ZoomInfo Technologies (US:ZI) The Motley Foolยท2025-02-26 20:58Core Viewpoint - ZoomInfo Technologies' stock surged 24% following the release of its Q4 2024 financial results, despite a year-over-year revenue decline of 2% [1][2]. Financial Performance - Q4 2024 revenue was reported at $309 million, down 2% from the previous year [2]. - The company added 58 new customers in Q4, each spending $100,000 annually, bringing the total customer count to 1,867 [2]. - For 2025, ZoomInfo anticipates revenue to remain flat at approximately $1.2 billion, consistent with 2024 figures [4]. - Management projects unlevered free cash flow between $420 million and $440 million for 2025, slightly down from $447 million in 2024 [4]. Market Reaction - Analysts upgraded their outlook for ZoomInfo stock due to better-than-expected results, despite guidance indicating flat growth for the upcoming year [3]. - The stock is currently trading at just under 10 times its unlevered free cash flow, suggesting a valuation that reflects prior concerns about continued declines [5]. Investment Considerations - While the stock appears reasonably valued, the ongoing revenue decline and flat growth raise concerns about the company's ability to attract new customers [6]. - The current business model relies heavily on customer acquisition, which poses challenges for ZoomInfo at this time [6].