Digital advertising firm Zeta Global, co-founded by former Apple (NASDAQ:AAPL) CEO John Scully, reported a robust 24.1% year-on-year (YoY) revenue growth in the third quarter of fiscal year 2023, reaching $189 million and surpassing market estimates. This marks a substantial increase over the past two years, from $115.1 million in Q3 FY2021.
Despite this strong performance, Zeta anticipates a slowdown in the fourth quarter with an expected YoY growth of 18.2%, projecting revenues to reach $207 million. The company's GAAP loss also improved from $0.49 per share in Q3 FY2022 to $0.27 per share this year, reflecting its resilience amidst anticipated challenges.
Key financial metrics of the firm include a Free Cash Flow of $13.5 million, which represents a 20.1% quarter-on-quarter decrease. The company reported having 440 high-value customers during this period.
In terms of profitability, Zeta Global's Gross Margin (GAAP) was recorded at 61.1%, a slight decrease from the 62.2% YoY figure. This decline is reflective of the various market dynamics and challenges that the digital advertising industry faces.
Zeta Global operates in the digital advertising market and offers ad placement optimization software as part of its product portfolio.
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