Here we go. Good morning, everyone. Welcome to KeyBanc's Technology Leadership Forum. This is our second year here in Park City, Utah. We are joined today with the Zeta Global team, Chris Greiner, Chief Financial Officer, and Will Margiloff, Chief Growth Officer and Vice Chairman. Thank you guys for being here. Thank you. Maybe we can start off just with a high level of Zeta Global and where you guys see the company going, just at a high level for the room to understand. Yeah. We will start with who we serve from a customer's perspective and then Will and I will get into how that aperture is getting wider and wider, which is good for a lot of different reasons. First off, our primary customer, the largest enterprises in the economy. We support all 15 industry verticals. Our top 10 roughly account for 90% of revenue. There is no concentration in any one or two. All of our, call it eight out of our 10 last quarter growing north of 20%. It is a really healthy, diversified customer set. The CMO wakes up every single day trying to figure out, as a brand who is spending hundreds of millions to billions on marketing, that is our target customer set, large enterprises. Who am I going to reach today? How am I going to reach them? Once I do, how do I get them to engage with my brand? Pretty straightforward. They do that through three different use cases. I want to retain my existing customers, I want to grow my wallet share with existing customers, and I want to acquire new ones. If you're a CMO today, your technology stack to do all of those use cases across all digital formats, whether we are all on display video on the open web, or we're listening to a podcast, or we're receiving email, or we're somewhere in the social networks, their technology stack is dizzying. They have to use so many different point solutions to do all of those use cases, paired with all the different channels where all of us exist digitally in the open web or in the real world. Except for Zeta, we are a massive consolidation point. We will typically collapse 8 to 12 vendors in the first implementation. Only Zeta, as you'll hear from Will and I throughout the time together this morning, can do all three use cases. Only Zeta can do every single digital channel, and only Zeta, which powers all of this, has a proprietary dataset that you only get access to if you're paying Zeta. I think it's part of why, as sure we'll get into our net revenue retention rates, have been as high and getting stronger over the last several years. I think that's a great segue maybe into Zeta's secret sauce is that data asset and how you leverage it. Maybe this would be a great question for Will to. Yeah. We all talk about data all the time and how you can leverage data to make more informed decisions about your marketing operations. But that dataset we've created is the largest open web, non-walled garden dataset. Why is that important? Because whether you're trying to acquire new customers or grow your existing customers, using a dataset to enrich your customer knowledge. Think about retailer knows that they bought a shirt. We can tell them everything else that they've done, where they've gone, what devices they have, what neighborhoods they live in, maybe even generally what transactions they've made. We can tell them so much more so they could be smarter about how to interact with their customers. Then we can help them find customers who look just like their customers, their best customers, and we can help them with this dataset. All that data sits on top of this unique marketing platform that helps our marketers acquire, retain, and grow. All that stuff comes with the platform. It isn't an add-on, and it's one of the reasons why we've won so much business, and taken away, because that is a secondary cost for a marketer in most platforms in digital marketing. It's part of what we do. Very helpful to understand. Zeta has released some high-powered products this year. Maybe we can start with Athena going generally available and what that does to your super scaled, greater than one million ARPU customer cohort, and how that can drive usage there. Yeah. One of the biggest points of feedback we've received from our customers is as expansive as the dataset is, as much of what the platform can do, it also made it an intimidating lift. They just didn't know how to access all of what was available on the platform. David will often say many of our marketers are super skilled at flying a Cessna, and yet they're presented with a F-22. That's a really difficult chasm to cross. Our solution to that was to create something that facilitated the broader use of the platform, made it easier, and made training super short. That is conversational, conversing with the platform rather than having to do keystroke discovery. What we're seeing initially, Athena's been out for general use about 140, 150 days now, is that of our super scaled customers, 40% of our 200 are now monthly active users, and 83% of their interactions on the platform are conversational. For us, that validated a bet that we were making that this is how interactions would be on the platform. This is more natural for us anyway. What makes that interesting for our customers and for Zeta and then obviously downstream for investors is if you think about the revenue funnel for Zeta, it starts with licensing the platform, building and creating audiences and campaigns. What we're seeing is that by conversing with the platform, more audiences and more campaigns are being created as was done otherwise, manually. That is good for us because the next downstream revenue is when the usage meter begins to run, when you activate. When you actually put those campaigns through programs like a cohort of CTV, of email, of mobile, of audio podcasting, of social. That drives our P x Q revenue. If that's a good indicator at the top of the funnel of what's to come from usage, it shows you that our original design point of releasing Athena is going down the right path. The biggest knock on marketing technology, I think, has really been not the promise of what it could do. It was actually the implementation. I think Athena really helps somebody quickly get to: Why did I buy this, and how is it going to help me? They don't have to be a technologist to figure that out. They just have to speak. I think that is a huge unlock for the growth in the business. Speaking of unlock, maybe we could talk about the agency holdco opportunity. Zeta works with the majority of the largest marketing agency hold companies which manage brands. Maybe you can talk about early feedback from Athena for these agencies and what the opportunity could be as you continue to land and expand and acquire new brands. Well, three or four years ago, when we came up with this strategy, it was about how do we have one relationship that unlocks many, so a one-to-many strategy, much like you guys know with system integrators and things like that. That's how we really approached it. Athena, for agencies, is a further unlock, right? They could be using our platform not only to help their marketers be more successful with digital marketing across all the various channels that they might be operating in, but it also could help them win business. Right? So how do they leverage our data cloud to go out and win a new customer of their own? That was the premise years ago. But now with Athena, they can say, "Well, prospect new customer X is in this vertical. How can I look at all the data that's sitting within the data cloud, Zeta's Data Cloud, to make a more informed presentation to try and win business? When they win business, guess what? They're going to use our platform. That's good for us. The unlock there was really, how do we help have Athena have them unlock the Data Cloud, unlock, obviously, then usage of our marketing platform to win more business downstream for us. And it's been a very successful launch for us. Again, an agency on behalf of the marketer still needs to use technology, and we want them to be strategic, not tactical. Conversational AI is really helping them be way more strategic and say, "Help me understand what audiences I should deliver for this marketer or create for this marketer, and where I should deliver it, and how much should I pay for it, and what channel should it be in, and what the creative should look like." All that stuff gets done in milliseconds now as opposed to how it would be done before. That's, I think, a great segue to maybe talk about the re-architecture and the new partnership with Palantir and Foundry. Maybe can you help us understand the pipeline opportunity, Yeah. Deals closed opportunity, and what the re-architecture does for Foundry, for Zeta Data Cloud? Totally. I want to take three steps backwards just to give perspective as to why you are starting to see more and more partnerships with Zeta going into. It is one thing when you cross your first billion of revenue to do it all on the backs of your own sellers and towards your second billion, like we are tracking to between this year, next year plus. But eventually, you need to unlock other people selling on your behalf, partnerships. If you look back at the partnerships now that we have in place, we have Amazon, we have Snowflake, we have OpenAI, and now Palantir, and that has been a very nicely sequenced set of very important relationships that touch a lot of the market. Palantir is important for a number of reasons, and it is different than others in that Palantir has defined revenue and count joint win goals that is different than other parts of our partnerships, how they are structured. It is highly incentivizing for someone as incredible and as scaled as Palantir and little old Zeta. It is meaningful to both of us. We have a pipeline of opportunities that have been quarantined off that are existing U.S. commercial customers of Palantir that are spending $1 billion+ in marketing. That would be totally incremental to Zeta. If you go what the value proposition looks like, it is one thing to have a partnership, and obviously Palantir, for what they do, has an incredible magnetic attraction to them. What makes that so is that Palantir is exceptional at helping you as an enterprise create a digital twin of every single piece of data inside your business, whether that is your vendor relationships, your processes and procedures, your people-based, your employee-based information, your customer information. They create a machine-readable version of all of that that allows you to be hyper-efficient and make better decisions. Inside four walls, Palantir is great. Outside your four walls, Zeta does the exact same thing. By virtue of having our Data Cloud, we go into customers, and we say, "Here is what is happening outside your four walls relevant to your existing customers and prospects that we know are in market for your brand or a competitor's brand." So now you have two organizations with this incredible data and intelligence asset, one that makes you perfect at monetizing what is happening inside your four walls, another that can do the same of what is happening outside your four walls. It creates very interesting, not just marketing use cases, but I think business intelligence use cases as this partnership matures. It has only been in place for a month or so, right? We're early, and you don't want to get too tempted to draw trend lines off of it, but it has some really interesting aspects to it. It's a joint selling go-to-market. Correct. Opportunity. Yep. Their quota carriers, our quota carriers in the same room. Can you walk us through, maybe just at a high level, the unit economics of Palantir and Zeta and why that is beneficial to both? Yeah, I think the initial use cases are going to begin with intelligence, so it's going to be focused on the utilization of our Data Cloud, so higher margin because it's analytics-based revenue. It would not surprise me that as these relationships expand and as we go to market and go to market, there becomes a media aspect to it, which is not just going to help you understand with data intelligence, we're going to go help you now action it and go deliver outside the market in terms of whether it's through programmatic, through email, through other methodologies. I think that could be something that happens also, but not currently planned. Okay. Helpful to understand. Yep. Maybe we can pivot to an investor question that we get a lot of times is where does Zeta fall in terms of the MarTech stack versus the AdTech stack? Is it software? Is it AdTech? Maybe can you help us understand how Zeta falls in line there? It's both. The problem, which is a problem for investors, but a great solution for marketers, is the fact that we span both of those. I think the real strategy that David came up with years ago was to be both, right? Let's help people acquire new customers, which is very AdTech, retain those customers, which is very CRM related, and help grow them, which is also on the CRM side. What we do know is marketers want more technology from less vendors. The disparate technologies and all the stuff they have to do to integrate them is a pain in the butt, and they can't be strategic, and matter of fact, their budgets are smaller and smaller. So they have to do more with less. The real strategy was always, let's be a marketing technology business, which inclusive of that is these two buckets. I think that people have always tried to put us in one or the other. The marketers don't want us in one or the other. They want us in both, and they want a platform that spans both. I think we're quite happy explaining that. It's hard for you guys to put us in a bucket and try and understand it, but really we are both because our technology spans both. But I think we're also self-aware enough to know that in the AdTech universe, there's plenty of bodies in pools. Sorry. That's typically been caused by, there hasn't been durability of growth in that part of the world from an investor's lens. There certainly hasn't been a level of predictability of revenues. Our answer to that is we need to be able to demonstrate on a fact-based, data-driven way that our business, despite having AdTech attributes from an investor's lens, has the unit economics of software and intelligence businesses, whether that's our net revenue retention rates whether that is the now 21, I think, plus quarters of organic growth of 20%. We obviously have a very strong beat and raise track record. We are hyper-efficient on the incremental revenue we drive, hitting free cash flow, and not disappearing past adjusted EBIT. We're now generating GAAP earnings. We need to keep proving that. We understand that. I would also just add that I think one of the important things of having these capabilities across the marketing spectrum is we really don't care where we enter a relationship with a large marketer. Yeah. We want to solve their biggest problem, and the capabilities that we have allow us to do that, and we will win their business over time. A lot of the slides that we show in investors is about the durability and growth of that revenue over time. It really doesn't matter how we enter. If they're here for three to five years, they're growing, and we're into five to seven years now, we'll have that cohort. But those guys just ramp, because we solve a problem, we show we can do something unique, and we expand into other capabilities. I want to get into the financial section here in a second, but maybe quickly, we can talk about the Gap customer, the recent win, displacing a very large marketing vendor as well as other vendors, then maybe how large that could expand to with expanding use cases and continuing down that marketing and AdTech path of combining the two. Yeah. Well, the total addressable market on our side is, we're doing a, let's just say, $1 billion+. I won't get into specifics going forward, but let's just say we hit our forecasted $2 billion in a couple of years. That's still a small percentage of the overall marketing spend of our customer base. They're hundreds of billions of dollars. So we think that there's lots of headroom for us with all of our customers, but that win is a great win because it shows that on the CRM side of the business, what you guys would bucket as marketing side of the business, that our capabilities are being recognized as something that could knock out four or five different technologies with a single win. You might say, "Well, okay, what does that mean?" Well, that's a customer data platform. That's a marketing automation solution. That's a loyalty platform. That's a mobile solution for their customers. So, from one platform, they gain four different point solutions they had previously, some of which were done by Salesforce from a marketing automation perspective. So it really is a justification of where we're headed from a business perspective and all these things we've been talking about. On top of having those capabilities, we then have the data intelligence, the Data Cloud and the intelligence behind it, and that's inclusive in the platform. So I think we're going to see more and more wins that happen from large customers, but that's a multimillion-dollar customer that could be tens of millions of dollars. Because we haven't attacked that media side or the AdTech side at all, and that's where the big dollars are. MarTech is actually durable and reliable and predictable, but it's still a small percentage of the revenue potential. The media side is really a huge opportunity. Awesome. Now moving into the financials. Organic growth guide raised. What gives you confidence into the visibility of this customer base on a usage-based business model. Yeah. To keep NRR expanding or within target range. Yeah. And the organic growth guide? Our revenue model can be broken down into two parts. 60%, which continues to be up from several years ago, is recurring, and that is the licensing of the data cloud platform, subscription to the Zeta Marketing Platform, and then where there is multi-year contractual minimum usage for whether it's emails, impressions, mobile messages, could be anything. That's 60% of our business and growing really, really healthy. The other 40% is where we have annual contracts for the most part. Some could be multi-quarter, but let's say annual contracts that are price times quantity, and that's for any combination of channels that can be used. For us, that is also growing quite rapidly. So what gave us the confidence to raise our guide? We took the third quarter up to around 23.5% organic growth. We removed political candidate revenue as well. We have this all broken out in our filing, so it's very clear in our guide what we're counting on. Pipeline visibility is number one. We talked about having one of the healthiest, again, pipeline growth quarters in our history at 60%. But the underlying pipeline dynamics, how it actually gets sold, we're seeing much better sales productivity, ramping sales productivity, whether that is the pipeline that's being created by reps is up over 100%. Deal sizes, they're able to go in and create bigger opportunities. Deal sizes for deals won in the quarter, not just in our pipeline, but deals won was up 40%. Then the going forward size of the deals in the pipeline's up 25%, all while we added one seller sequentially, and 11% year-over-year. So we're seeing really good productivity in the app front. We have five, six years worth of data to be able to model what we're going to convert from the pipe. Then a lot of the revenue's already in the wood. It's already in the second half run rate already. There's very little go get left in the second half of the year. For the 2028 target model, that seems to be ahead of pace already. Yeah. What levers can you continue to pull for free cash flow margin expansion, again, with SBC discipline? Can you help us walk us through the 2028 opportunity? Yeah. This was our highest levered drop from our raise in revenue to free cash flow that we've done. We raised the full year's revenue by $33 million, and we raised free cash flow by $20 million for the full year. That's a very, very nice margin conversion. We are getting right now, if you walk down the P&L, what's creating that leverage first on the adjusted EBIT line, then on the free cash flow, then on the GAAP earnings side. We saw efficiencies across the board in R&D, sales and marketing, and G&A, and I think that should just continue. We, right now, are investing in Zeta Labs, which is engineering. Fewer incremental heads being hired, more expensive, big expertise. But that's where hiring is happening on the engineering side of the house. We're hiring quota carriers. We just don't think we need to add as many as we have historically. We've, call it the last four years, added 22% more quota carriers year-over-year. We're averaging now closer to 10%-13%, and I think that can hold. So continuing to be really efficient on the OpEx side. On the free cash flow conversion, we're doing a great job of driving down CapEx as a percentage of revenue, and there's nothing that would get in the way of that. Then, as it relates to GAAP earnings, one of the areas that we've been very responsive to and thankful for constructive feedback from investors has been continue to reduce dilution and reduce SBC, and we are doing both. Year-to-date, we have 0.1% dilution. And as a percentage of revenue, like it's been doing, I would expect SBC to keep going down. So, we've got good leverage happening throughout the P&L as it breaks down to earnings with the right level of revenue visibility right now. Mm-hmm. Awesome. And I see we have a few minutes left. I wanted to open up to the audience if anyone has any questions. Maybe we can talk about the new refinanced billion-dollar debt facility. Yeah. That could be used for M&A opportunities. Zeta's done a couple acquisitions over the past couple years, larger. What capabilities do you think that the platform might need, or where do you think that billion dollars could be deployed? There's nothing imminent in the pipe right now. That should not signal to an investor that there's a go race like our teenage kids might do once they get a little cash in their wallet to go spend it. It is not the case. Share buybacks continue to be super attractive to us. We are models to use at least 50% of the cash we generate in a quarter to buy back our own shares. We've averaged closer to 60%-70%, but that's the at least model. This facility could allow us to step on the gas on that if we chose to. M&A is a great option. We've been using a mix of cash and shares. As we talked about dilution, this allows us to avoid shares as a way to potentially pay for an acquisition. Deals that we're looking at, I'll let Will comment on who runs that part of our business as well. Yeah, look, I think in the past, there were glaring things that we thought we needed for this to expand our revenue and footprint, I would say. Solutions-wise, I don't think there's anything today that we're jumping up and down about. I think we can build some of the things that we think are next generation. If you think about answer o ptimization or things like that, or things we've stated we're building in-house, because I think those are going to be interesting channels. Search is increasing. Whether it's from AI or from traditional search, we've got capabilities that can help a marketer within those things, so we'll continue that. Geographically, there might be some things. I think we've all been in business long enough to know that there are challenges in certain markets that we don't want to step into and distract ourselves from. We have the capabilities today with the spend in those capabilities to have a huge business and hit plan numbers that we have. We'll be opportunistic and look for things that make sense as they come up, but I don't think there's anything imminent right now. Yeah. Okay. One final question. Maybe it could be answered potentially quickly. AI disintermediation risk, something we hear from a lot of other software vendors. Why does Zeta have a defensible moat from being vibe coded away? Our data's a huge asset for us in creating that moat. In fact, it was our intention this quarter, for the very first time, we put out metrics that we wanted to be able to now repeat and show investors how our customers are adopting our AI versus not, and then that introduces the opportunity for them to use someone else. So we talked about adoption metrics, then we talk about how that adoption translates to the contribution of revenue. What we're seeing is that our AI adopters are our fastest-growing. They also have the highest net revenue retention, and they're growing roughly four times faster than our still-to-adopt-AI customers. What is it doing to customer relationships? There's this concept hypothesis in the market that AI is going to create shorter relationships with customers, maybe smaller initial deal sizes. Ours are different. We're seeing customer relationships go from roughly 48 months to now past 56 months. Again, the NRR has been improving over the last three years in a row. Awesome. Well, I think we are at time. Thank you guys very much for being here. Thank you. Thank you, Jack. That was awesome. Yeah, thank you.