ZoomInfo Technologies (ZI) - 2024 Q4 - Annual Results

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]