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Zoominfo Technologies, Inc. (GTM)
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ZoomInfo Technologies (GTM) AI Stock Analysis

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GTM

ZoomInfo Technologies

(NASDAQ:GTM)

Rating:70Outperform
Price Target:
$11.00
▲(15.30% Upside)
ZoomInfo Technologies' overall stock score is driven by strong financial performance and positive earnings call outcomes. However, technical indicators suggest a bearish trend, and the high P/E ratio indicates potential overvaluation. The company's strategic focus on upmarket growth and product innovations is promising, but economic uncertainties and declining free cash flow pose challenges.
Positive Factors
Customer Acquisition
ZoomInfo's leading technology is winning new customers by leveraging AI and data to drive better sales.
Revenue Growth
ZoomInfo reported solid Q2 results with a healthy 340 bps beat versus revenue estimate.
Strategic Positioning
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.
Negative Factors
Near-term Challenges
While there is long-term potential, there are few catalysts for positive revenue growth in the near term.
Revenue Decline
There is an expectation of further deterioration in down-market revenue with declines anticipated towards mid to high-teens.
Revenue Pressure
Revenue growth is currently facing pressure due to downmarket softness, which comprises less than a third of total revenue.

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

ZoomInfo Technologies Business Overview & Revenue Model

Company DescriptionZoomInfo Technologies (GTM) is a leading provider of go-to-market intelligence solutions for businesses. The company specializes in delivering comprehensive and accurate data, insights, and analytics to sales and marketing professionals. Through its cloud-based platform, ZoomInfo offers a wide range of tools and services designed to enhance lead generation, customer acquisition, and market intelligence, helping businesses to identify and connect with their ideal customers more effectively.
How the Company Makes MoneyZoomInfo 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 Earnings Call Summary

Earnings Call Date:Aug 04, 2025
(Q1-2025)
|
% Change Since: -10.42%|
Next Earnings Date:Nov 03, 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 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
78
Positive
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
72
Positive
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
65
Positive
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 Revenue1.23B1.21B1.24B1.10B747.20M476.20M
Gross Profit1.03B1.02B1.06B909.60M610.50M368.70M
EBITDA229.90M156.30M514.60M330.00M214.20M85.20M
Net Income89.20M29.10M107.30M63.20M116.80M-36.40M
Balance Sheet
Total Assets6.45B6.47B6.87B7.14B6.85B2.33B
Cash, Cash Equivalents and Short-Term Investments176.90M139.90M529.30M545.70M326.70M300.40M
Total Debt1.56B1.39B1.33B1.31B1.30B784.50M
Total Liabilities4.90B4.77B4.75B4.86B4.86B1.39B
Stockholders Equity1.55B1.69B2.12B2.27B2.00B502.80M
Cash Flow
Free Cash Flow288.90M301.10M408.40M388.10M275.80M152.80M
Operating Cash Flow355.30M369.40M434.90M417.00M299.40M169.60M
Investing Cash Flow-74.50M13.40M24.40M-281.10M-695.80M-113.30M
Financing Cash Flow-497.00M-690.00M-427.20M-25.90M439.50M172.20M

ZoomInfo Technologies Technical Analysis

Technical Analysis Sentiment
Negative
Last Price9.54
Price Trends
50DMA
10.23
Negative
100DMA
9.71
Positive
200DMA
10.19
Negative
Market Momentum
MACD
-0.12
Positive
RSI
47.56
Neutral
STOCH
36.39
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GTM, the sentiment is Negative. The current price of 9.54 is below the 20-day moving average (MA) of 10.50, below the 50-day MA of 10.23, and below the 200-day MA of 10.19, indicating a bearish trend. The MACD of -0.12 indicates Positive momentum. The RSI at 47.56 is Neutral, neither overbought nor oversold. The STOCH value of 36.39 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
78
Outperform
$4.43B17.84128.70%2.24%19.85%135.66%
72
Outperform
$2.07B19.4517.50%6.75%97.06%
70
Outperform
$3.06B36.685.22%-0.54%626.94%
63
Neutral
$789.52M-32.50%14.79%27.52%
61
Neutral
$36.32B7.12-7.26%1.97%7.79%-9.36%
57
Neutral
$1.49B-33.99%9.93%-11.15%
50
Neutral
$3.16B-76.08%28.35%24.57%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GTM
ZoomInfo Technologies
10.09
1.22
13.75%
SPT
Sprout Social
14.28
-17.05
-54.42%
GRND
Grindr
16.27
4.30
35.92%
CXM
Sprinklr
8.26
-0.56
-6.35%
YOU
Clear Secure
34.12
7.59
28.61%
AMPL
Amplitude
11.64
3.30
39.57%

ZoomInfo Technologies Corporate Events

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.

Business Operations and Strategy
ZoomInfo Announces Workforce Reduction for Strategic Growth
Neutral
Jun 9, 2025

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.

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.

Executive/Board ChangesShareholder Meetings
ZoomInfo Technologies Holds Annual Stockholders Meeting
Positive
May 16, 2025

On May 14, 2025, ZoomInfo Technologies Inc. held its Annual Meeting of Stockholders, where key decisions were made regarding the election of directors and the ratification of their accounting firm. The stockholders elected four Class II directors for a term ending in 2028 and ratified KPMG LLP as the independent registered public accounting firm for 2025. These decisions are expected to impact the company’s governance and financial oversight positively.

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: Aug 09, 2025