Zeta Global (ZETA) falls 14% in six months despite strong Q1 billings growth

Zeta Global (NYSE: ZETA) shares traded at $17.03 as of May 13, 2026, down 14% over the past six months, underperforming the S&P 500’s 7.1% gain despite strong first-quarter customer billings. The marketing software company reported Q1 billings of $398.3 million, with year-over-year billings growth averaging 36.6% over the past four quarters. Wall Street analysts expect revenue to rise 28.8% over the next 12 months, below Zeta’s 36.9% annualized growth rate over the past two years but still elevated for the software sector. Margin trends remain a concern. Zeta’s gross margin averaged 60.1% over the past year, below many software peers, and declined 1.1 percentage points over the past two years. The stock trades at 2.2 times forward sales, reflecting both investor caution after the drawdown and continued expectations for revenue expansion.