ZoomInfo Technologies (US:ZI)2025-08-04 21:17Cautionary Statement Regarding Forward-Looking Statements This statement advises readers about forward-looking information, highlighting inherent risks and uncertainties that could cause actual results to differ materially from projections PART I - FINANCIAL INFORMATION This section provides unaudited consolidated financial statements, management's discussion and analysis, and disclosures on market risk and internal controls Item 1. Financial Statements (Unaudited) This section presents ZoomInfo's unaudited consolidated financial statements for Q2 2025, covering balance sheets, operations, comprehensive income, equity, cash flows, and notes Consolidated Balance Sheets This section presents the company's consolidated balance sheets as of June 30, 2025, and December 31, 2024 | Metric | June 30, 2025 (in millions) | December 31, 2024 (in millions) | Change (2025 vs 2024) | | :-------------------------------- | :----------------------------- | :------------------------------- | :-------------------- | | Total Assets | $6,452.8 | $6,467.6 | -$14.8 | | Total Liabilities | $4,900.8 | $4,774.1 | +$126.7 | | Total Stockholders' Equity | $1,552.0 | $1,693.5 | -$141.5 | | Cash and Cash Equivalents | $171.0 | $139.9 | +$31.1 | | Accounts Receivable, net | $192.0 | $246.1 | -$54.1 | | Long-term Debt, net | $1,320.0 | $1,221.8 | +$98.2 | | Common Stock Outstanding | 320,561,651 shares | 342,027,974 shares | -21,466,323 shares | Consolidated Statements of Operations This section presents the company's consolidated statements of operations for the three and six months ended June 30, 2025 and 2024 | Metric (in millions) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------------- | :------------------------------- | :------------------------------- | :------------------------------- | :------------------------------- | | Revenue | $306.7 | $291.5 | $612.4 | $601.6 | | Gross Profit | $257.2 | $245.6 | $515.6 | $512.3 | | Income (Loss) from Operations | $53.7 | $(20.0) | $104.0 | $23.0 | | Net Income (Loss) | $24.0 | $(24.4) | $50.8 | $(9.3) | | Basic EPS | $0.07 | $(0.07) | $0.15 | $(0.02) | | Diluted EPS | $0.07 | $(0.07) | $0.15 | $(0.02) | - Total equity-based compensation expense decreased by 18% for the three months ended June 30, 2025 ($29.7 million) compared to the same period in 2024 ($36.4 million), and by 12% for the six months ended June 30, 2025 ($59.3 million) compared to 2024 ($67.6 million)26 Consolidated Statements of Comprehensive Income (Loss) This section presents the company's consolidated statements of comprehensive income (loss) for the three and six months ended June 30, 2025 and 2024 | Metric (in millions) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------------- | :------------------------------- | :------------------------------- | :------------------------------- | :------------------------------- | | Net income (loss) | $24.0 | $(24.4) | $50.8 | $(9.3) | | Other comprehensive loss, net of tax | $(1.4) | $(3.0) | $(5.0) | $(2.8) | | Comprehensive income (loss) | $22.6 | $(27.4) | $45.8 | $(12.1) | Consolidated Statements of Changes in Stockholders' Equity This section presents the company's consolidated statements of changes in stockholders' equity for the periods presented | Metric (in millions) | June 30, 2025 | December 31, 2024 | June 30, 2024 | December 31, 2023 | | :-------------------------------- | :------------------------------- | :------------------------------- | :------------------------------- | :------------------------------- | | Total Stockholders' Equity | $1,552.0 | $1,693.5 | $1,862.9 | $2,119.3 | | Common Stock Shares Outstanding (end of period) | 320,561,651 | 342,027,974 | 366,772,027 | 384,830,529 | | Repurchase of Common Stock (6 months) | $(244.3) | N/A | $(299.2) | N/A | | Net Income (6 months) | $50.8 | N/A | $(9.3) | N/A | - The company repurchased 24,474,847 shares for $241.3 million during the six months ended June 30, 2025, compared to 20,423,046 shares for $300.5 million in the same period of 202491 Consolidated Statements of Cash Flows This section presents the company's consolidated statements of cash flows for the six months ended June 30, 2025 and 2024 | Metric (in millions) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------------- | :------------------------------- | :------------------------------- | | Net cash provided by operating activities | $228.1 | $242.2 | | Net cash provided by (used in) investing activities | $(43.3) | $44.6 | | Net cash used in financing activities | $(153.3) | $(348.2) | | Net increase (decrease) in cash, cash equivalents, and restricted cash | $31.5 | $(61.4) | | Cash, cash equivalents, and restricted cash at end of period | $180.5 | $394.8 | - Operating cash flow decreased by $14.1 million (5.8%) YoY, primarily due to changes in operating assets and liabilities, despite an increase in net income35281282 - Investing activities shifted from a net cash inflow of $44.6 million in H1 2024 to a net cash outflow of $43.3 million in H1 2025, mainly due to increased purchases of property and equipment and new investments35285286 - Financing cash outflow significantly decreased from $348.2 million in H1 2024 to $153.3 million in H1 2025, driven by lower common stock repurchases and proceeds from revolving credit loans35287289 Notes to the Consolidated Financial Statements This section provides detailed explanations of accounting policies, financial line items, and other disclosures supporting the consolidated financial statements Note 1 Business, Basis of Presentation, and Summary of Significant Accounting Policies This note describes ZoomInfo's business as a go-to-market intelligence and engagement platform, outlines the basis of financial statement presentation, significant accounting policies including revenue recognition, cash and investments, fair value measurements, credit risk, property and equipment, deferred commissions, R&D, business combinations, goodwill, intangible assets, impairment, leases, derivatives, unearned revenue, debt issuance costs, tax receivable agreements, income taxes, equity-based compensation, share repurchase program, and recent restructuring activities - ZoomInfo provides a cloud-based go-to-market intelligence and engagement platform for sales, marketing, operations, and recruiting professionals, offering workflow tools with integrated, accurate, and comprehensive information40 - The company primarily derives revenue from subscription services, typically one to three years in length, billed annually, semi-annually, or quarterly in advance, and recognized ratably over the contract term4748 - In June 2025, the Company initiated a restructuring plan, reducing employees by approximately 6% in Q2 2025,