Even in the face of a challenging economic environment, Zoominfo Technologies delivered an all-around beat with strong revenue growth in the last quarter. Both the adjusted operating income margin and free cash flow margin improved. Structurally, Zoominfo is a profitable company committed to driving top-line growth while efficiently growing free cash flow and expanding profitability. New customers addition has been the larger driver of revenue growth. The management is doubling its investments in MarketingOS. However, the net retention was disappointing, reflecting the more difficult operating environment and could be a cause of concern for shareholders. During the quarter, it closed transactions with leading organizations like Bank of the West, Amazon Web Services, Waste Management, Sodexo, ServiceNow, Panasonic, FedEx, Goodwin Protector, Edward Jones, Cigna, and Barclays. The increased time the company’s reps are spending on renewals and the longer sales cycles have impacted the ability of Zoominfo to cross-sell and upsell existing customers. Additionally, the company transitioned successfully from LIBOR to SOFR. It is planning to invest in more robust bidirectional syncs with APIs and CRMs to meet the customers’ needs. We give Zoominfo Technologies a ‘Buy’ rating with a revised target price.
Our Report Structure:
⦁ Company Overview
⦁ Investment Thesis
⦁ Key Drivers
⦁ Historical Quarterly Statement Analysis – Income Statement & Cash Flows
⦁ Historical Quarterly Balance Sheet Analysis
⦁ Historical Annual Financial Statement Analysis
⦁ Analysis Of Key Financial Ratios
⦁ Financial Forecasts For 3 Years
⦁ Forecasting The Capital Structure & Net Debt
⦁ Discounted Cash Flow Valuation
⦁ Trading Multiples
⦁ Key Risks
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