which saw a 15% return, while the company's stock did not achieve similar growth.

The revised guidance could influence revenue and earnings forecasts, potentially aligning with analysts' expectations of a 21.3% annual revenue growth over the next three years. This guidance supports the narrative of projected growth fueled by Zeta's focus on AI and data strategies. Despite recent upward share price movement, Zeta's shares are trading below the analyst consensus price target of US$30.17, which is significantly above the current share price of US$13.45. This gap could suggest potential upside if the company meets its projected growth targets and market conditions remain favorable.

Get an in-depth perspective on Zeta Global Holdings' performance by reading our balance sheet health report here.

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