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ZoomInfo Technologies, Inc. (ZI)
NASDAQ:ZI
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ZoomInfo Technologies (ZI) AI Stock Analysis

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ZI

ZoomInfo Technologies

(NASDAQ:ZI)

Rating:74Outperform
Price Target:
ZoomInfo Technologies demonstrates strong technical momentum and positive earnings call insights, supporting its overall stock performance. However, the high P/E ratio suggests overvaluation concerns, and declining revenue and net income pose risks to profitability. Despite these challenges, stable financials and strategic growth initiatives in the upmarket segment contribute positively to the stock's outlook.
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. SPDR S&P 500 ETF (SPY)

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
Any
Customers $100K
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.
Chart InsightsZoomInfo's customer base with over $100K in ACV shows resilience, with a recent uptick to 1,867 customers by the end of 2024, despite a dip earlier in the year. The earnings call highlights a strategic pivot towards the upmarket segment, which now dominates their business and is growing, while the down-market segment faces declines. This shift is crucial as it aligns with their focus on high-value offerings like Copilot, which is driving significant revenue. Investors should note the company's emphasis on upmarket growth amidst challenges in the down-market.
Data provided by:Main Street Data

ZoomInfo Technologies Financial Statement Overview

Summary
Income Statement
Balance Sheet
Cash Flow
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue1.21B1.21B1.24B1.10B747.20M476.20M
Gross Profit1.01B1.02B1.06B909.60M610.50M368.70M
EBITDA147.10M156.30M514.60M330.00M214.20M85.20M
Net Income40.80M29.10M107.30M63.20M116.80M-36.40M
Balance Sheet
Total Assets6.41B6.47B6.87B7.14B6.85B2.33B
Cash, Cash Equivalents and Short-Term Investments140.50M139.90M529.30M545.70M326.70M300.40M
Total Debt180.80M1.39B1.33B1.31B1.30B784.50M
Total Liabilities4.76B4.77B4.75B4.86B4.86B1.39B
Stockholders Equity1.65B1.69B2.12B2.27B2.00B502.80M
Cash Flow
Free Cash Flow316.10M301.10M408.40M388.10M275.80M152.80M
Operating Cash Flow373.50M369.40M434.90M417.00M299.40M169.60M
Investing Cash Flow-40.80M13.40M24.40M-281.10M-695.80M-113.30M
Financing Cash Flow-600.00M-690.00M-427.20M-25.90M439.50M172.20M

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 (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
CXCXM
78
Outperform
$2.23B21.4017.50%6.75%97.06%
YOYOU
78
Outperform
$3.93B16.72124.77%1.69%21.59%223.84%
ZIZI
74
Outperform
$3.30B83.372.23%-3.12%-37.59%
SPSPT
64
Neutral
$1.08B-36.95%17.79%16.49%
63
Neutral
$1.66B-32.87%8.56%-4.21%
62
Neutral
$4.16B-63.52%30.08%-196.62%
51
Neutral
AU$1.55B2.02-31.50%3.11%16.21%-7.40%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
ZI
ZoomInfo Technologies
9.52
-1.93
-16.86%
SPT
Sprout Social
18.94
-17.74
-48.36%
GRND
Grindr
19.94
8.36
72.19%
CXM
Sprinklr
9.01
-0.37
-3.94%
YOU
Clear Secure
31.17
11.79
60.84%
AMPL
Amplitude
12.84
4.95
62.74%

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
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: ―