Shares of ZoomInfo (ZI 6.11%) rallied 6.1% on Monday after a notable analyst upgrade for the contact and business information-platform provider ahead of its upcoming quarterly report.Why this analyst thinks ZoomInfo is "best of breed"In a note to clients this morning, Bank of America analyst Koji Ikeda raised the firm's rating on ZoomInfo stock to buy from neutral. Ikeda also increased his 12-month price target on ZoomInfo from $20 per share to $25 -- a roughly 48% premium even after today's pop.Ikeda admit ...

bymuratdeniz2023 was the year of artificial intelligence (AI). And this is continuing into 2024. But I'm looking for companies set to benefit from the proliferation of AI that haven't taken off yet. One such company is ZoomInfo (NASDAQ:ZI). ZI's business-to-business (B2B) contact database is the biggest and most up-to-date in the world. And this data will be imperative for marketing and sales teams to use in their generative AI models. The Fuel of AI Data fuels AI. Without data, AI models could not be t ...

Helping businesses find, acquire, and grow customers, ZoomInfo Technologies (ZI 0.51%) and its business-to-business data platform has been on an absolute roller-coaster ride in its first few years as a public company. After making it through what might've been one of the worst possible times to go public in June 2020, ZoomInfo's stock rocketed to new all-time highs by 2021.Bolstered by low interest rates and a venture capital market asking businesses to grow at all costs, ZoomInfo's sales-growth-focused pla ...

JHVEPhoto/iStock Editorial via Getty ImagesAn unpleasant artifact of the tech boom-is it ready to regenerate? First, a bit of mea culpa here. I have been a partisan of ZoomInfo (NASDAQ:ZI) shares for some time now, and have the bloodied countenance to prove it. I was mesmerized by the opportunity to really automate the B to B sales process and ignored the glaring issue of sector concentration. And then I was further mesmerized by what looked to be a compressed valuation and ignored the rather obvious fa ...

VANCOUVER, Wash.--(BUSINESS WIRE)--ZoomInfo (NASDAQ: ZI), the go-to-market platform to find, acquire, and grow customers, secured the top spot on 30 grids among its 150 No. 1 rankings in G2’s Winter 2024 Grid® Reports, which calculate customer satisfaction and market presence across more than 1,000 categories. ZoomInfo sits in the top 0.01% of companies with the most No. 1 rankings in G2’s Winter 2024 Reports, which assess over 16,000 products across more than 1,000 categories. ZoomInfo was recognized as ...

ZoomInfo Technologies Inc. (NASDAQ:ZI) Q3 2023 Results Conference Call October 30, 2023 4:30 PM ET Company Participants Jerry Sisitsky - IR Henry Schuck - Founder and CEO Cameron Hyzer - CFO James Roth - Chief Revenue Officer Conference Call Participants Mark Murphy - JPMorgan Tyler Radke - Citi Brad Zelnick - Deutsche Bank Michael Turrin - Wells Fargo Brent Bracelin - Piper Sandler Koji Ikeda - Bank of America Alex Zukin - Wolfe Research Elizabeth Porter - Morgan Stanley Kash Rangan - Goldman Sachs D.J. Hy ...

Financial Performance - Net income for the three months ended September 30, 2023 was $30.2 million, compared to $17.9 million in the same period in 2022, representing a 69% increase[234] - Adjusted Operating Income for the three months ended September 30, 2023 was $126.2 million, up 7% from $118.4 million in the same period in 2022[240] - Revenue for the three months ended September 30, 2023 was $313.8 million, a 9% increase from $287.6 million in the same period in 2022[240] - Adjusted EBITDA for the three months ended September 30, 2023 was $131.1 million, a 6% increase from $123.2 million in the same period in 2022[246] - Adjusted Net Income for the nine months ended September 30, 2023 was $311.0 million, up 22% from $254.7 million in the same period in 2022[234] - Adjusted Operating Income for the nine months ended September 30, 2023 was $372.1 million, a 16% increase from $320.9 million in the same period in 2022[241] - Revenue for the nine months ended September 30, 2023 was $923.1 million, a 16% increase from $796.4 million in the same period in 2022[240] - Adjusted EBITDA for the nine months ended September 30, 2023 was $386.6 million, a 16% increase from $333.7 million in the same period in 2022[247] - The company's Adjusted Operating Income Margin remained consistent at 40% for both the three and nine months ended September 30, 2023[240][241] - Growth in revenue was driven by additional customers and increasing revenue from existing customers in both the three and nine months ended September 30, 2023[240][241] - Revenue for Q3 2023 was $313.8 million, a 9% increase compared to $287.6 million in Q3 2022, driven by new customer additions partially offset by cancellations[271] - Revenue for the nine months ended September 30, 2023 increased by $126.7 million (16%) to $923.1 million compared to $796.4 million for the same period in 2022, driven by new customer additions partially offset by cancellations[278] - Net income for the trailing twelve months ended September 30, 2023 was $136.0 million, with EBITDA of $412.8 million and Adjusted EBITDA of $518.2 million[310] Customer and Contract Metrics - ZoomInfo's net annual retention rate was 104% for the year ended December 31, 2022[228] - As of September 30, 2023, ZoomInfo had 1,869 customers with over $100,000 in ACV[228] - Over 40% of ZoomInfo's customer contracts (based on annualized value) are multi-year agreements[218] Share Repurchase Program - ZoomInfo repurchased 8,800,000 shares of Common Stock at an average price of $18.19, totaling $160.1 million, during the three months ended September 30, 2023[226] - ZoomInfo repurchased 12,705,412 shares of Common Stock at an average price of $19.44, totaling $247.0 million, during the nine months ended September 30, 2023[226] - As of September 30, 2023, $353.0 million remained available and authorized for repurchases under the Share Repurchase Program[226] - The Board of Directors authorized a share repurchase program of up to $600.0 million, including an additional $500.0 million approved in July 2023[323] Debt and Credit Facilities - ZoomInfo extended the maturity date of $213.0 million of its $250.0 million existing commitments of the first lien revolving credit facility to February 28, 2028[223] - ZoomInfo completed a repricing of its First Lien Term Loan Facility, extending the maturity date to February 28, 2030 and decreasing the applicable margin rate by 0.25%[222] - The company has a remaining balance of $595.5 million on its first lien term loans and $650.0 million in 3.875% Senior Notes, with principal payments due quarterly and at maturity dates in 2030 and 2029, respectively[302] - The effective interest rate on the first lien debt was 8.30% as of September 30, 2023, compared to 7.38% as of December 31, 2022[303] - The company's first lien term loan has a total principal balance outstanding of $595.5 million as of September 30, 2023, with a variable interest rate based on SOFR[332] Operating Expenses and Costs - Cost of service decreased by 7% to $44.8 million in Q3 2023, primarily due to the completion of amortization expenses related to intangible assets from a 2019 acquisition and reduced equity-based compensation[272] - Operating expenses increased by 10% to $205.9 million in Q3 2023, with a 16% increase excluding equity-based compensation, driven by higher sales and marketing expenses and increased accruals for bad debt[273] - Equity-based compensation expense decreased by 11% to $42.9 million in Q3 2023, primarily due to slower headcount growth and higher forfeitures of unvested awards[274] - Sales and marketing expenses (excluding equity-based compensation) increased by 10% to $84.8 million in Q3 2023, driven by additional salaries, benefits, and commission expenses[276] - Research and development expenses (excluding equity-based compensation) decreased by 4% to $35.6 million in Q3 2023, primarily due to reduced salaries and benefits expenses[276] - General and administrative expenses (excluding equity-based compensation) increased by 49% to $36.4 million in Q3 2023, primarily due to increased accruals for bad debt[276] - Restructuring and transaction-related expenses increased by 2450% to $5.1 million in Q3 2023, primarily due to costs related to the Ra'anana lease impairment[276] - Cost of service decreased by $5.7 million (4%) to $133.5 million for the nine months ended September 30, 2023, primarily due to completion of amortization expense related to intangible assets and reduced equity-based compensation[279] - Operating expenses increased by $67.1 million (13%) to $600.6 million for the nine months ended September 30, 2023, with a significant increase in sales and marketing expenses (excluding equity-based compensation) of $33.5 million (15%) to $253.5 million[280] - Equity-based compensation expense decreased by $10.7 million (8%) to $126.9 million for the nine months ended September 30, 2023, primarily due to slower headcount growth and higher forfeitures of unvested awards[281] Cash Flow and Liquidity - As of September 30, 2023, the company had $442.6 million in cash and cash equivalents, $125.3 million in short-term investments, and $250.0 million available under its first lien revolving credit facility[285] - Unearned revenue as of September 30, 2023 was $403.1 million, with $399.2 million expected to be recognized as revenue within the next 12 months[287] - Net cash provided by operating activities for the nine months ended September 30, 2023 was $306.1 million, driven by net income of $112.8 million and non-cash charges of $330.5 million[291] - Cash used in investing activities for the nine months ended September 30, 2023 was $11.1 million, primarily consisting of purchases of short-term investments and property and equipment[297] - Adjusted EBITDA for the 12 months ended September 30, 2023 was $518.2 million, with a total net leverage ratio to Adjusted EBITDA of 1.3x[304][305] - Cash EBITDA for the 12 months ended September 30, 2023 was $542.0 million, with a consolidated first lien net leverage ratio of 0.1x[307][308] Tax and Financial Obligations - Income tax expense for the nine months ended September 30, 2023 was $69.3 million, representing an effective tax rate of 38.1%, down from 58.1% in the same period in 2022, primarily due to reduced non-deductible equity-based compensation[284] - The company had a liability of $2,964.9 million related to projected obligations under the Tax Receivable Agreements as of September 30, 2023[322] Leases and Real Estate - The company had additional operating leases for office space with anticipated undiscounted future lease payments of $293.6 million as of September 30, 2023[324] Macroeconomic and Currency Risks - Inflation has not had a material direct effect on the company's business, financial condition, or results of operations, but macroeconomic conditions including inflation could impact future performance[331] - A hypothetical 100 basis points change in the effective interest rate would cause an immaterial impact on the company's financials over the next 12 months[332] - The company initiated a foreign currency hedging program this quarter, with derivative financial instruments totaling $13.3 million in notional value for Israeli shekel exposure[335] - Foreign currency transaction gains and losses are recorded to non-operating income (loss), with past impacts of currency fluctuations being immaterial[336] - Sales contracts are primarily denominated in U.S. dollars, with foreign subsidiaries in Israel, Canada, the UK, India, and Australia using the U.S. dollar as their functional currency[334] - A stronger U.S. dollar could reduce demand for the company's solutions outside the U.S., while a weaker dollar could have the opposite effect[334] - All cash flow hedging relationships are designated as accounting hedges as of September 30, 2023[333] Investment and Credit Risk Management - The company holds cash with reputable financial institutions, often exceeding federally insured limits, and manages credit risk through diversified deposits and periodic evaluations[337] - The investment portfolio consists of highly rated securities with a weighted-average maturity of less than 12 months, aiming to preserve principal and maintain liquidity[337] Other Income and Expenses - Other income was $8.0 million in Q3 2023, primarily consisting of $6.7 million in investment income and a $2.6 million TRA remeasurement gain, offset by a $1.3 million loss on foreign currency transactions[275] - Interest expense, net increased by 3% to $11.9 million in Q3 2023, primarily due to fluctuations in derivative instruments, partially offset by higher deposit rates[276]

ZoomInfo Technologies Inc. (NASDAQ:ZI) Q2 2023 Earnings Call Transcript July 31, 2023 4:30 PM ET Company Participants Jerry Sisitsky - VP, IR Henry Schuck - Founder and CEO Cameron Hyzer - CFO Conference Call Participants Mark Murphy - JPMorgan Elizabeth Porter - Morgan Stanley Kash Rangan - Goldman Sachs Joshua Reilly - Needham Koji Ikeda - Bank of America D.J. Hynes - Canaccord Genuity Michael Turrin - Wells Fargo Parker Lane - Stifel Alex Zukin - Wolfe Research Taylor McGinnis - UBS Raimo Lenschow - Barc ...

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UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 For the quarterly period ended June 30, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 001-39310 ZoomInfo Technologies Inc. FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorpora ...