ZoomInfo (ZI) Surges 7% After Another Beat-and-Raise Quarter, Analysts Raise Numbers and PTs
ZoomInfo (NASDAQ: ZI) stock soared more than 7% in pre-open Tuesday after the company reported better-than-expected fourth-quarter results.
ZI said it earned $0.14 per share on an adjusted basis to beat the $0.10 expected from the market analysts. Revenue came in at $139.7 million, up 53% from a year ago, again higher than $130.6 million.
“We ended the year strong, delivering another quarter of record results, highlighted by an industry-leading combination of growth and profitability,” said Henry Schuck, ZoomInfo Founder, and CEO.
“Our success is driven by the success of our customers, as we continue to help companies of all sizes, across all industries modernize their go-to-market efforts with our expanding data, insights, and automation platform.”
For the ongoing quarter, ZI is expecting to earn between $0.10 and $0.11 per share, while a range of $0.47 to $0.49 has been shared as a full-year EPS guidance.
In a separate press release, the company announced it has promoted Chris Hays to Chief Operating Officer (COO), Hila Nir has been promoted to Chief Product Officer (CPO), and Shane Murphy-Reuter has joined as Chief Marketing Officer (CMO).
Mizuho’s Siti Panigrahi has welcomed another strong quarter from the Canadian company.
“ZoomInfo reported another robust quarter, seeing a second consecutive quarter of billings acceleration to 59% Y/Y, driven by record new customer adds and broad strength across the business, including up/cross sell, enterprise sales (record adds of >$100K ACV customers), and international expansion. We believe ZI results and guidance in the quarter validate our views highlighted in our December quarter preview that ZoomInfo is benefiting from a remote selling environment, and is increasingly being seen as an essential tool for sales and marketing teams,” Panigrahi, who raised the price target on the Buy-rated ZI to $63.00 per share from $53.00, wrote in a note.
Brad Sills, a research analyst at BofA, also maintained its “Buy” rating and hiked the price objective to $65.00 following a solid finish to the year.
“We are encouraged by another solid beat and raise quarter. Traction with international expansion and new recruiting and sales engagement analytics offerings bode well for sustained 35%+ growth. Sales/marketing and G&A leverage, and guidance for conservative 43% margin suggests that best in class rule of 80%+ (sum of growth and margin) is sustainable. ZoomInfo is in the early days of addressing a large $25bn market with many growth levers (new customers, customer expansions, selling to recruiters, offering more API services) and solid competitive moat stemming from the large and reliable contact database,” he said in a note sent to clients.