ZoomInfo Technologies (US:ZI)2025-11-03 21:09Financial 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]