Personalized content recommendations coupled with real-time visitor intelligence will provide new insight into the buyer journey. TORONTO, April 1, 2025 /PRNewswire/ -- PathFactory, a B2B content intelligence and personalization platform today announced the launch of its strategic integration with ZoomInfo, a leading revenue intelligence platform, that will transform how B2B marketers understand and engage with website visitors. This groundbreaking partnership empowers organizations to turn anonymous web tr ...

Group 1 - The technology sector is characterized by constant change, with new trends emerging that can elevate certain startups while causing legacy providers to decline [1] - Gary Alexander has extensive experience in the technology industry, having worked on Wall Street and in Silicon Valley, and has been an adviser to seed-round startups [2] Group 2 - Alexander has been a contributor to Seeking Alpha since 2017 and his insights are widely disseminated across various trading platforms [2]

Core Viewpoint - ZoomInfo Technologies' stock surged 24% following the release of its Q4 2024 financial results, despite a year-over-year revenue decline of 2% [1][2]. Financial Performance - Q4 2024 revenue was reported at $309 million, down 2% from the previous year [2]. - The company added 58 new customers in Q4, each spending $100,000 annually, bringing the total customer count to 1,867 [2]. - For 2025, ZoomInfo anticipates revenue to remain flat at approximately $1.2 billion, consistent with 2024 figures [4]. - Management projects unlevered free cash flow between $420 million and $440 million for 2025, slightly down from $447 million in 2024 [4]. Market Reaction - Analysts upgraded their outlook for ZoomInfo stock due to better-than-expected results, despite guidance indicating flat growth for the upcoming year [3]. - The stock is currently trading at just under 10 times its unlevered free cash flow, suggesting a valuation that reflects prior concerns about continued declines [5]. Investment Considerations - While the stock appears reasonably valued, the ongoing revenue decline and flat growth raise concerns about the company's ability to attract new customers [6]. - The current business model relies heavily on customer acquisition, which poses challenges for ZoomInfo at this time [6].

Wall Street analysts rerated ZoomInfo Technologies Inc ZI after the company reported its fourth-quarter results Tuesday.Needham analyst Joshua Reilly reiterated ZoomInfo with a Buy and a $15 price target.Citizens Capital Markets analyst Patrick Walravens maintained ZoomInfo from Market Perform to Market Perform.Piper Sandler analyst Brent Bracelin upgraded ZoomInfo from Underweight to Neutral and raised the price target from $10 to $11.Also Read: Intuit Sees AI-Driven Growth With TurboTax, Credit Karma: Ana ...

Michael Wiggins De Oliveira is an inflection investor. This means buying into cheap companies at the moment when their narrative is changing and the business is on a path toward becoming significantly more profitable over the next year.With a focus on tech and “the Great Energy Transition (including uranium)”, Michael runs a concentrated portfolio with approximately 15 to 20 stocks and an average holding period of 18 months. Through his 10+ years analyzing countless companies, Michael has accumulated outsta ...

Financial Data and Key Metrics Changes - GAAP revenue for Q4 2024 was $309 million, with adjusted operating income of $116 million, representing a margin of 37%, both exceeding guidance expectations [9][36] - Net revenue retention (NRR) increased to 87% in Q4, marking the first sequential increase since Q1 2022 [18][37] - Unlevered free cash flow for Q4 was $94 million, with a margin of 30%, and for the full year 2024, it was $447 million, with a margin of 37% [41][42] Business Line Data and Key Metrics Changes - The operations business grew 27% year-over-year in Q4, driven by increased demand for data solutions [11][38] - Copilot, a key product, now has over $150 million in annual contract value (ACV), with significant growth in both new and existing customer segments [11][38] Market Data and Key Metrics Changes - Upmarket customers, defined as those with more than 100 employees, represent over two-thirds of the business and grew 2% in 2024, with expectations for mid-single-digit growth moving forward [14][16] - Down-market customers, those with fewer than 100 employees, declined 9% in 2024 but are stabilizing as a smaller, healthier portion of the business [15][16] Company Strategy and Development Direction - The company is focusing on upmarket growth, enhancing its product offerings and customer success initiatives to drive profitability [12][35] - Investments in AI and data solutions are expected to solidify the company's position as a leading provider of go-to-market data and AI for enterprise customers [12][35] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's momentum heading into 2025, with expectations for improved operating performance and profitability [46][47] - The company is discounting down-market contributions to guidance, focusing resources on upmarket opportunities [55][56] Other Important Information - The company has implemented a new business risk model that has improved customer onboarding and collection trends [37] - Share repurchases totaled 46.8 million shares at an average cost of $12, representing over 12% of total shares outstanding [39][40] Q&A Session Summary Question: Trends in SMB and enterprise segments - Management noted strength in the upmarket, particularly with operations and Copilot products, while the SMB segment is stabilizing but becoming a smaller part of the business [51][52] Question: Copilot ACV migration path - The company is migrating customers to Copilot both at renewal and off-cycle, with strong double-digit growth observed during migrations [66][67] Question: Drivers of NRR improvement - The improvement in NRR is attributed to better upsell opportunities in the upmarket and stabilization in the down-market [70][72] Question: Characteristics of the 100K customer cohort - The increase in the 100K customer cohort is driven by successful upselling and acquiring new customers, with a focus on maintaining quality [78][79] Question: Impact of layoffs on growth trajectory - Management remains optimistic about steady growth in the upmarket, driven by focused execution and product innovation [126][128] Question: Down-market disqualification of new business policies - The company does not anticipate changes to the $2 million a month headwind from down-market disqualifications [120][121]

Investor Overview Q4 and FY 2024 Financial Results February 25, 2025 DATE Q4 2024 EARNINGS CALL > SAFE HARBOR STATEMENT Forward-Looking Statements This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. Forward-looking statements include all statements that are not historical facts. In some cases, you can identify these fo ...

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 $0.26 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 13.04%. A quarter ago, it was expected that this company would post earnings of $0.22 per share when it actually produced earnings of $0.28, delivering a surprise of 27.27%.Over the last four quarters, the company has surpa ...

Financial Performance - Total revenue for 2024 was $1,214.3 million, a decrease of 2.0% from $1,239.5 million in 2023[369]. - Gross profit for 2024 was $1,024.5 million, down from $1,061.0 million in 2023, reflecting a gross margin of approximately 84.3%[369]. - Net income for 2024 was $29.1 million, a significant decrease of 72.9% compared to $107.3 million in 2023[369]. - Comprehensive income for 2024 was $16.6 million, down from $94.9 million in 2023, reflecting a significant decline[372]. - Net cash provided by operating activities decreased to $369.4 million in 2024 from $434.9 million in 2023, indicating a reduction of 15%[377]. - The company reported a basic net income per share of $0.08 for 2024, down from $0.27 in 2023[369]. - Subscription revenue for 2024 was $1,200.4 million, down from $1,225.1 million in 2023, reflecting a decline of 2.0%[443]. Operating Expenses - Operating expenses for 2024 totaled $927.1 million, an increase of 15.7% from $801.5 million in 2023[369]. - Equity-based compensation expense for 2024 was $143.5 million, a decrease from $173.0 million in 2023[377]. - The company incurred total charges of $30.1 million related to legal settlements during the year ended December 31, 2024, all of which have been paid[498]. Assets and Liabilities - Total current assets decreased to $451.0 million in 2024 from $864.3 million in 2023, primarily due to a reduction in cash and cash equivalents[367]. - Total liabilities increased slightly to $4,774.1 million in 2024 from $4,749.0 million in 2023[367]. - Cash, cash equivalents, and restricted cash at the end of 2024 totaled $149.0 million, down from $456.2 million at the end of 2023[379]. - The total lease liabilities as of December 31, 2024, were $161.1 million, an increase from $101.1 million in 2023[517]. Debt and Financing - The company reported a total principal balance outstanding of $588.1 million on its first lien term loan as of December 31, 2024[341]. - The company has a substantial amount of debt, which may adversely affect its financial position and ability to raise additional capital[29]. - The effective interest rate on the first lien debt was 6.56% as of December 31, 2024, down from 7.83% in 2023[471]. - The company has a total of $1,238.1 million in expected future principal payments, with $655.9 million due in 2029[473]. Risk Factors - The company anticipates increasing operating expenses in the future, which may impact profitability[340]. - The company is exposed to market risks from interest rate fluctuations, which could affect its financial condition[341]. - The company has operations in multiple countries, exposing it to risks inherent in international operations[29]. - The company may face challenges in attracting new customers and renewing existing subscriptions, which could harm revenue growth[26]. - The company has noted that macroeconomic conditions, including inflation, may impact its business, financial condition, and results of operations[340]. Tax and Deferred Assets - Deferred tax assets amounted to $3,717.6 million as of December 31, 2024, compared to $3,707.1 million in 2023[367]. - The evaluation of the realizability of deferred tax assets was identified as a critical audit matter, with deferred tax assets primarily related to intangibles[360][361]. - The company recognized $1.9 million in research and development tax credits for the year ended December 31, 2024, reducing General and administrative expenses[435]. Share Repurchase and Equity - The total number of shares repurchased in 2024 was 46,801,742, resulting in a cash outflow of $567.0 million[377]. - The company authorized a share repurchase program with total authorizations of $600 million in 2023 and $500 million in 2024, with $137.6 million remaining available for repurchases as of December 31, 2024[506]. - Basic net income per share attributable to common stockholders was $0.08 in 2024, down from $0.27 in 2023[515]. Impairment and Lease Charges - The company experienced a significant asset impairment and lease abandonment charge of $57.4 million in 2024, compared to only $5.2 million in 2023[377]. - Impairment charges of $4.3 million were recognized to reduce the carrying value of right-of-use assets related to the third and fourth phases of the lease[522]. - Lease abandonment charges of $4.1 million were incurred for vacated spaces during the second quarter of 2024[522]. Currency and Interest Rate Management - The company has implemented a foreign currency hedging program to mitigate potential adverse effects from significant currency movements[344]. - In Q2 2024, the Company had outstanding interest rate derivatives designated as cash flow hedges with a notional amount of $500.0 million and an interest rate of 0.370% maturing on January 30, 2026[478]. - The fair value of the Company's interest rate swap contracts was $19.9 million as of December 31, 2024, compared to $36.8 million as of December 31, 2023[484].

Financial Performance - GAAP revenue for Q4 2024 was $309.1 million, a decrease of 2% year-over-year[5] - GAAP operating income for Q4 2024 was $30.9 million, representing a 56% decline year-over-year[7] - Full-year 2024 GAAP revenue totaled $1,214.3 million, also a decrease of 2% year-over-year[9] - Adjusted operating income for FY 2024 was $428.5 million, a decrease of 14% year-over-year[9] - Total revenue for Q4 2024 was $309.1 million, a decrease of 2.1% from $316.4 million in Q4 2023[30] - Income from operations (GAAP) for Q4 2024 was $30.9 million, down from $70.5 million in Q4 2023, with a total for the year of $97.4 million compared to $259.5 million in 2023[43] - Adjusted Operating Income (Non-GAAP) for Q4 2024 was $115.9 million, a decrease from $126.5 million in Q4 2023, with a total for the year of $428.5 million compared to $498.6 million in 2023[43] - Revenue (GAAP) for Q4 2024 was $309.1 million, slightly down from $316.4 million in Q4 2023, with total revenue for the year at $1,214.3 million compared to $1,239.5 million in 2023[43] - Adjusted Net Income (Non-GAAP) for Q4 2024 was $93.6 million, down from $102.1 million in Q4 2023, with a total for the year of $363.8 million compared to $413.1 million in 2023[48] - Net income (GAAP) for Q4 2024 was $14.6 million, recovering from a loss of $5.5 million in Q4 2023, with total net income for the year at $29.1 million compared to $107.3 million in 2023[48] Customer Metrics - The company reported a net revenue retention rate of 87% as of December 31, 2024[5] - The company closed Q4 2024 with 1,867 customers with annual contract values of $100,000 or greater, an increase of 58 from the prior quarter[5] - Sales teams using ZoomInfo reported a 91% improvement in connect rates and booked 55% more meetings per month[5] Guidance and Expectations - For Q1 2025, the company expects revenue between $294 million and $297 million[11] - Full-year 2025 revenue guidance is set between $1.185 billion and $1.205 billion[11] Operating Expenses and Profitability - Operating expenses increased to $225.0 million in Q4 2024, compared to $201.3 million in Q4 2023, marking an increase of 11.8%[30] - Operating Income Margin (GAAP) for Q4 2024 was 10%, down from 22% in Q4 2023, with a total margin for the year at 8% compared to 21% in 2023[43] - Adjusted Operating Income Margin (Non-GAAP) for Q4 2024 was 37%, down from 40% in Q4 2023, with a total margin for the year at 35% compared to 40% in 2023[43] Cash Flow and Assets - Cash and cash equivalents decreased to $139.9 million at the end of 2024, down from $447.1 million at the end of 2023, representing a decline of 68.8%[32] - Total assets decreased to $6,467.6 million in 2024, down from $6,868.3 million in 2023, a reduction of 5.8%[28] - Total liabilities increased slightly to $4,774.1 million in 2024, compared to $4,749.0 million in 2023, an increase of 0.5%[28] - Unlevered Free Cash Flow for the twelve months ended December 31, 2024, was $446.9 million, a decrease of 3.6% from $463.5 million in 2023[38] - The company reported a net cash provided by operating activities of $369.4 million for the twelve months ended December 31, 2024, down from $434.9 million in 2023, a decrease of 15%[32] Equity and Compensation - ZoomInfo repurchased 46,801,742 shares of common stock, accounting for 12% of total shares outstanding, at an average price of $12.01, totaling $562.3 million[5] - Equity-based compensation expense totaled $138.0 million for the twelve months ended December 31, 2024, compared to $167.0 million in 2023, a decrease of 17.4%[30] - Equity-based compensation expense for Q4 2024 was $33.8 million, down from $40.7 million in Q4 2023, with total expenses for the year at $138.0 million compared to $167.6 million in 2023[48] Restructuring and Expenses - Restructuring and transaction-related expenses for Q4 2024 were $34.6 million, significantly higher than $0.4 million in Q4 2023, with total expenses for the year at $101.6 million compared to $10.3 million in 2023[48]