ZoomInfo Technologies (US:ZI)2025-11-03 21:17Financial 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]