Stock Analysis & Ideas

Recently Listed ZoomInfo a Rising Star, Say Analysts and Bloggers

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ZoomInfo flaunts an impressive track record of earnings beat since its listing on the Nasdaq in June 2020. The company’s growth efforts are expected to translate into another quarter of strong performance.

ZoomInfo Technologies Inc. (NASDAQ: ZI) has given decent returns to its stakeholders since its listing on the Nasdaq in June 2020. The company’s growing organic revenues, rising free cash flow balance, and expanding product offerings could continue to make it a hot stock among investors. Shares of this software-as-a-service company have grown 17.5% since its listing on June 4, 2020, according to TipRanks.

Headquartered in Vancouver, WA, the company has customers across several industries like software, business services, manufacturing, telecommunications, financial services, media and internet, transportation, education, hospitality, and real estate.

A Snapshot of ZoomInfo’s IPO

Previously known as DiscoverOrg, ZoomInfo was co-founded in 2007. The company became a member of the Nasdaq exchange after an initial public offering (IPO) of its 51,175,000 shares of Class A common stock at $21 per share. Through the IPO, the company raised $1,019.6 million in net proceeds (after deducting underwriting discounts).

Shares of the business intelligence company closed at $34 on June 4, 2020, up 61.9% from the IPO price. ZI stock touched its all-time high of $77.35 in November 2021.

Presently, ZoomInfo Technologies commands a market capitalization of $16.20 billion.

ZI’s Growth Efforts are Impressive

ZoomInfo’s earnings results for the recently reported first quarter of 2022 were impressive. Revenue for the quarter came in at $241.7 million, up 58% from the year-ago period.

The company has been expanding its geographical presence as it opened the first physical office in India and expanded its operations in Israel. It ended the first quarter with 1,623 customers with an annual contract value amounting to $100,000 or higher.

Recently, the company announced that it has joined AWS Partner Network (APN) to enhance data delivery through its Data-as-a-Service (DaaS) platform, OperationsOS.

ZoomInfo has also entered into a strategic collaboration with Sales Confidence. This will help revenue professionals globally benefit from ZoomInfo’s sales solutions and data privacy compliance leadership.

Last month, the company launched ZoomInfo Labs. It is a team within ZoomInfo that partners with business leaders for developing customized and innovative solutions to enhance revenues.

ZI Stock Commands a Strong Buy Rating

Overall, the Street is optimistic about the stock and has a Strong Buy consensus rating based on 11 Buys and one Hold. ZoomInfo’s average price target of $67 signals that the stock may surge nearly 72.28% from current levels.

According to TipRanks, financial bloggers are 90% Bullish on ZoomInfo, compared to the sector average of 65%. The news sentiment is also Positive for the stock.

Key Takeaways for ZI Investors

ZoomInfo looks like a lucrative investment option for reaping handsome returns in the long run. The company’s strong revenue growth and a solid free cash flow balance are positives for its stock. Also, the popularity of ZoomInfo’s RevOS platform should keep its top-line numbers surging. Further, the recently closed acquisitions of Comparably and Dogpatch Advisors should help ZoomInfo enhance its product offerings.

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