Education
About Us
Working with TipRanks
Follow Us
ZoomInfo Technologies (GTM)
NASDAQ:GTM
Top Page
ZoomInfo Technologies
(NASDAQ:GTM)
Select Model
Select Model
Rating:73Outperform
Price Target:
$12.50
▲(5.66% Upside)
ZoomInfo Technologies is well-positioned with strong financial performance and positive technical indicators. However, its high valuation and concerns over declining equity and free cash flow growth slightly temper the overall outlook.
Positive Factors
Revenue Growth
Consistent revenue growth indicates a strong market position and effective sales strategies, enhancing long-term business prospects.
Gross Profit Margin
A high gross profit margin reflects the company's ability to manage costs effectively, supporting sustainable profitability.
Low Leverage
Low leverage enhances financial stability and flexibility, allowing the company to invest in growth opportunities without excessive risk.
Negative Factors
Net Profit Margin
A low net profit margin indicates challenges in converting revenue into profit, which could impact long-term financial health if not addressed.
Declining Stockholders' Equity
Declining equity may signal weakening financial strength, potentially affecting the company's ability to fund future growth initiatives.
Negative Free Cash Flow Growth
Challenges in maintaining free cash flow growth could limit the company's capacity to invest in new projects and manage operational expenses.
ZoomInfo Technologies (GTM) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.77B
Dividend YieldN/A
Average Volume (3M)4.65M
Price to Earnings (P/E)45.2
Beta (1Y)1.41
Revenue Growth-0.54%
EPS Growth626.94%
CountryUS
Employees3,508
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)0.25
Shares Outstanding318,630,770
10 Day Avg. Volume6,088,461
30 Day Avg. Volume4,649,012
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap1.25
Enterprise Value/Revenue3.83
Enterprise Value/Gross Profit4.57
Enterprise Value/Ebitda20.42
Forecast
1Y Price Target
$11.49Price Target Upside-2.87% Downside
Rating ConsensusHold
Number of Analyst Covering13
ZoomInfo Technologies Business Overview & Revenue Model
Company DescriptionZoomInfo Technologies Inc., through its subsidiaries, provides go-to-market intelligence and engagement platform for sales and marketing teams in the United States and internationally. The company's cloud-based platform provides information on organizations and professionals to help users identify target customers and decision makers, obtain continually updated predictive lead and company scoring, monitor buying signals and other attributes of target companies, craft messages, engage through automated sales tools, and track progress through the deal cycle. It serves enterprises, mid-market companies, and down to small businesses that operate in various industry verticals, including software, business services, manufacturing, telecommunications, financial services, media and internet, transportation, education, hospitality, and real estate. ZoomInfo Technologies Inc. was founded in 2007 and is headquartered in Vancouver, Washington.
How the Company Makes MoneyZoomInfo generates revenue primarily through subscription-based services, offering various pricing tiers for access to its data and analytics platforms. The company has a diversified revenue model that includes licensing fees for its software products, which are used by sales and marketing teams to identify potential leads and analyze market trends. Key revenue streams also include professional services such as training and support, as well as partnerships with CRM and marketing automation platforms that enhance its service offerings. These partnerships often lead to integrated solutions that further drive customer acquisition and retention, contributing significantly to the company's earnings.
ZoomInfo Technologies Earnings Call Summary
Earnings Call Date:Aug 04, 2025
(Q1-2025)
| % Change Since: |
Next Earnings Date:Nov 03, 2025
Earnings Call Sentiment Positive
The earnings call presented a strong performance in the upmarket segment with better-than-expected financial results and expansion in platform capabilities. However, the decline in the down-market segment and cautious revenue growth guidance indicate challenges. The sentiment leans towards positive due to the highlights outweighing the lowlights.Q1-2025 Updates
Positive Updates
Better-than-Expected Financial Results
GAAP revenue for Q1 2025 was $306 million with an adjusted operating income of $101 million, a margin of 33%, both above the high end of guidance.
Expansion of Go-To-Market Intelligence Platform
ZoomInfo expanded its platform capabilities, including sophisticated AI-powered applications, driving innovation in marketing and sales.
Upmarket Growth
The company saw a 3% year-over-year growth in its upmarket segment, which now represents 71% of the business.
Strong Customer Acquisition
Closed enterprise deals with major companies like Lionbridge, Wipro, Integrity Express Logistics, RSM, Sprinklr, Wiz, and Dice Career Solutions.
High NPS Scores
Enterprise NPS scores increased by more than six points year-over-year in Q1.
Cash Flow and Share Repurchase
Q1 operating cash flow was $119 million, with the company repurchasing 8.6 million shares of common stock at an average price of $11.05.
Negative Updates
Down-market Decline
The down-market segment saw a 10% year-over-year decline, with expectations of further contraction in 2025.
Overall Revenue Growth Guidance
Full-year 2025 revenue guidance reflects a negative 1.2% annual growth at the midpoint.
Company Guidance
During ZoomInfo's Q1 2025 earnings call, several key metrics and guidance details were discussed. The company reported GAAP revenue of $306 million and adjusted operating income of $101 million, with a margin of 33%, both exceeding expectations. ZoomInfo noted a continued shift upmarket with 1,868 customers having more than $100,000 in annual contract value (ACV), marking a sequential increase of one customer and a year-over-year increase of 108 customers. The upmarket segment grew by 3% year-over-year, now representing 71% of the business, while net revenue retention improved, rounding to 87% for the second straight quarter. The company also highlighted the success of its Copilot product and the recent launch of Go-To-Market Studio. For Q2, ZoomInfo expects GAAP revenue between $295 million and $298 million, and for the full year, it raised the low end of its revenue guidance to between $1.195 billion and $1.205 billion, representing a slight annual decline at the midpoint. The adjusted operating income for the year is expected to be between $426 million and $436 million, with a margin of 36% at the midpoint, and unlevered free cash flow is projected to range from $420 million to $440 million.ZoomInfo Technologies Financial Statement Overview
Summary
ZoomInfo Technologies shows strong revenue growth and efficient cost management with a robust gross profit margin of 83.90%. The balance sheet reflects low leverage and a stable equity position, although declining equity is a concern. Cash flow generation is solid, but negative growth in free cash flow warrants attention. Overall, the company is well-positioned but should focus on improving profitability and sustaining cash flow growth.Income Statement
ZoomInfo Technologies demonstrates strong revenue growth with a TTM (Trailing-Twelve-Months) increase of 1.26%. The gross profit margin remains robust at 83.90%, indicating efficient cost management. However, the net profit margin is relatively low at 7.28%, suggesting room for improvement in profitability. The EBIT and EBITDA margins show healthy operational performance, but there is a slight decline compared to previous periods.78
Positive
Balance Sheet
The company maintains a solid equity base with a debt-to-equity ratio of 0.15, reflecting low leverage. Return on equity is moderate at 5.44%, indicating reasonable returns for shareholders. The equity ratio is strong, suggesting a stable financial position. However, the decrease in stockholders' equity over time could be a potential concern.72
Positive
Cash Flow
Operating cash flow remains healthy, covering net income adequately with a ratio of 0.57. Free cash flow to net income ratio is strong at 0.88, indicating efficient cash generation. However, the negative growth in free cash flow suggests potential challenges in sustaining cash flow levels, which could impact future investments.65
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.23B | 1.21B | 1.24B | 1.10B | 747.20M | 476.20M |
| Gross Profit | 1.03B | 1.02B | 1.06B | 909.60M | 610.50M | 368.70M |
| EBITDA | 229.90M | 156.30M | 514.60M | 330.00M | 214.20M | 85.20M |
| Net Income | 89.20M | 29.10M | 107.30M | 63.20M | 116.80M | -36.40M |
Balance Sheet | ||||||
| Total Assets | 6.45B | 6.47B | 6.87B | 7.14B | 6.85B | 2.33B |
| Cash, Cash Equivalents and Short-Term Investments | 176.90M | 139.90M | 529.30M | 545.70M | 326.70M | 300.40M |
| Total Debt | 1.56B | 1.39B | 1.33B | 1.31B | 1.30B | 784.50M |
| Total Liabilities | 4.90B | 4.77B | 4.75B | 4.86B | 4.86B | 1.39B |
| Stockholders Equity | 1.55B | 1.69B | 2.12B | 2.27B | 2.00B | 502.80M |
Cash Flow | ||||||
| Free Cash Flow | 288.90M | 301.10M | 408.40M | 388.10M | 275.80M | 152.80M |
| Operating Cash Flow | 355.30M | 369.40M | 434.90M | 417.00M | 299.40M | 169.60M |
| Investing Cash Flow | -74.50M | 13.40M | 24.40M | -281.10M | -695.80M | -113.30M |
| Financing Cash Flow | -497.00M | -690.00M | -427.20M | -25.90M | 439.50M | 172.20M |
ZoomInfo Technologies Technical Analysis
Positive
11.83
Price Trends
10.68
Positive
10.21
Positive
10.18
Positive
Market Momentum
0.44
Negative
60.17
Neutral
76.39
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GTM, the sentiment is Positive. The current price of 11.83 is above the 20-day moving average (MA) of 11.05, above the 50-day MA of 10.68, and above the 200-day MA of 10.18, indicating a bullish trend. The MACD of 0.44 indicates Negative momentum. The RSI at 60.17 is Neutral, neither overbought nor oversold. The STOCH value of 76.39 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GTM.
ZoomInfo Technologies Risk Analysis
ZoomInfo Technologies disclosed 42 risk factors in its most recent earnings report. ZoomInfo Technologies reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
ZoomInfo Technologies Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $3.77B | 45.20 | 5.22% | ― | -0.54% | 626.94% | |
68 Neutral | 3.43B | -101.89 | -3.48% | ― | 13.24% | -12.97% | |
65 Neutral | 3.28B | 42.65 | 21.25% | ― | 7.99% | -28.47% | |
56 Neutral | 3.23B | -11.50 | -317.65% | ― | 0.11% | -817.49% | |
56 Neutral | 4.01B | -77.50 | -20.32% | ― | 15.00% | -349.61% | |
50 Neutral | 3.35B | -15.88 | -92.63% | ― | 9.74% | 22.36% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
Performance Comparison
GTM
ZoomInfo Technologies
11.83
1.55
15.08%
BLKB
Blackbaud
66.51
-18.18
-21.47%
BL
BlackLine
53.01
1.77
3.45%
NCNO
nCino
29.63
-0.46
-1.53%
VERX
Vertex
25.15
-13.15
-34.33%
ASAN
Asana
14.20
2.31
19.43%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.