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ZoomInfo Technologies (GTM)
NASDAQ:GTM
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ZoomInfo Technologies (GTM) AI Stock Analysis

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GTM

ZoomInfo Technologies

(NASDAQ:GTM)

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Outperform 74 (OpenAI - 4o)
Rating:74Outperform
Price Target:
$13.00
▲(10.17% Upside)
ZoomInfo Technologies' strong financial performance and bullish technical indicators are the primary drivers of its stock score. The company's robust revenue growth and high profit margins contribute positively, while the technical analysis suggests a favorable market trend. However, the high P/E ratio indicates potential overvaluation, and the lack of dividend yield suggests a focus on reinvestment over shareholder returns. The absence of earnings call insights and corporate events did not impact the score.
Positive Factors
Revenue Growth
The upward revision of revenue guidance indicates strong demand and effective strategy execution, supporting long-term growth prospects.
Strategic Partnership
The partnership with Markaaz enhances product offerings and market reach, addressing critical industry challenges and driving future growth.
Profit Margin Improvement
Improved profit margins reflect better cost management and operational efficiency, contributing to sustainable profitability.
Negative Factors
Rising Debt Levels
Higher leverage could strain financial flexibility and increase risk if not managed effectively, impacting long-term stability.
Revenue Growth Decline
Negative revenue growth indicates potential challenges in market demand or competitive pressures, which could affect future performance.
Valuation Concerns
High valuation may limit upside potential and reflect market expectations that could be challenging to meet, impacting investor sentiment.

ZoomInfo Technologies (GTM) vs. SPDR S&P 500 ETF (SPY)

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:Nov 03, 2025
(Q3-2025)
|
Next Earnings Date:Feb 17, 2026
Earnings Call Sentiment Positive
The earnings call highlighted strong performance with record revenue and improved operating income. The company is successfully shifting its focus upmarket with significant gains in net revenue retention and product innovation. However, challenges remain with declines in the downmarket segment and concerns over seasonal revenue fluctuations.
Q3-2025 Updates
Positive Updates
Record GAAP Revenue
GAAP revenue reached a record $318 million, up 5% year-over-year, exceeding guidance expectations.
Improved Operating Income
Adjusted operating income was $118 million with a margin of 37%, marking the highest level of AOI margin since Q4 2024.
Upmarket Growth
The upmarket business now represents 73% of total ACV, up 10 percentage points in two years, with a 6% upmarket ACV growth.
Net Revenue Retention Improvement
Net revenue retention improved to 90%, marking a 5 percentage point increase year-over-year.
Expansion of Product Portfolio
The operations suite grew more than 20% year-over-year, and the introduction of innovative products like Copilot and GTM Studio attracted strong interest.
Increased Share Repurchases
Repurchased 8.3 million shares of common stock at an average price of $10.46, using 116% of unlevered free cash flow generated since the start of 2024.
Negative Updates
Downmarket Decline
Downmarket ACV declined 10% year-over-year, though this was an improvement from an 11% decline in the prior quarter.
Seasonal Revenue Fluctuations
The company noted that as business shifts upmarket, seasonal revenue fluctuations are expected to increase, which may lead to sequential revenue growth variability.
Debt Levels
The company carried $1.3 billion in gross debt with a net leverage ratio of 2.6x trailing 12 months adjusted EBITDA.
Company Guidance
During the ZoomInfo Third Quarter 2025 Financial Results Conference Call, various performance metrics were highlighted, showcasing a robust financial status and strategic advancements. The company reported a GAAP revenue of $318 million, marking a 5% year-over-year increase, and an adjusted operating income of $118 million, achieving a margin of 37%. This performance exceeded the high end of their guidance, reflecting ZoomInfo's successful execution of its upmarket strategy and AI-driven product portfolio expansion. Notably, net revenue retention improved to 90%, the highest since Q2 2023, and 73% of total Annual Contract Value (ACV) now stems from upmarket business, representing a 10 percentage point increase over two years. Additionally, the Operations suite grew by more than 20% year-over-year, and the launch of new products like Copilot and GTM Studio has been pivotal in driving customer engagement and retention. ZoomInfo's focus on upmarket growth resulted in 1,887 customers with over $100,000 in ACV, a 4% increase year-over-year. The company also repurchased 8.3 million shares in Q3, underscoring its commitment to shareholder value. Looking ahead, ZoomInfo raised its financial guidance for the year, projecting GAAP revenue between $1.237 billion and $1.240 billion and an adjusted operating income margin of 36%.

ZoomInfo Technologies Financial Statement Overview

Summary
ZoomInfo Technologies demonstrates strong revenue growth and efficient cost management with a robust gross profit margin. However, the net profit margin is relatively low, and there is a decline in stockholders' equity and free cash flow growth, which are areas of concern.
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.
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.
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue1.24B1.21B1.24B1.10B747.20M476.20M
Gross Profit1.04B1.02B1.06B909.60M610.50M368.70M
EBITDA230.50M156.30M514.60M330.00M214.20M85.20M
Net Income104.10M29.10M107.30M63.20M116.80M-36.40M
Balance Sheet
Total Assets6.37B6.47B6.87B7.14B6.85B2.33B
Cash, Cash Equivalents and Short-Term Investments135.00M139.90M529.30M545.70M326.70M300.40M
Total Debt243.20M1.39B1.33B1.31B1.30B784.50M
Total Liabilities4.84B4.77B4.75B4.86B4.86B1.39B
Stockholders Equity1.53B1.69B2.12B2.27B2.00B502.80M
Cash Flow
Free Cash Flow407.50M301.10M408.40M388.10M275.80M152.80M
Operating Cash Flow430.90M369.40M434.90M417.00M299.40M169.60M
Investing Cash Flow-94.50M13.40M24.40M-281.10M-695.80M-113.30M
Financing Cash Flow-358.60M-690.00M-427.20M-25.90M439.50M172.20M

ZoomInfo Technologies Technical Analysis

Technical Analysis Sentiment
Positive
Last Price11.80
Price Trends
50DMA
10.95
Positive
100DMA
10.61
Positive
200DMA
10.22
Positive
Market Momentum
MACD
0.14
Negative
RSI
64.24
Neutral
STOCH
71.49
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 11.8 is above the 20-day moving average (MA) of 10.72, above the 50-day MA of 10.95, and above the 200-day MA of 10.22, indicating a bullish trend. The MACD of 0.14 indicates Negative momentum. The RSI at 64.24 is Neutral, neither overbought nor oversold. The STOCH value of 71.49 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
$3.58B42.875.22%-0.54%626.94%
$3.10B-12.28-78.53%-1.16%-597.89%
$3.54B46.0723.79%7.99%-28.47%
$37.18B12.37-10.20%1.83%8.50%-7.62%
$3.10B-3.15%13.24%-12.97%
$3.65B-20.95%15.00%-349.61%
$3.32B-80.55%9.74%22.36%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GTM
ZoomInfo Technologies
11.80
0.51
4.52%
BLKB
Blackbaud
63.88
-12.81
-16.70%
BL
BlackLine
57.26
2.15
3.90%
NCNO
nCino
26.75
-10.07
-27.35%
VERX
Vertex
20.69
-21.54
-51.01%
ASAN
Asana
14.03
1.46
11.61%

ZoomInfo Technologies Corporate Events

ZoomInfo Reports Strong Q3 2025 Financial Results
Nov 4, 2025

ZoomInfo Technologies, Inc. is a leading Go-To-Market Intelligence Platform that provides businesses with AI-ready insights, trusted data, and advanced automation to enhance revenue growth across various industries. The company is recognized for its strong data privacy measures and compliance with industry standards.

ZoomInfo Reports Strong Q2 2025 Financial Results
Aug 5, 2025

ZoomInfo Technologies, Inc. is a leading Go-To-Market Intelligence Platform that provides AI-driven insights and data solutions to help businesses accelerate their growth, serving over 35,000 companies globally with a focus on data privacy and compliance.

Executive/Board ChangesFinancial Disclosures
ZoomInfo Appoints Michael O’Brien as Permanent CFO
Positive
Aug 4, 2025

On July 31, 2025, ZoomInfo Technologies announced the appointment of Michael Graham O’Brien as the permanent Chief Financial Officer, effective August 1, 2025. O’Brien, who has been with the company since 2017, previously served as Interim CFO and Vice President of FP&A. His appointment comes with a comprehensive employment agreement, including stock units and performance-based incentives. Additionally, ZoomInfo reported strong financial results for the second quarter of 2025, with a 5% year-over-year increase in revenue and significant improvements in customer retention and upmarket growth. The company continues to focus on AI and data-driven innovations to enhance its market position.

The most recent analyst rating on (GTM) stock is a Buy with a $15.00 price target. To see the full list of analyst forecasts on ZoomInfo Technologies stock, see the GTM Stock Forecast page.

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.Date of analysis: Nov 04, 2025