Finished 2023 with 10 straight quarters of
beating & raising guidance
- Delivered revenue of $210M, up 20% Y/Y in 4Q’23, and $729M, up
23% Y/Y in 2023
- Increased Scaled Customer count 12% Y/Y and Super-Scaled
Customer count 27% Y/Y
- Grew Scaled Customer ARPU 10% Y/Y to $1.57M in 2023
- Generated cash flow from operating activities of $27M in 4Q’23,
and $91M in 2023
- Guiding to fifth consecutive year of 20%+ revenue growth
Zeta Global (NYSE: ZETA), the AI-Powered Marketing Cloud, today
announced financial results for the fourth quarter and full year
ended December 31, 2023.
“The marketing ecosystem is in a state of change,” said David A.
Steinberg, Co-Founder, Chairman, and CEO of Zeta. “Artificial
Intelligence has moved from a theoretical to a board room
conversation with Chief Marketing Officers mandated to make AI more
actionable to deliver greater efficiency and better experiences for
consumers. By putting intelligence at the center of our platform
and making Generative AI more actionable for marketers, we are at
the forefront of a wave that is driving a replacement cycle and
accelerating digital transformation.”
“A 10th straight beat and raise quarter continues to demonstrate
our consistent execution and ability to capitalize on our
competitive advantages,” said Chris Greiner, Zeta’s CFO. “We enter
2024 from a position of strength, as evidenced by multiple elements
of our 2024 guidance including: a fifth consecutive year of 20%+
growth, continued Adjusted EBITDA margin expansion, and an
acceleration in free cash flow conversion.”
Fourth Quarter 2023 Highlights
- Total revenue of $210 million, increased 20% Y/Y.
- Scaled Customer count increased to 452 from 440 in 3Q’23 and
403 in 4Q’22.
- Super-Scaled Customer count increased to 131 from 124 in 3Q’23
and 103 in 4Q’22.
- Quarterly Scaled Customer ARPU of $454,000, increased 7%
Y/Y.
- Quarterly Super-Scaled Customer ARPU of $1.31 million,
decreased 1% Y/Y.
- Direct platform revenue mix of 73% of total revenue, compared
to 70% in 3Q’23, and compared to 75% in 4Q’22.
- GAAP cost of revenue percentage of 40.2%, increased 130 basis
points Q/Q, and increased 260 basis points Y/Y.
- GAAP net loss of $35 million, or 17% of revenue, driven
primarily by $63 million of stock-based compensation. The net loss
in 4Q’22 was $52 million, or 30% of revenue.
- GAAP loss per share of $0.22, compared to a loss per share of
$0.36 in 4Q’22.
- Cash flow from operating activities of $27 million, compared to
$23 million in 4Q’22.
- Free Cash Flow1 of $18 million, compared to $14 million in
4Q’22.
- Repurchased $3.9 million worth of shares through our share
repurchase program.
- Adjusted EBITDA1 of $44.8 million, increased 38% Y/Y from $32.4
million in 4Q’22.
- Adjusted EBITDA margin1 of 21.3%, increased from 18.5% in
4Q’22.
Full Year 2023 Highlights
- Total revenue of $729 million, increased 23% Y/Y.
- Scaled Customer ARPU of $1.57 million, increased of 10%
Y/Y.
- Super Scaled Customer ARPU of $4.55 million, increased of 1%
Y/Y.
- Direct platform revenue mix of 72% of total revenue, compared
to 77% in 2022.
- Net Revenue Retention of 111%, compared to 112% in 2022.
- GAAP cost of revenue percentage of 37.7%, increased 120 basis
points Y/Y.
- GAAP net loss of $187 million, or 26% of revenue, was driven
primarily by $243 million of stock-based compensation. The net loss
in 2022 was $279 million, or 47% of revenue.
- GAAP loss per share of $1.20, compared to a loss per share of
$2.01 in 2022.
- Cash flow from operating activities of $91 million, compared to
$78 million in 2022.
- Free Cash Flow1 of $55 million, compared to $39 million in
2022.
- Repurchased $15.4 million worth of shares through our share
repurchase program.
- Adjusted EBITDA1 of $129.4 million, an increase of 40% compared
to $92.2 million in 2022.
- Adjusted EBITDA margin1 of 17.8%, compared to 15.6% in
2022.
1 Free Cash Flow, Adjusted EBITDA, and Adjusted EBITDA margin
are not measures of financial performance prepared in accordance
with GAAP. See “Non-GAAP Measures” for more information and, where
applicable, reconciliations to the most directly comparable GAAP
financial measures at the end of this release.
Guidance
First Quarter 2024
- Revenue of $185 million to $189 million, representing a
year-over-year increase of 17% to 20%.
- Adjusted EBITDA of $28.8 million to $29.3 million, representing
a year-over-year increase of 20% to 22% and an Adjusted EBITDA
margin of 15.2% to 15.8%.
Full Year 2024
- Revenue of $870 million to $880 million, representing a
year-over-year increase of 19% to 21%.
- Adjusted EBITDA of $165 million to $167 million, representing a
year-over-year increase of 28% to 29% and an Adjusted EBITDA margin
of 18.8% to 19.2%.
- Free Cash Flow of $75 million to $85 million.
Zeta 2025
Zeta 2025 is a long-term plan introduced by the Company in 2022,
intended to drive the Company’s vision to become one of the largest
marketing clouds in the industry, with targets for business,
product, and industry leadership. The financial targets of this
plan are to generate in excess of $1 billion in annual revenue with
at least 20% Adjusted EBITDA margins by 2025. In February 2023, we
added an additional financial target to the plan of Free Cash Flow
with a target of at least $110 million by 2025. In September 2023,
we announced that we expect to achieve our Zeta 2025 targets
early.
Investor Conference Call and Webcast
Zeta will host a conference call today, Tuesday, February 27,
2024, at 4:30 p.m. Eastern Time to discuss financial results for
the fourth quarter and full year 2023. A supplemental earnings
presentation and a live webcast of the conference call can be
accessed from the Company’s investor relations website
(https://investors.zetaglobal.com/) where they will remain
available for one year.
About Zeta
Zeta Global (NYSE: ZETA) is the AI-Powered Marketing Cloud that
leverages advanced artificial intelligence (AI) and trillions of
consumer signals to make it easier for marketers to acquire, grow,
and retain customers more efficiently. Through the Zeta Marketing
Platform (ZMP), our vision is to make sophisticated marketing
simple by unifying identity, intelligence, and omnichannel
activation into a single platform – powered by one of the
industry’s largest proprietary databases and AI. Our enterprise
customers across multiple verticals are empowered to personalize
experiences with consumers at an individual level across every
channel, delivering better results for marketing programs. Zeta was
founded in 2007 by David A. Steinberg and John Sculley and is
headquartered in New York City with offices around the world. To
learn more, go to www.zetaglobal.com.
Forward-Looking Statements
This press release, together with other statements and
information publicly disseminated by the Company, contains certain
forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. The Company intends
such forward-looking statements to be covered by the safe harbor
provisions for forward-looking statements contained in the Private
Securities Litigation Reform Act of 1995 and includes this
statement for purposes of complying with these safe harbor
provisions. Any statements made in this press release or during the
earnings call that are not statements of historical fact, including
statements about our 2024 guidance, the Zeta 2025 plan, the
financial targets of Zeta 2025 and the timing of when we will
achieve the Zeta 2025 plan, the capabilities of AI and Zeta’s
platform, the acceleration of the digital transformation, and the
growth and expansion of AI and the Zeta Marketing Platform are
forward-looking statements and should be evaluated as such.
Forward-looking statements include information concerning our
anticipated future financial performance, our market opportunities
and our expectations regarding our business plan and strategies.
These statements often include words such as “anticipate,”
“expect,” “suggests,” “plan,” “believe,” “intend,” “estimates,”
“targets,” “projects,” “should,” “could,” “would,” “may,” “will,”
“forecast,” “outlook,” “guidance” and other similar expressions. We
base these forward-looking statements on our current expectations,
plans and assumptions that we have made in light of our experience
in the industry, as well as our perceptions of historical trends,
current conditions, expected future developments and other factors
we believe are appropriate under the circumstances at such time.
Although we believe that these forward-looking statements are based
on reasonable assumptions at the time they are made, you should be
aware that many factors could affect our business, results of
operations and financial condition and could cause actual results
to differ materially from those expressed in the forward-looking
statements. These statements are not guarantees of future
performance or results.
The forward-looking statements are subject to and involve risks,
uncertainties and assumptions, and you should not place undue
reliance on these forward-looking statements. Factors that may
materially affect such forward-looking statements include, but are
not limited to: global supply chain disruptions; macroeconomic and
industry trends and adverse developments in the debt, consumer
credit and financial services markets and other macroeconomic
factors beyond Zeta’s control; increases in our borrowing costs as
a result of changes in interest rates and other factors; the impact
of inflation on us and on our customers; potential fluctuations in
our operating results, which could make our future operating
results difficult to predict; underlying circumstances, including
cash flows, cash position, financial performance, market conditions
and potential acquisitions; prevailing stock prices, general
economic and market condition; the impact of future pandemics,
epidemics and other health crises on the global economy, our
customers, employees and business; the war in Ukraine and
escalating geopolitical tensions as a result of Russia’s invasion
of Ukraine; the escalating conflict in Israel, Gaza and in the
surrounding areas; our ability to innovate and make the right
investment decisions in our product offerings and platform; the
impact of new generative AI capabilities and the proliferation of
AI on our business; our ability to attract and retain customers,
including our scaled and super-scaled customers; our ability to
manage our growth effectively; our ability to collect and use data
online; the standards that private entities and inbox service
providers adopt in the future to regulate the use and delivery of
email may interfere with the effectiveness of our platform and our
ability to conduct business; a significant inadvertent disclosure
or breach of confidential and/or personal information we process,
or a security breach of our or our customers’, suppliers’ or other
partners’ computer systems; and any disruption to our third-party
data centers, systems and technologies. These cautionary statements
should not be construed by you to be exhaustive and the
forward-looking statements are made only as of the date of this
press release. We undertake no obligation to update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise, except as required by applicable law.
If we update one or more forward-looking statements, no inference
should be drawn that we will make additional updates with respect
to those or other forward-looking statements.
The 2024 guidance provided herein and Zeta 2025 targets are
based on Zeta’s current estimates and assumptions and are not a
guarantee of future performance. The guidance provided and Zeta
2025 targets are subject to significant risks and uncertainties,
including the risk factors discussed in the Company's reports on
file with the Securities and Exchange Commission (“SEC”), that
could cause actual results to differ materially. There can be no
assurance that the Company will achieve the results expressed by
this guidance or the targets.
Availability of Information on Zeta’s Website and Social
Media Profiles
Investors and others should note that Zeta routinely announces
material information to investors and the marketplace using SEC
filings, press releases, public conference calls, webcasts and the
Zeta investor relations website at https://investors.zetaglobal.com
(“Investors Website”). We also intend to use the social media
profiles listed below as a means of disclosing information about us
to our customers, investors and the public. While not all of the
information that the Company posts to the Investors Website or to
social media profiles is of a material nature, some information
could be deemed to be material. Accordingly, the Company encourages
investors, the media, and others interested in Zeta to review the
information that it shares on the Investors Website and to
regularly follow our social media profile links located at the
bottom of the page on www.zetaglobal.com. Users may automatically
receive email alerts and other information about Zeta when
enrolling an email address by visiting "Investor Email Alerts" in
the "Resources" section of the Investors Website.
Social Media Profiles: www.twitter.com/zetaglobal
www.facebook.com/ZetaGlobal/ www.linkedin.com/company/zetaglobal
www.instagram.com/zetaglobal/
The Following Definitions Apply to the Terms Used Throughout
this Release, the Supplemental Earnings Presentation and Investor
Conference Call
- Direct Platform and Integrated Platform: When the Company generates
revenues entirely through the Company platform, the Company
considers it direct platform revenue. When the Company generates
revenue by leveraging its platform’s integration with third
parties, it is considered integrated platform revenue.
- Cost of revenue: Cost of revenue
excludes depreciation and amortization and consists primarily of
media and marketing costs and certain personnel costs. Media and
marketing costs consist primarily of fees paid to third-party
publishers, media owners or managers, and strategic partners that
are directly related to a revenue-generating event. We pay these
third-party publishers, media owners or managers and strategic
partners on a revenue-share, a cost-per-lead, cost-per-click, or
cost-per-thousand-impressions basis. Personnel costs included in
cost of revenues include salaries, bonuses, commissions,
stock-based compensation and employee benefit costs primarily
related to individuals directly associated with providing services
to our customers.
- Scaled Customers: We define scaled
customers as customers from which we generated at least $100,000 in
revenue on a trailing twelve-month basis. We calculate the number
of scaled customers at the end of each quarter and on an annual
basis as the number of customers billed during each applicable
period. We believe the scaled customers measure is both an
important contributor to our revenue growth and an indicator to
investors of our measurable success.
- Super-Scaled Customers: We define
super-scaled customers, which is a subset of Scaled Customers, as
customers from which we generated at least $1,000,000 in revenue on
a trailing twelve-month basis. We calculate the number of
super-scaled customers at the end of each quarter and on an annual
basis as the number of customers billed during each applicable
period. We believe the super-scaled customers measure is both an
important contributor to our revenue growth and an indicator to
investors of our measurable success.
- Scaled Customer ARPU: We calculate
the scaled customer average revenue per user (“ARPU”) as revenue
for the corresponding period divided by the average number of
scaled customers during that period. We believe that scaled
customer ARPU is useful for investors because it is an indicator of
our ability to increase revenue and scale our business.
- Super-Scaled Customer ARPU: We
calculate the super-scaled customer ARPU as revenue for the
corresponding period divided by the average number of super-scaled
customers during that period. We believe that super-scaled customer
ARPU is useful for investors because it is an indicator of our
ability to increase revenue and scale our business.
- Net Revenue Retention (“NRR”): We
calculate our annual NRR rate by dividing current year revenue
earned from customers from which we also earned revenue in the
prior year, by the prior year revenues. We exclude political and
advocacy customers, which represented 1.8% and 6.3% of revenue for
2023 and 2022, respectively, from our calculation of annual NRR
rate because of the biennial nature of these customers.
Non-GAAP Measures
In order to assist readers of our consolidated financial
statements in understanding the core operating results that our
management uses to evaluate the business and for financial planning
purposes, we describe our non-GAAP measures below. We believe these
non-GAAP measures are useful to investors in evaluating our
performance by providing an additional tool for investors to use in
comparing our financial performance over multiple periods.
- Adjusted EBITDA is a non-GAAP
financial measure defined as net loss adjusted for interest
expense, depreciation and amortization, stock-based compensation,
income tax (benefit) / provision, acquisition related expenses,
restructuring expenses, change in fair value of warrants and
derivative liabilities, certain dispute settlement expenses, gain
on extinguishment of debt, certain non-recurring IPO related
expenses, including the payroll taxes related to vesting of
restricted stock and restricted stock units upon the completion of
the IPO, and other expenses. Acquisition related expenses and
restructuring expenses primarily consist of severance and other
employee-related costs which we do not expect to incur in the
future as acquisitions of businesses may distort the comparability
of the results of operations. Change in fair value of warrants and
derivative liabilities is a non-cash expense related to
periodically recording “mark-to-market” changes in the valuation of
derivatives and warrants. Other expenses consist of non-cash
expenses such as changes in fair value of acquisition related
liabilities, gains and losses on extinguishment of acquisition
related liabilities, gains and losses on sales of assets and
foreign exchange gains and losses. In particular, we believe that
the exclusion of stock-based compensation, certain dispute
settlement expenses and non-recurring IPO related expenses that are
not related to our core operations provides measures for
period-to-period comparisons of our business and provides
additional insight into our core controllable costs. We exclude
these charges because these expenses are not reflective of ongoing
business and operating results.
- Adjusted EBITDA margin is a
non-GAAP financial measure defined as Adjusted EBITDA divided by
the total revenues for the same period.
- Free Cash Flow is a non-GAAP
financial measure defined as cash from operating activities, less
capital expenditures and website and software development costs,
adjusted for the effect of exchange rates on cash and cash
equivalents.
Adjusted EBITDA, Adjusted EBITDA margin, and Free Cash Flow
provide us with useful measures for period-to-period comparisons of
our business as well as comparison to our peers. We believe that
these non-GAAP financial measures are useful to investors in
analyzing our financial and operational performance. Nevertheless
our use of Adjusted EBITDA, Adjusted EBITDA margin, and Free Cash
Flow has limitations as an analytical tool, and you should not
consider these measures in isolation or as a substitute for
analysis of our financial results as reported under GAAP. Other
companies may calculate similarly-titled non-GAAP financial
measures differently than us, thereby limiting the usefulness of
these non-GAAP financial measures as a comparative tool. Because of
these and other limitations, you should consider our non-GAAP
measures only as supplemental to other GAAP-based financial
performance measures, including revenues and net loss.
We calculate forward-looking Adjusted EBITDA, Adjusted EBITDA
margin, and Free Cash Flow based on internal forecasts that omit
certain amounts that would be included in forward-looking GAAP net
income (loss). We do not attempt to provide a reconciliation of
forward-looking Adjusted EBITDA, Adjusted EBITDA margin, and Free
Cash Flow guidance and targets to forward looking GAAP net income
(loss), GAAP net income (loss) margin or cash flows from operating
activities, respectively, because forecasting the timing or amount
of items that have not yet occurred and are out of our control is
inherently uncertain and unavailable without unreasonable efforts.
Further, we believe that such reconciliations would imply a degree
of precision and certainty that could be confusing to investors.
Such items could have a substantial impact on GAAP measures of
financial performance.
Zeta Global Holdings Corp.
Consolidated Balance
Sheets (in thousands, except share and per share
amounts)
As of December 31,
2023
2022
Assets
Current assets:
Cash and cash equivalents
$
131,732
$
121,110
Accounts receivable, net of
allowance of $3,564 and $1,882 as of December 31, 2023 and December
31, 2022, respectively
170,131
106,322
Prepaid expenses
6,269
7,150
Other current assets
1,622
1,866
Total current assets
309,754
236,448
Non-current assets:
Property and equipment, net
7,452
5,981
Website and software development
costs, net
32,124
36,713
Right-to-use asset - operating
leases, net
6,603
7,388
Intangible assets, net
48,781
44,358
Goodwill
140,905
133,069
Deferred tax assets, net
728
745
Other non-current assets
4,367
1,800
Total non-current assets
240,960
230,054
Total assets
$
550,714
$
466,502
Liabilities and Stockholders’
Equity
Current liabilities:
Accounts payable
$
63,572
$
33,668
Accrued expenses
85,455
72,364
Acquisition-related
liabilities
17,234
14,743
Deferred revenue
3,301
2,228
Other current liabilities
6,823
5,707
Total current liabilities
176,385
128,710
Non-current liabilities:
Long-term borrowings
184,147
183,953
Acquisition-related
liabilities
3,060
17,932
Other non-current liabilities
6,602
7,877
Total non-current liabilities
193,809
209,762
Total liabilities
370,194
338,472
Stockholders’ equity:
Class A common stock $ 0.001 per
share par value, up to 3,750,000,000 shares authorized, 188,631,432
and 175,266,917 shares issued and outstanding as of December 31,
2023 and December 31, 2022, respectively
189
175
Class B common stock $ 0.001 per
share par value, up to 50,000,000 shares authorized, 29,055,489 and
32,099,302 shares issued and outstanding as of December 31, 2023
and December 31, 2022, respectively
29
32
Additional paid-in capital
1,140,849
900,924
Accumulated deficit
(958,537
)
(771,056
)
Accumulated other comprehensive
loss
(2,010
)
(2,045
)
Total stockholders’ equity
180,520
128,030
Total liabilities and
stockholders' equity
$
550,714
$
466,502
Consolidated Statements of
Operations and Comprehensive Loss (in thousands, except
share and per share amounts)
Three months ended December
31,
Year ended December
31,
2023
2022
2023
2022
Revenues
$
210,320
$
175,140
$
728,723
$
590,961
Operating expenses:
Cost of revenues (excluding
depreciation and amortization)
84,615
65,979
274,482
215,466
General and administrative
expenses
51,397
51,017
205,419
213,615
Selling and marketing
expenses
72,727
76,194
288,441
299,238
Research and development
expenses
19,945
17,231
73,869
69,454
Depreciation and amortization
13,495
12,430
51,149
51,878
Acquisition-related expenses
—
—
203
344
Restructuring expenses
—
—
2,845
—
Total operating
expenses
$
242,179
$
222,851
$
896,408
$
849,995
Loss from operations
(31,859
)
(47,711
)
(167,685
)
(259,034
)
Interest expense
2,800
2,301
10,939
7,303
Other expenses
682
1,872
7,820
13,983
Change in fair value of warrants
and derivative liabilities
—
—
—
410
Total other expenses
$
3,482
$
4,173
$
18,759
$
21,696
Loss before income taxes
(35,341
)
(51,884
)
(186,444
)
(280,730
)
Income tax
(benefit)/provision
(60
)
(131
)
1,037
(1,491
)
Net loss
$
(35,281
)
$
(51,753
)
$
(187,481
)
$
(279,239
)
Other comprehensive income:
Foreign currency translation
adjustment
(113
)
(1,477
)
(35
)
(56
)
Total comprehensive
loss
$
(35,168
)
$
(50,276
)
$
(187,446
)
$
(279,183
)
Net loss per share
Net loss available to common
stockholders
$
(35,281
)
$
(51,753
)
$
(187,481
)
$
(279,239
)
Basic loss per share
$
(0.22
)
$
(0.36
)
$
(1.20
)
$
(2.01
)
Diluted loss per share
$
(0.22
)
$
(0.36
)
$
(1.20
)
$
(2.01
)
Weighted average number of
shares used to compute net loss per share
Basic
163,922,676
145,489,764
156,697,308
138,985,265
Diluted
163,922,676
145,489,764
156,697,308
138,985,265
The Company recorded total stock-based compensation as
follows:
Three months ended December
31,
Year ended December
31,
2023
2022
2023
2022
Cost of revenues (excluding
depreciation and amortization)
$
404
$
2,198
$
2,502
$
6,634
General and administrative
expenses
22,244
24,528
88,465
113,401
Selling and marketing
expenses
31,799
34,612
124,732
152,377
Research and development
expenses
8,688
6,365
27,182
26,580
Total
$
63,135
$
67,703
$
242,881
$
298,992
Consolidated Statements of
Cash Flows (in thousands)
Year ended December
31,
2023
2022
Cash flows from operating
activities:
Net loss
$
(187,481
)
$
(279,239
)
Adjustments to reconcile net
loss to net cash provided by operating activities:
Depreciation and amortization
51,149
51,878
Stock-based compensation
242,881
298,992
Deferred income taxes
11
(2,668
)
Change in fair value of warrant
and derivative liabilities
—
410
Change in fair value of
acquisition-related liabilities
7,200
12,990
Others, net
2,015
(592
)
Change in non-cash working
capital (net of acquisitions):
Accounts receivable
(64,052
)
(19,826
)
Prepaid expenses
1,061
(270
)
Other current assets
243
(214
)
Other non-current assets
(1,526
)
63
Deferred revenue
807
(4,566
)
Accounts payable
26,262
13,530
Accrued expenses and other
current liabilities
12,443
10,001
Other non-current liabilities
(490
)
(2,003
)
Net cash provided by operating
activities
90,523
78,486
Cash flows from investing
activities:
Capital expenditures
(20,483
)
(22,232
)
Website and software development
costs
(15,487
)
(17,004
)
Acquisitions and other
investments, net of cash acquired
(18,245
)
(9,209
)
Net cash used for investing
activities
(54,215
)
(48,445
)
Cash flows from financing
activities:
Cash paid for acquisition-related
liabilities
(15,508
)
(5,959
)
Proceeds from credit facilities,
net of issuance cost
11,250
5,625
Issuances under employee stock
purchase plan
3,058
2,742
Exercise of options
241
199
Repurchase of shares
(13,443
)
(9,607
)
Repayments against the credit
facilities
(11,250
)
(5,625
)
Net cash used for financing
activities
(25,652
)
(12,625
)
Effect of exchange rate changes
on cash and cash equivalents
(34
)
(165
)
Net increase in cash and cash
equivalents
10,622
17,251
Cash and cash equivalents,
beginning of period
121,110
103,859
Cash and cash equivalents, end
of period
$
131,732
$
121,110
Supplemental cash flow
disclosures including non-cash activities:
Cash paid for interest, net
$
10,481
$
5,673
Cash paid for income taxes,
net
$
1,900
$
1,611
Liability established in
connection with acquisitions
$
8,189
$
20,529
Capitalized stock-based
compensation as website and software development
$
3,790
$
5,394
Shares issued in connection with
acquisitions and other agreements
$
5,387
$
19,005
Non-cash settlement of warrants
and derivative liabilities
$
—
$
410
Right-to-use asset
established
$
165
$
9,559
Operating lease liabilities
established
$
165
$
12,050
Non-cash consideration for
website and software development
$
963
$
1,654
Reconciliation of GAAP to Non-GAAP Financial
Measures (in thousands)
The following table reconciles adjusted EBITDA and adjusted
EBITDA margin to net loss and net loss margin, respectively, the
most directly comparable financial measures calculated and
presented in accordance with GAAP.
Three months ended December
31,
Year ended December
31,
2023
2022
2023
2022
Net loss
$
(35,281
)
$
(51,753
)
$
(187,481
)
$
(279,239
)
Net loss margin
(16.8
)%
(29.5
)%
(25.7
)%
(47.3
)%
Add back:
Depreciation and amortization
13,495
12,430
51,149
51,878
Restructuring expenses
—
—
2,845
—
Acquisition-related expenses
—
—
203
344
Stock-based compensation
63,135
67,703
242,881
298,992
Other expenses
682
1,872
7,820
13,983
Change in fair value of warrants
and derivative liabilities
—
—
—
410
Interest expense
2,800
2,301
10,939
7,303
Income tax
(benefit)/provision
(60
)
(131
)
1,037
(1,491
)
Adjusted EBITDA
$
44,771
$
32,422
$
129,393
$
92,180
Adjusted EBITDA
margin%
21.3
%
18.5
%
17.8
%
15.6
%
The following table reconciles Cash Flows from Operating
Activities in the Consolidated statements of cash flows to free
cash flow.
Three months ended December
31,
Year ended December
31,
2023
2022
2023
2022
Cash Flows from Operating
Activities
$
26,962
$
23,097
$
90,523
$
78,486
Capital expenditures
(5,597
)
(5,067
)
(20,483
)
(22,232
)
Website and software development
costs
(3,143
)
(4,184
)
(15,487
)
(17,004
)
Effect of exchange rate changes
on cash and cash equivalents
(41
)
(36
)
(34
)
(165
)
Free Cash Flows
$
18,181
$
13,810
$
54,519
$
39,085
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240227080685/en/
Investor Relations Scott Schmitz ir@zetaglobal.com Press James
A. Pearson press@zetaglobal.com
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