Thread by @TheRayMyers

📈 $ZETA released STELLAR earnings, jumping 17%!

It is the AI stock everyone is sleeping on!

AI marketing innovator, demand is accelerating, and FCF is exploding!

Here is my Investment Thesis:🧵

1/ How is $ZETA an AI stock?

Do they make chips? Are they an AI Cloud?

NO!

All businesses struggle to figure out:

- How to identify a customer
- How to acquire it
- How to keep it from leaving
- How to get them to spend more

Zeta is an AI marketing SaaS built to deliver the answers to these modern marketing dilemmas.

2/ $ZETA Customer Identity

The Zeta Identity module combines billions of data points to create accurate and reliable profiles of potential consumers.

Its AI uses Zeta's proprietary first-party data and its client customer databases to identify in real time who its ideal consumers are and how to engage them.

3/ $ZETA Marketing Automations

Listen to eBay's CRM Director explain how Zeta helps them with omnichannel marketing.

Their AI models use real-time behavior triggers such as cart abandonment, cancelled subscriptions, and loyalty program data to suggest customer retention actions.

Using all of the most used effective customer reengagement tools, emails, SMS, push notifications, in-app messaging, custom discounts, promotions, and more.

4/ $ZETA Advertising

Zeta Activation is a paid advertising solution that utilizes Zeta’s data to execute highly targeted campaigns through its advertising demand side platform (DSP).

It precisely tracks conversions and maximizes return on ad spend.

5/ $ZETA Data Advantage

$ZETA collects more data than any other marketing software competitor.

- 245M US Consumers
- 535M Global Consumers
- 850 Interest Categories
- 10B Transactions
- 1.5B Emails
- 1T+ Signals per month

6/ $ZETA has a suite of AI products

GEO is the new SEO

Generative Engine Optimization

Zeta will ask popular AI chatbots (ChatGPT) questions about a brand or products. It will then track and analyze those replies in a methodical way.

- Track brand visibility
- Identify hallucinations and wrong answers
- Optimize content to be LLM-ready
- Monitor AI share of answers
- Align PR, SEO, Marketing, and advertising strategies

7/ $ZETA Athena

Athena is described as a “Conversational, Superintelligent Agent that Transforms Questions Into Actionable Answers”.

This puts $PLTR AIP on notice.

This agentic AI system is built to drastically reduce the complexity by automating tedious tasks.

Athena could enable marketing teams to operate much simpler and faster.

What $PLTR AIP does to manufacturing companies, Athena will do to marketing and advertising.

8/ $ZETA AI Agent Studio

An AI agent is essentially a virtual employee that performs a set of preprogrammed tasks!

Zeta’s AI Agent Studio is a suite of AI tools that allows users to select and activate prebuilt AI agents, create custom agents, and link them together to execute complex marketing workflows.

AI Agents will reduce marketing overhead by increasing productivity, enabling more to be achieved with less.

9/ This is how $ZETA Advertising works:

1) The advertiser uploads all creatives, videos, banners, and posters on the platform.

2) Then they set campaign parameters, budget, cost-per-click, return on ad-spend, downloads, whatever their goal is.

3) Zeta uses its identity graph to identify the target customer.

4) AI then determines which are the best channels to find that target customer, such as Instagram, Facebook, web, mobile apps, video games, video streaming, etc.

5) DSP connects to ad supply platforms and bids for the audience that its AI has identified will yield the desired outcome.

6) Zeta monitors advertising performance in real time, tracking impressions, CPM, and ROAS. It then optimizes campaigns, changing channels, budgets, and strategies to deliver the best result.

11/ $ZETA Auto Insurance Case Study

- Zeta has data on 250M US Adults
- 200M of them are vehicle drivers
- AI identifies 35M whose insurance ends in 60 days
- AI identifies 15M of these people are not already with the insurance company, and are open to switching providers
- AI identifies 9M most likely to switch to Zeta’s client
- We get a target audience of 9M people!

12/ Strong Q3 2025 Results

Revenue: $337M +26% BEAT (Est $328)
EBITDA: $78M +44% BEAT ($71m)
EBIT: $61M +49% BEAT ($53M)
FCF: $52M +46% BEAT ($36M)

$100K+ Customers: +20%
$1M+ Customers: +25%
ARPU: +4%

13/ Incredible Revenue Growth

Revenue has grown from $306M ➡️ $1.22B in 5 years.

Analysts expect $1.77B in 2027.

14/ 2028 Target

$ZETA again reaffirmed 2028 Targets!

- $2.1B Revenue 20% CAGR
- $525M ADJ EBITDA 28% CAGR
- $340M FCF 39% CAGR

The October $325M Marigold acquisition is not included in the targets and will increase them.

Analyst estimates are on the low side.

15/ Valuation

$ZETA trades for a P/S of 4

If it meets the 2028 Target, it trades for a FWD P/S of 2 and P/FCF of 13.

It's the cheapest AI stock on the market.

16/ The Bull Case is Clear!

$ZETA manages 1.3% Wallet Share of customer marketing spend.

It plans to significantly increase it by upselling more services.

It could grow by multiples just with existing customers and existing use cases.

But $ZETA are adding new use cases through R&D and M&A, and acquiring new customers.

What is your view on this AI marketing company?