ZoomInfo (NASDAQ:ZI) Posts Q1 Sales In Line With Estimates But Stock Drops 15.9% By Stock Story

Sales intelligence platform ZoomInfo
reported results in line with analysts’ expectations in Q1 CY2024, with revenue up 3.1% year on year to $310.1 million. On the other hand, next quarter’s revenue guidance of $307.5 million was less impressive, coming in 1.8% below analysts’ estimates. It made a non-GAAP profit of $0.26 per share, improving from its profit of $0.24 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) Q1 CY2024 Highlights:

• Revenue: $310.1 million vs analyst estimates of $308.9 million (small beat)
• EPS (non-GAAP): $0.26 vs analyst estimates of $0.23 (11.1% beat)
• Revenue Guidance for Q2 CY2024 is $307.5 million at the midpoint, below analyst estimates of $313.3 million
• The company dropped its revenue guidance for the full year from $1.27 billion to $1.26 billion at the midpoint, a 0.6% decrease
• Gross Margin (GAAP): 89.1%, in line with the same quarter last year
• Free Cash Flow of $103.1 million, down 18.2% from the previous quarter
• Market Capitalization: $6.28 billion
• ZoomInfo approved an additional $500 million under the share repurchase program, bringing the total aggregate authorization to $1.1 billion, of which $546.8 million remained outstanding as of quarter-end.

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 very strong over the last three years, growing from $153.3 million in Q1 2021 to $310.1 million this quarter.

ZoomInfo’s quarterly revenue was only up 3.1% year on year, which might disappoint some shareholders. On top of that, the company’s revenue actually decreased by $6.3 million in Q1 compared to the $2.6 million increase in Q4 CY2023. Taking a closer look we can a similar revenue decline in the same quarter last year, which could suggest that the business has seasonal elements….