ZoomInfo Technologies Reports Impressive Q4 Earnings and Outlook

ZoomInfo Technologies Q4 Earnings Report Overview

ZoomInfo Technologies Inc ZI shares are experiencing a significant increase following the company's fourth-quarter results. Investors and analysts were keen to see how the business performed in this crucial period, especially in light of shifting market dynamics and growing competition.

Financial Highlights from Q4

Surpassing Expectations

In the fourth quarter, ZoomInfo reported revenue of $309.1 million, surpassing analyst estimates which were set at $297.63 million. This performance is particularly noteworthy given that the total revenue reflected a 2% decline compared to the same quarter last year.

Impressive EPS Results

Adjusted earnings per share (EPS) came in at 26 cents, exceeding the forecast of 22 cents. This shows that the company not only met but exceeded market expectations for this critical metric, a positive indicator for stakeholders.

Cash Flow and Financial Management

ZoomInfo registered a robust cash flow, generating $109 million from operations in the quarter and $93.6 million in unlevered free cash flow. The company's financial health is further illustrated by its cash and cash equivalents, totaling $139.9 million at the quarter's end.

Strategic Moves and Corporate Developments

Stock Buyback Program

Diving deeper into its financial strategy, ZoomInfo repurchased $562.3 million of its common stock throughout 2024. At the end of the year, it had $137.6 million remaining under its buyback program. To bolster shareholder value, the board of directors also approved an additional $500 million stock repurchase authorization in February.

Board Changes

In a recent development, ZoomInfo appointed Rob Giglio to its board effective March 1, while Patrick McCarter stepped down from his position on February 28. These changes indicate active management of governance to align with the firm’s strategic direction.

Future Outlook for Revenue and Earnings

Looking ahead, ZoomInfo anticipates first-quarter revenue in the range of $294 million to $297 million, while analysts had estimated it to be around $292.41 million. The company projects adjusted earnings for the first quarter to be between 22 and 23 cents per share, reinforcing its steady outlook amidst evolving market conditions.

Long-Term Projections

For the full year 2025, ZoomInfo has set ambitious revenue guidance between $1.185 billion and $1.205 billion. The anticipated adjusted EPS for the full year is expected to range from 95 to 97 cents. This outlook reflects the company's confidence in achieving solid growth rates while adapting to market trends.

Market Reaction

In response to these favorable developments, ZoomInfo shares rose significantly by 18.05%, reaching $11.25 during after-hours trading. This surge is indicative of strong investor sentiment following the promising earnings announcement.

Frequently Asked Questions

What were ZoomInfo Technologies' key financial results for Q4?

ZoomInfo reported a revenue of $309.1 million and an adjusted EPS of 26 cents for the fourth quarter, both exceeding analysts' expectations.

How is ZoomInfo performing financially?

Despite a 2% year-over-year revenue decline, ZoomInfo generated substantial operational cash flow and maintained a strong cash position of $139.9 million.

What strategic actions has ZoomInfo taken recently?

ZoomInfo has repurchased a significant amount of its stock and announced a new $500 million buyback authorization to enhance shareholder value.

What is the projected outlook for ZoomInfo in 2025?

ZoomInfo expects full-year revenue in the range of $1.185 billion to $1.205 billion, with adjusted EPS between 95 and 97 cents.

How did the market react to ZoomInfo's Q4 earnings announcement?

Following the earnings report, ZoomInfo shares surged by over 18%, reflecting positive investor sentiment towards the company’s performance and outlook.

About The Author

Dedicated Author and financial expert Logan Wright here, 29 years old. After earning an economics degree, I spent a number of years working in different financial industries. My great passion is enabling everyone, from any background or experience level, to understand and be literate in financial matters.

My books and writings are centered on simplifying difficult financial ideas into doable, understandable guidance. Whether it's retirement planning, investing, or budgeting, I want to arm readers with the information they need to make wise financial choices and realize their financial objectives.

Apart from writing, I also frequently post to financial blogs and organize webinars and workshops targeted at enlightening participants about personal finance. Always, my strategy is to offer concise, doable advice that can truly improve people's lives.

Away from work, I like to read, travel, and sample new foods. My goal is to infuse everything I do with the balance that I think is essential to both financial and personal well-being. By my profession, I want to encourage and enable people to confidently and clearly take charge of their financial futures.

Contact Logan Wright privately here. Or send an email with ATTN: Logan Wright as the subject to contact@investorshangout.com.

About Investors Hangout

Investors Hangout is a leading online stock forum for financial discussion and learning, offering a wide range of free tools and resources. It draws in traders of all levels, who exchange market knowledge, investigate trading tactics, and keep an eye on industry developments in real time. Featuring financial articles, stock message boards, quotes, charts, company profiles, and live news updates. Through cooperative learning and a wealth of informational resources, it helps users from novices creating their first portfolios to experts honing their techniques. Join Investors Hangout today: https://investorshangout.com/

The content of this article is based on factual, publicly available information and does not represent legal, financial, or investment advice. Investors Hangout does not offer financial advice, and the author is not a licensed financial advisor. Consult a qualified advisor before making any financial or investment decisions based on this article. This article should not be considered advice to purchase, sell, or hold any securities or other investments. If any of the material provided here is inaccurate, please contact us for corrections.