Zeta provides targeted ads based on the individual, not a group of people. Instead of displaying the same ad to a multitude of people hoping that some are interested in the product, they use predictive AI to target their ads. The more companies that sign up for Zetas products the more data they receive, therefore increasing the strength of their AI models. The data is exclusive to Zeta and their customers, resulting in a durable moat.

In the Nov 2024 rally, investors bid this thing up to a 7.50 forward price/sales (price per share was $35.50). At $29 today the forward price/sales is 3.75. Meaning there is more upside ahead. Although since they’re GAAP profitable now, forward earnings may be a better metric to look at.

Analysits predict ~25% CAGR EPS growth for the next 5 years and revenue growth on average of 18% indicating a net margin expansion. Assigning a 25 P/E ratio to the 2031 number gives roughly a 20% CAGR or $72.48 by 2031. A lot can change by 2031 but this gives an idea of the runway.

Am I too bullish?