Zeta Global Takes Steps Toward IPO With Price Terms

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Jun. 1 2021, Published 12:02 p.m. ET

The evolution of digital marketing is swift, and the need for nuanced data is only growing. Zeta Global Holdings has a hold on this market with its automated marketing tools, which help companies give meaning to customer data. With Zeta Global heading toward its IPO, the pricing terms are coming to light.

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Here's what to expect with Zeta Global as the company gears up for its public debut.

How Zeta Global stacks up against competitors

Zeta Global's live metrics on its homepage showcase 2.3 billion global unique users, although that number is constantly shifting. If anything, this feature is a testament to the platform's ability to garner and deduce real-time data.

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However, Zeta isn't the only company tackling this feat. While not full overlaps, companies like Adobe, Salesforce, and Oracle do offer about a third or less of the same software capabilities. Adobe (NASDAQ:ADBE) stock has been extremely successful in the public market over the last 3.5 decades. Salesforce (NYSE:CRM) went public in 2004 and has also incurred wealth-building growth. Oracle (NYSE:ORCL) is another veteran, although with a bit more volatility to its name.

Is data-driven marketing at risk amid privacy concerns?

A recent article by Marketing Evolution asked the question, "Can data privacy and data-driven marketing coexist?" As search engines, data-collecting companies, and app stores develop stricter privacy protocols, marketing firms like Zeta Global come into question.

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As long as Zeta maintains flexibility amid changing corporate and governmental regulations, it should be in the clear. However, the company's fate rests on its willingness to adapt. Right now, the Zeta Marketing Platform relies on identity data for targeting, connecting, and engaging customers across channels. Machine learning algorithms help Zeta predict buyer intent, which has contributed to the 500 million ad impressions it received over the course of 2020.

How do Zeta Global's numbers look?

According to the company's statement of operations, its revenue is up about 50 percent YoY for the quarter ending March 31. Meanwhile, total operating expenses are also rising. Zeta saw a net loss last quarter to the tune of 24.3 million. Future profitability isn't certain, but the company has been profitable since March 2020—which is more than many companies (including some in the public market) can say. 

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Zeta Global's share price looks accessible

Based in New York City, Zeta Global is in the mix for its forthcoming NYSE listing (which will be under the ticker symbol "ZETA"). The company aims to raise $250 million with 22.7 million shares. Nearly a third of the shares (31 percent) are reserved for insiders. Each share will go for $10–$12. At $11 per share, Zeta could receive a fully diluted market value of $2.1 billion

Zeta Global's IPO date

Backed by major underwriters like Morgan Stanley, Bank of America Securities, and Credit Suisse, the share price range is a step forward for the Zeta Global IPO. Investors can expect a firm price by June 7. The NYSE debut is expected to follow on June 10.

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