ZoomInfo Technologies (ZI) Mentioned Positively at Wells Fargo
Wells Fargo analyst Michael Turrin lowered the price target on ZoomInfo Technologies (NASDAQ: ZI) to $21.00 (from $28.00) while maintaining a Overweight rating.
The analyst comments "Q1 Top Line: 1) ZI came in a touch above St rev ests in Q1, +3% y/y & -2% q/q, driven by improvements in enterprise/mid-market renewals but offset by incremental SMB weakness (vs +5% organic Q4); 2) Q1 billings were well below St ($313M, -6% y/y vs St $334M), affected by ongoing renewal headwinds and the inc SMB weakness touched on above. 3) cRPO grew 0% y/y in Q1 (vs. 2% in Q4), affected by similar rev/billings dynamics; & 4) NRR further declined to 85% (from 87% in Q4) on the dynamics above. ZI hit Q1, but reduced ‘24 guide on inc SMB headwinds. We acknowledge frustration given
inconsistency in framing targets but still assign ZI a higher probability of eventually bouncing back than other post covid software left behinds."