Inside Zeta Global's Rollercoaster Year: CEO David Steinberg Responds to Short Sellers and Shares Growth Strategy

Zeta Global's Year of Extremes

This year has been a rollercoaster for Zeta Global, the martech and data cloud provider that went public in 2021.

In October, Zeta made headlines by acquiring LiveIntent, an email marketing and identity company, for $250 million. However, this high was quickly followed by negative press as short sellers targeted the company, alleging financial misconduct and deceptive practices.

CEO David Steinberg's Response

Zeta Global's CEO, David Steinberg, acknowledges the challenges, stating, "If you look at the people coming after us, they’ve publicly disclosed that they’re shorting our stock – meaning they make money if our stock goes down." He emphasizes the company’s ethical stance, noting that they service 40% of Fortune 100 companies.

In response to the allegations, Zeta published a 15-page rebuttal on their website, refuting the claims made by short sellers. Steinberg asserts, "We’ve been public for 13 quarters, and we’ve beaten and raised our guidance every quarter."

What Makes Zeta Global Stand Out?

Steinberg describes Zeta as an AI-powered marketing cloud, stating that they help large enterprises create, maintain, and monetize their customers efficiently.

Despite the recent challenges, Zeta has successfully acquired a company every year for the past seven years, focusing on integrating AI and data into their application layer.

Addressing Allegations and Legal Challenges

Among the allegations, one report accused Zeta of engaging in round trip transactions with an ad tech company, Kubient. Steinberg clarified that Zeta had worked with Kubient before going public and had never recognized any revenue from them.

In light of the short seller reports, a law firm is attempting to initiate a securities fraud class action suit against Zeta. Steinberg remains confident, stating, "We believe it will be dismissed early."

Commitment to Clients

Steinberg reassures investors and clients that Zeta remains focused on solving client problems, stating, "We haven’t lost one customer because of all of this."

He concludes by expressing confidence in Zeta’s long-term strategy, emphasizing that they will continue executing for their clients despite the challenges posed by short sellers.