ZoomInfo Technologies Inc (NASDAQ:ZI) modestly boosted its profit guidance for the full year to send its shares 5% higher in premarket Tuesday.
The software company now sees adjusted EPS between $0.99 and $1.01, up from the prior forecast of $0.98-$1.00. Analysts were expecting an FY EPS of $0.98.
Mizuho analysts said ZI’s results were “better than feared.”
“We reiterate our belief that ZoomInfo has a highly differentiated and sticky technology, multiple levers for growth, a large TAM, and the best-in-class financial profile in SaaS,” they said in a note.
For this quarter, ZoomInfo sees EPS of $0.225 on revenue of $311 million, in line with estimates. For Q1, the company delivered adjusted EPS of $0.24 while revenue rose 24% year-over-year to $300.7M.
Goldman Sachs analysts reiterated a Buy rating on ZI stock as they see a compelling setup for a recovery in the second half of the year.
“Broadly aligning with our thesis on the software sector, we believe revenues will accelerate in 2H23 as comps get easier. Sequential revenue growth for ZI bottomed out in 1Q (flat) and we expect growth to sequentially accelerate (3%/5%/5% q/q in 2Q/3Q/4Q) as comps get easier in each subsequent quarter, seat growth improves as macro trends stabilize, the mix of upsells and international revenues increase (advanced functionality and international revs are both growing at a faster pace than the overall business). ZoomInfo continues to be a show-me story as investors build conviction around the de-risked CY23 guidance with the potential for a 2H recovery,” they said.