ZoomInfo Technologies (GTM) AI Stock Analysis

• Market Cap: $3.22B
• Dividend Yield: N/A
• Average Volume (3M): 4.85M
• Price to Earnings (P/E): 38.7
• Beta (1Y): 1.39
• Revenue Growth: -0.54%
• EPS Growth: 626.94%
• Country: US
• Employees: 3,508
• Sector: Technology
• Sector Strength: 84
• Industry: Software - Application
• EPS (TTM): 0.25
• Shares Outstanding: 318,630,770
• 10 Day Avg. Volume: 3,357,236
• 30 Day Avg. Volume: 4,851,926
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.46
• Enterprise Value/Revenue: 3.83
• Enterprise Value/Gross Profit: 4.57
• Enterprise Value/Ebitda: 20.42
• 1Y Price Target: $11.45
• Price Target Upside: 13.14% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 13

• Rating: 69 Neutral
• Price Target: $11.00 ▲(8.70% Upside)

ZoomInfo Technologies demonstrates strong financial performance and positive corporate developments, particularly with leadership stability and revenue growth. However, the high P/E ratio and lack of dividend yield, combined with neutral technical indicators, suggest a cautious outlook. The company's strategic focus on upmarket expansion and AI-driven innovations offers potential for future growth.

Positive Factors

Financial Performance

ZoomInfo reported solid Q2 results with a healthy 340 bps beat versus revenue estimate.

Growth Strategy

The company's positioning of CoPilot, GTM Studio and DaaS as pillars of future growth furthers their strategy of moving beyond a point solution to a platform offering.

Market Expansion

The go-to-market strategy is efficiently targeting larger upmarket customers, expected to drive positive growth.

Negative Factors

Near-term Challenges

Q1 is believed to be the toughest period for the company in 2025, indicating challenges in the near-term setup.

Revenue Growth Catalysts

While there is long-term potential, there are few catalysts for positive revenue growth in the near term.

Revenue Pressure

Revenue growth is currently facing pressure due to downmarket softness, which comprises less than a third of total revenue.

ZoomInfo Technologies Business Overview & Revenue Model

Company Description

ZoomInfo 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 Money

ZoomInfo generates revenue primarily through subscription-based services. Businesses and professionals subscribe to ZoomInfo's platform to access its extensive database of business information and analytics tools. The company offers various pricing tiers based on the level of access and features required by the customer. Additionally, ZoomInfo makes money through the sale of premium services, such as advanced data analytics, integrations with other business software, and customized solutions. Partnerships with other technology firms and business service providers also contribute to its revenue, enabling integrated solutions that enhance the platform's value proposition to its users.

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.

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.

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

• Technical Analysis Sentiment: Positive
• Last Price: 10.12
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 10.12 is below the 20-day moving average (MA) of 10.29, below the 50-day MA of 10.38, and below the 200-day MA of 10.12, indicating a bullish trend. The MACD of 0.06 indicates Negative momentum. The RSI at 49.63 is Neutral, neither overbought nor oversold. The STOCH value of 58.30 is Neutral, 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
YOU	78 Outperform	$4.76B	19.20	128.70%	2.10%	19.85%	135.66%
CXM	70 Neutral	$2.23B	18.86	23.74%	―	6.08%	153.79%
GTM	69 Neutral	$3.22B	38.67	5.22%	―	-0.54%	626.94%
SPT	62 Neutral	$897.54M	―	-32.50%	―	14.79%	27.52%
Sector *	61 Neutral	$35.51B	8.11	-11.05%	1.89%	8.55%	-8.72%
AMPL	55 Neutral	$1.44B	―	-33.99%	―	9.93%	-11.15%
GRND	50 Neutral	$2.94B	―	-76.08%	―	28.35%	24.57%

ZoomInfo Technologies Corporate Events

ZoomInfo Appoints Michael O’Brien as Permanent CFO

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.

ZoomInfo Announces Workforce Reduction for Strategic Growth

On June 9, 2025, ZoomInfo Technologies announced a workforce reduction of approximately 6% as part of a strategic plan to enhance growth and efficiency. This move is expected to result in $28 million in annual operating expense savings, aligning with the company’s upmarket strategy and financial guidance for 2025.