NEW YORK - Zeta Global (NYSE: ZETA), a company specializing in AI-powered marketing, announced today the completion of its acquisition of LiveIntent, a company known for its people-based marketing technology. This strategic move is expected to enhance Zeta's marketing platform and data cloud services, as well as expand its capabilities in artificial intelligence marketing.
The acquisition of LiveIntent is projected to be financially beneficial to Zeta Global, improving its financial profile and delivering greater value to enterprise customers. David A. Steinberg, Co-Founder, Chairman, and CEO of Zeta Global, expressed enthusiasm for the integration of LiveIntent's assets, including its data assets, channel capabilities, and premium publisher network into Zeta's Marketing Platform (ZMP). Steinberg highlighted that this integration will not only expand gross margins but also accelerate the company's revenue transition from agency customers to direct channels.
Further details regarding the transaction were made available in Zeta Global's press release and an 8-K filing with the Securities and Exchange Commission on October 8, 2024. The financial terms of the acquisition have not been disclosed.
Zeta Global, founded in 2007 by David A. Steinberg and John Sculley, provides a marketing platform that utilizes artificial intelligence and a vast proprietary database to help marketers more efficiently acquire, grow, and retain customers. The company aims to simplify sophisticated marketing by unifying identity, intelligence, and omnichannel activation into a single platform.
The company's forward-looking statements indicate an expectation of synergies and accretive value from the acquisition, with an anticipated positive impact on Zeta's product portfolio and market position. However, the company also notes that forward-looking statements are subject to risks and uncertainties and that actual results may differ from those projected.
The acquisition is a significant step for Zeta Global as it continues to expand its presence in the AI-powered marketing industry. This information is based on a press release statement from Zeta Global.
In other recent news, Zeta Global Holdings Corp has been the subject of several significant developments. The company's growth prospects have been revised by Barclays (LON:BARC), which downgraded the stock to an Equalweight rating due to concerns about future growth and valuation. Despite this, Zeta Global continues to expand its market presence with the acquisition of LiveIntent, a marketing platform, for $250 million. This strategic move is expected to enhance Zeta Global's identity resolution capabilities and increase its publisher monetization.
The acquisition news has led to positive responses from several analyst firms. DA Davidson raised its Zeta Global stock price target to $39.00 and maintained a Buy rating. Canaccord Genuity also increased its price target to $35, citing the company's strong momentum and potential for continued growth. Needham maintained a Buy rating with a steady price target of $36.00, emphasizing the synergy between Zeta Global and LiveIntent.
Zeta Global has also reported a 35% year-over-year revenue growth and a 33% rise in year-over-year revenue for the second quarter of 2024. These developments underscore Zeta Global's strong market position and growth trajectory.
InvestingPro Insights
Zeta Global's acquisition of LiveIntent aligns with the company's strong growth trajectory, as evidenced by recent InvestingPro data. The company's revenue growth of 25.16% over the last twelve months and an impressive 32.61% growth in the most recent quarter underscore its expanding market presence. This growth is particularly noteworthy given Zeta's substantial market capitalization of $6.42 billion.
InvestingPro Tips highlight that Zeta operates with a moderate level of debt and has liquid assets exceeding short-term obligations, suggesting a solid financial foundation to support its acquisition strategy. The company's strong return over the last three months, with a 35.77% price total return, indicates market confidence in its strategic direction.
While Zeta is currently not profitable over the last twelve months, an InvestingPro Tip reveals that analysts predict the company will be profitable this year. This projection, coupled with the expected synergies from the LiveIntent acquisition, could potentially accelerate Zeta's path to profitability.
It's worth noting that Zeta is trading at a high revenue valuation multiple, reflecting investor optimism about its growth prospects. The company's year-to-date price total return of 216.33% further emphasizes the market's positive sentiment towards Zeta's business model and expansion strategies.
For investors seeking a more comprehensive analysis, InvestingPro offers 12 additional tips for Zeta Global, providing deeper insights into the company's financial health and market position.
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