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ZoomInfo Technologies' (NASDAQ:GTM) Soft Earnings Don't Show The Whole Picture

ZoomInfo Technologies' (NASDAQ:GTM) Soft Earnings Don't Show The Whole Picture

Yahoo19-05-2025
The market was pleased with the recent earnings report from ZoomInfo Technologies Inc. (NASDAQ:GTM), despite the profit numbers being soft. Our analysis suggests that investors may have noticed some promising signs beyond the statutory profit figures.
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For anyone who wants to understand ZoomInfo Technologies' profit beyond the statutory numbers, it's important to note that during the last twelve months statutory profit was reduced by US$108m due to unusual items. While deductions due to unusual items are disappointing in the first instance, there is a silver lining. We looked at thousands of listed companies and found that unusual items are very often one-off in nature. And that's hardly a surprise given these line items are considered unusual. In the twelve months to March 2025, ZoomInfo Technologies had a big unusual items expense. All else being equal, this would likely have the effect of making the statutory profit look worse than its underlying earnings power.
That might leave you wondering what analysts are forecasting in terms of future profitability. Luckily, you can click here to see an interactive graph depicting future profitability, based on their estimates.
As we mentioned previously, the ZoomInfo Technologies' profit was hampered by unusual items in the last year. Based on this observation, we consider it possible that ZoomInfo Technologies' statutory profit actually understates its earnings potential! Unfortunately, though, its earnings per share actually fell back over the last year. Of course, we've only just scratched the surface when it comes to analysing its earnings; one could also consider margins, forecast growth, and return on investment, among other factors. So if you'd like to dive deeper into this stock, it's crucial to consider any risks it's facing. While conducting our analysis, we found that ZoomInfo Technologies has 4 warning signs and it would be unwise to ignore these.
Today we've zoomed in on a single data point to better understand the nature of ZoomInfo Technologies' profit. But there is always more to discover if you are capable of focussing your mind on minutiae. Some people consider a high return on equity to be a good sign of a quality business. While it might take a little research on your behalf, you may find this free collection of companies boasting high return on equity, or this list of stocks with significant insider holdings to be useful.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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