Rhea-AI Impact
Rhea-AI Sentiment
Rhea-AI Summary
Zeta Global (NYSE: ZETA) has issued a response to a short-seller report published by Culper Research, strongly refuting its claims as misleading and false. The company emphasizes that its independent auditor is Deloitte, not E&Y as incorrectly stated in the report, and confirms its confidence in internal accounting processes and controls. Zeta clarifies that revenue from customers who are also vendors is insignificant, and the combined revenue contribution from Apptness and ArcaMax is less than 3% year-to-date through Q3 2024. The company denies operating ‘consent farms’ and affirms its commitment to data protection and privacy compliance.
Zeta Global (NYSE: ZETA) ha rilasciato una risposta a un rapporto di un venditore al ribasso pubblicato da Culper Research, rigettando con fermezza le sue affermazioni come fuorvianti e false. L’azienda sottolinea che il suo revisore indipendente è Deloitte, non E&Y come erroneamente indicato nel rapporto, e conferma la propria fiducia nei processi e nei controlli contabili interni. Zeta chiarisce che i ricavi provenienti da clienti che sono anche fornitori sono insignificanti, e il contributo combinato ai ricavi proveniente da Apptness e ArcaMax è inferiore al 3% dall’inizio dell’anno fino al terzo trimestre del 2024. L’azienda nega di gestire ‘consent farms’ e afferma il proprio impegno per la protezione dei dati e la conformità alla privacy.
Zeta Global (NYSE: ZETA) ha emitido una respuesta a un informe de un vendedor a corto publicado por Culper Research, refutando enérgicamente sus afirmaciones como engañosas y falsas. La compañía enfatiza que su auditor independiente es Deloitte, no E&Y como se indicó incorrectamente en el informe, y confirma su confianza en los procesos y controles contables internos. Zeta aclara que los ingresos de clientes que también son proveedores son insignificantes, y la contribución combinada de ingresos de Apptness y ArcaMax es menos del 3% desde el inicio del año hasta el tercer trimestre de 2024. La empresa niega operar ‘consent farms’ y reafirma su compromiso con la protección de datos y el cumplimiento de la privacidad.
Zeta Global (NYSE: ZETA)는 Culper Research에서 발표한 공매도 보고서에 대한 응답을 발표하며, 그 주장들이 오해의 소지가 있고 잘못된 것이라고 강하게 반박했습니다. 회사는 독립 감사인이 Deloitte이며, 보고서에서 잘못된 정보로 언급된 E&Y가 아님을 강조하며, 내부 회계 프로세스와 통제에 대한 신뢰를 확인했습니다. Zeta는 고객이기도 한 공급업체에서 발생하는 수익이 미미하다고 명확히 하며, Apptness와 ArcaMax의 결합된 수익 기여도가 2024년 3분기까지 연초부터 3% 미만이라고 밝혔습니다. 회사는 ‘동의 농장’을 운영하는 것을 부인하며, 데이터 보호 및 개인 정보 준수에 대한 의지를 확인합니다.
Zeta Global (NYSE: ZETA) a réagi à un rapport d’un vendeur à découvert publié par Culper Research, en réfutant fermement ses allégations comme trompeuses et fausses. L’entreprise souligne que son auditeur indépendant est Deloitte, et non E&Y comme indiqué incorrectement dans le rapport, et confirme sa confiance dans les processus et contrôles comptables internes. Zeta précise que les revenus provenant de clients qui sont également des fournisseurs sont insignifiants, et que la contribution de revenus combinés d’Apptness et d’ArcaMax est inférieure à 3% depuis le début de l’année jusqu’au troisième trimestre 2024. L’entreprise nie faire fonctionner des ‘fermes de consentement’ et affirme son engagement envers la protection des données et la conformité à la vie privée.
Zeta Global (NYSE: ZETA) hat auf einen Bericht von Culper Research über Leerverkäufe reagiert und die darin enthaltenen Behauptungen als irreführend und falsch entschieden zurückgewiesen. Das Unternehmen betont, dass sein unabhängiger Prüfer Deloitte ist und nicht E&Y, wie im Bericht fälschlicherweise angegeben, und bekräftigt sein Vertrauen in die internen Rechnungslegungsprozesse und -kontrollen. Zeta stellt klar, dass die Einnahmen von Kunden, die auch Lieferanten sind, unbedeutend sind und der kombinierte Umsatzbeitrag von Apptness und ArcaMax bis zum 3. Quartal 2024 weniger als 3 % beträgt. Das Unternehmen bestreitet den Betrieb von ‘Zustimmungsfarmen’ und bekräftigt sein Engagement für den Datenschutz und die Einhaltung der Privatsphäre.
Positive
- Unqualified audit opinion from Deloitte for FY2023 financial statements and internal controls
- No material weaknesses in internal controls reported
Negative
- Subject of a critical short-seller report questioning company practices
- Facing allegations regarding accounting practices and data collection methods
Insights
This response to a short-seller report merits careful attention. The company’s detailed rebuttal addresses key accusations regarding financial reporting and data practices. Several critical points stand out: Deloitte’s unqualified audit opinion for FY2023 supports financial statement integrity and the clarification about vendor-customer relationships being <200,000> in revenue (Digital Media Solutions) and <3%> (Apptness and ArcaMax combined) demonstrates exposure to potentially concerning business relationships. The company’s transparency in addressing specific allegations and providing concrete figures helps establish credibility, though investors should monitor the situation as short-seller reports often lead to increased market volatility and regulatory scrutiny.
The company’s robust legal response demonstrates strong compliance infrastructure. Key defensive elements include:
- Clear documentation of audit controls and GAAP compliance
- Transparent disclosure of vendor-customer relationships to the Audit Committee
- Established data governance frameworks and regular third-party audits
The comprehensive rebuttal, backed by specific data and clear denials of allegations, suggests confidence in legal positioning. However, investors should note that short-seller allegations often trigger class action investigations, regardless of merit, which could create near-term legal expenses and market uncertainty.
NEW YORK–(BUSINESS WIRE)– Zeta Global (NYSE: ZETA), the AI-Powered Marketing Cloud, today issued the following statement in response to claims made in a report by Culper Research, a short-seller, published on November 13, 2024:
“Based upon Zeta’s and its legal counsel’s preliminary review and evaluation of the report, the Company believes this report is riddled with misrepresentations, speculative conjecture, and categorically false statements. The report is misleading and conveys, at most, a superficial understanding of Zeta’s business and practices. It relies heavily on questionable sources that get basic facts wrong, cites financial metrics that are off by hundreds of millions of dollars, and doesn’t even correctly identify the Company’s Big Four auditor. We are providing the facts on the report’s most egregious claims here:
Zeta is confident in its internal accounting processes and controls. Zeta’s independent auditor, Deloitte (not “E&Y”, which has never audited Zeta), performs annual audits of the Company’s financial statements.
Zeta is confident in its evaluation of contracts and the determination of revenue recognition in accordance with Generally Accepted Accounting Principles (“GAAP”). On a quarterly basis, Zeta management briefs the Audit Committee of the Board of Directors on its relationships with customers who are also vendors. In the aggregate, revenue generated by Zeta’s customer relationships that are also vendors is insignificant. The opinion from our independent auditors, Deloitte, related to Zeta’s FY2023 financial statements was unqualified, as was the opinion on the Company’s internal controls over financial reporting as of December 31, 2023 (which means there were no material weaknesses).
Zeta is confident in its data collection practices, policies and processes to ensure compliance with applicable laws. We do not operate so-called “consent farms”. Zeta has made significant investments in its data protection, data governance, and privacy oversight and is regularly audited and reviewed by partners and clients. In addition, Zeta reviews the opt-in/opt-out processes and privacy policies of its data partners.
Contrary to the report, the total contribution of Apptness and ArcaMax to Zeta’s business is not material. Together, through the third quarter of 2024, their year-to-date revenue contribution is less than 3% and they make up less than 1% of Zeta’s data assets. These contributions have trended down. As further evidence of the inaccuracies of the report, Digital Media Solutions is not a material customer or partner, as demonstrated by its trailing twelve-month revenue being less than $200,000 as of September 30, 2024.
Zeta values transparency and open communication. Investors are encouraged to review the Company’s financial statements and other related materials at https://investors.zetaglobal.com/.”
About Zeta
Zeta Global (NYSE: ZETA) is the AI-Powered Marketing Cloud that leverages advanced artificial intelligence (AI) and trillions of consumer signals to make it easier for marketers to acquire, grow, and retain customers more efficiently. Through the Zeta Marketing Platform (ZMP), our vision is to make sophisticated marketing simple by unifying identity, intelligence, and omnichannel activation into a single platform – powered by one of the industry’s largest proprietary databases and AI. Our enterprise customers across multiple verticals are empowered to personalize experiences with consumers at an individual level across every channel, delivering better results for marketing programs. Zeta was founded in 2007 by David A. Steinberg and John Sculley and is headquartered in New York City with offices around the world. To learn more, go to www.zetaglobal.com.
Forward-Looking Statements
This press release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The Company intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995 and includes this statement for purposes of complying with these safe harbor provisions. Any statements made in this press release that are not statements of historical fact, including statements about our beliefs and expectations, are forward-looking statements and should be evaluated as such. These statements often include words such as “anticipate,” “expect,” “suggests,” “plan,” “believe,” “intend,” “estimates,” “targets,” “projects,” “should,” “could,” “would,” “may,” “will,” “forecast” and other similar expressions. We base these forward-looking statements on our current expectations, plans and assumptions that we have made in light of our experience in the industry, as well as our perceptions of historical trends, current conditions, expected future developments and other factors we believe are appropriate under the circumstances at such time. Although we believe that these forward-looking statements are based on reasonable assumptions at the time they are made, you should be aware that many factors could affect our business, results of operations and financial condition and could cause actual results to differ materially from those expressed in the forward-looking statements. These statements are not guarantees of future performance or results. The forward-looking statements are subject to and involve risks, uncertainties and assumptions, and you should not place undue reliance on these forward-looking statements. These cautionary statements should not be construed by you to be exhaustive and are made only as of the date of this press release. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law.
View source version on businesswire.com: https://www.businesswire.com/news/home/20241113176274/en/
Investor Relations
Madison Serras
Press
Candace Dean
Source: Zeta Global
FAQ
What was Zeta Global’s (ZETA) response to the Culper Research short-seller report?
Zeta Global strongly denied the report’s claims, stating they were riddled with misrepresentations and false statements, emphasizing that their auditor is Deloitte and their internal controls are sound.
What percentage of Zeta Global’s (ZETA) revenue comes from Apptness and ArcaMax in 2024?
Through Q3 2024, Apptness and ArcaMax contributed less than 3% to Zeta’s year-to-date revenue and represent less than 1% of Zeta’s data assets.
Who is Zeta Global’s (ZETA) independent auditor?
Deloitte is Zeta Global’s independent auditor, contrary to the short-seller report’s claim that it was E&Y.
