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ZoomInfo Technologies, Inc. (ZI)
NASDAQ:ZI
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ZoomInfo Technologies
(NASDAQ:ZI)
74Outperform
Positive Factors
Customer Growth
Copilot has been attracting new customers, with 90% of adopters being new, indicating strong customer growth.
Financial Performance
ZoomInfo consistently beats guidance expectations, showcasing its strong financial performance.
Product Offering
The introduction of ZoomInfo's new GTM Studio, which unifies go-to-market data into a single platform, sets it apart from competitors.
Negative Factors
Growth Visibility
Lack of visibility into future growth trends leads to a Neutral rating with an $11 price target.
Revenue Allocation Shift
A major shift in go-to-market resource allocation from smaller to larger customers may challenge overall revenue growth.
Revenue Growth Challenges
Revenue growth is currently facing pressure due to downmarket softness, impacting overall growth potential.
ZoomInfo Technologies (ZI) vs. S&P 500 (SPY)
Market Cap
$3.30B
Dividend YieldN/A
Average Volume (3M)6.45M
Price to Earnings (P/E)83.4
Beta (1Y)1.61
Revenue Growth-3.12%
EPS Growth-37.59%
CountryUS
Employees3,508
SectorTechnology
Sector Strength76
IndustrySoftware - Application
Share Statistics
EPS (TTM)0.23
Shares Outstanding328,911,200
10 Day Avg. Volume5,798,311
30 Day Avg. Volume6,450,925
Financial Highlights & Ratios
PEG Ratio0.53
Price to Book (P/B)1.89
Price to Sales (P/S)0.00
P/FCF Ratio10.58
Enterprise Value/Market Cap1.34
Enterprise Value/Revenue0.90
Enterprise Value/Gross Profit4.35
Enterprise Value/Ebitda3.16
Forecast
1Y Price Target
$11.00Price Target Upside9.67% Upside
Rating ConsensusHold
Number of Analyst Covering19
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 Technologies generates revenue primarily through subscription-based services. The company offers its platform through various pricing tiers, allowing customers to access different levels of data and features based on their needs. Key revenue streams include subscription fees from its diverse client base, which consists of businesses ranging from small enterprises to large corporations across various industries. Additionally, ZoomInfo leverages partnerships with other technology and data providers to enhance its platform capabilities and expand its market reach, contributing to its overall earnings.
ZoomInfo Technologies Key Performance Indicators (KPIs)
Any
Customers $100K
Counts the number of customers generating over $100K in revenue, highlighting the company’s success in securing high-value contracts and its market penetration.
Counts the number of customers generating over $100K in revenue, highlighting the company’s success in securing high-value contracts and its market penetration.
Data provided by:
Main Street Data
Main Street DataZoomInfo Technologies Financial Statement Overview
Summary
ZoomInfo Technologies presents a solid financial position with strong gross profit margins and efficient cost management. However, concerns arise from the declining revenue and net income, impacting profitability metrics. The balance sheet remains stable with low leverage, though a decreasing equity ratio warrants attention. Robust cash flows support operational needs, but significant cash outflows in investing and financing could challenge future liquidity. Overall, the company maintains a good financial standing with areas for improvement in revenue growth and net profitability.Income Statement
ZoomInfo Technologies shows a strong gross profit margin, consistently above 80%, indicating efficient cost management. However, there is a decline in net income from $107.3 million in 2023 to $29.1 million in 2024, affecting the net profit margin negatively. Revenue growth has slowed, with a decrease in total revenue from $1.24 billion in 2023 to $1.21 billion in 2024. Despite these challenges, its EBIT and EBITDA margins are healthy, suggesting operational efficiency.75
Positive
Balance Sheet
The balance sheet reveals a stable equity base, with stockholders' equity standing at $1.69 billion in 2024. The debt-to-equity ratio is low, reflecting a conservative leverage approach. However, the equity ratio has seen a slight decline, suggesting a relative increase in liabilities compared to assets. Return on equity has decreased due to lower net income, which could be a concern if the trend continues.68
Positive
Cash Flow
Operating cash flow remains strong at $369.4 million in 2024, supporting robust free cash flow despite a decrease from 2023. The free cash flow to net income ratio is healthy, indicating effective cash generation relative to earnings. However, the cash flow from investing and financing activities shows significant outflows, which might impact future liquidity.72
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 1.21B | 1.24B | 1.10B | 747.20M | 476.20M | Gross Profit |
| 1.02B | 1.06B | 909.60M | 610.50M | 368.70M | EBIT |
| 97.40M | 259.50M | 246.30M | 176.30M | 66.30M | EBITDA |
| 156.30M | 514.60M | 330.00M | 214.20M | 85.20M | Net Income Common Stockholders |
| 29.10M | 107.30M | 63.20M | 116.80M | -36.40M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 139.90M | 529.30M | 545.70M | 326.70M | 300.40M | Total Assets |
| 6.47B | 6.87B | 7.14B | 6.85B | 2.33B | Total Debt |
| 1.39B | 1.33B | 1.31B | 1.30B | 784.50M | Net Debt |
| 1.25B | 886.40M | 895.90M | 994.20M | 514.70M | Total Liabilities |
| 4.77B | 4.75B | 4.86B | 4.86B | 1.39B | Stockholders Equity |
| 1.69B | 2.12B | 2.27B | 2.00B | 502.80M |
| Cash Flow | Free Cash Flow | |||
| 301.10M | 408.40M | 388.10M | 275.80M | 152.80M | Operating Cash Flow |
| 369.40M | 434.90M | 417.00M | 299.40M | 169.60M | Investing Cash Flow |
| 13.40M | 24.40M | -281.10M | -695.80M | -113.30M | Financing Cash Flow |
| -690.00M | -427.20M | -25.90M | 439.50M | 172.20M |
ZoomInfo Technologies Technical Analysis
Positive
10.03
Price Trends
9.44
Positive
9.93
Positive
10.13
Positive
Market Momentum
0.30
Negative
63.45
Neutral
82.44
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ZI, the sentiment is Positive. The current price of 10.03 is above the 20-day moving average (MA) of 9.07, above the 50-day MA of 9.44, and below the 200-day MA of 10.13, indicating a bullish trend. The MACD of 0.30 indicates Negative momentum. The RSI at 63.45 is Neutral, neither overbought nor oversold. The STOCH value of 82.44 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ZI.
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 (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $3.28B | 13.21 | 124.77% | 1.83% | 21.59% | 223.84% | |
76 Outperform | $2.18B | 18.60 | 18.83% | ― | 8.74% | 150.66% | |
74 Outperform | $3.30B | 83.37 | 2.23% | ― | -3.12% | -37.59% | |
73 Outperform | $4.60B | ― | -63.52% | ― | 30.08% | -196.62% | |
65 Neutral | $1.39B | ― | -36.95% | ― | 17.79% | 16.49% | |
63 Neutral | $1.60B | ― | -32.87% | ― | 8.56% | -4.21% | |
60 Neutral | $11.59B | 10.44 | -7.23% | 2.94% | 7.46% | -10.66% |
* Technology Sector Average
Performance Comparison
ZI
ZoomInfo Technologies
10.20
-3.12
-23.42%
SPT
Sprout Social
23.90
-7.91
-24.87%
GRND
Grindr
23.50
14.13
150.80%
CXM
Sprinklr
8.44
-4.15
-32.96%
YOU
Clear Secure
24.63
7.80
46.35%
AMPL
Amplitude
12.19
2.68
28.18%
ZoomInfo Technologies Earnings Call Summary
Earnings Call Date:May 12, 2025
(Q1-2025)
| % Change Since: -2.72%|
Next Earnings Date:Aug 04, 2025
Earnings Call Sentiment Positive
The earnings call reflected a strong performance with positive financial results, successful upmarket expansion, and strategic product innovations. However, there is caution due to the economic environment and ongoing decline in the down-market segment.Q1-2025 Updates
Positive Updates
Better-than-Expected Financial Results
ZoomInfo delivered a consecutive quarter of better-than-expected financial results with GAAP revenue of $306 million and adjusted operating income of $101 million, a margin of 33%, both above the high end of guidance.
Expansion in Upmarket Segment
The company now has 1,868 customers with more than $100,000 in ACV, a year-over-year increase of 108 customers, marking four consecutive quarters of sequential improvement. Upmarket growth was 3% year-over-year and now represents 71% of the business.
Successful Product Launches
ZoomInfo launched the Go-To-Market Studio and expanded its data asset into core enterprise operations, enhancing its platform through successful integration of acquisitions such as RingLead and Chorus.
Strong Customer Wins and Deployments
Closed enterprise opportunities with Lionbridge, Wipro, and others. Stripe deployed ZoomInfo Copilot across more than 300 sellers, and a large food delivery vendor is using the platform for international expansion.
Improved Retention and NPS Scores
Net revenue retention improved and rounded to 87% for the second consecutive quarter. Record levels of NPS scores were achieved, with enterprise NPS up more than six points year-over-year in Q1.
Share Repurchase Program
Repurchased 8.6 million shares of common stock at an average price of $11.05, with an additional buyback of nearly 7 million shares at $8.27 per share post-quarter.
Negative Updates
Down-market Business Decline
The down-market segment declined 10% year-over-year, with expectations for further contraction into 2025, reflecting a strategic shift towards a healthier, smaller down-market presence.
Economic Environment Caution
Despite no observed impact from the current economic environment on customer behavior, an incremental layer of caution was added to guidance due to broader economic uncertainties.
Company Guidance
In the ZoomInfo First Quarter 2025 Financial Results Conference Call, the company provided positive guidance, highlighting several key metrics. GAAP revenue for Q1 2025 was reported at $306 million, with an adjusted operating income of $101 million, yielding a margin of 33%, both exceeding the high end of their guidance. The company emphasized its successful upmarket growth, with 1,868 customers generating more than $100,000 in annual contract value (ACV), marking a year-over-year increase of 108 customers. The upmarket segment, which grew 3% year-over-year, now represents 71% of ZoomInfo's business, and net revenue retention stabilized at 87% for the second consecutive quarter. Looking forward, for the full year 2025, ZoomInfo anticipates GAAP revenue between $1.195 billion and $1.205 billion, with an adjusted operating income margin of 36% at the midpoint of guidance, alongside non-GAAP net income per share ranging from $0.96 to $0.98. The company is cautiously optimistic, incorporating an incremental layer of caution in its guidance due to the uncertain economic environment, yet remains confident in its upmarket strategy and long-term growth aspirations.ZoomInfo Technologies Corporate Events
Executive/Board ChangesStock BuybackFinancial Disclosures
ZoomInfo Technologies Announces Board Changes and Share Buyback
Neutral
Feb 25, 2025
On February 25, 2025, ZoomInfo Technologies announced the appointment of Rob Giglio to its Board of Directors, effective March 1, 2025, following the resignation of Patrick McCarter. Additionally, the company reported its financial results for the fourth quarter and full-year 2024, showing a 2% year-over-year decrease in GAAP revenue. Despite this, operational improvements led to better-than-expected revenue, profitability, and free cash flow. The company also approved a $500 million share repurchase program in February 2025, indicating a strategic focus on enhancing shareholder value.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.