Zeta Global Holdings Inc. (ZETA) reported 44% year-over-year revenue growth and a Rule of 40 metric of 67 to 68 for its latest quarter, underscoring what management characterized as accelerating momentum behind its AI-driven marketing-platform strategy.
The company also posted 56% EBITDA growth and 73% free-cash-flow growth on a year-over-year basis. CEO David told attendees at the Goldman Sachs Communacopia + Technology Conference 2026 that the business trajectory centered on "intelligence" — drawing a distinction between software companies that build proprietary asset bases and those confined to workflow management.
Sales-pipeline expansion came in at 40% year-over-year in Q1, then accelerated to 60% in Q2 once opportunities tied to the Palantir partnership were excluded. Average deal size in Q2 was 40% larger than a year earlier, and the pipeline's weighted-average deal size ran more than 25% above the company's historical baseline.
Existing-customer spending grew roughly 20% year-over-year on average, and net revenue retention last year reached 120%. Management projected future net-revenue-retention in the 110% to 115% range, noting the four-year average already exceeds 115%. Customer-addition run-rate climbed about 15% year-over-year, well above the long-term target of 4% to 8% every 90 days, while ARPU growth landed at the high end of a 12% to 16% range.
Adoption breadth is widening as well. The share of customers using more than one platform use case rose more than 90% year-over-year, and customers engaging five or more channels grew more than 50% year-over-year.
Athena, the company's AI-agent offering, saw 40% of super-scaled customers adopt it as monthly active users within four months of general availability. Voice accounted for 83% of Athena engagement, and models operate at 99.999% accuracy. "We are seeing faster adoption than we expected, and we are seeing better return on investment than we expected," David said.
On data scale, Zeta said its cloud holds more than 525 million opted-in individuals, each yielding 5,000 to 7,000 incremental data elements. The system processes trillions of daily signals from 5.2 million publishers, with GEO-data extraction alone exceeding the total input from the bottom 2 million publishers. Peak computational throughput reaches 7,500 computations per millisecond.
Revenue from the agency model is approaching 25% of total, and quota-carrying headcount grew 11% year-over-year — below the historical pace of 22%. Engineering output for the quarter showed 89.6% of new code generated automatically.
David estimated that a partnership with Palantir could eventually represent $100 million in annual business, adding that current momentum made that figure "very low" relative to what is emerging. He also emphasized data-isolation practices, noting the company merges enterprise first-party data with its own but does not expose its proprietary data back to client organizations.
AI-token costs remain immaterial, accounting for less than 1% of total revenue. Zeta's guidance includes a conservatism buffer of 2 to 5 percentage points.
Shares rose 1.1% to $31.13 in extended trading after closing regular session at $30.79, down 1.79%. The stock trades within a 52-week range of $14.365 to $32.81.
InvestingPro assigned Zeta a financial-health score of 3.2, rated "Great."
