Recently, I released a report on AppLovin, a company that operates in the AI-driven mobile advertising niche and has seen demand for its advertising services explode.
In the past year, the stock is up a mind-boggling 417%, as revenue growth surged to 77% in Q2, and the EBIT margin reached 76%!
And today, I have discovered a company that operates in a related niche and could see its stock rise in a similar fashion.
And that company is called Zeta Global!
Being a business owner is incredibly difficult, as one needs to build a product and find customers. Even the best idea is worth nothing if it is not executed correctly. And increasingly in our world, which is led by digital products and social media ecosystems, knowing how to acquire customers is more important than having a great product.
Nowadays, it’s not the best restaurant that’s the most popular, not the best bakery, not the best beer, and not the best electronics brand. Instead, those who are the best at acquiring and retaining customers are the most popular.
The core competency of a business has shifted from producing stuff to selling stuff!
This shift in business priorities has been going on for years, but the advent of TV, the internet, and most recently social media and AI, has accelerated this trend. Businesses that don’t use the most modern and technologically advanced tools will be disrupted by those who do.
This is exactly what Zeta Global does for its clients. The company provides an AI-driven advertising and marketing platform that helps businesses answer some of their most pressing questions.
How do I identify my customers?
How do I acquire them?
How do I keep them from leaving?
How do I get them to spend more?
Customers surely love the answers, as Zeta’s revenue has almost 4Xed since 2019, reaching sales of $1.16B! However, their growth story is just beginning, and Zeta could be poised to become the next AI marketing and advertising winner.
In this report, I will look at Zeta's business and see where its AI technology could take the company and shareholders.
1. Business Model
2. The Opportunity
3. International Expansion
4. Valuation
5. Conclusion
1. Business Model
Zeta is a cloud-based, AI-powered marketing platform. The company operates a SaaS business model, where customers sign up for various modules to get services that fit their needs.
Simply put, Zeta uses AI to help its clients have smarter and more effective marketing and advertising campaigns.
Zeta does all this through its flagship offering, Zeta Marketing Platform.