IPO Zeta Global
Revenues in 2019-2020
Invest in IPO Zeta Global
Zeta Global is an intelligent platform that provides marketing automation software. The platform relies on predictive analytics and machine learning to analyze big data, optimize advertising campaigns and increase customer loyalty and advertising effectiveness. Zeta Global’s database counts more than 2.3 billion profiles of real consumers.
The company helps its customers automate marketing programs and deliver personalized marketing across all addressable channels, including email, social media, web, chat and video, among others. Zeta serves over 1,000 clients, including American Airlines, Ralph Lauren, British Airways, BMW, Samsung and more than 30 firms of the Fortune 100. In 2020 Zeta Global delivered approximately 500 million ad impressions.
Digital marketing spend was $325 billion in 2019 and is expected to grow to $526 billion by 2024. According to IDC, marketing software spend worldwide is expected to grow to $35.5 billion by 2024, representing a compound annual growth rate of 13%.
The increased focus on digital marketing has also increased the demand for marketing automation solutions. The marketing automation software market was estimated at $6.9 billion in 2020 and is expected to grow to $19.7 billion by 2026, representing a compound annual growth rate of 19%. Zeta Global is focused on large enterprises as customers but does have the potential to move downmarket to pursue middle-market firms as a possible expansion opportunity.
The markets for Zeta Global products are characterized by intense competition, new industry standards, disruptive technology developments, frequent product introductions and short product life cycles.
Companies need to constantly invest considerable resources in research and development, getting downward pressure on their gross margins. And a high supply volume in the market results in price cutting.
Among Zeta Global’s main competitors are private companies such as Ansira, Acxiom, Acoustic, Emarsys, Bannerflow and others.
Zeta Global plans to raise $250 million by offering 22.7 million shares at a price range of $10 to $12. At the midpoint of the proposed range, Zeta would command a fully diluted market value of $2.1 billion. Morgan Stanley, BofA Securities, Credit Suisse, and Barclays are the joint bookrunners on the deal.
The company’s revenue grew by 20% in 2020, amounting to $370 million. In the first quarter, the company was able to make an operating profit of almost $2 million. This signals sustainable growth. Also, Zeta Global dollar-based net retention rate for scaled customers was an impressive 122.3% for 2020. A rate of over 100% means the firm is generating additional revenue from the same cohort of customers and indicates good product/market fit and efficient sales & marketing efforts.
Zeta Global’s main competitors are private companies, but it can also be compared to the Similarweb analytical platform as their functions are largely similar. It went public in mid-May 2021 and is now trading with the P/S 15x multiplier. The Zeta Global multiplier is 5.7x. Although Similarweb’s revenue growth is twice as fast, it still has not reached operating profit, unlike Zeta Global.
Zeta Global shows a significant growth rate while providing a positive free cash flow. The expected return on investment is medium, up to 40%.
2-3 weeks before the start of the company publishes information about the opening of trading: financial statements for 3 years, a description of the company's business, plans for the future, as well as the risks that management sees in their own business. We analyze such offers and publish the best ones. Investors apply for deposits. Before the deadline for applications, you can change the request or cancel it.
We submit one large application for the purchase of shares by pre-subscription with reduced price to large investors. The application may be rejected in part or in full. Over the past three years, our applications have been rejected only three times. The next day, or every other day, we'll know at what price and at what percentage the order is executed, and we'll post it on «The my investment page».
The price of shares is rising from the first day due to the demand of investors deprived of the opportunity to buy shares before trading. Most of the stocks we've been recommending buying over the past three years have been starting to trade on the stock exchange at tens of percent higher than the price at which customers bought the shares. There comes a Lock up period when it is forbidden to sell shares purchased by subscription. Typically lasts 3 months.
After the expiration of the Lock Up period, the investment is automatically closed and the investor receives a profit on account of the deduction commissions UT. You can always view the results of your past investments in investment archive.
Although no shares are allowed to be sold during the lock-up period, our traders seek to offer investors fixed profit by way of using various financial instruments, including forwards, options, short positions etc.
From the investor’s point of view this means that he or she may close an investment by paying a certain part of its value (as a rule, approximately 15 percent). This is due to high prices for the instruments which are employed to ensure availability of fixed profit. As such, you shall press any relevant button in the Investor Account as soon as it is active.
The closing procedure is similar to commencement of investment business. You shall file a bid which is executed within a business day by UT. So, your investment is closed at the price currently prevailing on the stock exchange. However, we rarely recommend using this feature, since upon expiry of an applicable lock-up period the average performance is higher.
3 per cent of the share price. This fee is charged as soon as your investment bid is confirmed.
1.75 per cent of the purchase price paid for your shares as soon as trading is closed. This fee is charged upon closure of any relevant investment.
20 per cent of the profit your derive. This fee is charged only if you show positive performance as of the moment any relevant investment is closed.
TO EARLY EXIT
Usually, 15 per cent (depends on the stock exchange environment). It is calculated per each investment individually.
Our risk managers ensure proper support throughout the entire transaction.
IN THE PROFIT FROM THE FIRST DAY
Such an approach allows it to limit extra risks related to bankruptcy of start-ups and considerably increase profit vs investors purchasing shares on open Market.
LOW ENTRY THRESHOLD
Millions of dollars are required to buy shares on a subscription basis. We have generated a pool of traders and investors which enables any newbie to participate in any transaction as aforesaid by investing just USD50 or more.