Leading software as a service (SaaS) company ZoomInfo Technologies, Inc. (ZI) has reported better-than-expected results for the second quarter ended June 30, 2021. The robust results were driven by substantial growth in revenues. Following the earnings release, shares of the company jumped 9.9% to close at $60.20 in the extended trading session.
ZoomInfo reported quarterly revenues of $174 million, up 57% from the same quarter last year. Moreover, it topped the Street’s estimate of $162.34 million.
Earnings per share (EPS) stood at $0.14, up from last year’s $0.07 per share, and surpassed consensus of $0.12.
Meanwhile, the company has provided guidance for the third quarter and FY 2021. It expects EPS to be in the range of $0.11-$0.12 in the third quarter. Analysts expect the same to be $0.12. Further, the company anticipates its third-quarter revenues to be in the range of $182-184 million against the consensus estimate of $172.74 million.
For FY 2021, the company has raised its EPS guidance from $0.49-$0.50 to $0.50-$0.51. The consensus estimate for the same stands at $0.50. In terms of revenue, the company has raised its guidance from $670-$676 million to $703-$707 million. The Street expects the same to be at $676.51 million.
The CEO of ZoomInfo, Henry Schuck, said, “ZoomInfo delivered another record quarter, including the highest levels ever for both retention activity and customer engagement, and accelerating revenue growth, as customers in all industries continue to choose ZoomInfo to transform their go-to-market motion.” (See ZoomInfo stock chart on TipRanks)
Last month, Stifel Nicolaus analyst Parker Lane initiated a Buy rating on the stock with a price target of $65, which implies upside potential of 18.7% from current levels.
The analyst said, “Since going public in 2020, ZoomInfo has been expanding its vision and platform to include new solutions like Engage, Chat, and ZoomInfo Recruiter. In our view, these solutions have the potential to expand the scope of the company’s platform beyond firmographic and contact data, and into a more full-featured system of prospecting and engagement for different parts of an organization. As recent results can attest, this approach appears to be resonating with customers and has contributed to solid growth in customer accounts and deal sizes.”
“In our view, ZoomInfo’s platform has the potential to accelerate the go-to-market efforts of organizations of all sizes and its solutions fit nicely alongside leading CRM platforms like Salesforce and Microsoft Dynamics,” Lane added.
Consensus among analysts is a Strong Buy based on 11 Buys and 3 Holds. The average ZoomInfo price target of $64.38 implies upside potential of 17.5% from current levels. Shares of the company have gained 21.5% over the past year.
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