Latest news with #ZI
Yahoo
11-07-2025
- Business
- Yahoo
ZoomInfo's Q1 Earnings Call: Our Top 5 Analyst Questions
ZoomInfo's first quarter results reflected ongoing transition toward upmarket customers and a continued emphasis on AI-powered products and workflow integration. Management attributed the quarter's performance to growth in enterprise accounts and renewed traction for its Copilot product, while also noting improvements in net revenue retention, especially among larger clients. CEO Henry Schuck explained, 'We now have 1,868 customers with more than $100,000 in ACV, a sequential increase after a period of declines.' Management remained cautious about the broader economic environment but saw no material changes in customer behavior during the quarter. Is now the time to buy ZI? Find out in our full research report (it's free). Revenue: $305.7 million vs analyst estimates of $295.5 million (1.4% year-on-year decline, 3.5% beat) Adjusted EPS: $0.23 vs analyst estimates of $0.22 (in line) Adjusted Operating Income: $100.9 million vs analyst estimates of $97.77 million (33% margin, 3.2% beat) The company slightly lifted its revenue guidance for the full year to $1.2 billion at the midpoint from $1.20 billion Management raised its full-year Adjusted EPS guidance to $0.97 at the midpoint, a 1% increase Operating Margin: 16.5%, up from 13.9% in the same quarter last year Customers: 1,868 customers paying more than $100,000 annually Annual Recurring Revenue: $1.21 billion at quarter end, down 1.6% year on year Billings: $312.2 million at quarter end, in line with the same quarter last year Market Capitalization: $3.41 billion While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Alex Zukin (Wolfe Research) asked about the timing and strategic rationale for ZoomInfo's ticker and category change. CEO Henry Schuck explained the move reflects expanded product capabilities and broader customer engagement beyond sales prospecting. Mark Murphy (JPMorgan) inquired about Copilot's adoption trajectory and potential rollout challenges. Schuck emphasized strong upmarket demand and minimal friction related to data security and governance in customer deployments. Elizabeth Porter (Morgan Stanley) questioned why improved revenue didn't lead to higher profit margin guidance. CFO Graham O'Brien noted the decision was due to caution regarding the economic environment, not operational headwinds. Kash Rangan (Goldman Sachs) pressed on the profitability trade-offs of moving upmarket. Schuck clarified that upmarket business is more profitable and that digital self-service is being emphasized in the small business segment to optimize resource allocation. Brent Bracelin (Piper Sandler) asked about the planned duration and size of the down-market contraction. O'Brien stated that management anticipates further contraction until the upmarket mix reaches approximately 80%, at which point stabilization is expected. In the coming quarters, the StockStory team will focus on (1) customer adoption and revenue contribution from new AI-powered platforms like Copilot and Go-To-Market Studio, (2) further improvement in enterprise retention rates, especially in the software segment, and (3) the pace and profitability of the company's transition away from down-market customers. We will also monitor execution on digital self-service and the impact of resource reallocation on margins. ZoomInfo currently trades at $10.28, in line with $10.34 just before the earnings. Is there an opportunity in the stock?See for yourself in our full research report (it's free). Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs. While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today. StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
11-06-2025
- Business
- Yahoo
2 Cash-Producing Stocks to Research Further and 1 to Avoid
While strong cash flow is a key indicator of stability, it doesn't always translate to superior returns. Some cash-heavy businesses struggle with inefficient spending, slowing demand, or weak competitive positioning. Not all companies are created equal, and StockStory is here to surface the ones with real upside. That said, here are two cash-producing companies that leverage their financial strength to beat the competition and one that may struggle to keep up. Trailing 12-Month Free Cash Flow Margin: 37.1% Founded in 2007 as DiscoveryOrg and renamed after a merger in 2019, ZoomInfo (NASDAQ:ZI) is a software as a service product that provides sales departments with access to a database of prospective clients. Why Do We Avoid ZI? Flat billings over the last year suggest it may need to improve its products, pricing, or go-to-market strategy to reinvigorate demand Complex implementation process for enterprise clients means customers take longer to ramp up, as seen in its extended payback periods Day-to-day expenses have swelled relative to revenue over the last year as its operating margin fell by 10.3 percentage points ZoomInfo's stock price of $10.28 implies a valuation ratio of 2.9x forward price-to-sales. Dive into our free research report to see why there are better opportunities than ZI. Trailing 12-Month Free Cash Flow Margin: 10.6% Started by Oleg Shchegolev while still in university, Semrush (NYSE:SEMR) is a software-as-a-service platform that helps companies optimize their search engine and content marketing efforts. Why Are We Positive On SEMR? Average billings growth of 24.8% over the last year enhances its liquidity and shows there is steady demand for its products Sales outlook for the upcoming 12 months implies the business will stay on its desirable three-year growth trajectory Software is difficult to replicate at scale and results in a stellar gross margin of 82.1% At $10.19 per share, Semrush trades at 3.3x forward price-to-sales. Is now a good time to buy? Find out in our full research report, it's free. Trailing 12-Month Free Cash Flow Margin: 2.5% With an emphasis on ethically produced products, Vital Farms (NASDAQ:VITL) specializes in pasture-raised eggs and butter. Why Is VITL a Top Pick? Products are flying off the shelves as its unit sales averaged 17.8% growth over the past two years Expected revenue growth of 26.6% for the next year suggests its market share will rise Earnings per share grew by 161% annually over the last three years and trumped its peers Vital Farms is trading at $33 per share, or 23.8x forward P/E. Is now the right time to buy? See for yourself in our in-depth research report, it's free. The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today for free. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
04-06-2025
- Business
- Yahoo
ZI Q1 Earnings Call: Upmarket Expansion and AI Product Launches Drive Strategic Shift
Sales intelligence platform ZoomInfo missed Wall Street's revenue expectations in Q1 CY2025, with sales falling 1.4% year on year to $305.7 million. Its non-GAAP profit of $0.23 per share was in line with analysts' consensus estimates. Is now the time to buy ZI? Find out in our full research report (it's free). Revenue: $305.7 million (1.4% year-on-year decline) Adjusted EPS: $0.23 vs analyst estimates of $0.22 (in line) Adjusted Operating Income: $100.9 million vs analyst estimates of $97.77 million (33% margin, 3.2% beat) Revenue Guidance for Q2 CY2025 is $296.5 million at the midpoint, above analyst estimates of $292.1 million Management raised its full-year Adjusted EPS guidance to $0.97 at the midpoint, a 1% increase Operating Margin: 16.5%, up from 13.9% in the same quarter last year Customers: 1,868 customers paying more than $100,000 annually Annual Recurring Revenue: $1.21 billion at quarter end, down 1.6% year on year Billings: $312.2 million at quarter end, in line with the same quarter last year Market Capitalization: $3.29 billion ZoomInfo's first quarter results reflected ongoing progress in shifting its business toward larger enterprise customers, following a period of down-market contraction. Management attributed the quarter's performance to continued upmarket momentum, highlighted by the addition of 108 new customers spending over $100,000 annually and sequential improvements in net revenue retention. CEO Henry Schuck noted that the company's Go-To-Market Intelligence platform is now supporting a broader set of sales roles and functions, with the successful rollout of Copilot driving greater adoption beyond traditional sales development users. The team also highlighted improved retention trends in key verticals, particularly software, and cited specific enterprise wins with clients such as Stripe and Intuit as evidence of expanding use cases and deeper customer relationships. Looking ahead, ZoomInfo's outlook is shaped by its ongoing transition to upmarket clients, the adoption of new AI-powered solutions, and a more cautious approach to guidance amidst macroeconomic uncertainty. Management emphasized that the newly launched Go-To-Market Studio and continued expansion of Copilot are expected to drive additional opportunities across enterprise segments. CFO Graham O'Brien signaled that while the company is optimistic about upmarket growth and improved retention, guidance includes an "incremental layer of caution" due to the unique economic environment. Schuck explained, "We're increasingly confident in our longer-term growth aspiration, but we recognize that the down-market will remain more reactive to a macro slowdown than our upmarket business." Management linked Q1 performance to the success of its upmarket expansion, product innovation, and tighter integration of AI-driven tools, while noting deliberate steps to address ongoing down-market challenges. Upmarket focus accelerates: ZoomInfo continued reallocating resources to larger clients, achieving four consecutive quarters of sequential improvement in customers spending over $100,000 annually. Upmarket now represents 71% of total business, with this segment delivering year-over-year revenue growth and better profitability compared to the down-market. AI-driven product adoption: The rollout of Copilot, an AI-powered application, has expanded usage beyond sales development representatives to account executives and account managers. This broader adoption is seen as a key driver for increased customer engagement and upsell opportunities, particularly in enterprise accounts. Go-To-Market Studio debut: The company launched Go-To-Market Studio, a platform that enables revenue leaders to integrate first- and third-party data, orchestrate campaigns, and apply AI-driven insights across sales and marketing teams. Management believes this product creates new opportunities for deeper integration with client operations and unlocks additional budgets within customer organizations. Down-market contraction managed: The down-market business continued to decline, but management described this as an intentional strategy to focus on healthier, more profitable segments. The transition to digital self-service for small customers and stricter qualification processes are expected to stabilize this part of the business over time. Vertical recovery observed: Retention rates improved in the software vertical for the fourth consecutive quarter. Management noted that this segment, previously a headwind due to down-sell pressure, is now stabilizing and may soon contribute positively to overall growth. ZoomInfo's future performance will depend on execution in upmarket segments, adoption of new AI products, and its ability to manage risks in a shifting macroeconomic landscape. Enterprise customer expansion: Management is prioritizing further penetration into large enterprise accounts, aiming to increase seat adoption among account executives, account managers, and rev ops professionals. The company cited low current penetration rates as an opportunity for significant growth if execution remains strong. AI platform scaling: The success of Copilot and Go-To-Market Studio is expected to drive additional revenue streams by expanding use cases and integrating deeper into customer workflows. Management highlighted the potential for these products to address broader go-to-market functions, which could lead to higher recurring revenue and improved customer retention. Cautious guidance amid uncertainty: Despite positive trends in upmarket growth and retention, the company's outlook remains conservative due to macroeconomic uncertainty and the anticipated continued decline in the down-market segment. Management indicated that further economic headwinds would disproportionately affect smaller customers, while upmarket is expected to be more resilient. In the quarters ahead, the StockStory team will track (1) the pace of Copilot and Go-To-Market Studio adoption among large enterprise customers, (2) continued improvements in net revenue retention, especially in key verticals like software, and (3) progress in managing the intentional down-market contraction. Execution on expanding seat penetration and integrating AI-driven workflows will also be critical indicators of ZoomInfo's ability to reaccelerate overall growth. ZoomInfo currently trades at a forward price-to-sales ratio of 2.9×. At this valuation, is it a buy or sell post earnings? The answer lies in our full research report (it's free). Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs. While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
13-05-2025
- Business
- Yahoo
ZoomInfo (ZI) Jumps 7% on Ticker Change to GTM and AI Platform Launch
ZoomInfo (ZI, Financials) shares climbed 7.4% to $10.04 as of 1:06 p.m. ET Monday after the company said it will change its Nasdaq ticker symbol to GTM following the close of trading. The move reflects its expanded focus on AI-powered go-to-market tools. Warning! GuruFocus has detected 5 Warning Signs with ZI. While financial details were not disclosed, ZoomInfo introduced GTM Studio, a new workspace in its Go-To-Market Intelligence Platform designed to streamline campaign planning and execution across revenue teams. CEO Henry Schuck said the rebrand reflects our belief in a future where go-to-market teams arent stuck between ideas and execution. ZoomInfo plans to ring the Nasdaq closing bell later today to commemorate the ticker change. The company also launched the GTM 2025 Roadshow, beginning May 13 in New York and continuing in Boston, San Francisco and London, aimed at showcasing new platform capabilities for senior revenue leaders. ZoomInfos broader platform includes AI tools like Copilot, which helps sales teams act on real-time data, and a full-funnel marketing suite. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
13-05-2025
- Business
- Yahoo
ZoomInfo Technologies Inc (ZI) Q1 2025 Earnings Call Highlights: Strong Financial Performance ...
GAAP Revenue: $306 million for Q1 2025. Adjusted Operating Income: $101 million, with a margin of 33%. Net Revenue Retention: Improved, rounding to 87% for the second consecutive quarter. Customers with ACV over $100,000: 1,868 customers, a sequential increase of 1 and a year-over-year increase of 108 customers. Upmarket Business Growth: Grew 3% year over year, representing 71% of the business. Operating Cash Flow: $119 million in Q1. Unlevered Free Cash Flow: $125 million, a margin of 41%. Share Repurchases: 8.6 million shares repurchased at an average price of $11.05, totaling $95 million. Cash and Debt: $143 million in cash, cash equivalents, and investments; $1.24 billion in gross debt. Q2 2025 Revenue Guidance: $295 million to $298 million. Full Year 2025 Revenue Guidance: $1.195 billion to $1.205 billion. Adjusted Operating Income Guidance for Full Year 2025: $426 million to $436 million, with a 36% margin at the midpoint. Non-GAAP Net Income Guidance for Full Year 2025: $0.96 to $0.98 per share. Unlevered Free Cash Flow Guidance for Full Year 2025: $420 million to $440 million. Warning! GuruFocus has detected 5 Warning Signs with ZI. Release Date: May 12, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. ZoomInfo Technologies Inc (NASDAQ:ZI) delivered better-than-expected financial results for Q1 2025, with GAAP revenue of $306 million and adjusted operating income of $101 million, both above guidance. The company has successfully expanded its go-to-market intelligence platform, integrating sophisticated AI-powered applications to enhance customer revenue growth. ZoomInfo Technologies Inc (NASDAQ:ZI) reported a sequential and year-over-year increase in customers with more than $100,000 in ACV, marking the fourth consecutive quarter of improvement. The company has seen strong traction with its Copilot product, which is expanding beyond SDR prospecting into account executive and account manager use cases. ZoomInfo Technologies Inc (NASDAQ:ZI) has launched Go-To-Market Studio, enabling revenue leaders to unify go-to-market data and leverage AI for more effective targeting and execution. Despite strong financial performance, the company has added an incremental layer of caution to its guidance due to the uncertain economic environment. Net revenue retention remains at 87% for the second consecutive quarter, indicating room for improvement in customer retention. The downmarket segment of the business continues to decline, with a 10% year-over-year decrease in Q1 2025. The company is experiencing a shift in business mix, with a focus on moving upmarket, which may involve higher customer acquisition costs. ZoomInfo Technologies Inc (NASDAQ:ZI) has not seen significant changes in customer behavior, but remains cautious about potential impacts from the broader economic environment. Q: Why did ZoomInfo decide to change its ticker symbol and focus on the go-to-market category now? A: Henry Schuck, CEO, explained that the company has expanded its platform beyond just sales prospecting to include account executives, managers, and customer success managers. The launch of new products like Copilot and Go-To-Market Studio has broadened their solutions, making it fitting to change the ticker symbol to reflect their comprehensive offerings in the go-to-market space. Q: Can you discuss the net revenue retention (NRR) trends upmarket versus downmarket? A: Graham O'Brien, Interim CFO, noted that retention upmarket continues to improve, while downmarket remains impaired but stable. The company is focused on upmarket growth, which is expected to drive mid-single-digit growth in 2025, while downmarket is expected to decline. Q: How is the Copilot product performing, and are there any challenges with its rollout? A: Henry Schuck stated that Copilot is gaining traction, especially in the upmarket, with no significant hurdles in data privacy or AI governance. The company is seeing the most upmarket deals for Copilot, indicating strong adoption. Q: What are the investment priorities given the unchanged operating income and cash flow guidance despite better top-line performance? A: Henry Schuck mentioned that while the company saw no impact from the economic environment in Q1, they are cautious due to the uncertain environment. The focus remains on shifting resources upmarket, where profitability is better, and leveraging internal efficiencies gained from deploying Copilot. Q: How does ZoomInfo plan to manage the downmarket business, and what is the expected trajectory? A: Graham O'Brien explained that the downmarket business is expected to contract at a faster pace in 2025 compared to 2024. The goal is to achieve an optimal mix of 80% upmarket and 20% downmarket, stabilizing the downmarket as a smaller, healthier version. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
