SAN DIEGO, Sept. 07, 2024 (GLOBE NEWSWIRE) -- The law firm of Robbins Geller Rudman & Dowd LLP announces that purchasers of ZoomInfo Technologies, Inc. (NASDAQ: ZI) Class A common stock between November 10, 2020 and August 5, 2024, both dates inclusive (the "Class Period"), have until November 4, 2024 to seek appointment as lead plaintiff of the ZoomInfo class action lawsuit. Captioned City of Pontiac Police and Fire Retirement System v. ZoomInfo Technologies, Inc., No. 24-cv-05739 (W.D. Wash.), the ZoomInf ...

Investors can contact the law firm at no cost to learn more about recovering their losses LOS ANGELES, Sept. 06, 2024 (GLOBE NEWSWIRE) -- The Portnoy Law Firm advises ZoomInfo Technologies Inc. ("ZoomInfo" or the "Company") (NASDAQ: ZI) investors of a class action representing investors that bought securities between November 10, 2020 and August 5, 2024, inclusive (the "Class Period"). ZoomInfo investors have until November 4, 2024 to file a lead plaintiff motion. Investors are encouraged to contact attorne ...

SAN DIEGO, Sept. 05, 2024 (GLOBE NEWSWIRE) -- Robbins LLP informs investors that a shareholder filed a class action on behalf of all purchasers of ZoomInfo Technologies, Inc. (NASDAQ: ZI) Class A common stock between November 10, 2020 and August 5, 2024. ZoomInfo is a software and data company that provides customer analytics and intelligence to sales and marketing teams. For more information, submit a form, email attorney Aaron Dumas, Jr., or give us a call at (800) 350-6003. The Allegations: Robbins LLP i ...

Core Viewpoint - A class action lawsuit has been filed against ZoomInfo Technologies, Inc. for alleged violations of federal securities laws, claiming that the company misled investors regarding its financial health and customer retention practices [1][2][3]. Class Definition - The lawsuit seeks damages for all individuals and entities that purchased ZoomInfo securities between November 10, 2020, and August 5, 2024, inclusive [2]. Case Details - The Complaint alleges that: - ZoomInfo's financial results were temporarily inflated due to the COVID-19 pandemic, which created a pull-forward demand for its services [3]. - Significant portions of ZoomInfo's customer base were either reducing their usage or abandoning the product entirely [3]. - The company employed manipulative auto-renew policies and threats of litigation to retain customers against their will [3]. - These coercive tactics have harmed customer relationships and created a hidden demand cliff for future contract renewals [3]. - Consequently, ZoomInfo's reported revenues, operating income, and customer retention metrics were significantly overstated [3]. Next Steps - Investors who suffered losses in ZoomInfo have until November 4, 2024, to request to be appointed as lead plaintiff in the class action [4].

Core Viewpoint - A securities class action lawsuit has been filed against ZoomInfo Technologies, Inc. for allegedly misleading investors regarding the company's financial health and customer retention practices during the COVID-19 pandemic [1][2]. Group 1: Allegations Against ZoomInfo - The lawsuit claims that ZoomInfo's financial results were artificially inflated due to temporary demand increases caused by the COVID-19 pandemic [2]. - It is alleged that a significant portion of ZoomInfo's customer base was either reducing their usage of the product or abandoning it entirely [2]. - The company reportedly employed manipulative auto-renew policies and threats of litigation to retain customers against their will [2]. - These coercive tactics are said to have harmed customer relationships and created a hidden demand cliff for future contract renewals [2]. - As a result of these practices, ZoomInfo's reported revenues, operating income, and customer retention metrics were allegedly overstated [2]. Group 2: Legal Proceedings - Investors who acquired shares of ZoomInfo during the specified class period are encouraged to contact the law firm representing the class action before the lead plaintiff motion deadline on November 4, 2024 [3].

SAN DIEGO, Sept. 04, 2024 (GLOBE NEWSWIRE) -- Robbins Geller Rudman & Dowd LLP announces that purchasers of ZoomInfo Technologies, Inc. (NASDAQ: ZI) Class A common stock between November 10, 2020 and August 5, 2024, inclusive (the "Class Period"), have until November 4, 2024 to seek appointment as lead plaintiff of the ZoomInfo class action lawsuit. Captioned City of Pontiac Police and Fire Retirement System v. ZoomInfo Technologies, Inc., No. 24-cv-05739 (W.D. Wash.), the ZoomInfo class action lawsuit char ...

Core Viewpoint - ZoomInfo Technologies Inc. reported disappointing financial results for Q2 2024, leading to a significant drop in its stock price, and is currently under investigation for potential claims by investors [2]. Financial Performance - ZoomInfo's adjusted earnings per share for Q2 2024 were $0.17, which was below the analyst consensus estimate of $0.24 [2]. - The company experienced a year-over-year revenue decline of 6%, totaling $291.5 million, which also fell short of the expected revenue of $307.68 million [2]. Management Changes - The Chief Financial Officer, Cameron Hyzer, is set to depart from his role effective September 6, 2024 [2]. Stock Market Reaction - Following the announcement of the financial results and management change, ZoomInfo's stock price decreased by $1.79 per share, or 18.27%, closing at $8.01 per share on August 6, 2024 [2].

Investment Summary - Previous investment thought for ZoomInfo Technologies (ZI) was a sell rating due to relatively expensive valuation compared to peers experiencing similar growth weakness [2] - ZI's share price has fallen from approximately $12 to $9, with valuation multiple revised from 4.4x forward revenue to 3.6x [2] 2Q24 Performance - ZI reported a total revenue decline of 5.6% year-over-year, down from a 3.1% growth in 1Q24, totaling $291.5 million [3] - Adjusted EBIT margin decreased from approximately 40% in 2Q23 to 28% in 2Q24, leading to adjusted EPS of $0.17, down from $0.26 in 2Q23 [3] - Poor performance in the SMB segment resulted in elevated write-offs, with a $33 million incremental charge recognized this quarter [3] Demand Stabilization - Customer growth metrics have turned positive after multiple quarters of decline, with the number of customers with over $100k in annual contract value (ACV) growing 2.1% sequentially [4] - ZI signed its largest new business deal of $1.4 million in ACV, marking 2Q24 as the best new business quarter in the mid-market and enterprise [4] - The dollar-based net retention rate (DBNRR) stabilized at 85%, indicating potential recovery in the upmarket segment [5] Product Performance - ZI's Copilot product has been adopted by the majority of customers, contributing $18 million in ACV from over 1,000 logos, showing improvements in engagement and utilization rates [5] - Management noted opportunities for pricing uplift from Copilot, indicating a focus on monetization as adoption increases [5] Guidance and Valuation - Management's FY24 guidance appears conservative, not assuming any upfront prepayment from riskier SMB customers and a higher rate of write-offs for 2H24 [6] - ZI has a history of beating its own adjusted EPS and revenue guidance, suggesting potential for upside surprises [6] - A hold rating is maintained as more evidence of demand growth is awaited, with potential for significant upside if demand recovers [7] Conclusion - ZI's 2Q24 performance was mixed, facing headwinds in the SMB segment but showing signs of stabilization in customer growth metrics and product traction [9] - Ongoing uncertainties in the SMB market warrant caution before turning bullish [9]

Core Viewpoint - Pomerantz LLP is investigating potential securities fraud or unlawful business practices involving ZoomInfo Technologies Inc. and its executives, following disappointing financial results and a significant stock price drop [1][2][3]. Financial Performance - ZoomInfo reported adjusted earnings per share of $0.17 for Q2 2024, which was below the analyst consensus estimate of $0.24 [2]. - The company experienced a year-over-year revenue decline of 6%, totaling $291.5 million, which also fell short of the expected $307.68 million [2]. Executive Changes - ZoomInfo announced the departure of its Chief Financial Officer, Cameron Hyzer, effective September 6, 2024 [2]. Stock Market Reaction - Following the announcement of the financial results, ZoomInfo's stock price decreased by $1.79 per share, representing an 18.27% drop, closing at $8.01 per share on August 6, 2024 [3].

Revenue and Customer Metrics - ZoomInfo's net revenue retention rate was 85% as of June 30, 2024, indicating a focus on expanding customer relationships [193]. - The company added new customers over the last 24 months, contributing incremental revenues for the three months ended June 30, 2024, compared to the same period in 2023 [192]. - As of June 30, 2024, ZoomInfo had 1,797 customers with over $100,000 in annual contract value (ACV) [193]. - Over 45% of customer contracts are multi-year agreements, reflecting a stable revenue model [187]. - Revenue for the three months ended June 30, 2024 was $291.5 million, a decrease of $17.1 million, or 6%, compared to $308.6 million for the same period in 2023 [221]. - Revenue for the six months ended June 30, 2024 was $601.6 million, a decrease of $7.7 million, or 1%, compared to $609.3 million for the same period in 2023 [230]. - The company reported unearned revenue of $440.4 million as of June 30, 2024, with $438.9 million expected to be recognized as revenue in the next 12 months [257]. Expenses and Profitability - Operating expenses increased to $265.6 million for the three months ended June 30, 2024, an increase of $60.2 million, or 29%, compared to $205.4 million for the same period in 2023 [222]. - General and administrative expenses for the three months ended June 30, 2024 were $111.3 million, an increase of $69.2 million, or 164%, compared to $42.1 million for the same period in 2023 [224]. - Net loss for the three months ended June 30, 2024 was $24.4 million, a decrease of $62.5 million, or 164%, compared to net income of $38.1 million for the same period in 2023 [229]. - Adjusted Operating Income for the three months ended June 30, 2024, was $81.6 million, representing an Adjusted Operating Income Margin of 28%, down from $125.6 million and 41% for the same period in 2023 [248]. - Adjusted Net Income for the three months ended June 30, 2024 was $66.0 million, down $40.4 million, or 38%, compared to $106.4 million for the same period in 2023 [251]. - Adjusted EBITDA for the three months ended June 30, 2024 was $87.4 million, a decrease of $43.0 million, or 33%, from $130.4 million in the same period of 2023 [254]. Cash Flow and Financing - Net cash provided by operating activities for the six months ended June 30, 2024 was $242.2 million, resulting from a net loss of $9.3 million adjusted by non-cash charges of $242.6 million [261]. - Cash flows from investing activities for the six months ended June 30, 2024, provided $44.6 million, primarily from maturities of short-term investments of $69.0 million [266]. - Net cash used in financing activities for the six months ended June 30, 2024, was $348.2 million, including $299.2 million for common stock repurchase [267]. - As of June 30, 2024, the company had $385.9 million in cash and cash equivalents, $13.4 million in short-term investments, and $250.0 million available under its first lien revolving credit facility [256]. Debt and Interest Rates - The company entered into an amendment to its First Lien Credit Agreement in June 2024, reducing the applicable rate for loans by 50 basis points [191]. - As of June 30, 2024, the total contractual maturity of outstanding indebtedness was $1,241.0 million, with a net contractual maturity of $832.8 million after accounting for cash and cash equivalents [273]. - The total net leverage ratio to Adjusted EBITDA as of June 30, 2024, was 1.8x, with Adjusted EBITDA for the trailing twelve months at $474.7 million [272]. - Interest expense, net for the six months ended June 30, 2024, was $19.9 million, a decrease of $2.0 million, or 9%, compared to $21.9 million for the same period in 2023 [236]. - Interest paid in cash for the six months ended June 30, 2024, was $20.3 million, compared to $24.6 million for the same period in 2023 [263]. Operational Changes and Risks - The company recorded an incremental charge impacting reported revenue and general and administrative expenses due to a new business risk model implemented in Q2 2024 [196]. - The company incurred restructuring and transaction-related expenses of $50.0 million for the three months ended June 30, 2024, compared to $4.7 million in the same period of 2023 [253]. - Future capital resource demands may be impacted by changes in reference interest rates and potential additional debt for acquisitions or corporate purposes [265]. - The company has implemented a hedging strategy to mitigate interest rate risk through derivative instruments [291]. - The company initiated a foreign currency hedging program in the second quarter of 2024 to mitigate potential adverse effects from significant currency movements [294]. Market and Economic Conditions - Inflation has not had a material direct effect on the company's business or financial condition [290]. - The company believes that currency fluctuations will not be significant in the future, although there is no guarantee of this [295]. - The functional currency of foreign subsidiaries is the U.S. dollar, and a stronger dollar could reduce demand for solutions outside the U.S. [293]. - The company manages credit risk by concentrating cash deposits with multiple high-quality financial institutions [297]. - The investment portfolio consists of highly rated securities with a weighted-average maturity of less than 12 months [297].