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ZoomInfo (NASDAQ:ZI) Posts Better-Than-Expected Sales In Q4, Stock Jumps 10.2% By Stock Story

ZoomInfo (NASDAQ:ZI) Posts Better-Than-Expected Sales In Q4, Stock Jumps 10.2%

ZoomInfo (NASDAQ:ZI) Posts Better-Than-Expected Sales In Q4, Stock Jumps 10.2%

Sales intelligence platform ZoomInfo
reported Q4 FY2023 results topping analysts’ expectations, with revenue up 4.9% year on year to $316.4 million. The company expects next quarter’s revenue to be around $308.5 million, in line with analysts’ estimates. It made a non-GAAP profit of $0.26 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.

ZoomInfo (ZI) Q4 FY2023 Highlights:

  • Revenue: $316.4 million vs analyst estimates of $310.5 million (1.9% beat)
  • EPS (non-GAAP): $0.26 vs analyst estimates of $0.25 (5.6% beat)
  • Revenue Guidance for Q1 2024 is $308.5 million at the midpoint, roughly in line with what analysts were expecting
  • Management’s revenue guidance for the upcoming financial year 2024 is $1.27 billion at the midpoint, in line with analyst expectations and implying 2.5% growth (vs 13.5% in FY2023)
  • Free Cash Flow of $119.9 million, up 26.5% from the previous quarter
  • Gross Margin (GAAP): 88.9%, up from 87.8% in the same quarter last year
  • Market Capitalization: $6.00 billion

“We ended the year strong, with better-than-expected sequential revenue growth, while we delivered another year of profitability and free cash flow,” said Henry Schuck, ZoomInfo Founder and CEO.

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 strong over the last two years, growing from $222.3 million in Q4 FY2021 to $316.4 million this quarter.

ZoomInfo’s quarterly revenue was only up 4.9% year on year, which might disappoint some shareholders. Additionally, its growth did slow down compared to last quarter as the company’s revenue increased by just $2.6 million in Q4 compared to $5.1 million in Q3 2023. While we’d like to see revenue increase by a greater amount each quarter, a one-off fluctuation is usually not concerning.

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