VANCOUVER, Wash.--(BUSINESS WIRE)-- #Customer--ZoomInfo (Nasdaq: GTM), the Go-To-Market (GTM) Intelligence Platform, today announced results from a commissioned Total Economic Impactâ"¢ (TEI) study conducted by Forrester Consulting that examines the potential return on investment (ROI) enterprises may realize by deploying ZoomInfo. The study found that a composite company achieved a 316% ROI, $7.6 million in total quantified benefits, and $5.8 million in net present value (NPV) from improved data quality, p ...

NEW YORK--(BUSINESS WIRE)--Halper Sadeh LLC, an investor rights law firm, is investigating whether certain officers and directors of ZoomInfo Technologies Inc. (NASDAQ: GTM) breached their fiduciary duties to shareholders. If you currently own ZoomInfo stock and are a long-term shareholder, you may be able to seek corporate governance reforms, the return of funds back to the company, a court-approved financial incentive award, or other relief and benefits. Please click here to learn more about. ...

Core Insights - ZoomInfo has launched the AI Builder Catalog, which is a specialized dataset designed to provide verifiable Proof-of-Work Signals to enhance AI hiring processes [1] Company Summary - The AI Builder Catalog aims to accelerate the hiring of AI talent by surfacing relevant and verifiable data [1]

Core Viewpoint - ZoomInfo has received an upgrade to a Zacks Rank 2 (Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system reflects changes in earnings estimates, which are strongly correlated with near-term stock price movements [4][6]. - Institutional investors often rely on earnings estimates to determine the fair value of stocks, leading to buying or selling actions that affect stock prices [4]. Company Performance Indicators - The Zacks Consensus Estimate for ZoomInfo has increased by 1% over the past three months, with expected earnings of $1.01 per share for the fiscal year ending December 2025, showing no year-over-year change [8]. - The upgrade to Zacks Rank 2 places ZoomInfo in the top 20% of Zacks-covered stocks, suggesting potential for market-beating returns in the near term [10]. Zacks Rating System Overview - The Zacks Rank system categorizes stocks into five groups based on earnings estimates, with a strong historical performance of Zacks Rank 1 stocks generating an average annual return of +25% since 1988 [7]. - The system maintains a balanced distribution of "buy" and "sell" ratings, ensuring that only the top 20% of stocks receive favorable ratings based on earnings estimate revisions [9][10].

Group 1 - ZoomInfo Technologies Inc. reported Q3 earnings of 28 cents per share, exceeding the analyst consensus estimate of 26 cents per share [1] - The company achieved quarterly sales of $318 million, surpassing the analyst consensus estimate of $303.812 million [1] - Following the earnings announcement, analysts adjusted their price targets for ZoomInfo, with Keybanc raising it from $9 to $10 and Barclays from $13 to $14 [6] Group 2 - ZoomInfo raised its FY2025 adjusted EPS guidance from a range of $0.99-$1.01 to $1.04-$1.06, and increased sales guidance from $1.215 billion-$1.225 billion to $1.237 billion-$1.240 billion [2] - CEO Henry Schuck highlighted strong Q3 results, record revenue, and improved net revenue retention, emphasizing the company's strategic focus and value to customers [3] - Despite positive earnings, ZoomInfo shares fell 1.5% to trade at $11.62 [3]

Group 1 - The article does not provide any relevant content regarding company or industry insights [1]

Financial Performance - Revenue for Q3 2025 was $318.0 million, a 4.5% increase from $303.6 million in Q3 2024[28] - Gross profit for Q3 2025 reached $266.3 million, compared to $256.3 million in Q3 2024, reflecting a gross margin improvement[28] - Net income for Q3 2025 was $38.7 million, up 62.4% from $23.8 million in Q3 2024[28] - Comprehensive income for Q3 2025 was $34.4 million, significantly higher than $15.2 million in Q3 2024[31] - Net income for the nine months ended September 30, 2025, was $89.5 million, a significant increase from $14.5 million in the same period of 2024[38] - For the nine months ended September 30, 2025, total revenue reached $930.4 million, up from $905.2 million in 2024, reflecting a growth of 2.5%[184] - Basic net income per share attributable to common stockholders increased to $0.27 for the nine months ended September 30, 2025, compared to $0.04 in 2024, reflecting a significant growth in net income from $14.5 million to $89.5 million[155] Assets and Liabilities - Total assets as of September 30, 2025, were $6,369.7 million, a slight decrease from $6,467.6 million at the end of 2024[25] - Total liabilities increased to $4,839.2 million as of September 30, 2025, compared to $4,774.1 million at the end of 2024[25] - Cash and cash equivalents decreased to $124.8 million from $139.9 million at the end of 2024[25] - The balance of common stock as of September 30, 2025, was $3.0 million, with total stockholders' equity at $1,530.5 million[36] - Total debt increased to $1,324.9 million as of September 30, 2025, compared to $1,227.7 million as of December 31, 2024, reflecting a rise of 7.9%[120] Operating Expenses - Operating expenses for Q3 2025 were $198.8 million, down from $212.8 million in Q3 2024, indicating cost management efforts[28] - Research and development expenses for Q3 2025 were $44.1 million, slightly down from $47.7 million in Q3 2024, indicating a focus on efficiency[28] - Advertising expenses for the three months ended September 30, 2025, were $8.1 million, compared to $9.2 million for the same period in 2024[66] - Rent expense for the nine months ended September 30, 2025, was $24.9 million, down from $28.8 million in 2024, including restructuring costs related to the Waltham Lease[158] Cash Flow and Financing - Total cash provided by operating activities for the nine months ended September 30, 2025, was $321.9 million, compared to $260.4 million in 2024, reflecting a growth of approximately 23.6%[38] - The company reported a net cash used in financing activities of $265.4 million for the nine months ended September 30, 2025, down from $596.8 million in 2024, indicating improved cash management[40] - The Company authorized a total of $1.6 billion for its Share Repurchase Program as of September 30, 2025, with $309.6 million remaining available for repurchases[93] - The Company repurchased common stock totaling $331.3 million during the nine months ended September 30, 2025, compared to $542.6 million in the same period of 2024[40] Customer and Revenue Insights - The company maintains a diverse customer base, with no single customer accounting for 10% or more of revenue for the three and nine months ended September 30, 2025[57] - Revenue derived from customers outside the United States accounted for approximately 12% of total revenues for both the three and nine months ended September 30, 2025, and 2024[182] - The company generates nearly all revenue from subscription sales, with approximately 53% of customer contracts being multi-year agreements[204] - The net revenue retention rate was 90% as of September 30, 2025, compared to 85% for the same date in 2024[208] - The number of customers with over $100,000 in annual contract value (ACV) increased to 1,887 as of September 30, 2025, up from 1,809 in 2024[208] Shareholder and Stock Information - The weighted average number of shares of common stock outstanding for basic computation was 316,966,947 for Q3 2025, down from 354,940,772 in Q3 2024[154] - The Company granted 7,544,717 restricted stock units with a grant date fair value of $10.29 during the nine months ended September 30, 2025, compared to 9,149,767 units in 2024[169] - The total number of anti-dilutive securities for the nine months ended September 30, 2025, was 16,002,386, compared to 15,532,344 in 2024, indicating a rise in potential dilution[155] Accounting and Compliance - The company is evaluating the impacts of recently issued accounting standards on its financial reporting process and internal controls[100] - The Company measures operating lease right-of-use assets and liabilities based on the present value of fixed minimum remaining lease payments[78] - The Company accounts for amounts payable under Tax Receivable Agreements as a liability when it is probable that a liability has been incurred and the amount is estimable[84] - The Company had a liability of $2,725.1 million related to projected obligations under Tax Receivable Agreements (TRAs) as of September 30, 2025[187] Risks and Challenges - The company intends to vigorously defend against multiple class action lawsuits, including those related to publicity rights and consumer protection[147][150] - A new business risk model was deployed to mitigate the risk of non-payment from high-risk prospects[210] - The company recorded an incremental charge in Q2 2024 impacting revenue and administrative expenses due to adjustments in reserves for uncollectible accounts[211]

Financial Performance - GAAP revenue for Q3 2025 was $318.0 million, representing a 5% year-over-year increase[4] - GAAP operating income was $67.5 million, with an operating income margin of 21%[4] - Adjusted operating income reached $117.7 million, with an adjusted operating income margin of 37%[4] - Revenue for the three months ended September 30, 2025, was $318.0 million, a 4.5% increase from $303.6 million in the same period of 2024[29] - Adjusted Operating Income for the three months ended September 30, 2025, was $117.7 million, compared to $111.7 million in 2024, reflecting a 5.4% increase[39] - The GAAP Net Income for the three months ended September 30, 2025, was $38.7 million, up from $23.8 million in 2024, representing a 62.5% increase[43] - The company's Adjusted Net Income for the nine months ended September 30, 2025, was $263.0 million, slightly down from $270.2 million in 2024, indicating a decrease of 2.6%[43] Customer Metrics - The company closed the quarter with 1,887 customers with annual contract values of $100,000 or greater, an increase of 78 year-over-year[4] - 73% of the company's annual contract value (ACV) was from Upmarket, which grew 6% year-over-year[4] - The net revenue retention rate improved to 90%[4] Cash Flow and Share Repurchase - Cash flow from operations was $93.8 million, a 415% increase year-over-year[6] - The company repurchased 8.3 million shares at an average price of $10.46 per share, totaling $86.6 million[4] - Operating cash flow for the nine months ended September 30, 2025, was $321.9 million, compared to $260.4 million in 2024, representing a 23.6% increase[31] - Unlevered Free Cash Flow for the nine months ended September 30, 2025, was $319.7 million, compared to $353.3 million in 2024, a decrease of 9.5%[34] Income and Expenses - The company incurred total operating expenses of $610.4 million for the nine months ended September 30, 2025, down from $702.1 million in 2024, a reduction of 13.1%[29] - Basic net income per share for the three months ended September 30, 2025, was $0.12, compared to $0.07 in the same period of 2024, an increase of 71.4%[29] - Equity-based compensation expense for the three months ended September 30, 2025, was $29.9 million, down from $36.6 million in 2024, a reduction of 18.4%[43] - The company incurred restructuring and transaction-related expenses of $4.7 million for the three months ended September 30, 2025, significantly lower than $16.8 million in 2024, a decrease of 72%[43] Balance Sheet - Total current assets decreased to $372.2 million as of September 30, 2025, down from $451.0 million at the end of 2024, a decline of 17.5%[27] - Total liabilities increased to $4,839.2 million as of September 30, 2025, compared to $4,774.1 million at the end of 2024, an increase of 1.4%[27] - The company reported a total stockholders' equity of $1,530.5 million as of September 30, 2025, down from $1,693.5 million at the end of 2024, a decrease of 9.6%[27] Future Projections - For Q4 2025, the company expects GAAP revenue between $307 million and $310 million[7] - Non-GAAP adjusted net income per share for FY 2025 is projected to be between $1.04 and $1.06[7]

Core Insights - Oppenheimer Asset Management Inc. increased its stake in ZoomInfo Technologies Inc. by 34.9% in Q2, owning 65,034 shares valued at $658,000 after acquiring an additional 16,835 shares [2] - Other institutional investors also significantly raised their positions in ZoomInfo, with Parallel Advisors LLC increasing its stake by 143.6%, Brooklyn Investment Group by 180.5%, and several others showing substantial increases [3] - Institutional investors and hedge funds collectively own 95.47% of ZoomInfo's stock, indicating strong institutional interest in the company [3] Financial Performance - ZoomInfo Technologies' stock price increased by 2.9%, opening at $11.22, with a market capitalization of $3.84 billion [4] - The company has a price-to-earnings ratio of 374.12 and a PEG ratio of 13.05, suggesting high growth expectations relative to earnings [4] - The stock has a 1-year low of $7.01 and a 1-year high of $13.39, reflecting volatility in its market performance [4] Company Overview - ZoomInfo Technologies provides a go-to-market intelligence and engagement platform for sales and marketing teams, offering cloud-based solutions to identify target customers and decision-makers [5] - The platform includes features for predictive lead scoring, monitoring buying signals, and automating sales processes, enhancing user engagement and tracking through the deal cycle [5]

Core Viewpoint - Kuehn Law, PLLC is investigating potential breaches of fiduciary duties by certain officers and directors of ZoomInfo Technologies, Inc. related to misrepresentation of the company's financial and operational results due to the effects of the COVID-19 pandemic [1] Summary by Relevant Sections Financial Misrepresentation - ZoomInfo's financial results were allegedly inflated by temporary demand increases during the COVID-19 pandemic, leading to a misrepresentation of the company's actual performance [1] - The lawsuit claims that ZoomInfo's reported revenues, operating income, and customer retention metrics were materially overstated [1] Customer Base Concerns - A significant portion of ZoomInfo's existing customers were reportedly attempting to reduce their usage or abandon the product altogether [1] - The company allegedly employed manipulative auto-renew policies and threats of litigation to retain customers against their will, damaging customer relationships and competitive advantages [1] Future Implications - The coercive tactics used by ZoomInfo are said to have created a hidden demand cliff for future customer contract renewals, indicating potential challenges in sustaining revenue growth [1]