Stock Story -
Sales intelligence platform ZoomInfo (NASDAQ:ZI) fell short of analysts' expectations in Q2 CY2024, with revenue down 5.5% year on year to $291.5 million. Next quarter's revenue guidance of $299.5 million also underwhelmed, coming in 5.6% below analysts' estimates. It made a non-GAAP profit of $0.17 per share, down from its profit of $0.26 per share in the same quarter last year.
Is now the time to buy ZoomInfo? Find out by reading the original article on StockStory, it's free.
ZoomInfo (ZI) Q2 CY2024 Highlights:
- Revenue: $291.5 million vs analyst estimates of $307.7 million (5.3% miss)
- Adjusted Operating Income: $81.6 million vs analyst estimates of $115.3 million (29.2% miss)
- EPS (non-GAAP): $0.17 vs analyst expectations of $0.23 (27.6% miss)
- Revenue Guidance for Q3 CY2024 is $299.5 million at the midpoint, below analyst estimates of $317.2 million
- The company dropped its revenue guidance for the full year from $1.26 billion to $1.20 billion at the midpoint, a 5.1% decrease
- Gross Margin (GAAP): 87.5%, down from 89.1% in the same quarter last year
- Free Cash Flow of $115.2 million, similar to the previous quarter
- Customers: 1,797 customers paying more than $100,000 annually
- Market Capitalization: $3.89 billion
Founded in 2007 as DiscoveryOrg and renamed after a merger in 2019, ZoomInfo (NASDAQ:ZI) is a software as a service product that provides sales departments with access to a database of prospective clients.
Sales SoftwareCompanies need to be able to interact with and sell to their customers as efficiently as possible. This reality coupled with the ongoing migration of enterprises to the cloud drives demand for cloud-based customer relationship management (CRM) software that integrates data analytics with sales and marketing functions.
Sales GrowthAs you can see below, ZoomInfo's revenue growth has been solid over the last three years, growing from $174 million in Q2 2021 to $291.5 million this quarter.
This quarter, ZoomInfo's revenue was down 5.5% year on year, which might disappointment some shareholders.
Next quarter, ZoomInfo is guiding for a 4.6% year-on-year revenue decline to $299.5 million, a further deceleration from the 9.1% year-on-year decrease it recorded in the same quarter last year. Looking ahead, analysts covering the company were expecting sales to grow 6% over the next 12 months before the earnings results announcement.
Large Customers Growth This quarter, ZoomInfo reported 1,797 enterprise customers paying more than $100,000 annually, an increase of 37 from the previous quarter. That's a bit more contract wins than last quarter but also quite a bit below what we've typically observed over the last year, suggesting that the company may be reinvigorating growth.
Key Takeaways from ZoomInfo's Q2 Results It was tough to see ZoomInfo miss analysts' revenue and earnings expectations this quarter. Its full-year revenue guidance also dropped, sending shares lower. Overall, this was a bad quarter for ZoomInfo. The stock traded down 12% to $8.64 immediately after reporting.
