ZoomInfo Technologies (GTM) AI Stock Analysis

• Market Cap: $3.67B
• Dividend Yield: N/A
• Average Volume (3M): 4.38M
• Price to Earnings (P/E): 43.4
• Beta (1Y): 1.39
• Revenue Growth: -0.54%
• EPS Growth: 626.94%
• Country: US
• Employees: 3,508
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 0.25
• Shares Outstanding: 318,630,770
• 10 Day Avg. Volume: 4,841,619
• 30 Day Avg. Volume: 4,382,154
• 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: 1.28
• Enterprise Value/Revenue: 3.83
• Enterprise Value/Gross Profit: 4.57
• Enterprise Value/Ebitda: 20.42
• 1Y Price Target: $11.72
• Price Target Upside: 1.38% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 12

• Rating: 73 Outperform
• Price Target: $12.50 ▲(8.13% Upside)

ZoomInfo Technologies is well-positioned with strong financial performance and positive technical indicators. However, its high valuation and concerns over declining equity and free cash flow growth slightly temper the overall outlook.

Positive Factors

Revenue Growth

Consistent revenue growth indicates a strong market position and effective sales strategies, enhancing long-term business prospects.

Gross Profit Margin

A high gross profit margin reflects the company's ability to manage costs effectively, supporting sustainable profitability.

Low Leverage

Low leverage enhances financial stability and flexibility, allowing the company to invest in growth opportunities without excessive risk.

Negative Factors

Net Profit Margin

A low net profit margin indicates challenges in converting revenue into profit, which could impact long-term financial health if not addressed.

Declining Stockholders' Equity

Declining equity may signal weakening financial strength, potentially affecting the company's ability to fund future growth initiatives.

Negative Free Cash Flow Growth

Challenges in maintaining free cash flow growth could limit the company's capacity to invest in new projects and manage operational expenses.

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, 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 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: 11.56
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 11.56 is above the 20-day moving average (MA) of 11.28, above the 50-day MA of 10.79, and above the 200-day MA of 10.19, indicating a bullish trend. The MACD of 0.34 indicates Positive momentum. The RSI at 51.92 is Neutral, neither overbought nor oversold. The STOCH value of 27.78 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
GTM	73 Outperform	$3.67B	43.37	5.22%	―	-0.54%	626.94%
NCNO	64 Neutral	3.24B	-96.22	-3.48%	―	13.24%	-12.97%
BL	61 Neutral	3.27B	42.51	21.25%	―	7.99%	-28.47%
BLKB	56 Neutral	3.11B	-11.09	-317.65%	―	0.11%	-817.49%
VERX	56 Neutral	3.98B	-76.95	-20.32%	―	15.00%	-349.61%
ASAN	51 Neutral	3.28B	-15.54	-92.63%	―	9.74%	22.36%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%