ZoomInfo Technologies (GTM) AI Stock Analysis

• Market Cap: $3.27B
• Dividend Yield: N/A
• Average Volume (3M): 4.70M
• Price to Earnings (P/E): 33.4
• Beta (1Y): 1.58
• Revenue Growth: 1.47%
• EPS Growth: 1077.70%
• Country: US
• Employees: 3,508
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 0.28
• Shares Outstanding: 311,592,530
• 10 Day Avg. Volume: 3,047,517
• 30 Day Avg. Volume: 4,699,463
• PEG Ratio: -1.86
• Price to Book (P/B): 2.25
• Price to Sales (P/S): 3.13
• P/FCF Ratio: 12.63
• Enterprise Value/Market Cap: 1.50
• Enterprise Value/Revenue: 3.94
• Enterprise Value/Gross Profit: 4.66
• Enterprise Value/Ebitda: 18.41
• 1Y Price Target: $12.28
• Price Target Upside: 17.18% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 14
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: $10.00 ▼(-4.58% Downside)

ZoomInfo Technologies' strong financial performance and positive earnings call sentiment are significant strengths, driving the overall score. However, bearish technical indicators and moderate valuation present challenges. The company's strategic focus on upmarket growth and product innovation supports its long-term potential, but increased leverage and downmarket declines require careful management.

Positive Factors

Upmarket Growth

ZoomInfo's strategic focus on upmarket growth strengthens its market position, targeting larger clients with higher contract values, which can lead to more stable and recurring revenue streams.

Product Innovation

The launch of new products enhances ZoomInfo's competitive edge, driving customer engagement and retention, and supporting long-term revenue growth through diversified offerings.

Cash Generation

Strong cash generation provides ZoomInfo with the financial flexibility to invest in growth opportunities, manage debt, and return value to shareholders, underpinning its financial stability.

Negative Factors

Rising Debt Levels

High debt levels can constrain financial flexibility and increase risk, especially if cash flow generation does not keep pace with debt servicing requirements, potentially impacting long-term growth.

Downmarket Decline

Declining downmarket performance suggests challenges in maintaining a broad customer base, which could limit growth potential and increase reliance on upmarket segments.

Seasonal Revenue Fluctuations

Increased seasonal revenue variability can lead to unpredictable financial performance, complicating long-term planning and potentially impacting investor confidence.

ZoomInfo Technologies Business Overview & Revenue Model

Company Description

ZoomInfo Technologies Inc., together with its subsidiaries, provides go-to-market intelligence and engagement platform for sales, marketing, operations, and recruiting professionals in the United States and internationally. The company's cloud-based platform provides workflow tools and 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. Its paid products include ZoomInfo Copilot, ZoomInfo Sales, ZoomInfo Marketing, ZoomInfo Operations, and ZoomInfo Talent, as well as ZoomInfo Lite. The company serves enterprises, mid-market companies, and down to small businesses that operate in various industry, 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 Money

ZoomInfo 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 Financial Statement Overview

Summary

ZoomInfo Technologies demonstrates strong financial performance with significant revenue and profit growth. The company maintains high gross profit margins and has improved its net profit margins. While the balance sheet shows increased leverage, the company is effectively generating cash flow, supporting its financial stability. Continued focus on operational efficiency and debt management will be crucial for sustaining growth.

Income Statement

ZoomInfo Technologies shows strong revenue growth with a TTM (Trailing-Twelve-Months) increase of 17.5%. Gross profit margins remain robust at over 83%, indicating efficient cost management. The net profit margin has improved significantly from 2.4% in 2024 to 7.3% in TTM, reflecting enhanced profitability. However, the EBIT and EBITDA margins, while improving, suggest room for further operational efficiency.

Balance Sheet

The company's debt-to-equity ratio has increased to 1.00 in TTM, indicating higher leverage compared to previous years. Return on equity has improved to 5.4%, showing better utilization of equity. The equity ratio remains stable, reflecting a balanced asset structure. However, the rising debt levels could pose a risk if not managed carefully.

Cash Flow

Free cash flow growth is strong at 41% in TTM, highlighting effective cash generation. The operating cash flow to net income ratio is stable, indicating consistent cash conversion. The free cash flow to net income ratio remains healthy, suggesting good cash flow management. However, the coverage ratios indicate potential for improvement in cash flow efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.24B	1.21B	1.24B	1.10B	747.20M	476.20M
Gross Profit	1.05B	1.02B	1.06B	909.30M	610.50M	368.70M
EBITDA	265.40M	156.30M	514.60M	330.00M	214.20M	88.40M
Net Income	104.10M	29.10M	107.30M	63.20M	116.80M	-9.10M
Balance Sheet
Total Assets	6.37B	6.47B	6.87B	7.14B	6.85B	2.33B
Cash, Cash Equivalents and Short-Term Investments	135.00M	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	4.84B	4.77B	4.75B	4.86B	4.86B	1.39B
Stockholders Equity	1.53B	1.69B	2.12B	2.27B	2.00B	502.80M
Cash Flow
Free Cash Flow	347.80M	301.10M	408.40M	388.10M	275.80M	152.80M
Operating Cash Flow	430.90M	369.40M	434.90M	417.00M	299.40M	169.60M
Investing Cash Flow	-94.50M	13.40M	24.40M	-281.10M	-695.80M	-113.30M
Financing Cash Flow	-358.60M	-690.00M	-427.20M	-25.90M	439.50M	172.20M

ZoomInfo Technologies Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 10.48
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 10.48 is above the 20-day moving average (MA) of 10.12, above the 50-day MA of 10.21, and above the 200-day MA of 10.12, indicating a bullish trend. The MACD of 0.07 indicates Negative momentum. The RSI at 59.59 is Neutral, neither overbought nor oversold. The STOCH value of 91.53 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GTM.

ZoomInfo Technologies Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GTM	71 Outperform	$3.27B	33.40	6.51%	―	1.47%	1077.70%
BLKB	71 Outperform	$2.95B	-11.88	-78.53%	―	-1.17%	-597.89%
BL	71 Outperform	$3.36B	50.40	21.85%	―	7.36%	-40.62%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
NCNO	61 Neutral	$2.90B	-132.93	-2.04%	―	12.14%	-19.29%
VERX	59 Neutral	$3.19B	-58.24	-20.47%	―	13.83%	-273.23%
ASAN	57 Neutral	$3.21B	-14.24	-102.48%	―	9.47%	16.97%