David Steinberg: Yes. First of all, thank you very much. I appreciate the question. I think what we’re seeing first and foremost is as we’ve switched from Zeta who to why Zeta? We’re seeing much bigger RFPs, much larger organizations that in the past might not have chosen us. They might have put us in the RFP. We might have gotten a good look at it, but we wouldn’t have won because we didn’t have the reputation and we didn’t have the brand. We’re now winning those. So it’s not just channel expansion and use case expansion, it’s just substantially larger organizations with substantially larger budgets choosing us. Now what we’re seeing a lot is connected messaging. We’re seeing messaging connected to CTV, and we’re seeing messaging connected to social, both of which are very, very powerful when you look at the return on investment through our use case capabilities.
Jason Kreyer: Appreciate it. Next question comes from Ryan MacWilliams with Barclays. Please go ahead.
Unidentified Analyst: Hey, Chris and David, this is Aiman [ph] on for Ryan. From a macro perspective, would you say that the environment was consistent from 2Q to 3Q? And what are you baking into guidance in terms of holiday season span at this point?
Chris Greiner: Well, first, yes, I mean, we saw some headwinds in automotive and insurance in the first three quarters of the year or the first two quarters of the year prior to this quarter. So that was pretty consistent. The good news was all of our other verticals really hung in there and we saw most of them growing in the mid-20s and some growing in the 30s. So we continue to see a tale of two nations. The good news is there’s far more good than bad, which is why we continue to over deliver. But there’s still some choppiness in the marketplace and we continue to grapple with that. I think, yes, there is a – it’s a good illustrative. It also goes to Jason’s question around bigger deals. We included a new slide in the earnings supplemental you’ll find in Slide 20, where a lot of the feedback we received coming out of the Investor Day was continuing to clarify the competitive universe.
And what we’ve done is we’ve broken down how that marketer buys into categories around data management or CDPs, marketing automation or the marketing clouds if we will, and then paid media. What’s interesting about the eight figure deal that David mentioned, the discount retailer in his prepared remarks, here you had Zeta’s marketing platform that was able to address what seven vendors were doing in one. We replaced salesforce for the marketing cloud. We replaced Acquia [ph] for the data management CDP, and we replaced five other activation vendors on the engagement channel side. So a good illustrative why deals are getting bigger because we can consolidate all that. But there is still a need and a push with the replacement cycle and Zeta is filling that through, lowering total cost of ownership and creating a better ROI.
So it just kind of brings those two questions together.
David Steinberg: Yes. And quite frankly, as you’re seeing choppiness in the marketplace, we’re seeing deals close faster. And I think that was one of the reasons you saw our scaled customer count and our super scaled customer count grow faster than expected. Clients are willing to take more risk in this environment, especially now that we’re more of a known entity. They know who we are. They see us winning in the marketplace. They see the amount of savings we’re able to drive to them through the elimination of point solutions and the ability to get to that very high level of intent quickly. And we’re seeing enterprises move faster to go through that pipeline.
Unidentified Analyst: Got it. Perfect. And how do you guys think of enterprise customers and their budgets for 2024? And would you say there’s any difference between the buying patterns of normal customers and skilled customers?
David Steinberg: Yes. Interestingly enough there’s always been this narrative that marketing is one of the first things you can cut in a down environment. We are not seeing that. Now we’re seeing some headwinds in certain industries and we’re trying to be very transparent about that. Some of that had to do with strikes, which fortunately have now settled and some of that had to do with under reserving for coming out of COVID as it related to how people were going to drive in and get into accidents. We do believe those headwinds become tailwinds going into some point next year. And quite frankly, we’re not seeing enterprises cut marketing. We’re seeing enterprises invest the same if not more, but at the same time we’re taking substantial market share in a growing market, which is once again not to say that we’re not without challenges as we’ve been very open with. But on the most part we’re seeing enterprises investing in their marketing and growing it.
Chris Greiner: Yes. The only clarification Aiman in your question, maybe you didn’t mean it, but if I’m interpreting correctly, the scaled customers, all 440 of them, these are very large enterprises and obviously large agency as we’ve been discussing. So the difference between if you’re at a 100K to a 1 million and a 1 million plus is really the time you’ve spent on Zeta’s platform, your tenure with us. And there’s a slide in the earnings supplemental that shows those less than 12-month enterprise scaled customers that have been with us again less than a year, spend an average of 400K. The one to three year cohort then accelerates to an average of 1.5 and then the greater than three-year cohort grows or spends more than 1.8. So it’s not really kind of a normal and a super scaled customer. They’re all large enterprises. Just time on the platform drives net revenue retention growth.
Operator: Thank you. Next question Arjun Bhatia with William Blair. Please go ahead.
Arjun Bhatia: Perfect. Thanks guys, and congrats on the execution and organic acceleration here. Chris, it seems like, or maybe for David, this one, but it seems like the agencies still continue to be a strong growth driver. As you’re thinking about just how the business evolves and how you dedicate your own go-to-market resources over the next year or two. How do you think about balancing how much you’re focusing on the agencies versus which customers you want to have a direct relationship with? Like are there pros and cons and how do you allocate sales and marketing – your own sales and marketing resources to reflect that?
David Steinberg: As usual, Arjun a great, great question. It is a bifurcation. It is a different team of salespeople who sell into agencies and then go in to work with the enterprises as a subset of the agency, than it is the salespeople who go directly to an enterprise. And I think the truth of the matter is we’re trying to staff up in both. We have far more enterprise salespeople than we have agency salespeople by the vast majority, because that’s what we’ve been doing for many years. But like a lot of sort of baseball franchises, we’re trying to bring in the world’s best free agents in the agency space who can really bat cleanup. And the people we’re bringing in and you guys have heard me talking about this, I’ve been laying groundwork in the agency ecosystem for four or five years now.
