Q1 2026 Zeta Global Holdings Corp Earnings Call

Speaker #1: And welcome to the Zeta Q1 26 earnings call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation.

Speaker #1: If anyone requires operator assistance during the conference, please press *0 on your telephone keypad. As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Matt Fao.

Speaker #1: Greetings, and welcome to the Zeta Q1 26 earnings call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation.

Speaker #1: You may begin.

Speaker #2: Thank you, operator. Hello everyone, and thank you for joining us for Zeta's first quarter 2026 conference call. Today's presentation and earnings release are available on Zeta's investor relations website at investors.zetaglobal.com/, where you will also find links to our SEC filings along with other information about Zeta.

Speaker #1: If anyone requires operator assistance during the conference, please press star 0 on your telephone keypad. As a reminder, this conference is being recorded. I would now like Matt Pfau.

Speaker #2: Joining me on the call today are David Steinberg, Zeta's co-founder, chairman, and chief executive officer; and Chris Greiner, Zeta's chief financial officer. Before we begin, I'd like to remind everyone that statements made on this call, as well as in the presentation and earnings release, contain forward-looking statements regarding our financial outlook, business plans and objectives, and other future events and developments, including statements about the market potential of our products, potential competition, revenues of our products, and our goals and strategies.

Speaker #1: You may begin.

Speaker #2: Thank you, operator. Hello, everyone, and thank you for joining us for Zeta's first quarter 2026 conference call. Today's presentation and earnings release are available on Zeta's Investor Relations website, at investors.zetaglobal.com, where you will also find links to our SEC filings along with other information about Zeta.

Speaker #2: Joining me on the call today are David Steinberg, Zeta's co-founder, chairman, and chief executive officer, and Chris Greiner, Zeta's chief financial officer. Before we begin, I'd like to remind everyone that statements made on this call, as well as in the presentation and earnings release, contain forward-looking statements regarding our financial outlook, business plans, and objectives, and other future events and developments, including statements about the market potential of our products, potential competition, revenues of our products, and our goals and strategies.

Speaker #2: These statements are subject to risks and uncertainties that may cause actual results to differ materially from those projected. These risks and uncertainties include those described in the company's earnings release and other filings with the SEC and speak only as of today's date.

Speaker #2: In addition, our discussion today will include references to certain supplemental, non-GAAP financial measures, which should be considered in addition to and not as a substitute for our GAAP results.

Speaker #2: These statements are subject to risks and uncertainties that may cause actual results to differ materially from those projected. These risks and uncertainties include those described in the company's earnings release and other filings with the SEC and speak only as of today's date.

Speaker #2: We use these non-GAAP measures in managing our business and believe they provide useful information for our investors. Reconciliations of the non-GAAP measures to the corresponding GAAP measures where appropriate can be found in the earnings presentation available on our website, as well as our earnings release and our other filings with the SEC.

Speaker #2: In addition, our discussion today will include references to certain supplemental, non-GAAP financial measures, which should be considered in addition to and not as a substitute for our GAAP results.

Speaker #2: We use these non-GAAP measures in managing our business and believe they provide useful information for our investors. Reconciliations of non-GAAP measures to the corresponding GAAP measures, where appropriate, can be found in the earnings presentation available on our website, as well as our earnings release and our other filings with the SEC.

Speaker #2: With that, I will now turn the call over to David.

Speaker #3: Thank you, Matt. Good afternoon, everyone, and thank you for joining us today. We delivered our 19th consecutive beat-and-raise quarter. This consistency is not driven by a single product cycle or a short-term tailwind.

Speaker #2: With that, I will now turn the call over to David.

Speaker #3: It is the result of a structural shift in the market. AI is no longer a feature; it is driving a replacement cycle where enterprises are demanding fewer systems, measurable results, and applied intelligence that works today.

Speaker #3: Thank you, Matt. Good afternoon, everyone, and thank you for joining us today. We delivered our 19th consecutive beat-and-raise quarter. This consistency is not driven by a single product cycle or a short-term tailwind.

Speaker #3: It is the result of a structural shift in the market. AI is no longer a feature; it is driving a replacement cycle where enterprises are demanding fewer systems, measurable results, and applied intelligence that works today.

Speaker #3: We are winning in this environment because of the system we have built. Proprietary data that improves with every interaction, intelligence that compounds with every decision, and a platform with AI at its core that allows customers to consolidate vendors into a single unified operating system.

Speaker #3: We are winning in this environment because of the system we have built. Proprietary data that improves with every interaction, intelligence that compounds with every decision, and a platform with AI at its core that allows customers to consolidate vendors into a single unified operating system.

Speaker #3: This differentiated approach has been recognized by Forrester, where Zeta was once again named a leader and also reflected in our customer advocacy with an NPS score in line with market leaders up 23% from our assessment in the prior year.

Speaker #3: This differentiated approach has been recognized by Forrester, where Zeta was once again named a leader and also reflected in our customer advocacy with an NPS score in line with market leaders up 23% from our assessment in the prior year.

Speaker #3: Both come on the heels of Forrester's study showing Zeta returns an average of 600% on marketing spend for its customers. Athena by Zeta is an accelerant; it is the user interface that brings AI directly into marketing workflows and removes the barriers to enterprise-wide adoption and impact.

Speaker #3: Both come on the heels of Forrester's study showing Zeta returns an average of 600% on marketing spend for its customers. Athena, by Zeta, is an excellent it is the user interface that brings AI directly into marketing workflows and removes the barriers to enterprise-wide adoption and impact.

Speaker #3: Signs of this were evident in Q1, with beta customers plus strong early adoption of Athena contributing to the revenue beat. Our first quarter performance once again shows we are the disruptor in the AI-driven marketing ecosystem.

Speaker #3: Signs of this were evident in Q1, with beta customers plus strong early adoption of Athena contributing to the revenue beat. Our first quarter performance once again showed we are the disruptor in the AI-driven marketing ecosystem.

Speaker #3: First quarter revenue of $396 million representing year-over-year growth of 50% and up 29% year-over-year ex-marigold. Our fourth straight quarter of revenue growth acceleration excluding acquisitions and political candidate revenue.

Speaker #3: First quarter revenue: a $396 million representing year-over-year growth of 50% and up 29% year-over-year ex-marigold. Our fourth straight quarter of revenue growth acceleration excluding acquisitions and political candidate revenue.

Speaker #3: An adjusted EBITDA was $66 million up 42% year-over-year. 19 consecutive beat-and-raise quarters combined with a four-year revenue kegger of 30% reflect more than just consistency; they are evidence of sustained demand in a market consolidating around platforms that can deliver measurable outcomes at scale.

Speaker #3: Adjusted EBITDA was $66 million, up 42% year-over-year. Nineteen consecutive beat-and-raise quarters, combined with a four-year revenue CAGR of 30%, reflect more than just consistency.

Speaker #3: They are evidence of sustained demand in a market consolidating around platforms that can deliver measurable outcomes at scale. And that visibility is reflected in our outlook after raising the midpoint of our range for 2026 revenue guidance last quarter by 25 million dollars.

Speaker #3: And that visibility is reflected in our outlook. After raising the midpoint of our range for 2026, revenue guidance last quarter by 25 million dollars, we are again raising it by 30 million dollars, representing growth of 37%.

Speaker #3: We are

Speaker #3: These market share gains are evidence of a shift in the competitive landscape, as AI moves from feature to a new way of doing business.

Speaker #3: Athena is designed to accelerate our share gains by bringing intelligence directly into workflows turning answers into actions and ultimately changing how marketing is planned, executed, and optimized.

Speaker #3: Athena is currently available to all of our enterprise customers, and its impact is already evident in sales pursuits and results. The number of Athena demos to potential new clients increased dramatically throughout the quarter.

Speaker #3: The promise of Athena is influencing decision-makers and helping Zeta win deals as customers want to invest in applied AI, not roadmap AI. One new customer we closed in the quarter commented leapfrogging to the future requires thinking differently today and committing to execution.

Speaker #3: Interacting with Athena made it clear that Zeta has already made this leap, bringing its vision to life and positioning us to accelerate into a fully agentic marketing future.

Speaker #3: End quote. Athena was a driver in one of the largest deals we have ever closed. The customers are leading global apparel retailer operating across multiple brands each with unique customers and over 3,000 locations worldwide.

Speaker #3: Zeta's platform was purpose-built to handle the complexity required by the largest enterprise companies and this customer was able to consolidate down from four vendors to one, Zeta.

Speaker #3: As the legacy marketing cloud replacement cycle begins to accelerate, this particular client was a marquee win. We are also seeing rapid adoption among existing customers.

David A. Steinberg: Bringing its vision to life and positioning us to accelerate into a fully agentic marketing future, end quote. Athena was a driver in one of the largest deals we have ever closed. The customer is a leading global apparel retailer operating across multiple brands, each with unique customers and over 3,000 locations worldwide. Zeta's platform was purpose-built to handle the complexity required by the largest enterprise companies, and this customer was able to consolidate down from four vendors to one, Zeta. As the legacy marketing cloud replacement cycle begins to accelerate, this particular client was a marquee win. We are also seeing rapid adoption among existing customers. Early feedback and usage shows that customers view Athena not as incremental functionality, but as transformational technology.

David Steinberg: Bringing its vision to life and positioning us to accelerate into a fully agentic marketing future, end quote. Athena was a driver in one of the largest deals we have ever closed. The customer is a leading global apparel retailer operating across multiple brands, each with unique customers and over 3,000 locations worldwide. Zeta's platform was purpose-built to handle the complexity required by the largest enterprise companies, and this customer was able to consolidate down from four vendors to one, Zeta. As the legacy marketing cloud replacement cycle begins to accelerate, this particular client was a marquee win. We are also seeing rapid adoption among existing customers. Early feedback and usage shows that customers view Athena not as incremental functionality, but as transformational technology.

Speaker #3: Early feedback and usage shows that customers view Athena not as incremental functionality but as transformational technology. As adoption increases, Athena learns from more data; outcomes improve and usage deepens.

Speaker #3: Driving ARPU expansion and ultimately reinforcing the same flywheel that has powered our growth. That flywheel is powered by more than just Zeta's AI models; it's driven by the data and infrastructure behind them.

Speaker #3: Zeta's Supergraph, our proprietary identity and intelligence graph, unifies data across the enterprise and enables a complete deterministic view of the consumer that we believe is difficult to replicate at scale.

Speaker #3: This is translating directly into wins. Where access to our data is a key driver for customer decisions, for example, our Supergraph was instrumental in a win with a leading online retailer of pet products in the United States.

David A. Steinberg: As adoption increases, Athena learns from more data, outcomes improve, and usage deepens, driving ARPU expansion and ultimately reinforcing the same flywheel that has powered our growth. That flywheel is powered by more than just Zeta's AI models. It's driven by the data and infrastructure behind them. Zeta's Supergraph, our proprietary identity and intelligence graph, unifies data across the enterprise and enables a complete deterministic view of the consumer that we believe is difficult to replicate at scale. This is translating directly into Mental in a win with a leading online retailer of pet products in the United States that serves millions of active customers with a highly personalized e-commerce experience, a broad assortment of over 100,000 products, and a rapidly expanding ecosystem that includes auto-ship subscriptions, pharmacy services, and pet health offerings.

David Steinberg: As adoption increases, Athena learns from more data, outcomes improve, and usage deepens, driving ARPU expansion and ultimately reinforcing the same flywheel that has powered our growth. That flywheel is powered by more than just Zeta's AI models. It's driven by the data and infrastructure behind them. Zeta's Supergraph, our proprietary identity and intelligence graph, unifies data across the enterprise and enables a complete deterministic view of the consumer that we believe is difficult to replicate at scale. This is translating directly into Mental in a win with a leading online retailer of pet products in the United States that serves millions of active customers with a highly personalized e-commerce experience, a broad assortment of over 100,000 products, and a rapidly expanding ecosystem that includes auto-ship subscriptions, pharmacy services, and pet health offerings.

Speaker #3: That serves millions of active customers with a highly personalized e-commerce experience. A broad assortment of over 100,000 products and a rapidly expanding ecosystem that includes auto ship subscriptions, pharmacy services, and pet health offerings.

Speaker #3: In addition, our proprietary data and the intelligence it generates was a key component in the expansion of a Fortune 100 telco client, expected to drive an 18-times increase in spend with Zeta in 2026 versus 2025.

Speaker #3: As Athena brings that intelligence to our customers in real time, the impact of this data advantage only grows. This foundation of data plus AI continues to power One Zeta.

Speaker #3: We are consistently seeing that the land expand, extend model takes hold. As customers begin with a single use case, and scale across the platform over time.

David A. Steinberg: In addition, our proprietary data and the intelligence it generates was a key component in the expansion of a Fortune 100 telco client, expected to drive an 18 times increase in spend with Zeta in 2026 versus 2025. As Athena brings that intelligence to our customers in real time, the impact of this data advantage only grows. This foundation of data plus AI continues to power One Zeta. We are consistently seeing that the land, expand, extend model takes hold as customers begin with a single use case and scale across the platform over time. That expansion is driven by the modern CMO mandate, do more with fewer partners, improve ROI, and simplify execution across the organization. The result is larger commitments, deeper adoption, and a growing role for Zeta as the marketing operating system and core infrastructure. That momentum is showing up in the data.

David Steinberg: In addition, our proprietary data and the intelligence it generates was a key component in the expansion of a Fortune 100 telco client, expected to drive an 18 times increase in spend with Zeta in 2026 versus 2025. As Athena brings that intelligence to our customers in real time, the impact of this data advantage only grows. This foundation of data plus AI continues to power One Zeta. We are consistently seeing that the land, expand, extend model takes hold as customers begin with a single use case and scale across the platform over time. That expansion is driven by the modern CMO mandate, do more with fewer partners, improve ROI, and simplify execution across the organization. The result is larger commitments, deeper adoption, and a growing role for Zeta as the marketing operating system and core infrastructure. That momentum is showing up in the data.

Speaker #3: That expansion is driven by the modern CMO mandate: do more with fewer partners, improve ROI, and simplify execution across the organization. The result is larger commitments, deeper adoption, and a growing role for Zeta as the marketing operating system and core infrastructure.

Speaker #3: That momentum is showing up in the data. Superscaled customer ARPU was up 21% year over year, well ahead of our target range. Net retention rate remained above our target range of 110 to 115%.

This foundation of data plus AI continues to power 1Zeta. We are consistently seeing that the land, expand, extend model takes hold as customers begin with a single use case and scale across the platform over time.

Speaker #3: And the number of superscaled customers using more than one use case was up over 50% year over year, at scale. It also creates a reinforcing cycle: consolidation drives adoption, adoption drives results, and results drive further expansion.

That expansion is driven by the modern CMO mandate. Do more with fewer Partners improve Roi and simplify execution across the organization.

Speaker #3: This is the One Zeta model, and it continues to be a powerful driver of durable growth. What stands out for me this quarter is the strength we are building across every part of the business.

The result is larger, commitments deeper adoption, and a growing role for Zynga as the marketing operating system and core infrastructure.

David A. Steinberg: Super-Scaled Customer ARPU was up 21% year over year, well ahead of our target range. Net Retention Rate remained above our target range of 110% to 115%. The number of Super-Scaled Customers using more than one use case was up over 50% year over year at scale. It also creates a reinforcing cycle. Consolidation drives adoption drives results, and results drive further expansion. This is the One Zeta model, it continues to be a powerful driver of durable growth. What stands out for me this quarter is the strength we are building across every part of the business. At the center of this is Athena, which is already beginning to change how our customers operate and how we compete.

David Steinberg: Super-Scaled Customer ARPU was up 21% year-over-year, well ahead of our target range. Net Retention Rate remained above our target range of 110% to 115%. The number of Super-Scaled Customers using more than one use case was up over 50% year-over-year at scale. It also creates a reinforcing cycle. Consolidation drives adoption drives results, and results drive further expansion. This is the One Zeta model, it continues to be a powerful driver of durable growth. What stands out for me this quarter is the strength we are building across every part of the business. At the center of this is Athena, which is already beginning to change how our customers operate and how we compete.

Speaker #3: At the center of this is Athena, which is already beginning to change how our customers operate and how we compete together. Our data, our platform, and our leadership in AI are positioning Zeta not just to participate in this shift, but to define it.

Speaker #3: As always, I want to sincerely thank our customers, our partners, and our shareholders for your continued support of our vision. And to Team Zeta, thank you for everything you do.

Speaker #3: It was an honor to be recognized as a great places to work for the third year in a row. This is a reflection of your hard work and collaboration.

That momentum is showing up in the data, super scaled customer RP who was up 21%, year-over-year, well, ahead of our target range. Net retention rate remained above our target range of 110 to 115% and the number of Super scale. Customers. Using more than 1, use case was up over 50% year-over-year at scale. It also creates a reinforcing cycle, consolidation drives adoption adoption, drives results, and results, drive further expansion. This is the 1 data model and it continues to be a powerful driver of durable growth.

Speaker #3: Now let me turn it over to Chris to discuss our results in greater detail. Chris?

Speaker #1: Thank you, David, and good afternoon, everyone. Our results, once again, demonstrated the durability, predictability, and profitability of Zeta's growth. Revenue growth, excluding acquisitions and political candidate revenue, accelerated for the fourth consecutive quarter to 29% in Q1, further cementing the durability of our growth and market share gains.

David A. Steinberg: Together, our data, our platform, and our leadership in AI are positioning Zeta not just to participate in this shift, but to define it. As always, I want to sincerely thank our customers, our partners, and our shareholders for your continued support of our vision. To Team Zeta, thank you for everything you do. It was an honor to be recognized as a Great Place to Work for the third year in a row. This is a reflection of your hard work and collaboration. Now let me turn it over to Christopher Greiner to discuss our results in greater detail. Christopher Greiner?

David Steinberg: Together, our data, our platform, and our leadership in AI are positioning Zeta not just to participate in this shift, but to define it. As always, I want to sincerely thank our customers, our partners, and our shareholders for your continued support of our vision. To Team Zeta, thank you for everything you do. It was an honor to be recognized as a Great Place to Work for the third year in a row. This is a reflection of your hard work and collaboration. Now let me turn it over to Christopher Greiner to discuss our results in greater detail. Christopher Greiner?

What stands out for me this quarter is the strength. We are building across every part of the business. At the center of this is Athena, which is already beginning to change how our customers operate and how we compete. Together, our data, our platform, and our leadership in AI are positioning Zeta not just to participate in the shift, but to define it.

Speaker #1: Broad-based strength across the business is resulting in improved visibility. Leading us to once again raise our 2026 outlook. Underscoring the predictability of our growth.

Speaker #1: Even in doing so, we're maintaining our typical conservatism. And we also saw free cash flow conversion improve to 63%. Generating $42 million in free cash flow demonstrating the increase in profitability of our growth.

Christopher Greiner: Thank you, David. Good afternoon, everyone. Our results once again demonstrated the durability, predictability, and profitability of Zeta's growth. Revenue growth, excluding acquisitions and political candidate revenue, accelerated for the fourth consecutive quarter to 29% in Q1, further cementing the durability of our growth and market share gains. Broad-based strength across the business is resulting in improved visibility, leading us to once again raise our 2026 outlook, underscoring the predictability of our growth. Even in doing so, we're maintaining our typical conservatism. We also saw free cash flow conversion improve to 63%, generating $42 million in free cash flow, demonstrating the increase in profitability of our growth. These results surpassed even our internal stretch goals, coming in $26 million or 7 points above the midpoint of our revenue guidance for the quarter.

Chris Greiner: Thank you, David. Good afternoon, everyone. Our results once again demonstrated the durability, predictability, and profitability of Zeta's growth. Revenue growth, excluding acquisitions and political candidate revenue, accelerated for the fourth consecutive quarter to 29% in Q1, further cementing the durability of our growth and market share gains. Broad-based strength across the business is resulting in improved visibility, leading us to once again raise our 2026 outlook, underscoring the predictability of our growth. Even in doing so, we're maintaining our typical conservatism. We also saw free cash flow conversion improve to 63%, generating $42 million in free cash flow, demonstrating the increase in profitability of our growth. These results surpassed even our internal stretch goals, coming in $26 million or 7 points above the midpoint of our revenue guidance for the quarter.

And to team Zeta. Thank you for everything you do. It was an honor to be recognized as a great places to work for the third year in a row. This is a reflection of your hard work and collaboration. Now, let me turn it over to Chris to discuss our results in Greater detail. Chris,

Speaker #1: These results surpassed even our internal stretch goals, coming in 26 million or 7 points above the midpoint of our revenue guidance for the quarter.

Speaker #1: As I analyzed the strength of our quarter, what stood out was how balanced the upside contribution was. It was not one or two isolated benefits.

Thank you, David and good afternoon. Everyone our results once again, demonstrated the durability predictability and profitability of data's growth Revenue growth, excluding Acquisitions and political candidate Revenue accelerated for the fourth consecutive quarter to 29% in q1 further cementing the durability of our growth in market share gains.

Speaker #1: Instead, in baseball parlance, it was a lot of singles and doubles, which in my opinion is healthier. Here are some examples. In terms of revenue growth, excluding Marigold's contribution, approximately 14 points of growth came from existing customers and 15 points from new customers.

Broad-based strength across the business is resulting in improved visibility, leading us to once again raise our 2026 outlook, underscoring the predictability of our growth. Even in doing so, we're maintaining our typical conservatism.

Speaker #1: From an industry lens, 9 out of our top 10 industries grew faster than 20%. With more discretionary industries continuing to be at the upper end, demonstrating why in tougher macro times, data-driven, lower marketing funnel, high ROI attributable marketing is paramount.

And we also saw free cash flow conversion improve to 63%, generating $42 million in free cash flow, demonstrating the increase in profitability of our growth.

Christopher Greiner: As I analyzed the strength of our quarter, what stood out was how balanced the upside contribution was. It was not one or two isolated benefits. Instead, in baseball parlance, it was a lot of singles and doubles, which in my opinion is healthier. Here are some examples. In terms of revenue growth excluding Marigold's contribution, approximately 14 points of growth came from existing customers and 15 points from new customers. From an industry lens, 9 out of our top 10 industries grew faster than 20%, with more discretionary industries continuing to be at the upper end, demonstrating why in tougher macro times, data-driven, lower marketing funnel, high ROI attributable marketing is paramount. Finally, as it relates to how customers use our platform, email, connected TV, mobile, and social all grew double digits, all while each use case acquire, grow, and retain also grew double digits.

Chris Greiner: As I analyzed the strength of our quarter, what stood out was how balanced the upside contribution was. It was not one or two isolated benefits. Instead, in baseball parlance, it was a lot of singles and doubles, which in my opinion is healthier. Here are some examples. In terms of revenue growth excluding Marigold's contribution, approximately 14 points of growth came from existing customers and 15 points from new customers. From an industry lens, 9 out of our top 10 industries grew faster than 20%, with more discretionary industries continuing to be at the upper end, demonstrating why in tougher macro times, data-driven, lower marketing funnel, high ROI attributable marketing is paramount. Finally, as it relates to how customers use our platform, email, connected TV, mobile, and social all grew double digits, all while each use case acquire, grow, and retain also grew double digits.

These results passed even our internal schedules, coming in at $26 million, or 7 points, above the midpoint of our revenue guidance for the quarter.

Speaker #1: And finally, as it relates to how customers use our platform, email, connected TV, mobile, and social all grew double digits. All while each use case acquired grown retain also grew double digits.

As I analyzed strength for the quarter, what stood out was how balanced the upside contribution was.

It was not 1 or 2 isolated benefits. Instead in baseball bar, Lance, it was a lot of singles and doubles which in my opinion is healthier. Here are some examples

Speaker #1: Now let me dive deeper into our KPIs income statement and balance sheet. Total superscaled customer count grew to 189, up 19% year over year, and in addition, a five customer sequentially.

in terms of Revenue growth, including marital contribution, approximately 14 points of growth came from existing customers and 15 point from new customers.

Speaker #1: This exceeds our Zeta 2028 model of 4% to 8% superscaled customer count growth. Superscaled customer additions were especially strong in advertising, marketing, travel, and hospitality.

From an industry lens, 9 out of our top 10 industries grew faster than 20%, with more discretionary industries continuing to be at the upper end, demonstrating why, in tougher macro times, data-driven, lower-funnel, high-ROI attributable marketing is paramount.

Speaker #1: Superscaled customer ARPU was 1.7 million, up 21% year over year. This also exceeded our Zeta 2028 model of 12% to 16% ARPU growth. Strong ARPU growth in the quarter was driven by an increase in the number of customers using multiple use cases, which was up over 50% year over year, as well as customers using more than three channels, which increased 40% year over year.

Christopher Greiner: Now let me dive deeper into our KPIs, income statement, and balance sheet. Total Super-Scaled Customer count grew to 189, up 19% year-over-year, and an addition of 5 customers sequentially. This exceeds our Zeta 2028 model of 4% to 8% Super-Scaled Customer count growth. Super-Scaled Customer additions were especially strong in advertising, marketing, travel, and hospitality. Super-Scaled Customer ARPU was $1.7 million, up 21% year-over-year. This also exceeded our Zeta 2028 model of 12% to 16% ARPU growth. Strong ARPU growth in the quarter was driven by an increase in the number of customers using multiple use cases, which was up over 50% year-over-year, as well as customers using more than 3 channels, which increased 40% year-over-year.

Chris Greiner: Now let me dive deeper into our KPIs, income statement, and balance sheet. Total Super-Scaled Customer count grew to 189, up 19% year-over-year, and an addition of 5 customers sequentially. This exceeds our Zeta 2028 model of 4% to 8% Super-Scaled Customer count growth. Super-Scaled Customer additions were especially strong in advertising, marketing, travel, and hospitality. Super-Scaled Customer ARPU was $1.7 million, up 21% year-over-year. This also exceeded our Zeta 2028 model of 12% to 16% ARPU growth. Strong ARPU growth in the quarter was driven by an increase in the number of customers using multiple use cases, which was up over 50% year-over-year, as well as customers using more than 3 channels, which increased 40% year-over-year.

And finally, as it relates to how customers use our platform, email connected TV mole, and social all grew double digits. All each use case, acquire, grown, retain also, grew double digits.

Now, let me dive deeper into our KPIs in the statement and balance sheet.

Speaker #1: Both are great examples of the One Zeta sales motion working and how Athena can unlock more of the platform's capabilities for our customers to use.

Total super-skilled customer count grew to 189, up 19% year over year. And in addition to 5 customers, essentially, this exceeds our Zeta 2028 model of 4% to 8% super-skilled customer count growth.

Speaker #1: The forward-looking sales pipeline is also robust. Going into a season when Athena will be front and center at multiple industry conferences. In fact, Athena demos were a crucial differentiator versus incumbents and RFP competitors in each of our marquee enterprise and agency wins in Q1.

Super scaled customer editions are especially strong in advertising, marketing, travel, and hospitality.

Super scale. Customers are now at 1.7 million, up 21% year-over-year. This also exceeded our data 2028 model of 12%, to 16% growth.

Speaker #1: And we expect Athena to play an even bigger role in adding to the sales pipeline. Which is already up 40% year over year, with a subset of discretionary industries up even more.

Speaker #1: Those like retail, advertising, travel, restaurants, furniture, and resorts, to name a few. This outsized sales pipeline growth in discretionary industries is consistent with what we've seen in previous periods of macro volatility.

Christopher Greiner: Both are great examples of the One Zeta sales motion working and how Athena can unlock more of the platform's capabilities for our customers to use. The forward-looking sales pipeline is also robust, going into a season when Athena will be front and center at multiple industry conferences. In fact, Athena demos were a crucial differentiator versus incumbents and RFP competitors in each of our marquee enterprise and agency wins in Q1. We expect Athena to play an even bigger role in adding to the sales pipeline, which is already up 40% year over year, with a subset of discretionary industries up even more. Those like retail, advertising, travel, restaurants, furniture, and resorts, to name a few.

Chris Greiner: Both are great examples of the One Zeta sales motion working and how Athena can unlock more of the platform's capabilities for our customers to use. The forward-looking sales pipeline is also robust, going into a season when Athena will be front and center at multiple industry conferences. In fact, Athena demos were a crucial differentiator versus incumbents and RFP competitors in each of our marquee enterprise and agency wins in Q1. We expect Athena to play an even bigger role in adding to the sales pipeline, which is already up 40% year-over-year, with a subset of discretionary industries up even more. Those like retail, advertising, travel, restaurants, furniture, and resorts, to name a few.

Strong RPU growth in the CORD was driven by an increase in the number of customers using multiple use cases, which is up over 50% year-over-year, as well as customers using more than 3 channels, which increased 40% year-over-year. Both are great examples of the 1 Sales motion working, and how Athena can unlock more of the platform's capabilities for our customers to use.

Speaker #1: And is another proof point that in times of uncertainty, customers consolidate onto fewer platforms that can drive measurable ROI with AI-driven efficiency. Now moving on to revenue mix, direct revenue in the first quarter was 75%.

The forward-looking sales pipeline is also robust going into a season when Athena will be front and center at multiple industry conferences. In fact to see the demos were a crucial differentiator versus incumbents and RFP competitors. In each of our Marquee and Enterprise and agency wins in q1,

Speaker #1: Above the 73% last year, and in line with our target of 70% to 75%. Our gap cost of revenue in the quarter was 41%, a 190 basis point increase year over year, and 50 basis points sequentially.

Speaker #1: The increase in cost of revenue was driven by new agency wins. Driving a higher initial mix of social as a channel. This is consistent with the pattern of business we've seen and spoken to previously when new agencies platform onto Zeta.

Christopher Greiner: This outsized sales pipeline growth in discretionary industries is consistent with what we've seen in previous periods of macro volatility and is another proof point that in times of uncertainty, customers consolidate onto fewer platforms that can drive measurable ROI with AI-driven efficiency. Now moving on to revenue mix. Direct revenue in Q1 was 75%, above the 73% last year and in line with our target of 70% to 75%. Our GAAP cost of revenue in the quarter was 41%, a 190 basis point increase year over year and 50 basis points sequentially. The increase in cost of revenue was driven by new agency wins, driving a higher initial mix of social as a channel. This is consistent with the pattern of business we've seen and spoken to previously when new agencies platform onto Zeta.

Chris Greiner: This outsized sales pipeline growth in discretionary industries is consistent with what we've seen in previous periods of macro volatility and is another proof point that in times of uncertainty, customers consolidate onto fewer platforms that can drive measurable ROI with AI-driven efficiency. Now moving on to revenue mix. Direct revenue in Q1 was 75%, above the 73% last year and in line with our target of 70% to 75%. Our GAAP cost of revenue in the quarter was 41%, a 190 basis point increase year-over-year and 50 basis points sequentially. The increase in cost of revenue was driven by new agency wins, driving a higher initial mix of social as a channel. This is consistent with the pattern of business we've seen and spoken to previously when new agencies platform onto Zeta.

we expect Athena to play an even bigger role in adding to the sales pipeline, which is already up 40% year-over-year with the subset of discretionary Industries up, even more. So like, retail advertising travel restaurants furniture and resorts to name a few

Speaker #1: This is because we offer a substantially more efficient and effective solution for social, and has become the first of many channels adopted by new agencies as they migrate.

Outsized sales pipeline growth. In discretionary Industries is consistent with what we've seen in previous periods of macro, volatility and is another proof point that in times of uncertainty customers consolidate on a fewer platforms that can drive measurable Roi with AI driven efficiency.

Now, moving on to revenue—mix direct revenue in the first quarter was 75%.

Speaker #1: As new agencies scale over time, not only does their aggregate spend increase, but they do so by adding Zeta-owned channels like email, display, video, mobile CTV, and others.

Above the 73% last year and in line with our Target of 70 to 75%.

Speaker #1: It also bears repeating, while social has a higher cost of revenue, it is still accretive to both adjusted EBITDA and free cash flow margins.

Speaker #1: Further, social drives high customer stickiness as well. In the first quarter, adjusted EBITDA was 66.1 million at a margin of 16.7%, 100 basis points lower year over year, and 5 million better than the midpoint of our guidance.

Christopher Greiner: This is because we offer a substantially more efficient and effective solution for social and has become the first of many channels adopted by new agencies as they migrate. As new agencies scale over time, not only does their aggregate spend increase, but they do so by adding Zeta-owned channels like email, display, video, mobile, CTV, and others. It also bears repeating, while social has a higher cost of revenue, it is still accretive to both adjusted EBITDA and free cash flow margins. Further, social drives high customer stickiness as well. In Q1, adjusted EBITDA was $66.1 million at a margin of 16.7%, 100 basis points lower year over year and $5 million better than the midpoint of our guidance. Marigold integration is progressing rapidly and tracking ahead of our expectations.

Chris Greiner: This is because we offer a substantially more efficient and effective solution for social and has become the first of many channels adopted by new agencies as they migrate. As new agencies scale over time, not only does their aggregate spend increase, but they do so by adding Zeta-owned channels like email, display, video, mobile, CTV, and others. It also bears repeating, while social has a higher cost of revenue, it is still accretive to both adjusted EBITDA and free cash flow margins. Further, social drives high customer stickiness as well. In Q1, adjusted EBITDA was $66.1 million at a margin of 16.7%, 100 basis points lower year-over-year and $5 million better than the midpoint of our guidance. Marigold integration is progressing rapidly and tracking ahead of our expectations.

Business. We've seen and spoken to previously, when new agencies platform onto data.

Speaker #1: Marigold integration is progressing rapidly and tracking ahead of our expectations. We took aggressive steps in the quarter to execute operating synergies which should begin to benefit our adjusted EBITDA margin in Q2 and into the back half of the year.

This is because we offer a substantially more efficient and effective solution for social and has become the first of many channels adopted by new agencies as they migrate.

Speaker #1: At the same time, Marigold's revenue came in better than we anticipated, and we're seeing encouraging traction from a One Zeta approach of cross-selling Marigold's loyalty product, along with Zeta's grow and acquire use cases to the combined customer base.

As new agencies fail over time. Not only does their aggregate spend increase, but they do so by adding Zeta owned channels, like email display, video mobile, CTV, and others.

It also airs repeating while social has a higher cost of Revenue. It is still accreted to both adjusted IA and free cash flow. Margins further, social drives, High customer stickiness as well.

Speaker #1: Another area we spoke about last quarter was becoming gap net income and EPS positive for the full year of 2026. Specifically, generating between 2 and 4 cents of gap earnings per share.

In the first quarter adjusted. Even with 66.1 million at a margin of 16.7% 100 basis points, lower year-over-year and 5 million better than the midpoint of our guidance.

Speaker #1: Our first quarter results have us pacing toward the high end of that range. In Q1, our gap net loss was 13.2 million, and improvement from a net loss of 21.6 million in the first quarter of last year.

Christopher Greiner: We took aggressive steps in the quarter to execute operating synergies, which should begin to benefit our adjusted EBITDA margin in Q2 and into the back half of the year. At the same time, Marigold's revenue came in better than we anticipated, and we're seeing encouraging traction from a One Zeta approach of cross-selling Marigold's loyalty product along with Zeta's grow and acquire use cases to the combined customer base. Another area we spoke about last quarter was becoming GAAP net income and EPS positive for the full year of 2026, specifically generating between $0.02 and $0.04 of GAAP earnings per share. Our Q1 results have us pacing toward the high end of that range. In Q1, our GAAP net loss was $13.2 million, an improvement from a net loss of $21.6 million in Q1 of last year.

Chris Greiner: We took aggressive steps in the quarter to execute operating synergies, which should begin to benefit our adjusted EBITDA margin in Q2 and into the back half of the year. At the same time, Marigold's revenue came in better than we anticipated, and we're seeing encouraging traction from a One Zeta approach of cross-selling Marigold's loyalty product along with Zeta's grow and acquire use cases to the combined customer base. Another area we spoke about last quarter was becoming GAAP net income and EPS positive for the full year of 2026, specifically generating between $0.02 and $0.04 of GAAP earnings per share. Our Q1 results have us pacing toward the high end of that range. In Q1, our GAAP net loss was $13.2 million, an improvement from a net loss of $21.6 million in Q1 of last year.

Margold integration is progressing rapidly and tracking ahead of our expectations. We took aggressive steps in the quarter to execute operating synergies, which should begin to benefit our adjusted EBIT margin in Q2 and into the back half of the year.

Speaker #1: Gap loss per share was 6 cents, coming in ahead of our expectations for the quarter, with forecasted costs related to the integration of Marigold being the primary driver and not seen as recurring over the rest of the year.

Speaker #1: First quarter net cash provided by operating activities was 49.7 million, up 43% year over year, with free cash flow of 41.7 million, up 48% year over year, and representing a margin of 10.5%.

At the same time, marigold's Revenue came in better than the anticipated and we're seeing encouraging traction from the ones that approach selling marag Gold's, loyalty products along with zeta's grow and acquire use cases to the combined customer base.

Another area we spoke about last quarter was becoming Gap in income and EPS positive for the full year of 2026, specifically generating between 2 and 4 cents of gaap earnings per share.

Speaker #1: This represents a free cash flow conversion of 63%, a 270 basis point improvement from the first quarter of 2025. This also includes a roughly 13 point working capital headwind driven by longer agency payment cycles standard for their industry.

Christopher Greiner: GAAP loss per share was $0.06, coming in ahead of our expectations for the quarter, with forecasted costs related to the integration of Marigold being the primary driver and not seen as recurring over the rest of the year. Q1 net cash provided by operating activities was $49.7 million, up 43% year-over-year, with free cash flow of $41.7 million, up 48% year-over-year and representing a margin of 10.5%. This represents a free cash flow conversion of 63%, a 270 basis point improvement from Q1 2025. This also includes a roughly 13-point working capital headwind driven by longer agency payment cycles standard for their industry.

Chris Greiner: GAAP loss per share was $0.06, coming in ahead of our expectations for the quarter, with forecasted costs related to the integration of Marigold being the primary driver and not seen as recurring over the rest of the year. Q1 net cash provided by operating activities was $49.7 million, up 43% year-over-year, with free cash flow of $41.7 million, up 48% year-over-year and representing a margin of 10.5%. This represents a free cash flow conversion of 63%, a 270 basis point improvement from Q1 2025. This also includes a roughly 13-point working capital headwind driven by longer agency payment cycles standard for their industry.

Our first quarter results have a spacing toward the high end of that range. In Q1, our GAAP net loss was $13.2 million, an improvement from a net loss of $21.6 million in the first quarter of last year.

Speaker #1: During the first quarter, we repurchased 1.5 million shares for 25.7 million dollars and have approximately 138 million dollars remaining on our share repurchase authorization.

Gap loss. Per share was 6 cents coming in ahead of our expectations. For the quarter with forecasted costs related to the integration of marital being the primary driver. And not seen as recurring over the rest of the year.

Speaker #1: We expect to remain active buyers of our stock, especially at these price levels, subject to market conditions and other priorities. And we continue to make significant progress in reducing dilution and stock-based compensation expense.

Speaker #1: Excluding Marigold, our dilution in the first quarter was 0.1%, and we remain on track to achieve our normal course net dilution target of 3% to 4% in 2026.

Christopher Greiner: During Q1, we repurchased 1.5 million shares for $25.7 million and have approximately $138 million remaining on our share repurchase authorization. We expect to remain active buyers of our stock, especially at these price levels, subject to market conditions and other priorities. We continue to make significant progress in reducing dilution and stock-based compensation expense. Excluding Marigold, our dilution in Q1 was 0.1%, and we remain on track to achieve our normal course net dilution target of 3% to 4% in 2026. Relatedly, with most of management's previously issued equity now fully vested post-IPO, Zeta's Board of Directors and Compensation Committee, in consultation with an independent compensation consultant, approved a new long-term equity incentive plan for management.

Chris Greiner: During Q1, we repurchased 1.5 million shares for $25.7 million and have approximately $138 million remaining on our share repurchase authorization. We expect to remain active buyers of our stock, especially at these price levels, subject to market conditions and other priorities. We continue to make significant progress in reducing dilution and stock-based compensation expense. Excluding Marigold, our dilution in Q1 was 0.1%, and we remain on track to achieve our normal course net dilution target of 3% to 4% in 2026. Relatedly, with most of management's previously issued equity now fully vested post-IPO, Zeta's Board of Directors and Compensation Committee, in consultation with an independent compensation consultant, approved a new long-term equity incentive plan for management.

Speaker #1: Relatedly, with most of management's previously issued equity now fully vested post-IPO, Zeta's board of directors and compensation committee in consultation with an independent compensation consultant approved a new long-term equity incentive plan for management.

First quarter net cash provided by operating activities, was 49.7 Million up 43% year-over-year with free cash. Flow of 41.7 million up, 48% year-over-year, and representing a margin of 10.5%. This represents a free cash flow conversion of 63%, a 270 basis point improvement from the first quarter of 2025. This also includes a roughly 13 Point. Working capital headwind driven by longer agency payment Cycles standard for their industry.

Speaker #1: This performance-based plan secures continuity of Zeta's named executive officers and management for six years, and incentivizes management to achieve its long-term revenue and adjusted EBITDA margin objectives while adhering to its principles of lowering dilution, reducing stock-based compensation as a percentage of revenue, and achieving gap positive earnings.

During the first quarter. We repurchased 1.5 million shares for 25.7 million and approximately 138 million remaining on. Our shared. Purchase authorization, we expect to remain active buyers of stock, especially at these price levels subject to market conditions and other priorities.

Speaker #1: Furthermore, named executive officers who receive these incentives will not be rewarded any further equity for the next six years. Now onto our increased guidance.

And we continue to make significant progress in reducing dilution and Doc bait, compensation expense, excluding our gold. Our dilution, in the first quarter was 0.1% and we remain on track to achieve our normal course, net dilution. Target of 3% to 4% in 2026,

Speaker #1: For the full year 2026, we're increasing the midpoint of our revenue guidance by 30 million, to 1 billion, 785 million, representing a 37% growth rate or 22% year over year growth when excluding Marigold and political candidate revenue.

Christopher Greiner: This performance-based plan secures continuity of Zeta's named executive officers and management for six years and incentivizes management to achieve its long-term revenue and adjusted EBITDA margin objectives while adhering to its principles of lowering dilution, reducing stock-based compensation as a percentage of revenue, and achieving GAAP positive earnings. Furthermore, named executive officers who receive these incentives will not be rewarded any further equity for the next six years. Now on to our increased guidance. For the full year 2026, we're increasing the midpoint of our revenue guidance by $30 million to $1,785 million, representing a 37% growth rate or 22% year-over-year growth when excluding Marigold and political candidate revenue.

Chris Greiner: This performance-based plan secures continuity of Zeta's named executive officers and management for six years and incentivizes management to achieve its long-term revenue and adjusted EBITDA margin objectives while adhering to its principles of lowering dilution, reducing stock-based compensation as a percentage of revenue, and achieving GAAP positive earnings. Furthermore, named executive officers who receive these incentives will not be rewarded any further equity for the next six years. Now on to our increased guidance. For the full year 2026, we're increasing the midpoint of our revenue guidance by $30 million to $1,785 million, representing a 37% growth rate or 22% year-over-year growth when excluding Marigold and political candidate revenue.

Relatedly with most of Management's, previously issued Equity. Now, fully vested post IPO data's board of directors and compensation Committee in consultation with an independent compensation consultant approved, a new long-term Equity incentive plan for management.

Speaker #1: None of our guidance increase is related to political candidate revenue, which we continue to assume will be 15 million in 2026, with 7 million in the third quarter and 8 million in the fourth quarter.

Speaker #1: Additionally, we continue to take a conservative view of Marigold, contributing 47.5 million per quarter to 2026 revenue for the remainder of the year. Our revenue guidance also includes minimal contribution from Athena, and as shared earlier, we have taken into account our typical conservatism of 2% to 5% in setting our outlook.

This performance-based plan, Secours, continuity of Zeta named executive officers and management for 6 years and incentivizes management to achieve its long-term revenue and adjusted Eva margin objectives while adhering to its principles of lowering dilution reducing stock-based compensation as a percentage of Revenue and achieving Gap positive earnings.

Furthermore, Nate, executive officers who received these incentives will not be rewarded. Any further equity for the next 6 years.

now, on to our increased guidance,

Speaker #1: For the second quarter, we now expect revenue of 420 million at the midpoint, 4 million dollars higher than our previous guidance, and representing year over year growth of 36% or 21% when excluding political candidate and Marigold revenue.

Christopher Greiner: None of our guidance increase is related to political candidate revenue, which we continue to assume will be $15 million in 2026, with $7 million in Q3 and $8 million in Q4. Additionally, we continue to take a conservative view of Marigold, contributing $47.5 million per quarter to 2026 revenue for the remainder of the year. Our revenue guidance also includes minimal contribution from Athena. As shared earlier, we have taken into account our typical conservatism of 2% to 5% in setting our outlook. For Q2, we now expect revenue of $420 million at the midpoint, $4 million higher than our previous guidance and representing year-over-year growth of 36% or 21% when excluding political candidate and Marigold revenue.

Chris Greiner: None of our guidance increase is related to political candidate revenue, which we continue to assume will be $15 million in 2026, with $7 million in Q3 and $8 million in Q4. Additionally, we continue to take a conservative view of Marigold, contributing $47.5 million per quarter to 2026 revenue for the remainder of the year. Our revenue guidance also includes minimal contribution from Athena. As shared earlier, we have taken into account our typical conservatism of 2% to 5% in setting our outlook. For Q2, we now expect revenue of $420 million at the midpoint, $4 million higher than our previous guidance and representing year-over-year growth of 36% or 21% when excluding political candidate and Marigold revenue.

For the full year, 2026 were increasing, the midpoint of our Revenue guidance by 30 million, to 1 billion. 785 million representing a 37% growth rate, or 22% year-over-year growth, when excluding margold and political candidate Revenue,

Speaker #1: For adjusted EBITDA, we're increasing the midpoint of our 2026 guidance to 397 million, up 6 million from our prior guidance, and representing a year over year increase of 43% at a margin of 22.3%, an improvement of 90 basis points over 2025.

5 million per quarter, 2026 revenue for the remainder of year.

Speaker #1: For the second quarter of 2026, we now expect adjusted EBITDA of 86.6 million at the midpoint, up from our previous expectation of 84.9 million and representing growth of 47% and a margin of 20.6%, up 155 basis points year to year.

Our Revenue guidance also includes minimal contribution from Fina and a shared earlier, we have taken into account, our typical conservatism of 2% to 5% in Center Outlook.

Christopher Greiner: For adjusted EBITDA, we're increasing the midpoint of our 2026 guidance to $397 million, up $6 million from our prior guidance and representing a year-over-year increase of 43% at a margin of 22.3%, an improvement of 90 basis points over 2025. For Q2 2026, we now expect adjusted EBITDA of $86.6 million at the midpoint, up from our previous expectation of $84.9 million and representing growth of 47% and a margin of 20.6%, up 155 basis points year to year. We are also increasing our 2026 free cash flow guidance to $235 million at the midpoint, up from $231 million, representing year-over-year growth of 43% and a conversion of 59% of adjusted EBITDA, which likely has upside.

Chris Greiner: For adjusted EBITDA, we're increasing the midpoint of our 2026 guidance to $397 million, up $6 million from our prior guidance and representing a year-over-year increase of 43% at a margin of 22.3%, an improvement of 90 basis points over 2025. For Q2 2026, we now expect adjusted EBITDA of $86.6 million at the midpoint, up from our previous expectation of $84.9 million and representing growth of 47% and a margin of 20.6%, up 155 basis points year to year. We are also increasing our 2026 free cash flow guidance to $235 million at the midpoint, up from $231 million, representing year-over-year growth of 43% and a conversion of 59% of adjusted EBITDA, which likely has upside.

Speaker #1: We are also increasing our 2026 free cash flow guidance to 235 million at the midpoint, up from 231 million representing year over year growth of 43% and a conversion of 59% of adjusted EBITDA, which likely has upside.

For the second quarter. We now expect revenue of 420 million at the midpoint 4 million higher than our previous guidance. And representing year growth of 36% or 21%, when excluding political candidate and marle Revenue,

Speaker #1: And here's the broader point. A 19-quarter beat-and-race track record is obviously something we're proud of, and continues to demonstrate our consistency and strong execution.

For adjusted Eva where increasing the midpoint of our 2026 guidance to 3977 million up 6 million of our buyer guidance and representing a year-over-year increase of 43% at a margin of 22.3% and Improvement of 90 basis points over 2025.

Speaker #1: We also recognize the times we're in, specifically the need to underwrite investments in companies with strong, free cash flow generation, durable revenue growth and share gains, and demonstratable moats.

For the second quarter of 2026, we now expect adjusted EBITDA of $86.6 million at the midpoint, up from our previous expectation of $84.9 million, and representing growth of 47% and a margin of 20.6%, up 155 basis points year over year.

Speaker #1: Q1 was an excellent jumping-off point for these emerging investor frameworks. Not only did free cash flow set a record in the first quarter, but we are also tracking to the high end of our 2026 gap EPS range of 2 cents to 4 cents and long-term 2028 targets.

Christopher Greiner: Here's the broader point. A 19-quarter beat and raise track record is obviously something we're proud of and continues to demonstrate our consistency and strong execution. We also recognize the times we are in, specifically the need to underwrite investments in companies with strong free cash flow generation, durable revenue growth and share gains, and demonstratable moats. Q1 was an excellent jumping-off point for these emerging investor frameworks. Not only did free cash flow set a record in Q1, but we are also tracking to the high end of our 2026 GAAP EPS range of $0.02 to $0.04 and long-term 2028 targets. As it relates to durable growth, this was the Q4 in a row we accelerated revenue growth, excluding acquisitions and political candidate revenue.

Chris Greiner: Here's the broader point. A 19-quarter beat and raise track record is obviously something we're proud of and continues to demonstrate our consistency and strong execution. We also recognize the times we are in, specifically the need to underwrite investments in companies with strong free cash flow generation, durable revenue growth and share gains, and demonstratable moats. Q1 was an excellent jumping-off point for these emerging investor frameworks. Not only did free cash flow set a record in Q1, but we are also tracking to the high end of our 2026 GAAP EPS range of $0.02 to $0.04 and long-term 2028 targets. As it relates to durable growth, this was the Q4 in a row we accelerated revenue growth, excluding acquisitions and political candidate revenue.

We are also increasing our 2026 free cash flow guidance to $235 million at midpoint, up from $231 million, representing year-over-year growth of 43%. And that’s a conversion of 59% of adjusted EVA, which likely has upside.

Speaker #1: As it relates to durable growth, this was the fourth quarter in a row we accelerated revenue growth, excluding acquisitions and political candidate revenue. And in terms of exhibiting our moats, our marquee wins with enterprises and agencies this quarter came at the expense of legacy marketing clouds and legacy DSPs, where Zeta's proprietary data and Athena operating system were capabilities our competition could not match.

And here's the broader point, a 19 quarter beaten race. Track record is obviously something we're proud of and continues to demonstrate our consistency and strong execution.

We also recognize the times we are in specifically the need to underwrite investments in companies with strong free, cash regeneration, durable revid growth and share gains and demonstrable notes.

Speaker #1: With that, I'll hand the call over to the operator for David and me to take your questions. Operator?

Speaker #2: We will now be conducting the question and answer session. If you would like to ask a question, please press star one on your telephone keypad.

Speaker #2: A confirmation ton will indicate that your line is in the question queue. You may press star two if you'd like to remove a question from the queue.

Q1 with an excellent jumping off point for these merging investor Frameworks. Not only did free cash flows that are recorded in the first quarter, but we are also tracking to the high end of our 2026. Gaap EPS range of 2 cents to 4 cents and long-term 2028 targets.

Speaker #2: For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. One moment, please, while we pull for questions.

Christopher Greiner: In terms of exhibiting our moats, our marquee wins with enterprises and agencies this quarter came at the expense of legacy marketing clouds and legacy DSPs, where Zeta's proprietary data and Athena operating system were capabilities our competition could not match. With that, I'll hand the call over to the operator for David and me to take your questions. Operator?

Chris Greiner: In terms of exhibiting our moats, our marquee wins with enterprises and agencies this quarter came at the expense of legacy marketing clouds and legacy DSPs, where Zeta's proprietary data and Athena operating system were capabilities our competition could not match. With that, I'll hand the call over to the operator for David and me to take your questions. Operator?

Speaker #2: And the first question comes from the line of DJ Hines with Canaccord Genuity. Please proceed with your question.

Speaker #3: Hey, guys. Congrats on a fantastic quarter. Nice start to the year. David, I want to ask you a competitive question. So obviously, there's been more public backlash against the trade desk and the agency ecosystem but I think for those living in the marketing and ad tech world, that's been going on for a while now, right?

As it relates to durable growth, this was the fourth quarter in a row. We accelerated Revenue growth, excluding Acquisitions and political candidate revenue. And in terms of exhibiting our notes, our Marquee wins with Enterprises and agencies. This quarter came to the expense of Legacy marketing files, and Legacy dsps with a proprietary data and Athena operating system where capabilities our competition could not match.

With that, I'll hand the call over to the operator for David and me to take your questions, operator.

Speaker #3: So two related questions here. Number one, how much do you think Zeta has benefited from that dynamic? And then second, if the trade desk figures out how to get pricing right or at least make it more transparent, does this rebalance competitive dynamics at all, or is the horse already out of the barn there?

Speaker #4: Well, I mean, first of all, DJ, thank you. We appreciate it. Could not be happier with this quarter. And I think it really speaks to kicking off the year right and Athena really was a massive driver here.

Speaker #4: I want to separate the conversation about the agency and other technological platforms like the trade desk that are out there and struggling a bit because the agencies continue to thrive and they're not really having any issues from our vantage point.

Speaker #4: And I just got back from three days at the possible conference where I did 54 meetings in three days. Hosted four dinners in three cocktail parties, which is why I'm losing my voice going into this.

Speaker #4: I think that and I don't want to speak to any particular platform, but I think the horse is out of the barn. I think that organizations that have built workflow management tools, that do not have proprietary data, they do not have proprietary native artificial intelligence, are going to really struggle in this next evolution of where sort of marketing is going as it relates to intelligence.

Operator: Ladies and gentlemen, thank you for standing by. Hold on just one second, please. We will now be conducting the question-and-answer session. If you would like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate that your line is in the question queue. You may press star two if you'd like to remove a question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. One moment please while we poll for questions. The first question comes from the line of DJ Hynes with Canaccord Genuity. Please proceed with your question.

Operator: Ladies and gentlemen, thank you for standing by. Hold on just one second, please. We will now be conducting the question-and-answer session. If you would like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate that your line is in the question queue. You may press star two if you'd like to remove a question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. One moment please while we poll for questions. The first question comes from the line of DJ Hynes with Canaccord Genuity. Please proceed with your question.

Ladies and gentlemen, thank you for standing by.

Hold on, just 1 second, please.

Speaker #4: Because if you're not creating intelligence in today's world, you're not winning. And I think that we are a direct reason that a number of our competitors are either growing slower or shrinking.

Speaker #4: As we take meaningful market share, Chris and his prepared remarks was very clear about the fact we had a number of meaningful agency wins in the quarter that will continue to run out through the rest of this year and into future years that are starting with social.

We will now be conducting. The question and answer session. If you would like to ask a question, please press star 1 on your telephone keypad, a confirmation tone indicate that your line is in the question queue, you may press star 2. If you'd like to remove a question from The View for participants using speaker equipment, may be necessary to pick up your handset before pressing star keys.

One moment, please, while we both wait for questions.

Speaker #4: We're starting to see those move over to programmatic and connected TV as well. So I think if you separate the agencies, which are doing well and thriving, from the technological platforms that have based their business on workflow management, I think they are going to struggle and we are going to continue to beat them handedly in the marketplace.

DJ Hynes: Hey, guys. Congrats on a fantastic quarter. Nice start to the year. David, I want to ask you a competitive question. Obviously there's been more public backlash against The Trade Desk and the agency ecosystem, but I think for those living in the marketing and ad tech world, like, that's been going on for a while now, right? Two related questions here. Number one, like how much do you think Zeta has benefited from that dynamic? Second, if The Trade Desk figures out how to get pricing right or at least make it more transparent, does this rebalance competitive dynamics at all, or is the horse already out of the barn there?

DJ Hynes: Hey, guys. Congrats on a fantastic quarter. Nice start to the year. David, I want to ask you a competitive question. Obviously there's been more public backlash against The Trade Desk and the agency ecosystem, but I think for those living in the marketing and ad tech world, like, that's been going on for a while now, right? Two related questions here. Number one, like how much do you think Zeta has benefited from that dynamic? Second, if The Trade Desk figures out how to get pricing right or at least make it more transparent, does this rebalance competitive dynamics at all, or is the horse already out of the barn there?

Speaker #3: Yeah, perfect. And the helpful caller. Chris, I want to follow up with you. So David gave a bunch of great anecdotal data points around Athena and the early success there.

Speaker #3: The product's not explicitly monetized, right? So what are the signs that we all as investors should be paying attention to from a financial perspective that will signal to us that Athena is moving the needle for Zeta?

David A. Steinberg: Well, first of all, DJ, thank you. We appreciate it. Could not be happier with this quarter, and I think it really speaks to kicking off the year right, and Athena really was a massive driver here. I wanna separate the conversation about the agency and other technological platforms like The Trade Desk that are out there and struggling a bit, 'cause the agencies continue to thrive and they're not really having any issues as from our vantage point. I just got back from 3 days at the Possible conference where I did 54 meetings in 3 days, hosted 4 dinners and 3 cocktail parties, which is why I'm losing my voice going into this.

David Steinberg: Well, first of all, DJ, thank you. We appreciate it. Could not be happier with this quarter, and I think it really speaks to kicking off the year right, and Athena really was a massive driver here. I wanna separate the conversation about the agency and other technological platforms like The Trade Desk that are out there and struggling a bit, 'cause the agencies continue to thrive and they're not really having any issues as from our vantage point. I just got back from 3 days at the Possible conference where I did 54 meetings in 3 days, hosted 4 dinners and 3 cocktail parties, which is why I'm losing my voice going into this.

Hey guys, uh, congrats on a fantastic quarter. Nice, nice start to the year. Uh, David, I want to ask you a competitive question. So, obviously there's been more public backlash against The Trade Desk and the agency ecosystem, but I think for those living in marketing and adtech world, like that's been going on for a while now, right? So, two related questions here. Number one, how much do you think Zeta has benefited from that dynamic? And then second, if The Trade Desk figures out how to get pricing right, or at least make it more transparent, does this rebound the competitive dynamic at all, or is the horse already out of the barn there?

Speaker #4: Great question, DJ. I'm glad you asked. There's a couple of leading indicator data points that I think you can already begin to look at.

Speaker #4: So as part of the press release, one of the data points that was called out was a 7x increase. And this is just in the first week of Athena's general availability.

Speaker #4: We saw 7x increase in the type of and the amount of agentic interactions on the platform coupled by 60% of the AI usage on our platform being driven by Athena.

David A. Steinberg: I think that, you know, I don't wanna speak to any particular platform, but I think the horse is out of the barn. I think that organizations that have built workflow management tools that do not have proprietary data, they do not have proprietary native artificial intelligence, are going to really struggle in this next evolution of where sort of marketing is going as it relates to intelligence. Because if you're not creating intelligence in today's world, you're not winning. I think that we are a direct reason that a number of our competitors are either growing slower or shrinking as we take meaningful market share.

Speaker #4: How that should ultimately translate through the usage part of a revenue can be seen through ARPU expansion, some of which you already started to see.

David Steinberg: I think that, you know, I don't wanna speak to any particular platform, but I think the horse is out of the barn. I think that organizations that have built workflow management tools that do not have proprietary data, they do not have proprietary native artificial intelligence, are going to really struggle in this next evolution of where sort of marketing is going as it relates to intelligence. Because if you're not creating intelligence in today's world, you're not winning. I think that we are a direct reason that a number of our competitors are either growing slower or shrinking as we take meaningful market share.

Well, let's, I mean first of all, DJ, thank you. I appreciate it. Could not be happier with this quarter and and I think it really speaks to kicking off the year, right? And Athena really was a massive driver here. I want to separate the conversation about the agency and other technological platforms, like the trade desk that are out there and struggling a bit because the agencies continue to thrive and and are not really having any issues as from from our vantage point. And I just, I just got back from 3 days, the possible conference where I did 54 meetings, in 3 days hosted, 4 dinners in 3 cocktail parties, which is why I'm losing my voice going into this, uh,

I, I think that

Speaker #4: So if you look at ARPU in the quarter for superscaled customers, it was 1.7 million. It was up 21% year over year. But if you look underneath that, what drove it are exactly the dynamics that Athena was engineered to be able to do, which is to make more of the platform available and visible for the customers to be able to exploit.

You know, and I don't want to speak to any particular platform, but I think the horse is out of the barn. I think that organizations that have built.

Speaker #4: If you look at multiple use case customers, it was up over 50% year over year. If you look at the customers that were using four more channels, that's up over 40% year over year, which, again, are not just great examples of Athena as an unlock but also one Zeta working well.

Speaker #5: And by the way, she's just getting started, DJ.

David A. Steinberg: Chris, in his prepared remarks, was very clear about the fact we had a number of meaningful agency wins in the quarter that will continue to run out through the rest of this year and into future years that are starting with social. We're starting to see those move over to programmatic and connected TV as well. I think if you separate the agencies, which are doing well and thriving, from the technological platforms that have based their business on workflow management, I think they are gonna struggle, and we are gonna continue to beat them handedly in the marketplace.

David Steinberg: Chris, in his prepared remarks, was very clear about the fact we had a number of meaningful agency wins in the quarter that will continue to run out through the rest of this year and into future years that are starting with social. We're starting to see those move over to programmatic and connected TV as well. I think if you separate the agencies, which are doing well and thriving, from the technological platforms that have based their business on workflow management, I think they are gonna struggle, and we are gonna continue to beat them handedly in the marketplace.

Speaker #3: Yeah, totally.

Speaker #5: Awesome. Congrats, guys. Thank you.

Speaker #4: Thanks, DJ.

Speaker #2: And the next question comes from the line of Gabriela Borges with Goldman Sachs. Please proceed with your question.

Speaker #6: Hi, good afternoon. Thank you. David, I want to ask you about the people and process part of Athena, meaning the technology you've demoed at.

Speaker #6: It clearly is able to do a huge amount of knowledge work. My question for you is, how do you then change the end user behavior?

DJ Hynes: Yeah. Perfect and helpful color. Christopher Greiner, I wanna follow up with you. David A. Steinberg gave a bunch of great anecdotal data points around Athena and the early success there. The product's not explicitly monetized, right? What are the signs that we all as investors should be paying attention to from a financial perspective that will signal to us that Athena is moving the needle for Zeta?

DJ Hynes: Yeah. Perfect and helpful color. Christopher Greiner, I wanna follow up with you. David A. Steinberg gave a bunch of great anecdotal data points around Athena and the early success there. The product's not explicitly monetized, right? What are the signs that we all as investors should be paying attention to from a financial perspective that will signal to us that Athena is moving the needle for Zeta?

Workflow management tools that do not have proprietary data. They do not have proprietary native. Artificial intelligence are going to really struggle, uh, in this next evolution of where sort of marketing is going, is it relates to intelligence? Because if you're not creating intelligence in today's world, you're not winning. And I think that we are a direct reason. That a number of our competitors are either growing slower or shrinking as we take meaningful market, share, Kristen is prepared. Remarks was very clear about the fact, we had a number of meaningful agency wins in the quarter that will continue to run out through the rest of this year and into future years that are starting with social. Uh, we're starting to see those move over, uh, over to programmatic and connected TV as well. So, I think if you separate the agencies which are doing well and thriving, from the technological platforms that have based their business on workflow management, I think they are going to struggle and we are going to continue to uh beat them handily in the marketplace.

Yeah.

Speaker #6: What is the training and enablement look like? How do you encourage more people to use it? Once your customers have already decided to adopt it?

And helpful color crisps. I want to follow up with you. So, David, gave a bunch of great anecdotal data points around Athena in the early success. There,

Speaker #4: First of all, Gabriela, what a great question. First, let me say that we were incredibly proud that we were able to make the product not just generally available on time but available to 100% of our enterprise clients, which was not a small task.

The product's not explicitly monetized, right? So what are the signs that we all as investors should be paying attention to from a financial perspective?

Christopher Greiner: Great question, DJ. I'm glad you asked. There's a couple of leading indicator data points that I think you can already begin to look at. As part of the press release, one of the data points that was called out was a 7x increase, and this is just in the first week of Athena's general availability. We saw 7x increase in the amount of agentic interactions on the platform, coupled by 60% of the AI usage on our platform being driven by Athena. How that should ultimately translate through the usage part of a revenue can be seen through ARPU expansion, some of which you already started to see. If you look at ARPU in the quarter for Super-Scaled Customers, it was $1.7 million. It was up 21% year-over-year.

Chris Greiner: Great question, DJ. I'm glad you asked. There's a couple of leading indicator data points that I think you can already begin to look at. As part of the press release, one of the data points that was called out was a 7x increase, and this is just in the first week of Athena's general availability. We saw 7x increase in the amount of agentic interactions on the platform, coupled by 60% of the AI usage on our platform being driven by Athena. How that should ultimately translate through the usage part of a revenue can be seen through ARPU expansion, some of which you already started to see. If you look at ARPU in the quarter for Super-Scaled Customers, it was $1.7 million. It was up 21% year-over-year.

That will signal to us. Athena is moving the needle for sale.

Speaker #4: At the same time, to your exact point, we have a learning and development group that is literally purpose-built to train our clients and get them up and running on this new product.

Speaker #4: And they've already done our top 30 clients have been onboarded through that group. And we're going to be adding all the other clients as we continue to expand out.

Speaker #4: The other thing that's really important is we're doing a weekly leadership I'm sorry, a weekly learning and training program to all of our clients that's virtual, recorded, and they're able to then watch it at their convenience inside of the platform when they want to.

Speaker #4: But we're doing sort of a ask Athena question of the week. Every week, a new question that you could ask Athena goes out to all of our customers.

Christopher Greiner: If you look underneath that, what drove it are exactly the dynamics that Athena was engineered to be able to do, which is to make more of the platform available and visible for the customers to be able to exploit. If you look at multiple use case customers, it was up over 50% year over year. If you look at the customers that were using 4 or more channels, that's up over 40% year over year, which again are not just great examples of Athena as an unlock, but also One Zeta working well.

Chris Greiner: If you look underneath that, what drove it are exactly the dynamics that Athena was engineered to be able to do, which is to make more of the platform available and visible for the customers to be able to exploit. If you look at multiple use case customers, it was up over 50% year-over-year. If you look at the customers that were using 4 or more channels, that's up over 40% year-over-year, which again are not just great examples of Athena as an unlock, but also One Zeta working well.

Speaker #4: So that they can begin the process of using her and I know I'm sure you've seen the demo you know how incredibly intuitive she is to use.

Speaker #4: So what I would say is we're really focusing on it from a relationship management, learning, development, both in-person, virtually, and weekly follow-ups. But the intuitive nature of her is, I think, one of the reasons you saw her so powerful just in the first week she was live Athena drove 60% of all AI utilization across our platform.

Great question. Uh, DJ, I'm glad you asked. There's a couple of leading indicator data points that I think you could already begin to look at. So as part of the press release 1 of the data points that was called out was a 7x increase and this is just the first week of Athena's, General availability, we saw 7x increase in the type of, in the amount of a dentac interactions on the platform. Coupled by 60% of the AI usage on our platform being driven by estina how that should ultimately translate to the usage, part of a revenue can be seen through our expansion, some of which you already started to see. So if you look at our who in the quarter for super scale, customers it was 1.7 million. It's up, 21% year-over-year. But if you look underneath that, what drove it are exactly the dynamic that a theme was engineered to be able to do, which is to make more of the platform available and visible for the customers, to be able to explain, if you look at multiple use case customers, it was up over 50% year-over-year. If you look at the customer,

David A. Steinberg: By the way, she's just getting started, DJ.

David Steinberg: By the way, she's just getting started, DJ.

DJ Hynes: Yeah, totally. Awesome. Congrats, guys. Thank you.

DJ Hynes: Yeah, totally. Awesome. Congrats, guys. Thank you.

Customers, they're using 4 more channels. That's up over 40% year to year, which again are not just a great example of Athena as unlocked, but also 1 data working well. And by the way, she just getting started DJ

David A. Steinberg: Thanks, DJ.

David Steinberg: Thanks, DJ.

Yep, totally, uh, awesome. Congrats guys. Thank you.

Thanks DJ.

Operator: The next question comes from the line of Gabriela Borges with Goldman Sachs. Please proceed with your question.

Operator: The next question comes from the line of Gabriela Borges with Goldman Sachs. Please proceed with your question.

Speaker #4: That is off the charts for a new product from an adoption perspective.

Gabriela Borges: Hi, good afternoon. Thank you. David, I wanna ask you about the people and process part of Athena, meaning the technology you've demoed, and it clearly is able to do a huge amount of knowledge work. My question for you is, how do you then change the end user behavior? What does the training and enablement look like? How do you encourage more people to use it once your customers have already decided to adopt it?

Gabriela Borges: Hi, good afternoon. Thank you. David, I wanna ask you about the people and process part of Athena, meaning the technology you've demoed, and it clearly is able to do a huge amount of knowledge work. My question for you is, how do you then change the end user behavior? What does the training and enablement look like? How do you encourage more people to use it once your customers have already decided to adopt it?

Speaker #6: Very good. And Chris, the follow-up for you on inference cost. So Athena has pieces of Zeta proprietary technology. And then I believe you have some third-party technology in there too.

Speaker #6: How do you think about managing those inference costs or optimizing those inference costs? And then same question for your R&D team, your engineering team.

Speaker #6: We're at the stage where we've been through more token usages generally better, but also can sort of outrun budgets very quickly. How do you think about managing that internally?

David A. Steinberg: First of all, Gabriela, what a great question. You know, first let me say that we were incredibly proud that we were able to make the product not just generally available on time, but available to 100% of our enterprise clients, which was not a small task. At the same time, to your exact point, we have a learning and development group that is literally purpose-built to train our clients and get them up and running on this new product. Our top 30 clients have been onboarded through that group, and we're gonna be adding all the other clients as we continue to expand out. The other thing that's really important is we're doing a weekly leadership.

David Steinberg: First of all, Gabriela, what a great question. You know, first let me say that we were incredibly proud that we were able to make the product not just generally available on time, but available to 100% of our enterprise clients, which was not a small task. At the same time, to your exact point, we have a learning and development group that is literally purpose-built to train our clients and get them up and running on this new product. Our top 30 clients have been onboarded through that group, and we're gonna be adding all the other clients as we continue to expand out. The other thing that's really important is we're doing a weekly leadership.

To encourage more people to use it once your customers have already decided to adopt it.

Speaker #5: So Gabriela, I'm going to take that one. Sorry, Chris. First and foremost, as the world moves from large language models to inference-based AI, our platform is purpose-built for that.

First of all Gabrielle what a great question, you know. First let me say that we're incredibly proud that we were able to make the product not just generally available on time but available to 100% of our Enterprise clients which was not a small task.

Speaker #5: As the operating system and infrastructure for our clients, the vast majority of our queries, Gabriela, are done on our own platforms on our own data.

Speaker #5: So we are not buying tokens. As we roll this out to our customers, it's fully embedded, which is one of the reasons I think you're seeing us project substantially higher growth to profits and cash flow than we are even to revenue.

David A. Steinberg: I'm sorry, a weekly learning and training program to all of our clients that's virtual, recorded, and they're able to then watch it at their convenience inside of the platform when they want to. We're doing sort of a Ask Athena question of the week. Every week, a new question that you could ask Athena goes out to all of our customers so that they can begin the process of using her. I know I'm sure you've seen the demo, you know how incredibly intuitive she is to use. What I would say is we're really focusing on it from a relationship management, learning, development, both in-person, virtually, and weekly follow-ups. The intuitive nature of her is, I think, one of the reasons you saw her so powerful.

David Steinberg: I'm sorry, a weekly learning and training program to all of our clients that's virtual, recorded, and they're able to then watch it at their convenience inside of the platform when they want to. We're doing sort of a Ask Athena question of the week. Every week, a new question that you could ask Athena goes out to all of our customers so that they can begin the process of using her. I know I'm sure you've seen the demo, you know how incredibly intuitive she is to use. What I would say is we're really focusing on it from a relationship management, learning, development, both in-person, virtually, and weekly follow-ups. The intuitive nature of her is, I think, one of the reasons you saw her so powerful.

Speaker #5: We have put ourselves as sort of the perfect spot as the market moves to inference-based AI. As it relates to our internal consumption, we have built a platform called SPADE don't ask me what it stands for.

Speaker #5: It is an anagram. But the reality is that SPADE is a tool that we custom-built inside of Zeta. And is being utilized by a very large percentage of our engineering team.

Speaker #5: Where effectively an engineer would go into SPADE, they would create the construct for the code they are trying to develop. SPADE would then automatically choose the most efficient and best large language model to do the coding itself.

At the same, time to your exact point. We have a Learning and Development Group, that is literally purpose-built to train our clients and get them up and running on this product, and they've already done our top 30 clients have been onboarded through that group and we're going to be adding all the other clients as we continue to expand out. The other thing that's really important is we're doing a weekly leadership, I'm sorry a weekly learning and training program to all of our clients that's virtual recorded and they're able to then watch it at their convenience inside of platform when they want to. But we're doing sort of a ask Athena question of the week every week, a new question that you could ask Athena goes out to all of our customers so that they can begin the process of using her. And I'm, I know, I'm sure you've seen the demo. You know how incredibly intuitive she is to use? So what I would say is we're really focusing on it from a relationship.

Management learning development, both in-person, virtually, and with weekly follow-ups. But the intuitive nature of her is, I think, one of the reasons.

Speaker #5: So if it's security-based, we might choose Claude. If it's general coding-based, SPADE might choose ChatGPT. If it's complex publishing, SPADE might choose Gemini. Now, of course, cursor is sort of at the center of this as we think about where that's expanding.

David A. Steinberg: Just in the first week she was live, Athena drove 60% of all AI utilization across our platform. That is off the charts for a new product from an adoption perspective.

David Steinberg: Just in the first week she was live, Athena drove 60% of all AI utilization across our platform. That is off the charts for a new product from an adoption perspective.

Gabriela Borges: Very good. Chris, the follow-up for you on inference cost. Athena has pieces of Zeta proprietary technology, I believe you have some third-party technology in there too. How do you think about managing those inference costs or optimizing those inference costs? Same question for your R&D team, your engineering team. We're at the stage where, you know, we've been through more token usage is generally better, but also can sort of outrun budgets very quickly. How do you think about managing that internally?

Gabriela Borges: Very good. Chris, the follow-up for you on inference cost. Athena has pieces of Zeta proprietary technology, I believe you have some third-party technology in there too. How do you think about managing those inference costs or optimizing those inference costs? Same question for your R&D team, your engineering team. We're at the stage where, you know, we've been through more token usage is generally better, but also can sort of outrun budgets very quickly. How do you think about managing that internally?

You saw her so powerful, just in the first week. She was live Athena drove. 60% of all AI utilization across our platform. That is off the charts for a new product from adoption perspective.

Speaker #5: The code is then auto-generated by the LLM, which is the only time we utilize tokens. Everything else is sitting on our own platform, our own cloud.

Very good and uh Chris the follow-up for you on.

Speaker #5: The LLM creates the code. It then goes to a program called Zippy because obviously, we have great nomenclature capabilities. And Zippy automatically QAs the code on our platform once again, once it's done, it sends it to one of our senior architects they review the code one more time.

Speaker #5: And they can make a generally available. To put it in perspective, Gabriela, at the end of the first quarter, Zeta was already driving 75% automated new code creation.

David A. Steinberg: Gabriela, I'm going to take that one. Sorry, Chris.

David Steinberg: Gabriela, I'm going to take that one. Sorry, Chris.

Inference cost so Athena has pieces of data proprietary technology and then I believe you have some third-party technology in there too. How do you think about managing the inference costs are optimizing this and for the cost and same question for your R&D team, your engineering team, we're at the stage where you know we've been through more token usages generally better but also can sort of outrun budgets very quickly. How do you think about managing that internally?

Gabriela Borges: Yeah, please.

Gabriela Borges: Yeah, please.

David A. Steinberg: First and foremost, as the world moves from large language models to inference-based AI, our platform is purpose-built for that as the operating system and infrastructure for our clients. The vast majority of our queries, Gabriela, are done on our own platforms, on our own data. We are not buying tokens as we roll this out to our customers. It's fully embedded, which is one of the reasons I think you're seeing us project substantially higher growth to profits and cash flow than we are even to revenue. We have put ourselves as sort of the perfect spot as the market moves to inference-based AI. As it relates to our internal consumption, we have built a platform called SPADE. Don't ask me what it stands for. It is an anagram.

David Steinberg: First and foremost, as the world moves from large language models to inference-based AI, our platform is purpose-built for that as the operating system and infrastructure for our clients. The vast majority of our queries, Gabriela, are done on our own platforms, on our own data. We are not buying tokens as we roll this out to our customers. It's fully embedded, which is one of the reasons I think you're seeing us project substantially higher growth to profits and cash flow than we are even to revenue. We have put ourselves as sort of the perfect spot as the market moves to inference-based AI. As it relates to our internal consumption, we have built a platform called SPADE. Don't ask me what it stands for. It is an anagram.

Speaker #5: I believe that puts us even above Google, as it relates to that. And the pods working on Athena today I know for a fact are up from a productivity perspective between 400 and 600% year over year from an output and productivity perspective all the while the vast, vast majority of the compute and of the tokenization is on our own platform.

So Gabrielle, I'm going to take that 1. Sorry, Chris first and foremost as the world moves from large language models to inference based AI. Our platform is purpose-built for that as the operating system and infrastructure for our clients, the vast majority of our queries Gabriella are done on our own platforms, on our own data. So we are not buying tokens as we roll this out to our customers, it's fully embedded, which is 1 of the reasons, I think you're seeing us project substantially higher growth,

Speaker #5: So as you look at our growth, we will not experience some of the constriction of margin or additional CapEx we've already allowed for everything in the projections that we've got.

Speaker #5: And we're very, very comfortable with where we are externally and from an engineering perspective.

David A. Steinberg: The reality is that SPADE is a tool that we custom-built inside of Zeta and is being utilized by a very large percentage of our engineering team, where effectively an engineer would go into SPADE, they would create the construct for the code they are trying to develop. SPADE would then automatically choose the most efficient and best large language model to do the coding itself. If it's security-based, we might choose Claude. If it's general coding base, SPADE might choose ChatGPT. If it's complex publishing, SPADE might choose Gemini. Of course, Cursor is sort of at the center of this as we think about where that's expanding. The code is then auto-generated by the LLM, which is the only time we utilize tokens. Everything else is sitting on our own platform, our own cloud. The LLM creates the code.

David Steinberg: The reality is that SPADE is a tool that we custom-built inside of Zeta and is being utilized by a very large percentage of our engineering team, where effectively an engineer would go into SPADE, they would create the construct for the code they are trying to develop. SPADE would then automatically choose the most efficient and best large language model to do the coding itself. If it's security-based, we might choose Claude. If it's general coding base, SPADE might choose ChatGPT. If it's complex publishing, SPADE might choose Gemini. Of course, Cursor is sort of at the center of this as we think about where that's expanding. The code is then auto-generated by the LLM, which is the only time we utilize tokens. Everything else is sitting on our own platform, our own cloud. The LLM creates the code.

Speaker #6: Helpful details. Thank you.

The profits and cash flow, and we are even to revenue. We have put ourselves as sort of the the perfect spot at the market move to inference, base AI, as it relates to our internal consumption. We have built a platform called Spade. Don't ask me what it stands for it. It is an anagram but the reality is that

Speaker #1: And the next question comes from the line of Arjun Bhatia with William Blair. Please proceed with your question.

Speaker #5: Thank you so much. And congrats, guys, on a very strong quarter here. David, I have two questions on Athena. Maybe I'll just do them one at a time.

Spade is a tool that we custom-built inside of Zeta and is being utilized by a very large percentage of our engineering team where effectively an engineer would go into Spade. They would

Create the construct for the code. They are trying to develop.

Speaker #5: The first on awareness. It seems like the customers that are using it are getting great value out of it. It's early. But for this to have a material impact, for the company as a whole, you have a fairly large revenue base.

Speaker #5: How do you roll this out to all your large customers? Where is it right now in terms of customers having awareness and knowing what Athena can do?

Speaker #5: And how do you sort of plan to progress that?

Speaker #4: Yeah. So great question, Arjun. First of all, from an awareness perspective, I would say that our marketing team today is doing the greatest job it's ever done in the history of our company.

David A. Steinberg: It goes to a program called ZIPPI, because obviously we have great nomenclature capabilities. ZIPPI automatically QAs the code on our platform once again. Once it's done, it sends it to one of our senior architects. They review the code one more time, and they can make it generally available. To put it in perspective, Gabriela, at the end of Q1, Zeta was already driving 75% automated new code creation. I believe that puts us even above Google as it relates to that. The pods working on Athena today, I know for a fact are up from a productivity perspective between 400% and 600% year over year from an output and productivity perspective, all the while the vast majority of the compute and of the tokenization is on our own platform.

David Steinberg: It goes to a program called ZIPPI, because obviously we have great nomenclature capabilities. ZIPPI automatically QAs the code on our platform once again. Once it's done, it sends it to one of our senior architects. They review the code one more time, and they can make it generally available. To put it in perspective, Gabriela, at the end of Q1, Zeta was already driving 75% automated new code creation. I believe that puts us even above Google as it relates to that. The pods working on Athena today, I know for a fact are up from a productivity perspective between 400% and 600% year-over-year from an output and productivity perspective, all the while the vast majority of the compute and of the tokenization is on our own platform.

Spade would then automatically choose the most efficient and best large language model to do the coding itself. So, if it's security base, we might choose claw, if it's General coding base Spade, my truths chat CBT, if it's complex, publishing Spade, might choose jobby. Now, of course, cursor is sort of at the center of this. As we think about where that's expanding the code is then auto-generated by the llm, which is the only time we utilize tokens, everything else is sitting on our own platform, our own cloud, the llm,

Speaker #4: I just came back from the possible conference where you couldn't walk five feet without seeing the brand Athena. And without seeing buy Zeta. And it was really exciting.

Speaker #4: We did an Athena suite. We did a Zeta Cafe powered by Athena. And we're starting to see that we're moving to that next evolution of our brand where it's sort of moved to it's getting the must-have Zeta in our industry.

It creates the code, it then goes to a program called Zippy because, obviously, we have great nomenclature capabilities, uh, and Zippy automatically QA's the code on our platform. Once again, once it's done, it sends it to one of our senior architects. They review the code one more time and they can make it generally available to put it in pairs.

Speaker #4: And I didn't think I would say that this early. As it relates to internal awareness, we have built an internal learning and development team, which is doing nothing but training an onboarding our clients.

Speaker #4: One of the things we're going to be rolling out in the next few months, which I'm super excited about, is an Athena certification. We're going to certify the individuals who work for our clients on Athena utilization, they'll get a full certification that they can put into their resume.

75%, automated new code creation. I believe that puts us even above Google as it relates to that and the pods working on Athena today. I know, for a factor up, from a productivity perspective, between 400 and 600% year-over-year from an output and productivity perspective all the while.

David A. Steinberg: As you look at our growth, we will not experience some of the constriction of margin or additional CapEx. We've already allowed for everything in the projections that we've got, and we're very, very comfortable with where we are externally and from an engineering perspective.

David Steinberg: As you look at our growth, we will not experience some of the constriction of margin or additional CapEx. We've already allowed for everything in the projections that we've got, and we're very, very comfortable with where we are externally and from an engineering perspective.

Speaker #4: And we're very excited about how that's going to be rolling out. So we're also doing sort of a hint of the week, tip of the week, question of the week is going out to all of our clients I would tell you, in all of the years I've run this company, which is a long time now, I have never seen a faster uptake of a technological product that we've rolled out.

Gabriela Borges: Helpful details. Thank you.

Gabriela Borges: Helpful details. Thank you.

The vast vast majority of the compute and of the tokenization is on our own platform. So as you look at our growth, we will not experience some of the constriction of margin or additional capex. We've already allowed for everything in the projections that we've got. And we're very, very comfortable with where we are externally and from an engineering perspective,

Operator: The next question comes from the line of Arjun Bhatia with William Blair. Please proceed with your question.

Operator: The next question comes from the line of Arjun Bhatia with William Blair. Please proceed with your question.

Speaker #4: And it's really been exciting, Arjun.

Arjun Bhatia: Perfect. Thank you so much. Congrats guys on a very strong quarter here. David A. Steinberg, I have two questions. I think maybe I'll just do them one at a time. The first on awareness. It seems like the customers that are using it are getting great value out of it. It's early, for this to have a material impact for the company as a whole, you have a fairly large revenue base. Like, how do you roll this out to all your large customers? Where is it right now in terms of customers having awareness and knowing, you know, what Athena can do, and how do you sort of plan to progress that?

Arjun Bhatia: Perfect. Thank you so much. Congrats guys on a very strong quarter here. David A. Steinberg, I have two questions. I think maybe I'll just do them one at a time. The first on awareness. It seems like the customers that are using it are getting great value out of it. It's early, for this to have a material impact for the company as a whole, you have a fairly large revenue base. Like, how do you roll this out to all your large customers? Where is it right now in terms of customers having awareness and knowing, you know, what Athena can do, and how do you sort of plan to progress that?

With William Blair, please proceed with your question.

Speaker #5: Awesome. That's great to hear. And then maybe switching gears from Athena for a second, Marigold, that also looks like it was off to a strong start.

Speaker #5: I think you beat your sort of Q1 target on that front. But where are we on the cross-sell there? And what's the early traction you're seeing on, I guess, the two-sided cross-sell both into your base and into Marigold's base?

Speaker #4: Arjun, I'll take that and David will wrap it up also. So a couple of places where you can see where it's evident that the cross-selling is working.

David A. Steinberg: Yeah, great question, Arjun. First of all, from an awareness perspective, I would say that our marketing team today is doing the greatest job it's ever done in the history of our company. I just came back from the Possible conference, where you couldn't walk five feet without seeing the brand Athena and without seeing By Zeta. It was really exciting. We did an Athena Suite. We did a Zeta Cafe powered by Athena. We're starting to see that we're moving to that next evolution of our brand, where it's sort of moved to it's getting the must-have Zeta in our industry, and I didn't think I would say that this early. As it relates to internal awareness, we have built an internal learning and development team which is doing nothing but training and onboarding our clients.

David Steinberg: Yeah, great question, Arjun. First of all, from an awareness perspective, I would say that our marketing team today is doing the greatest job it's ever done in the history of our company. I just came back from the Possible conference, where you couldn't walk five feet without seeing the brand Athena and without seeing By Zeta. It was really exciting. We did an Athena Suite. We did a Zeta Cafe powered by Athena. We're starting to see that we're moving to that next evolution of our brand, where it's sort of moved to it's getting the must-have Zeta in our industry, and I didn't think I would say that this early. As it relates to internal awareness, we have built an internal learning and development team which is doing nothing but training and onboarding our clients.

Speaker #4: So we talked about the number of multi-use cases. It's nicely contributing to the growth that we've seen across the base of superscaled customers. But I think more broadly, if you look at the areas that we talked about being purposely conservative around Marigold, it was around the potential for their SMB and mid-market customers that were on the enterprise platform.

Speaker #4: We anticipated churn we're not seeing as much as we thought, which is good. There were products that and geographies that we thought we would have less growth on and would also see churn.

Speaker #4: That hasn't happened yet. And then just more broad normal churn at the enterprise level. And it stayed healthy. And by the way, a lot of that is being driven by Zeta's interactions with those customers and partnering with Marigold's people.

Speaker #5: So it's been really interesting, Arjun. We've seen a meaningful uptick from existing Marigold clients with us integrating the data cloud into the platform. So the first thing we did and we had it done within 90 days was a full data cloud integration into their platforms, which allowed clients to begin to access data sets that they've never had access to before.

David A. Steinberg: One of the things we're gonna be rolling out in the next few months, which I'm super excited about, is an Athena certification. We're gonna certify the individuals who work for our clients on Athena utilization. They'll get a full certification that they can put into their resume, and we're very excited about how that's gonna be rolling out. We're also doing sort of a hint of the week, tip of the week, question of the week. It's going out to all of our clients. I would tell you, in all of the years I've run this company, which is a long time now, I have never seen a faster uptake of a technological product that we've rolled out, and it's really been exciting, Arjun.

David Steinberg: One of the things we're gonna be rolling out in the next few months, which I'm super excited about, is an Athena certification. We're gonna certify the individuals who work for our clients on Athena utilization. They'll get a full certification that they can put into their resume, and we're very excited about how that's gonna be rolling out. We're also doing sort of a hint of the week, tip of the week, question of the week. It's going out to all of our clients. I would tell you, in all of the years I've run this company, which is a long time now, I have never seen a faster uptake of a technological product that we've rolled out, and it's really been exciting, Arjun.

Yeah, so great question, Argent. First of all, from an awareness perspective, I would say that our marketing team today is doing the greatest job that's ever done in the history of our company, I just came back from the possible conference where you couldn't walk 5 feet without seeing brand Athena and without seeing buy Zeta and it was really exciting. We did an Athena Suite, we did Zeta Cafe powered by Athena. And uh, we're starting to see that we're moving to that next evolution of our brand, where it sort of moved to its getting the must haves in our industry. And, and I didn't think I would say that this early, as it relates to internal awareness, we have built an internal Learning and Development team which is doing nothing but training and onboarding, our clients 1 of the things we're going to be rolling out in the next few months. Which I'm super excited about is in a feda certification. We're going to certify individuals work for our clients on a feed and utilization, they'll get a full certification.

Speaker #5: So we've seen meaningful growth there. As it relates to cross-selling, we're really we're making progress, but not a lot of that is in the numbers yet.

That they can put into their resume and we're very excited about how that's going to be rolling out. So but we're also doing sort of a hint of the week tip of the week. Question of the week is going out to all of our clients. I would tell you

Speaker #5: These products are complicated. And they're very big. I think you'll see more of that as the year progresses. But I think I mean, to say we're very excited about how well we're performing with the asset would be an understatement.

In all of the years I've learned this company which is a long time. Now, I have never seen a faster, uptake of a technological product that we've rolled out and it's it's really been exciting Argent.

Arjun Bhatia: Awesome. That's great to hear. Maybe switching gears from Athena for a second. Marigold, that also looked like it was off to a strong start. I think you beat your sort of Q1 target on that front. Where are we on the cross-sell there, and what's the early traction you're seeing on, I guess, the two-sided cross-sell, both into your base and into Marigold's base?

Arjun Bhatia: Awesome. That's great to hear. Maybe switching gears from Athena for a second. Marigold, that also looked like it was off to a strong start. I think you beat your sort of Q1 target on that front. Where are we on the cross-sell there, and what's the early traction you're seeing on, I guess, the two-sided cross-sell, both into your base and into Marigold's base?

Speaker #5: And a lot of that today is a result of the data cloud integration. Now, whether you want to consider that a cross-sell because we're bundling the data cloud in to drive additional utilization or not, that's up to you.

Speaker #5: But to us, as we're rolling out loyalty to all of our global clients, and we're starting to take sale through and roll it out to the live intent clients and all of the different things we're doing, that's in the early stages and I think will drive meaningful growth in the future.

Christopher Greiner: Arjun, I'll take that, and David will wrap it up also. A couple places where you can see where it's evident that the cross-selling is working, so we talked about the number of multi-use cases. It's nicely contributing to the growth that we've seen across the base of Super-Scaled Customers. I think more broadly, if you look at the areas that we talked about being purposely conservative around Marigold, it was around the potential for their SMB and mid-market customers that were on the enterprise platform. We anticipated churn. We're not seeing as much as we thought, which is good. There were products that and geographies that we thought we would, you know, have less growth on and would also see churn. That hasn't happened yet.

Chris Greiner: Arjun, I'll take that, and David will wrap it up also. A couple places where you can see where it's evident that the cross-selling is working, so we talked about the number of multi-use cases. It's nicely contributing to the growth that we've seen across the base of Super-Scaled Customers. I think more broadly, if you look at the areas that we talked about being purposely conservative around Marigold, it was around the potential for their SMB and mid-market customers that were on the enterprise platform. We anticipated churn. We're not seeing as much as we thought, which is good. There were products that and geographies that we thought we would, you know, have less growth on and would also see churn. That hasn't happened yet.

Awesome. That's great to hear. And then um, maybe Switching gears uh, from Athena for a second margold. Um, that also looks like it was, uh, off to a strong start. Thank you. Uh, be your sort of q1 Target on that run, but where are we on the cross sell there. And uh what the early traction you're seeing? Um on I guess, the 2 sided across all. Uh look into your base and into our goal space.

Speaker #5: Very helpful. Thank you both.

Speaker #1: And the next question comes from the line of Jack Nichols with KeyBank Capital Markets. Please proceed with your question.

Speaker #6: Hey, guys. Thank you for taking the question. Maybe pivoting back to Athena, I was wondering if you could walk us through the early adoption trends among the enterprise customer base, specifically around how they're deepening engagement with the platform.

Speaker #6: And then existing use cases today. And then I've got a quick follow-up.

Speaker #4: Well, first of all, welcome, Jack. It's great to have you on coverage. We really appreciate you. Second, we have been really blown away by the early adoption of Athena.

Speaker #4: We made it generally available to 100% of our enterprise clients. And we saw a 7x increase in agentic interactions from our clients in the first week of Athena alone.

Christopher Greiner: Just more broad normal churn at the enterprise level, and it's stayed healthy. By the way, a lot of that is being driven by, you know, Zeta's interactions with those customers and partnering with Marigold's people.

Chris Greiner: Just more broad normal churn at the enterprise level, and it's stayed healthy. By the way, a lot of that is being driven by, you know, Zeta's interactions with those customers and partnering with Marigold's people.

All right, and I'll take that and, and David will, uh, we'll wrap it up also. Um, so a couple places where you can see where it's evident that the cross selling is working. So we talked about the number of multi-use cases, uh, it's nicely contributing to the growth that we've seen across the base of super scaled customers. Uh, but I think more broadly, if you look at the areas that we talked about being purposely, conservative around marold is around the potential for their SB and mid-market customers that were, um, on the Enterprise platform. We anticipated churn, uh, we're not seeing as much as we thought, which is good. Um, there were products that, um, and geographies that we thought we would, um, you know, have less growth on and would also see churn. But that hasn't happened yet. And then just more broad normal churn at the Enterprise level and it's, it's stayed healthy. And by the way, a lot of that being driven by, uh, you know, the latest is interaction with those.

David A. Steinberg: It's been really interesting, Arjun. We've seen a meaningful uptick from existing Marigold clients with us integrating the Data Cloud into the platform. The first thing we did, and we had it done within 90 days, was a full Data Cloud integration into their platforms, which allowed clients to begin to access data sets that they've never had access to before. We've seen meaningful growth there. As it relates to cross-selling, we're really making progress, but not a lot of that is in the numbers yet. These products are complicated, and they're very big. I think you'll see more of that as the year progresses. I think, I mean, to say we're very excited about how well we're performing with the asset would be an understatement.

David Steinberg: It's been really interesting, Arjun. We've seen a meaningful uptick from existing Marigold clients with us integrating the Data Cloud into the platform. The first thing we did, and we had it done within 90 days, was a full Data Cloud integration into their platforms, which allowed clients to begin to access data sets that they've never had access to before. We've seen meaningful growth there. As it relates to cross-selling, we're really making progress, but not a lot of that is in the numbers yet. These products are complicated, and they're very big. I think you'll see more of that as the year progresses. I think, I mean, to say we're very excited about how well we're performing with the asset would be an understatement.

Speaker #4: So we think of that as pretty good. 7x is always something we aspire to. But our long-term goal is for Athena to be the operating system of our clients' businesses.

Speaker #4: And we're just getting started on that. But early adoption has been very, very exciting.

Speaker #6: That makes sense. And then pivoting quickly to Marigold and thinking about the recurring revenue mix, as those customers adopt the Zeta platform, should we expect that mix to trend down or up over time?

Speaker #6: Or kind of remain in line with the 2025 60% expectation disclosure?

Speaker #7: Hey, Jack. It's Chris. I'll take this. And as David said, welcome. It should go up is the short answer. And I think a really interesting proof point that you'll see in the Q tomorrow is just how substantially RPOs went up quarter to quarter.

David A. Steinberg: A lot of that today is a result of the Data Cloud integration. Whether you wanna consider that a cross-sell because we're bundling the Data Cloud in to drive additional utilization or not, that's up to you. To us, as we're rolling out loyalty to all of our global clients, and we're starting to take Sailthru and roll it out to the LiveIntent clients and all of the different things we're doing, that's in the early stages, and I think will drive meaningful growth in the future.

David Steinberg: A lot of that today is a result of the Data Cloud integration. Whether you wanna consider that a cross-sell because we're bundling the Data Cloud in to drive additional utilization or not, that's up to you. To us, as we're rolling out loyalty to all of our global clients, and we're starting to take Sailthru and roll it out to the LiveIntent clients and all of the different things we're doing, that's in the early stages, and I think will drive meaningful growth in the future.

Speaker #7: They went up 66 million dollars just from fourth quarter to the first quarter. Obviously, part of that is Marigold, which then helps with visibility.

Ating the data Cloud into the platform. So the first thing we did and we had done within 90 days was a full data Cloud integration into their platforms which allowed clients to begin to access data sets that they've never accessed before. So we've seen meaningful growth there as it relates to cross-selling? We're really, we're making progress and not. Not a lot of that is in the numbers yet, these products are complicated and they're very big. I think you'll see more of that as the year progresses. But I think I think, I mean, to say, we're very excited about how well we're performing with the asset would be an understatement. Uh, and, and a lot of that today is a result of the data Cloud integration that whether you want to consider that across all, because we're bundling the data cloud in to drive additional utilization or not, that's up to you. But to us, as we're rolling out, loyalty to all of our Global clients.

Speaker #7: But I think an interesting thing for the audience here to understand is another large piece of that was not only these marquee wins that we talked about with the apparel retailer and the e-commerce pet retailer, but it was also agencies beginning to now also sign long-term committed contracts.

And we're starting to take sail through, and roll it out to the lot of intent clients and all of the different things we're doing, that's in the early stages and I think we'll drive meaningful growth up in the future.

Arjun Bhatia: Very helpful. Thank you both.

Arjun Bhatia: Very helpful. Thank you both.

Very helpful. Thank you.

Operator: The next question comes from the line of Jackson Nichols with KeyBanc Capital Markets. Please proceed with your question.

Operator: The next question comes from the line of Jackson Nichols with KeyBanc Capital Markets. Please proceed with your question.

Speaker #7: That is an exciting proof point for us. It adds to the recurring revenue, which then obviously adds to visibility. Which both of those came into our confidence in being able to raise the guidance that we did on the top line by 30 million, while continuing to keep to our 2% to 5% conservatism.

And the next question comes from the line of Jack Nichols with KeyBanc Capital Markets.

Jackson Nichols: Hey, guys. Thank you for taking the question. Maybe pivoting back to Athena. I was wondering if you could walk us through the early adoption trends among the, you know, enterprise customer base, specifically around how they're deepening engagement with the platform and in existing use cases today. I've got a quick follow-up.

Jack Nichols: Hey, guys. Thank you for taking the question. Maybe pivoting back to Athena. I was wondering if you could walk us through the early adoption trends among the, you know, enterprise customer base, specifically around how they're deepening engagement with the platform and in existing use cases today. I've got a quick follow-up.

Please proceed with your question.

Speaker #1: Wonderful. Thank you, guys. And the next question comes from the line of Clark Wright with DA Davidson. Please proceed with your question.

David A. Steinberg: Well, first of all, welcome, Jack. It's great to have you on coverage. We really appreciate you. Second, we have been really blown away by the early adoption of Athena. You know, we made it generally available to 100% of our enterprise clients, and we saw a 7x increase in agentic interactions from our clients in the first week of Athena alone. You know, we think that is pretty good. You know, 7x is always something we aspire to. You know, our long-term goal is for Athena to be the operating system of our clients' businesses, and we're just getting started on that. Early adoption has been very, very exciting.

David Steinberg: Well, first of all, welcome, Jack. It's great to have you on coverage. We really appreciate you. Second, we have been really blown away by the early adoption of Athena. You know, we made it generally available to 100% of our enterprise clients, and we saw a 7x increase in agentic interactions from our clients in the first week of Athena alone. You know, we think that is pretty good. You know, 7x is always something we aspire to. You know, our long-term goal is for Athena to be the operating system of our clients' businesses, and we're just getting started on that. Early adoption has been very, very exciting.

Hey guys, thank you for taking the question. Uh maybe it's hitting back to Athena. I was wondering if you could walk us through the early adoption Trends among the you know, Enterprise customer base, specifically around how they're deepening engagement with the platform and existing use cases today. And I've got a quick follow up.

Speaker #5: Awesome. Thank you. I wanted to maybe quickly touch on the consolidation story. You noted on one of the marquee wins this quarter that you consolidated Ford.

Speaker #5: I recognize over the course of the last few quarters, you've mentioned consolidation being a key piece. Can you talk about the use cases that Zeta continues to solve for and how you see that expanding over time?

Well first of all welcome Jack, it's great to have you on coverage, we really appreciate you uh second we have been really Blown Away by the early adoption of Athena. You know made it generally available to 100% of our Enterprise clients and we saw a 7x increase in the agentic interactions from our

Speaker #4: Yeah. Thank you, Clark. Listen, when John and I founded this company, I don't know, 18, 19 years ago at this point, our vision was to put everything a marketer needed into one user interface with one reporting infrastructure.

Speaker #4: And I would tell you, that because of Athena, I think we are finally there. And our ability to consolidate anywhere from 8% to 12% different vendors into one user interface and one reporting infrastructure has never been stronger.

Clients in the first week of Athena alone. So, you know, we we think about is pretty good. Uh, you know, 7 to uh but you know, our long-term goal is for Athena to be the operating system of our clients businesses and we're just getting started on that, but but early adoption has been very, very exciting.

Jackson Nichols: That makes sense. Pivoting quickly to Marigold and thinking about the recurring revenue mix, as those customers, you know, adopt the Zeta platform, should we expect that mix to trend down or up over time? Or kind of remain in line with the, with the 2025 60% expectation disclosure?

Jack Nichols: That makes sense. Pivoting quickly to Marigold and thinking about the recurring revenue mix, as those customers, you know, adopt the Zeta platform, should we expect that mix to trend down or up over time? Or kind of remain in line with the, with the 2025 60% expectation disclosure?

Speaker #4: In the case of this global company, because it's a retailer and a manufacturer of their clothing, we displaced what I think many people think to be certainly the longest serving of the marketing clouds.

Christopher Greiner: Hey, Jack, it's Chris. I'll take this. As David said, welcome. It should go up is the short answer. I think a really interesting proof point that you'll see in the queue tomorrow is just how substantially RPOs went up quarter to quarter. They went up $66 million just from Q4 to the Q1. Obviously, part of that is Marigold, which then helps with visibility. I think an interesting thing for the audience here to understand is another large piece of that was not only these marquee wins that we talked about with the apparel retailer and the e-commerce pet retailer, but it was also agencies beginning to now also sign long-term committed contracts. That is an exciting proof point for us.

Chris Greiner: Hey, Jack, it's Chris. I'll take this. As David said, welcome. It should go up is the short answer. I think a really interesting proof point that you'll see in the queue tomorrow is just how substantially RPOs went up quarter to quarter. They went up $66 million just from Q4 to the Q1. Obviously, part of that is Marigold, which then helps with visibility. I think an interesting thing for the audience here to understand is another large piece of that was not only these marquee wins that we talked about with the apparel retailer and the e-commerce pet retailer, but it was also agencies beginning to now also sign long-term committed contracts. That is an exciting proof point for us.

Makes sense. And then pivoting quickly to Marigold and thinking about the recurring Revenue mix. Um, as those customers, you know, adopt the data platform, should we expect that mix to to Trend down or up over time? Um, or or kind of remain in line with the, with the 2025 60% expectation disclosure.

Hey, Jack, it's Chris. I'll take this. And Dave said welcome, um,

Speaker #4: They made, I think, their acquisition first in the space as they built their marketing cloud. And in fact, this particular client used that company for everything.

Speaker #4: They considered themselves a, you know what, shop, so to speak. So decoupling their marketing cloud from everything else they were doing, I think, was a very difficult decision.

Speaker #4: We also displaced another competitor of ours who tends to be more focused on mobile. They tend to be a little easier to displace because they're so singularly focused on mobile.

Speaker #4: And neither of those companies brought any data, or any activation capabilities to task. When you're working with one of the large marketing clouds and you displace them, you're almost always also displacing a professional service provider who they have to then spend millions of dollars on to customize their platform versus our platform is pretty much ready to go from a cloud perspective.

Christopher Greiner: It adds to the recurring revenue, which then obviously adds to visibility, which both of those came into our confidence to be able to raise the guidance that we did on the top line by $30 million while continuing to keep to our 2% to 5% conservatism.

Chris Greiner: It adds to the recurring revenue, which then obviously adds to visibility, which both of those came into our confidence to be able to raise the guidance that we did on the top line by $30 million while continuing to keep to our 2% to 5% conservatism.

It should go on is a short answer. Um and I think a really interesting proof point that you'll see in the queue tomorrow is just how substantially rpos went up quarter quarter. The went up 66 million just from fourth quarter to the first quarter, obviously part of that is marold, which then helps with visibility. Uh, but I think an interesting thing for the audience here to understand is another large piece of. That was not only these Marquee wins that we talked about, with the apparel retailer, and the e-commerce pet retailer, but it was also agencies beginning to now. Also, sign long-term committed contracts, uh, as an exciting proof point for us. It adds to the current Revenue which then obviously adds to visibility, which both of those came to our confidence and be able to raise the guidance that we did. On the top line by 30 million while continuing to keep to our 2 to 5% conservative.

Jackson Nichols: Wonderful. Thank you, guys.

Jack Nichols: Wonderful. Thank you, guys.

Wonderful. Thank you guys.

Speaker #4: So that would be a really good example of and we see this as one of the most important wins in our company's history. And it goes back to not just our ability to consolidate other vendors, but to do everything that each one of those points solution does better than they do, while simultaneously putting everything into one place.

Operator: The next question comes from the line of Clark Wright with D.A. Davidson. Please proceed with your question.

Operator: The next question comes from the line of Clark Wright with D.A. Davidson. Please proceed with your question.

Clark Wright: Awesome. Thank you. I wanted to maybe quickly touch on the consolidation story. You noted on one of the marquee wins this quarter that you consolidated four. I recognize over the course of the last few quarters, you mentioned consolidation being a key piece. Can you talk about the use cases that Zeta continues to solve for and how you see that expanding over time?

Clark Wright: Awesome. Thank you. I wanted to maybe quickly touch on the consolidation story. You noted on one of the marquee wins this quarter that you consolidated four. I recognize over the course of the last few quarters, you mentioned consolidation being a key piece. Can you talk about the use cases that Zeta continues to solve for and how you see that expanding over time?

Consumption the line of Clark, right? With the Davidson, please proceed with your question.

Speaker #5: Got it. That's helpful. And then if I could just add one more. Over the long term, you talk about increasing wallet share with customers.

David A. Steinberg: Yeah. Thank you, Clark. You know, listen, when John and I founded this company, I don't know, 18, 19 years ago at this point, our vision was to put everything a marketer needed into one user interface with one reporting infrastructure. I would tell you that because of Athena, I think we are finally there. Our ability to consolidate anywhere from 8 to 12 different vendors into one user interface and one reporting infrastructure has never been stronger. In the case of this global company, because it's a retailer and a manufacturer of their clothing, we displaced, you know, what I think many people think to be the certainly the longest serving of the marketing clouds. They made, I think, their acquisition first in the space as they built their marketing cloud.

David Steinberg: Yeah. Thank you, Clark. You know, listen, when John and I founded this company, I don't know, 18, 19 years ago at this point, our vision was to put everything a marketer needed into one user interface with one reporting infrastructure. I would tell you that because of Athena, I think we are finally there. Our ability to consolidate anywhere from 8 to 12 different vendors into one user interface and one reporting infrastructure has never been stronger. In the case of this global company, because it's a retailer and a manufacturer of their clothing, we displaced, you know, what I think many people think to be the certainly the longest serving of the marketing clouds. They made, I think, their acquisition first in the space as they built their marketing cloud.

Awesome. Thank you. What a baby quickly touch on the consolidation story. You you noted on 1 of the Marquee men's this quarter that you saw the day before and I I recognized over the course of the last few quarters. You mentioned? You mentioned consolidation be a key piece. Can you talk about uh the the use cases that they continue to solve for and how you see that expandable time?

Speaker #5: Do you think AI accelerates the rate of share capture increases the total wallet share, or both?

Speaker #4: I think both. I mean, remember, the single greatest way, Clark, to get market share is drive meaningful return on investment to your clients. The forrester study that came out that said we have a 600% return on marketing spend, what we're seeing early adopters of Athena at a materially higher return on investment than even that.

Speaker #4: The higher we drive return on investment, the more wallet share we're naturally going to get. And as you know, our existing global superscaled customers will spend well over 100 to 110 billion dollars on marketing this year.

Interface in 1 reporting. Infrastructure has never been stronger in the case of This Global uh company because it's a, it's a, a retailer, and a manufacturer of their clothing. Uh

We displaced.

Speaker #4: And at the middle of our range, we'll have call it 150 to 170 basis points of wallet share. I believe we can get that to 700 to 1,000% of their wallet share in the years to come.

David A. Steinberg: In fact, this particular client used that company for everything. They considered themselves a you know what shop, so to speak. Decoupling their marketing cloud from everything else they were doing, I think was a very difficult decision. We also displaced another competitor of ours who tends to be more focused on mobile. They tend to be a little easier to displace because they're so singularly focused on mobile. Neither of those companies brought any data or any activation capabilities to task. When you're working with one of the large marketing clouds and you displace them, you're almost always also displacing a professional service provider who they have to then spend millions of dollars on to customize their platform versus our platform is pretty much ready to go from a cloud perspective. That would be a really good example of a.

David Steinberg: In fact, this particular client used that company for everything. They considered themselves a you know what shop, so to speak. Decoupling their marketing cloud from everything else they were doing, I think was a very difficult decision. We also displaced another competitor of ours who tends to be more focused on mobile. They tend to be a little easier to displace because they're so singularly focused on mobile. Neither of those companies brought any data or any activation capabilities to task. When you're working with one of the large marketing clouds and you displace them, you're almost always also displacing a professional service provider who they have to then spend millions of dollars on to customize their platform versus our platform is pretty much ready to go from a cloud perspective. That would be a really good example of a.

You know what what I think many people think to be uh certainly the the longest serving of the marketing clouds they made. I think our acquisition first in the space as they built their marketing cloud. And in fact, this particular client used that company for everything they consider themselves. A, you know, what shop?

Speaker #4: The key will be driving better return on investment. Artificial intelligence, specifically Athena, plus our data as a moat into our business, is going to drive return on marketing spend up meaningfully.

So to speak, uh, so decoupling their marketing cloud from everything else they were doing. I think was very difficult decision.

Speaker #4: Which we think will then drive wallet share.

Speaker #5: Got it. Thank you.

Speaker #1: Our next question comes from Jason Cryer with Cray Callum.

We also displaced another competitor of ours. It tends to be more focused on mobile. Uh, they tend to be a little easier to displace because they're so singly focused on mobile. Uh, and neither of those companies brought any data or any activation capabilities to, to test when you're working.

Speaker #5: Thanks, guys. Great job. So I wanted to stick with the point on wallet share because you announced some major wins and you've announced some major wins over recent quarters.

Speaker #5: But I'm curious, when you look at the aggregate data representing somewhere less than 2% of wallet share, how big of deals are you winning today?

David A. Steinberg: We see this as one of the most important wins in our company's history. It goes back to not just our ability to consolidate other vendors, but to do everything that each one of those point solution does better than they do while simultaneously putting everything into one place.

Speaker #5: And how big of deals do you think you can win over time just in terms of the wallet share of those customers?

David Steinberg: We see this as one of the most important wins in our company's history. It goes back to not just our ability to consolidate other vendors, but to do everything that each one of those point solution does better than they do while simultaneously putting everything into one place.

Speaker #4: You know, it's interesting, Jason. I would say the last few wins we've had have been at a comparable wallet share to our current wallet share.

Speaker #4: But the clients are spending four or five times as much per year on marketing and CRM. So they represent some of the largest deals we've ever done right out of the gate.

With 1 of the large marketing clouds, and you displace them, you're almost always also displacing a professional service provider, who they have to then spend millions of dollars on to customize their platform versus our platform is pretty much ready to go from a cloud perspective. So that would be a really good example of a. And and and we see this as 1 of the most important wins in our company's history. Uh and it goes back to not, just our ability to consolidate other vendors, but to do everything that each 1 of those points solution, does better than they do. While simultaneously putting everything into 1 place.

Clark Wright: Got it. That's helpful. Then if I could just add one more. Over the long term, you talk about increasing wallet share with customers. Do you think AI accelerates the rate of share capture, increases the total wallet share, or both?

Clark Wright: Got it. That's helpful. Then if I could just add one more. Over the long term, you talk about increasing wallet share with customers. Do you think AI accelerates the rate of share capture, increases the total wallet share, or both?

Speaker #4: Does that make sense just mathematically? At the same time, what we're starting to see is some of our clients who've been on the platform for two, three, four, five years are getting to that 7% to 10% of wallet share and higher.

David A. Steinberg: I think both. I mean, you know, remember, the single greatest way, Clark, to get market share is drive meaningful return on investment to your clients. The Forrester study that came out that said we have a 600% return on marketing spend, we're seeing early adopters of Athena at a materially higher return on investment than even that. The higher we drive return on investment, the more wallet share we're naturally gonna get. As you know, our existing global Super-Scaled Customers will spend well over $100 to 110 billion on marketing this year. At the middle of our range, we'll have, you know, call it 150 to 170 basis points of wallet share.

David Steinberg: I think both. I mean, you know, remember, the single greatest way, Clark, to get market share is drive meaningful return on investment to your clients. The Forrester study that came out that said we have a 600% return on marketing spend, we're seeing early adopters of Athena at a materially higher return on investment than even that. The higher we drive return on investment, the more wallet share we're naturally gonna get. As you know, our existing global Super-Scaled Customers will spend well over $100 to 110 billion on marketing this year. At the middle of our range, we'll have, you know, call it 150 to 170 basis points of wallet share.

Got it. That's helpful. And if I can do that one more—over the long term, you talk about increasing wallet share, customers. Do you think AI accelerates the rate of share capture, increases the total share, or both?

I I think both, I mean, you know, remember,

Speaker #4: And we're using that as a roadmap for how do we take new clients there. So the wins are much bigger than they've ever been.

the single greatest way, Clark to get market share is Drive meaningful return on investment to your clients

Speaker #4: But I'm not sure they're much bigger wallet share only because the companies are so big that we're winning. Now, that'll give us meaningful upside as they're on the platform.

Speaker #4: And Chris does a much better job than I do talking about how our pool grows the longer a client is with us. And these clients are starting at probably the highest ARPU we've ever seen clients starting.

As far as our study, that came out that said we have a 600% return on marketing. Spend, what we're seeing early adopters of Athena at a materially higher return on investment than even that the higher we drive return on investment, the more wallet share. We're naturally going to get and

Speaker #3: I'd also jive, Jason, with our sales pipeline. So we talked about its growth. But if you look at deal sizes in particularly and the annual contract value of deals are up pretty substantially year over year.

David A. Steinberg: I believe we can get that to 700% to 1,000% of their wallet share in the years to come. The key will be driving better return on investment. Artificial intelligence, specifically Athena, plus our data as a moat into our business, is gonna drive return on marketing spend up meaningfully, which we think will then drive wallet share.

David Steinberg: I believe we can get that to 700% to 1,000% of their wallet share in the years to come. The key will be driving better return on investment. Artificial intelligence, specifically Athena, plus our data as a moat into our business, is gonna drive return on marketing spend up meaningfully, which we think will then drive wallet share.

Speaker #5: Perfect. Maybe one quick follow-up, David. You've been doing AI for a long time. But it seems like the release of Athena has certainly put you in a different conversation within the AI industry.

Speaker #5: So I'm curious, how has that translated to conversations with customers? And do you feel like data is becoming more of an AI thought leader in the marketing ecosystem?

Clark Wright: Got it. Thank you.

Clark Wright: Got it. Thank you.

As you know, our existing global super-scale customers will spend well over $100 to $110 billion on marketing this year. And at the middle of our range, we'll have, you know, call it 150 to 170 basis points of wallet share. I believe we can get that to 700 to 1,000 basis points of their wallet share in the years to come. The key will be driving better return on investment. Artificial intelligence—specifically Athena—plus our data as a moat into our business is going to drive return on marketing spend up meaningfully, which we think will then drive wallet share.

Speaker #5: And that's driving that engagement?

Got it. Thank you.

Operator: Our next question comes from Jason Kreyer with Craig-Hallum.

Operator: Our next question comes from Jason Kreyer with Craig-Hallum.

Speaker #4: You know, it's interesting, Jason. In some ways, being a native AI company has been complex for us over the last few years. Because everybody's rolling out shiny new products, most of which are not real.

Our next question comes from Jason Cryer with Craig alum.

Jason Kreyer: Thanks, guys. Great job. I wanted to stick with the point on wallet share, 'cause you've announced some major wins over recent quarters. I'm curious, you know, when you look at the aggregate data representing somewhere less than 2% of wallet share, how big of deals are you winning today, and how big of deals do you think you can win over time just in terms of the wallet share of those customers?

Jason Kreyer: Thanks, guys. Great job. I wanted to stick with the point on wallet share, 'cause you've announced some major wins over recent quarters. I'm curious, you know, when you look at the aggregate data representing somewhere less than 2% of wallet share, how big of deals are you winning today, and how big of deals do you think you can win over time just in terms of the wallet share of those customers?

Speaker #4: But most of the people are rolling them out. And we've always been seen as sort of like AI is under the engine. Athena is the hood ornament to what we're doing as a company.

David A. Steinberg: You know, it's interesting, Jason. I would say the last few wins we've had have been at a comparable wallet share to our current wallet share, but the clients are spending four or five times as much per year on marketing and CRM. They represent some of the largest deals we've ever done right out of the gate. Does that make sense just mathematically? At the same time, what we're starting to see is some of our clients who've been on the platform for two, three, four, five years are getting to that 7% to 10% of wallet share and higher. We're using that as a roadmap for how do we take new clients there. The wins are much bigger than they've ever been, but I'm not sure they're much bigger wallet share only because the companies are so big that we're winning.

David Steinberg: You know, it's interesting, Jason. I would say the last few wins we've had have been at a comparable wallet share to our current wallet share, but the clients are spending four or five times as much per year on marketing and CRM. They represent some of the largest deals we've ever done right out of the gate. Does that make sense just mathematically? At the same time, what we're starting to see is some of our clients who've been on the platform for two, three, four, five years are getting to that 7% to 10% of wallet share and higher. We're using that as a roadmap for how do we take new clients there. The wins are much bigger than they've ever been, but I'm not sure they're much bigger wallet share only because the companies are so big that we're winning.

Thanks guys. Great job. So I want to stick to the point, on on wallet share because you announced some major wins and and you don't submit your wins over recent quarters. But I'm curious, you know, when you look at at the aggregate data, representing somewhere less than 2% of a wage share, how big deals are you Wing today and and how big deals, do you think you can win over time? Just in terms of the wall, share those customers.

Speaker #4: She is now us announcing ourselves with authority that we are not just an AI company. We are the leader and the disruptor in the AI space.

Speaker #4: And with the launch of Athena as a marquee product, it has changed the game for the way people are seeing us. And I will tell you, the two client wins we talked about in the prepare remarks, there is zero chance we would have been in the room if we had not launched Athena or started talking about her at Zeta Live.

You know, it's it's interesting. Jason, I would say the last few weeks we've had have been at a comparable wallet, share to our current wall share, but the clients are spending 4 or 5 times as much per year on marketing and CRM. So they represent some of the largest deals we've ever done. Right out of gate. Does that make sense just mathematically?

Speaker #4: And there's, I don't think, a chance we would have won these accounts without Athena showing that we are the leader in artificial intelligence as it relates to marketing.

At the same time, what we're starting to see is some of our clients who've been on the platform for 2345 years are getting to that 7 to 10% wallet, share and higher. And we're using that as a road map, for how we take new clients there. So winds are much bigger than they've ever been.

Speaker #4: From an internal perspective, we're also one of the best users of AI. I mean, back to what I was saying around the spade internal platform we built.

David A. Steinberg: Now, that'll give us meaningful upside as they're on the platform, and Chris does a much better job than I do talking about how ARPU grows the longer a client is with us, and these clients are starting at probably the highest ARPU we've ever seen clients starting.

David Steinberg: Now, that'll give us meaningful upside as they're on the platform, and Chris does a much better job than I do talking about how ARPU grows the longer a client is with us, and these clients are starting at probably the highest ARPU we've ever seen clients starting.

Speaker #4: If you had told me a year ago we'd be auto-generating 75% of our own code, while simultaneously driving the type of quality products we're driving, I would have said that's just not possible.

But I'm not sure they're much bigger while. It's share only because the companies are so big that we're winning now. That'll give us meaningful upside as they're on the platform and and Chris does a much better job than I do. Talking about how our poo Bros the longer a client is with us. And these clients are starting at at probably the highest our

Christopher Greiner: That also jives, Jason, with our sales pipelines. We talked about its growth, but if you look at deal sizes in particularly, and the annual contract value of deals are up pretty substantially year over year.

Chris Greiner: That also jives, Jason, with our sales pipelines. We talked about its growth, but if you look at deal sizes in particularly, and the annual contract value of deals are up pretty substantially year-over-year.

Speaker #4: Spade has made that possible. And it's really been very interesting how we've done that in an environment where we're still using a very de minimis percentage of tokens versus what many of our competitors are doing, which is going to allow us to continue expanding our operating margin as we've done over the years.

Our sales pipelines. We talked about its growth. But if you look at deal sizes in particularly, and the, uh, annual contract value of deals are up pretty substantially year.

Jason Kreyer: Perfect. Maybe one quick follow-up, David. You know, you've been doing AI for a long time, but it seems like the release of Athena has certainly put you in a different conversation within the AI industry. I'm curious, how has that translated to conversations with customers? Like, do you feel like Zeta's becoming more of an AI thought leader in the marketing ecosystem, and that's driving that engagement?

Jason Kreyer: Perfect. Maybe one quick follow-up, David. You know, you've been doing AI for a long time, but it seems like the release of Athena has certainly put you in a different conversation within the AI industry. I'm curious, how has that translated to conversations with customers? Like, do you feel like Zeta's becoming more of an AI thought leader in the marketing ecosystem, and that's driving that engagement?

Speaker #5: Thank you, David.

Speaker #1: Our next question is from Matt Swanson with RBC.

Speaker #5: Yeah, great. Thank you, guys, for taking my questions. And I'll have my congratulations to the quarter. I think the metric that really jumped out to me was the increase in multi-use case.

David A. Steinberg: You know, it's interesting, Jason. In some ways, being a native AI company has been complex for us over the last few years because everybody's rolling out shiny new products, most of which are not real, but most of the people are rolling them out, and we've always been seen as sort of like AI is under the engine. Athena is the hood ornament to what we're doing as a company. She is now us announcing ourselves with authority that we are not just an AI company, we are the leader and the disruptor in the AI space. With the launch of Athena as a marquee product, it has changed the game for the way people are seeing us.

David Steinberg: You know, it's interesting, Jason. In some ways, being a native AI company has been complex for us over the last few years because everybody's rolling out shiny new products, most of which are not real, but most of the people are rolling them out, and we've always been seen as sort of like AI is under the engine. Athena is the hood ornament to what we're doing as a company. She is now us announcing ourselves with authority that we are not just an AI company, we are the leader and the disruptor in the AI space. With the launch of Athena as a marquee product, it has changed the game for the way people are seeing us.

Perfect. Um, maybe 1 quick follow up David. You know, you've been doing AI for a long time but it seems like the release of stuff, you know, has certainly put you in a different conversation within the AI industry. So, how is that translated conversations with customers? And it's like, do you feel like data is becoming more of a AI thought leader in the marketing ecosystem and that's driving that engagement?

You know, it's interesting Jason.

Speaker #5: And I know that's something that we had kind of talked about with Athena and its ability to kind of create this organic expansion motion.

Speaker #5: Given that that 50% increase was for the full quarter, is Athena a real part of that? Is there other parts you go to market driving that?

Speaker #5: If you could just kind of touch a little more there.

In some ways, being a native AI company has been complex for us over the last few years, because everybody's rolling out shiny new products. Most of, which are not real, but most of the people are, are rolling them out. And we've always been seen as sort of, like, AI is under the engine.

Speaker #4: The great news is Athena is just getting started. So we had a great trajectory going into our launch. Now, I will tell you, every client that was on the beta became multi-use case.

Speaker #4: So it was, you know, but that was not a lot of clients, right? So as she rolled out to generally available, we saw an uptick there.

Speaker #4: But I think that's continued upside to growth in multi-use case and, you know, the ones Zeta team continues to just do an exceptional job.

Athena is the hood ornament to what we're doing. As a company, she is now us announcing ourselves with authority, but we are not just an AI company. We are the leader and the disruptor in the AI space, and with the launch of Athena as a, a marquee product.

David A. Steinberg: I will tell you, the two client wins we talked about in the prepared remarks, there is zero chance we would have been in the room if we had not launched Athena or started talking about her at Zeta Live. There's, I don't think, a chance we would have won these accounts without Athena showing that we are the leader in artificial intelligence as it relates to marketing. From an internal perspective, we're also one of the best users of AI. I mean, back to what I was saying around the SPADE internal platform we built, if you had told me a year ago we'd be auto-generating 75% of our own code while simultaneously driving the type of quality products we're driving, I would have said that's just not possible.

David Steinberg: I will tell you, the two client wins we talked about in the prepared remarks, there is zero chance we would have been in the room if we had not launched Athena or started talking about her at Zeta Live. There's, I don't think, a chance we would have won these accounts without Athena showing that we are the leader in artificial intelligence as it relates to marketing. From an internal perspective, we're also one of the best users of AI. I mean, back to what I was saying around the SPADE internal platform we built, if you had told me a year ago we'd be auto-generating 75% of our own code while simultaneously driving the type of quality products we're driving, I would have said that's just not possible.

Speaker #4: I'll remind you, Matt, we really started on the one Zeta mission, you know, just 18 months ago. So you've got a massive tailwind coming out of the work we've been doing there.

Speaker #4: And then I think Athena is going to supercharge that.

It has changed the game for the way people are seeing us. And I will tell you, the 2 client wins. We talked about in the prepared remarks, there is zero chance. We would have been in the room if we had not launched Athena or started talking about her at Zeta live and there's I don't think chance we would have won these accounts.

Speaker #3: And Matt, I think the reason why you picked up on it, but for others, empirically, what we know is that when customers use more than one use case, there are pools three to five times greater.

Athena showing that we are the leader in artificial intelligence as it relates to marketing, I'm an internal perspective.

Speaker #3: So I think you're right on that being an exciting data point.

Speaker #5: Yeah, no, I appreciate that. And we'll make sure to take note that 100% of Athena users will become multi-use case. That's what I heard.

We're also 1 of the best users of AI. I mean back to what I was saying around the state. Uh, internal platform. We built. I

Speaker #4: Well, I wouldn't go quite there. I mean, obviously, that's the goal, Matt. But we certainly didn't say that just yet.

David A. Steinberg: SPADE has made that possible, and it's really been very interesting how we've done that in an environment where we're still using a very de minimis percentage of tokens versus what many of our competitors are doing, which is gonna allow us to continue expanding our operating margin as we've done over the years.

David Steinberg: SPADE has made that possible, and it's really been very interesting how we've done that in an environment where we're still using a very de minimis percentage of tokens versus what many of our competitors are doing, which is gonna allow us to continue expanding our operating margin as we've done over the years.

Speaker #5: Yeah. The other one I wanted to talk about is the independent agencies. I know you called out advertising as a key vertical for you guys.

Speaker #5: I think you're willingness to kind of share the credit with agencies and allow them to kind of white label some of your technology as part of the reason you've been so successful there.

Speaker #5: I guess with Athena, how much more can that help you in those deal environments as a lot of these independent agencies are trying to compete with the big whole codes and so on?

If you had told me a year ago, we'd be Auto generating 75% of our own code. While simultaneously driving, the type of quality products. We're driving, I would have said that's just not possible, Spade has made that possible and it's really been very interesting how we've done that in an environment where we're still using a very diminished percentage of tokens versus. What many of our competitors are doing which is going to allow us to continue expanding our operating margin as we've done over the years.

Jason Kreyer: Thank you, David.

Jason Kreyer: Thank you, David.

Thank you, David.

Operator: Our next question is from Matthew Swanson with RBC.

Operator: Our next question is from Matthew Swanson with RBC.

our next question is Matt Swanson with RBC

Matthew Swanson: Yeah, great. Thank you guys for taking my questions, and I'll have my congratulations for the quarter. I think the metric that really jumped out to me was the increase in multi-use case. And I know that's something we had kinda talked about with Athena and its ability to kinda create this organic expansion motion. I, given that that 50% increase was for the full quarter, like is Athena a real part of that? Is there other parts of your go-to-market driving that? If you could just kinda touch a little more there.

Matt Swanson: Yeah, great. Thank you guys for taking my questions, and I'll have my congratulations for the quarter. I think the metric that really jumped out to me was the increase in multi-use case. And I know that's something we had kinda talked about with Athena and its ability to kinda create this organic expansion motion. I, given that that 50% increase was for the full quarter, like is Athena a real part of that? Is there other parts of your go-to-market driving that? If you could just kinda touch a little more there.

Speaker #3: You know, one of the key wins we had, Matt, in the corner was with a large independent if you look at business done a year ago with them was zero.

Speaker #3: Business done within this quarter was eight figures. With Athena being again, something that was visible to them as something they could also exploit for their benefit.

Speaker #3: The same was true with a very large new agency that began piloting Zeta in 2025. The spend was material. Call it a little less than 2 million.

David A. Steinberg: The great news is Athena's just getting started. We had a great trajectory going into our launch. Now, I will tell you, every client that was on the beta became multi-use case. It was. You know, but that was not a lot of clients, right? As she rolled out to generally available, we saw an uptick there, but I think that's continued upside to growth in multi-use case. You know, the One Zeta team continues to just do an exceptional job. I'll remind you, Matt, we really started on the One Zeta mission, you know, just 18 months ago. You've got a massive tailwind coming out of the work we've been doing there, and then I think Athena is gonna supercharge that.

David Steinberg: The great news is Athena's just getting started. We had a great trajectory going into our launch. Now, I will tell you, every client that was on the beta became multi-use case. It was. You know, but that was not a lot of clients, right? As she rolled out to generally available, we saw an uptick there, but I think that's continued upside to growth in multi-use case. You know, the One Zeta team continues to just do an exceptional job. I'll remind you, Matt, we really started on the One Zeta mission, you know, just 18 months ago. You've got a massive tailwind coming out of the work we've been doing there, and then I think Athena is gonna supercharge that.

Speaker #3: But that new agreement that was signed is more than 10x that size. So both the independent as well as the large agency continues to have a lot of runway.

Speaker #3: In fact, amongst the five large whole codes, the number of brands we're working with year over year grew by 50%.

Speaker #4: And I just want to say, Matt, we're actually big fans of the agencies. They provide incredible services to their clients. And we've had clients approach us to go direct and we always try to bring the agency back into it because we think it's a very healthy relationship when it's the three of us.

Yeah, great. Thank you guys for taking my questions and I'll have my congratulations to the quarter. I think the metric that really jumped out to me, was the increase in multi-use case. And I know that something we had talked about with Athena and the ability to kind of create this organic expansion motion, um, given that at 50% increase for the full quarter, like is Athena a real part of that is there. Other parts you go to market driving that if you could just touch a little more there, the great news is Athena's, just getting started. So we had a great trajectory going into our launch. Now I will tell you every client that was on the beta became multi-use case. So it was, you know, but that was not a lot of clients, right? So as she rolled out to generally available, uh, we saw an uptick there, but but I think that's continued upside to growth in multi-use case. And, you know, the 1 data team continues to just do an exceptional job. I'll remind you, Matt, we really started on the 1 Z mission, you know, dust 18 months ago. So you've got a massive tail

Christopher Greiner: Matthew, I think the reason why you picked up on it, but for others, empirically, what we know is that when customers use more than one use case, their ARPU is three to five times greater. I think you're right on that being an exciting data point.

Chris Greiner: Matthew, I think the reason why you picked up on it, but for others, empirically, what we know is that when customers use more than one use case, their ARPU is three to five times greater. I think you're right on that being an exciting data point.

Speaker #4: And listen, we're good if the agencies make their money because they're providing meaningful services. But as it relates to our business, I'll remind you, none of the agencies really focus on the retain.

Speaker #4: Which as of last quarter is about 60% of our business. So we have real greenfield opportunity there. As it relates to the activation, monetize customers, we're very, very happy to partner and give the credit to the agencies because they've built incredible businesses and we're very excited now to be working with pretty much all of the large whole codes.

Matthew Swanson: Yeah. No, I appreciate that. We'll make sure to take note that 100% of Athena users will become multi-use case. That's what I heard.

Matt Swanson: Yeah. No, I appreciate that. We'll make sure to take note that 100% of Athena users will become multi-use case. That's what I heard.

Coming out of the work we've been doing there and then I think Athena is going to supercharge that and Matt, I think, the reason why you picked up on it, but for others, empirically, what we know is that when customers use more than 1 use case, there are who is 3 to 5 times greater. So I I think you're right on that being exciting to the point.

David A. Steinberg: Well, I wouldn't go quite there. I mean, Obviously, that's the goal, Matt, but, we certainly didn't say that just yet.

David Steinberg: Well, I wouldn't go quite there. I mean, Obviously, that's the goal, Matt, but, we certainly didn't say that just yet.

Matthew Swanson: Yeah. I guess the other one I wanted to talk about is the independent agencies. I know you called out advertising as a key vertical for you guys. I think your willingness to kind of share the credit with agencies and allow them to kind of white label some of your technology has been part of the reason you've been so successful there. I guess with Athena, how much more can that help you in those deal environments as a lot of these, you know, independent agencies are trying to compete with the big holdcos and so on?

Matt Swanson: Yeah. I guess the other one I wanted to talk about is the independent agencies. I know you called out advertising as a key vertical for you guys. I think your willingness to kind of share the credit with agencies and allow them to kind of white label some of your technology has been part of the reason you've been so successful there. I guess with Athena, how much more can that help you in those deal environments as a lot of these, you know, independent agencies are trying to compete with the big holdcos and so on?

Yeah, I appreciate that, and we'll make sure to take care of that 100%. That being, the usage will become multi-use case. That's what I heard. But I would go, I would go right there. I mean, we fix it up, obviously. That's the goal, Matt, but we certainly didn't say that just yet.

Speaker #4: I think now it's all. And we'll certainly the biggest ones. And then to be partnering with a select number of independent agencies, there's a lot of them out there.

Speaker #4: But we want to work with only the best.

Speaker #5: Thank you.

Speaker #1: Our next question comes from Navid Khan with B Riley.

Speaker #6: Hi, this is Ethan Weddell calling in for Navid. Thanks for taking my questions. To start, can we talk about the ideal customer profile for Athena?

How much more can that help you in those deal environments, as a lot of these, you know, independent agencies are trying to compete with the big old codes and so on.

Christopher Greiner: You know, one of the key wins we had, Matthew Swanson, in the quarter was with a large independent. If you look at, you know, business done a year ago with them was zero. Business done within this quarter was eight figures. With Athena being, you know, again, something that was visible to them as something they could also exploit for their benefit. The same was true with a very large new agency that began piloting Zeta in 2025. The spend was material, call it a little less than $2 million. That new agreement that was signed is more than 10x that size. Both the independent as well as the large agency continues to have a lot of runway.

Chris Greiner: You know, one of the key wins we had, Matthew Swanson, in the quarter was with a large independent. If you look at, you know, business done a year ago with them was zero. Business done within this quarter was eight figures. With Athena being, you know, again, something that was visible to them as something they could also exploit for their benefit. The same was true with a very large new agency that began piloting Zeta in 2025. The spend was material, call it a little less than $2 million. That new agreement that was signed is more than 10x that size. Both the independent as well as the large agency continues to have a lot of runway.

Speaker #6: I'd imagine there are two kind of distinct value propositions there, A where Athena can drive efficiency gains for your larger enterprises that already have sophisticated marketing teams and whatnot, and B more small and mid-market players where Athena creates access capabilities that these customers don't necessarily have in-house.

You know, 1 of the 1 of the key wins, uh, we had Matt in the corner was, was with a large independent. Uh, if you look at, you know business done a year ago, with them was Zero,

Speaker #6: So which of these is management really seeing more of early traction-wise and what's kind of the ideal customer size that you're leaning into with your early sales motion?

Speaker #4: Well, it's interesting you put it that way. I mean, today, to be honest, Ethan, we don't focus on mid-size. We're really just focused on very large enterprise.

A business done within this quarter was 8 figures, um, with Athena being, you know, again, something that that was visible to them, as something we could also exploit for their benefit. Um, same was true with a very large new agency, that began piloting Zeta in 2025, but spend was material called little less than 2 million. But that new agreement that was signed is more than 10x size. So,

Christopher Greiner: In fact, amongst the five large holdcos, the number of brands we're working with year-over-year grew by 50%.

Chris Greiner: In fact, amongst the five large holdcos, the number of brands we're working with year-over-year grew by 50%.

Both the independent as well as the large agency continues to have a lot of money. In fact,

Speaker #4: Although Athena opens up the mid-size market to us at some point because you're very intuitive to understand that the cost of layering Athena out to mid-size companies is so de minimis to us that would allow us to move into those that vertical or I'm sorry, into that sort of category without having to meaningfully hire people to do it.

David A. Steinberg: I just want to say, Matt, we are actually big fans of the agencies. They provide incredible services to their clients, we have had clients approach us to go direct and, you know, we always try to bring the agency back into it because we think it is a very healthy relationship when it is the three of us. Listen, we are good if the agencies, you know, make their money because they are providing meaningful services. As it relates to our business, I will remind you, none of the agencies really focus on the retain, which as of last quarter is about 60% of our business. We have real greenfield opportunity there as it relates to the activation, which, you know, sort of create customers, monetize customers.

David Steinberg: I just want to say, Matt, we are actually big fans of the agencies. They provide incredible services to their clients, we have had clients approach us to go direct and, you know, we always try to bring the agency back into it because we think it is a very healthy relationship when it is the three of us. Listen, we are good if the agencies, you know, make their money because they are providing meaningful services. As it relates to our business, I will remind you, none of the agencies really focus on the retain, which as of last quarter is about 60% of our business. We have real greenfield opportunity there as it relates to the activation, which, you know, sort of create customers, monetize customers.

Speaker #4: But today, we focus solely on very large enterprise. So I would tell you the two things very large enterprises have really focused on is A, and you're totally right, efficiency.

the among the 5 large hole codes, number of brands are working with you over your group by 50%. And and I, I just want to say, Matt. We're actually big fans of the agencies. They they provide incredible services to their clients and we've had clients approach us to go direct and you know, we always try to bring the agency back into it because we think it's a very healthy relationship when it's the 3 of us. And listen, we're good. If the agencies, you know, make their money because they're providing meaningful services. But as it relates to our business, I'll remind you

None of the agencies really focus on the retain.

Speaker #4: What they're finding is it takes 70% less labor to manage the Zeta marketing platform with Athena than it did with hands-on keyboard. So you're effectively able to take 70% of your marketing workforce and retask them into other functions where they can be more valuable to your organization.

David A. Steinberg: We're very, very happy to partner and give, you know, give the credit to the agencies because they've built incredible businesses and we're very excited now to be working with pretty much all of the large holdcos. I think now it's all, well, certainly the biggest ones. To be partnering with a select number of independent agencies. There's a lot of them out there, but we wanna work with only the best.

David Steinberg: We're very, very happy to partner and give, you know, give the credit to the agencies because they've built incredible businesses and we're very excited now to be working with pretty much all of the large holdcos. I think now it's all, well, certainly the biggest ones. To be partnering with a select number of independent agencies. There's a lot of them out there, but we wanna work with only the best.

Which as of last quarter is about 60% of our business. So we have real Greenfield opportunity there as it relates to the activation, which, you know, which, you know, sort of create customers monetize customers. We're very, very happy to partner and give, you know, give credit to the agencies because they've built incredible businesses. And we're, we're very excited now to be working with pretty much all of the, the large hold codes. I think now, with all

Speaker #4: We're also seeing that because and this is something I talk about a lot, Ethan, but when you buy software, whether it's us or it's Bloomberg or somebody else, you're buying a stealth fighter, right?

Um and uh well certainly biggest ones and then uh, to be partnering with the select number of independent agencies, that a lot of them out there but we want to work with only the best.

Matthew Swanson: Thank you.

Matt Swanson: Thank you.

Speaker #4: We're all spending to build a stealth fighter of a platform. And most of our clients know how to fly a Cessna. With I mean, think about a Bloomberg terminal.

Thank you.

Operator: Our next question comes from Naved Khan with B. Riley.

Operator: Our next question comes from Naved Khan with B. Riley.

Our next question comes from David Khan with B. Riley.

Ethan Waddell: Hi, this is Ethan Waddell calling in for Naved. Thanks for taking my questions. To start, can we talk about the ideal customer profile for Athena? I'd imagine there are two kind of distinct value propositions there. A, where Athena can drive efficiency gains for your larger enterprises that already have, you know, sophisticated marketing teams and whatnot. B, more small and mid-market players where Athena creates access capabilities that these customers don't necessarily have in-house. Like, which of these is management really seeing more of early traction-wise? What's kind of the ideal customer size that you're leaning into with your early, you know, sales motion?

Ethan Widell: Hi, this is Ethan Waddell calling in for Naved. Thanks for taking my questions. To start, can we talk about the ideal customer profile for Athena? I'd imagine there are two kind of distinct value propositions there. A, where Athena can drive efficiency gains for your larger enterprises that already have, you know, sophisticated marketing teams and whatnot. B, more small and mid-market players where Athena creates access capabilities that these customers don't necessarily have in-house. Like, which of these is management really seeing more of early traction-wise? What's kind of the ideal customer size that you're leaning into with your early, you know, sales motion?

Speaker #4: The vast majority of their customers only use 5% to 10% of the capabilities. As you look at our platform, being able to fly that Cessna, we're still delivering a 600% return on marketing spend.

Speaker #4: As clients are able to use Athena as their co-pilot, they can get right into the cockpit of that stealth fighter and they can then fly the entire platform, which is driving meaningfully higher return on marketing spend than even that 600%.

Yeah, this is Ethan Modell calling in for noted. Um, thanks for taking my questions, uh, to start. Uh, we talked about the ideal customer profile for the. I imagine there are 2 distinct value propositions there a where atheistic gains for larger Enterprises that already have sufficient, marketing teams, and whatnot. Be, um, more small in the market players, worth in a create access capabilities that these customers don't necessarily have in house. So like which of these management releasing more of, uh, early traction wise and, um,

Speaker #6: Got it. That makes a lot of sense. Thank you. And then coming out of first quarter, I think you mentioned 9 out of 10 top industries grew more than 20%.

What kind of Ideal customer size you're leaning into with your early? Um,

David A. Steinberg: Well, it's interesting you put it that way. I mean, today, to be honest, Ethan, we don't focus on midsize. We're really just focused on very large enterprise. Although Athena opens up the midsize market to us at some point, 'cause you're very intuitive to understand that the cost of layering Athena out to midsize companies is so de minimis to us that it would allow us to move into those, that vertical, or I'm sorry, into that sort of category, without having to meaningfully hire people to do it. Today, we focus solely on very large enterprise. I would tell you the two things very large enterprises have really focused on is A, and you're totally right, efficiency. What they're finding is it takes 70% less labor to manage the Zeta Marketing Platform with Athena than it did with hands-on-keyboard.

David Steinberg: Well, it's interesting you put it that way. I mean, today, to be honest, Ethan, we don't focus on midsize. We're really just focused on very large enterprise. Although Athena opens up the midsize market to us at some point, 'cause you're very intuitive to understand that the cost of layering Athena out to midsize companies is so de minimis to us that it would allow us to move into those, that vertical, or I'm sorry, into that sort of category, without having to meaningfully hire people to do it. Today, we focus solely on very large enterprise. I would tell you the two things very large enterprises have really focused on is A, and you're totally right, efficiency. What they're finding is it takes 70% less labor to manage the Zeta Marketing Platform with Athena than it did with hands-on-keyboard.

You know, sales motion.

Speaker #6: I know you spoke to some customer consolidation being a benefit there. But are there any verticals that you see showing any signs of softening, particularly anything sensitive to the macro and geopolitical risk going on right now on the customer discretion?

Speaker #3: Yeah. Short answer, no, Ethan. The 9 out of the 10 were effectively the same 9 out of 10 that ended last year. The 1 out of 10 that wasn't growing over 20% is 4% of revenue.

Speaker #3: So it really gives you a sense for the vast, vast majority of revenues on all of the verticals we support are performing in a very healthy way.

Speaker #6: Got it. That's really helpful. Thank you.

Speaker #1: Our next question is from Terry Tillman with Truist.

Well it it's interesting. You put it that way. I mean today to be honest Ethan we don't focus on midsize. We're really just focused on very large Enterprise although Athena opened up the mid-size Market Plus at some point because you're very intuitive to understand that the cost of layer layering Athena out to mid-size companies is so minimum to us that would allow us to move into those that vertical. I'm sorry to that sort of category without having to meaningfully, hire people to do it. But today we focus solely on very large Enterprise. So I tell you the 2 things, very large Enterprises, have really focused on is a, and your total write efficiency, but they're finding

Speaker #7: Yeah. Hey, thanks for fitting me in. Hi, David. Chris, Matt, and hi, Athena. I'll just keep it to one question because I know we're running over time.

David A. Steinberg: You're effectively able to take 70% of your marketing workforce and re-task them into other functions where they can be more valuable to your organization. We're also seeing that because this is something I talk about a lot, Ethan, but it, you know, when you buy software, whether it's us or it's Bloomberg or somebody else, you're buying a stealth fighter, right? We're all spending to build a stealth fighter of a platform, and most of our clients know how to fly a Cessna. I mean, think about a Bloomberg terminal. The vast majority of their customers only use 5% to 10% of the capabilities. As you look at our platform, being able to fly that Cessna, we're still delivering a 600% return on marketing spend.

David Steinberg: You're effectively able to take 70% of your marketing workforce and re-task them into other functions where they can be more valuable to your organization. We're also seeing that because this is something I talk about a lot, Ethan, but it, you know, when you buy software, whether it's us or it's Bloomberg or somebody else, you're buying a stealth fighter, right? We're all spending to build a stealth fighter of a platform, and most of our clients know how to fly a Cessna. I mean, think about a Bloomberg terminal. The vast majority of their customers only use 5% to 10% of the capabilities. As you look at our platform, being able to fly that Cessna, we're still delivering a 600% return on marketing spend.

Speaker #7: And maybe I'm getting too far ahead of myself, but I like hearing about 40% increase, 40% plus increase in the sales pipeline. And I think you said your discretionary markets where you have a lot of activity is even higher.

Speaker #7: Is it too early to start to say because of the emphasis on agentic and AI in general that's in the market, plus you have Athena that's now credibly in the market and in production, could it start to tip the scales and move in some of this funnel activity faster?

Is it takes 70% less labor to manage the data marketing platform with Athena than it did with Hands-On keyboards. So you're effectively able to take 70% of your marketing Workforce and retest them into other functions where they can be more valuable to your organization.

We're also seeing that because and, and this is something I talk about a lot Ethan. But it, you know, when you buy software

Speaker #7: And you actually closed new deals quicker? Or is it just too early or just way too optimistic?

Speaker #4: I don't think you're too optimistic. But I do think it's from an expectation setting perspective. And frankly, from a data-driven perspective, and this is a multi-quarter statement I'm about to make, our deal cycles in good times and in less good times have stayed consistent.

Whether it's us or it's Bloomberg or somebody else, you're buying a stealth fighter, right? We're all spending to build a stealth fighter of a platform and most of our clients know how to fly a Cessna.

With.

I mean, think about a Bloomberg terminal, the vast majority of their customers only use 5 to 10% of the capabilities.

Speaker #4: What we're seeing is more opportunities in RFPs, many more at-bats than we were given a year ago and certainly two years ago. Those by nature take longer.

David A. Steinberg: As clients are able to use Athena as their co-pilot, they can get right into the cockpit of that stealth fighter, and they can then fly the entire platform, which is driving meaningfully higher return on marketing spend than even that 600%.

David Steinberg: As clients are able to use Athena as their co-pilot, they can get right into the cockpit of that stealth fighter, and they can then fly the entire platform, which is driving meaningfully higher return on marketing spend than even that 600%.

600% return on marketing spend.

Speaker #4: But again, our strategy many times is to work around those processes through pilots and proof of concepts. Those deals are getting bigger, as David said.

Speaker #4: So yesterday's 100K pilot is today's a million. But I wouldn't say right now it's an accelerant. But it's in addition to the pipeline.

as clients are able to use Athena as their co-pilot, they can get right into the cockpit of that uh self fighter and they can then fly the entire platform which is driving meaningfully higher return on marketing spend than even that 600%

Ethan Waddell: Got it. That makes a lot of sense. Thank you. You know, coming out of Q1, I think you mentioned 9 out of 10 top industries grew more than 20%. I know you spoke to some customer consolidation being a benefit there, but are there any verticals that you see showing any signs of softening, particularly anything sensitive to the macro and geopolitical risk going on right now on the, you know?

Ethan Widell: Got it. That makes a lot of sense. Thank you. You know, coming out of Q1, I think you mentioned 9 out of 10 top industries grew more than 20%. I know you spoke to some customer consolidation being a benefit there, but are there any verticals that you see showing any signs of softening, particularly anything sensitive to the macro and geopolitical risk going on right now on the, you know?

Speaker #5: And I would. Better. But I do want to be clear Terry, we're getting at-bats that we would have never gotten, a few years ago.

Speaker #5: So it's sort of it's working really, really well.

Speaker #7: That's great to hear. Thank you.

David A. Steinberg: Sure can.

David Steinberg: Sure can.

Christopher Greiner: Yeah. Short answer no, Ethan. The 9 out of the 10 were effectively the same 9 out of 10 that ended last year. The 1 out of 10 that wasn't growing over 20% is 4% of revenue. It really gives you a sense for the vast majority of revenues on all of the verticals we support are performing in a very healthy way.

Chris Greiner: Yeah. Short answer no, Ethan. The 9 out of the 10 were effectively the same 9 out of 10 that ended last year. The 1 out of 10 that wasn't growing over 20% is 4% of revenue. It really gives you a sense for the vast majority of revenues on all of the verticals we support are performing in a very healthy way.

Got it. Then it's a lot of time, thank you. Um, and then, you know, coming out of the first quarter—I think you mentioned 9 out of 10 top industries grew more than 20%. I know you spoke to some customer consolidation being a benefit there. But are there any particles that you see showing any signs of softening, in particular anything sensitive to macro and political going on right now? On the—

Yeah, show answer, no reason. Um, the 9 at the 10, um, were effectively the same 9 out of 10. Uh, that ended last year. The the 1 out of 10 that wasn't growing. Um, over 20% is 4% of Revenue so it really gives you a sense for the vast vast majority of revenues on all the verticals. We support are performing in a very healthy way.

Operator: Got it. That's really helpful. Thank you. Our next question is from Terry Tillman with Truist.

Ethan Widell: Got it. That's really helpful. Thank you.

Got it. That's really helpful. Thank you.

Operator: Our next question is from Terry Tillman with Truist.

Terry Tillman: Yeah. Hey, thanks for fitting me in. Hi, David, Christopher, Matthew, and hi, Athena. I'll just keep it to one question because I know we're running over time. Maybe I'm getting too far ahead of myself, but I like hearing about 40% plus increase in the sales pipeline, and I think you said your discretionary markets, where you have a lot of activity, is even higher. Is it too early to start to say because of the emphasis on agentic and AI in general that's in the market, plus you have Athena that's now credibly in the market and in production, could it start to tip the scales and move in some of this funnel activity faster and you actually close new deals quicker? Is it just too early or I'm just way too optimistic?

Terry Tillman: Yeah. Hey, thanks for fitting me in. Hi, David, Christopher, Matthew, and hi, Athena. I'll just keep it to one question because I know we're running over time. Maybe I'm getting too far ahead of myself, but I like hearing about 40% plus increase in the sales pipeline, and I think you said your discretionary markets, where you have a lot of activity, is even higher. Is it too early to start to say because of the emphasis on agentic and AI in general that's in the market, plus you have Athena that's now credibly in the market and in production, could it start to tip the scales and move in some of this funnel activity faster and you actually close new deals quicker? Is it just too early or I'm just way too optimistic?

our next question is from Terry, Tillman with tryst

Yeah. Hey thanks for fitman. Hi David. Chris, Matt. And hi Ethan. Um I'll just keep it to 1 question because I know we're running over time. Uh and and maybe I'm getting too too far ahead of myself but I like hearing about 40% increase. 40% plus increase in the sales pipeline. I think you said your discretionary markets where you have a lot of activity, is it higher? Is it too early to start to say? Because of the emphasis on a

Can I get General? That's in the market, plus you have Athena, that's not credibly in the market in production.

Christopher Greiner: I don't think you're too optimistic. I do think it's, you know, from an expectation-setting perspective, and frankly, from a data-driven perspective, and this is a multi-quarter statement I'm about to make, our deal cycles in good times and in less good times have stayed consistent. What we're seeing is more opportunities in RFPs, many more at-bats than we were given 1 year ago and certainly 2 years ago. Those by nature take longer. Again, our strategy many times is to work around those processes through pilots and proof of concepts. Those deals are getting bigger, as David said. You know, yesterday's a 100K pilot is today's $1 million. I wouldn't say right now it's an accelerant, but it's an addition to the pipeline.

Chris Greiner: I don't think you're too optimistic. I do think it's, you know, from an expectation-setting perspective, and frankly, from a data-driven perspective, and this is a multi-quarter statement I'm about to make, our deal cycles in good times and in less good times have stayed consistent. What we're seeing is more opportunities in RFPs, many more at-bats than we were given 1 year ago and certainly 2 years ago. Those by nature take longer. Again, our strategy many times is to work around those processes through pilots and proof of concepts. Those deals are getting bigger, as David said. You know, yesterday's a 100K pilot is today's $1 million. I wouldn't say right now it's an accelerant, but it's an addition to the pipeline.

Could it start to tip the sales and move in some of this funnel activity, faster, and you actually closed New Deals quicker or is it just too early? Um just way too optimistic.

David A. Steinberg: I would concur.

David Steinberg: I would concur.

I don't think too optimistic but I do think it's it's you know, from an expectation setting perspective, frankly from data driven perspective and this is a multi-quarter statement, I'm about to make our deals Cycles in good times and less good times have stayed consistent. What we're seeing is more opportunities in our rfps. Many more ads than we were given a year ago. Certainly 2 years ago, those might take longer. But again, our strategy, many times is to work around those processes through pilots and proof of Concepts. Those deals are getting bigger as David said. So you know, yesterday's 100K pilot is today's a million. Um, but I wouldn't say right now. It's an accelerant, uh, but it's in addition to the pipeline

Terry Tillman: Yeah.

Terry Tillman: Yeah.

David A. Steinberg: you know, I do wanna be clear, Terry, we're getting at-bats that we would have never gotten a few years ago. It's working really, really well.

David Steinberg: you know, I do wanna be clear, Terry, we're getting at-bats that we would have never gotten a few years ago. It's working really, really well.

Terry Tillman: That's great to hear. Thank you.

Terry Tillman: That's great to hear. Thank you.

And I would concur but, you know, I do want to be clear, Cherry, we're getting at that that we would have never gotten a few years ago. So it's it's sort of it's it's working really, really well.

That's great to hear. Thank you.

Operator: Thank you. This concludes the Q&A session and our call. You may disconnect your lines at this time. Have a wonderful day.

Operator: Thank you. This concludes the Q&A session and our call. You may disconnect your lines at this time. Have a wonderful day.

Thank you. This concludes the Q&A session and our call. You may disconnect your lines at this time and have a wonderful day.