ZI Stock Recent News

ZoomInfo's strong fundamentals don't match its low valuation, and that's before you consider the promise of its AI-driven business model. High-quality data management sets the stage for automating customer relationships.

ZoomInfo mostly met expectations in its second-quarter earnings report, but guidance was weak. It's one of several tech stocks feeling the headwinds in the sector.

Yahoo Finance anchors Brad Smith and Julie Hyman break down the earnings for Zoominfo and the stock dropping after the company cut its full-year guidance for revenue, free cash flow, and earnings. Deutsche Bank downgraded the stock to "hold" from "buy.

The Nasdaq moved lower Tuesday morning after posting strong monthly gains in July. ZoomInfo Technologies warned that its growth will slow.

The company issued disappointing financial guidance late on Monday, triggering a steep slide in the stock price.

ZoomInfo (ZI) came out with quarterly earnings of $0.26 per share, beating the Zacks Consensus Estimate of $0.23 per share. This compares to earnings of $0.21 per share a year ago.

ZoomInfo Technologies Inc. provides sales and marketing solutions by offering detailed profiles of individuals and businesses, facilitating outreach to potential leads. Despite its alluring narrative, ZoomInfo's stock carries a premium valuation, while its growth rates appear to be decelerating. The company has acknowledged worse net retention activity in Q1 compared to the previous quarter, indicating potential challenges in customer retention.

I reiterate a buy rating for ZI based on strong 1Q23 performance and positive updates from the JPM TMC Conference, and expects growth to accelerate throughout the year. Near-term momentum remains strong, with management's guidance indicating sequential revenue growth and a return to normalized growth rates, while ZI's focus on enterprise customers and international expansion supports high growth expectations. Risks related to disengaged customer renewal rates and weakness in the software vertical should be considered.

ZoomInfo's most recent quarter showed some green shoots in terms of percentage revenue growth, and growth after the close of the quarter improved. The company has introduced some initial functionality employing ChatGPT and the company's Chorus technology.

ZoomInfo has a strong track record of growth as well as excellent unit economics that are still improving. The company has been operating profitably and is cash efficient, bringing in 1.64x as much as operating cash flow as operating income last quarter.