Yahoo Finance ZoomInfo Technologies Inc (ZI) Q1 2024 Earnings: Revenue Growth and Strategic Achievements
Revenue: Reported at $310.1 million, marking a 3% increase year-over-year, slightly surpassing the estimated $308.74 million.
Net Income Per Share (Diluted): Recorded at $0.04, significantly below the estimated earnings per share of $0.23.
Operating Income: GAAP operating income was $43.0 million, down 35% year-over-year, with an operating margin of 14%.
Adjusted Operating Income: Reached $119.4 million with an adjusted operating income margin of 39%, showing a slight decrease of 1% year-over-year.
Cash Flow: GAAP cash flow from operations stood at $115.9 million, up 7% year-over-year; unlevered free cash flow was $122.7 million, a 1% increase.
Customer Growth: Ended the quarter with 1,760 customers having $100,000 or greater in annual contract value.
Share Repurchase: Repurchased 9,623,255 shares of common stock at an average price of $15.90, totaling $153.1 million.
On May 7, 2024, ZoomInfo Technologies Inc (NASDAQ:ZI) disclosed its first-quarter financial results for the year, revealing a performance that exceeded analyst expectations in terms of revenue. The company announced these details through its 8-K filing. ZoomInfo, a leading go-to-market intelligence platform for sales and marketing teams, reported a revenue of $310.1 million, marking a 3% increase year-over-year and surpassing the estimated $308.74 million.
Company Overview
Based in Vancouver, Washington, ZoomInfo Technologies Inc operates a cloud-based platform that delivers comprehensive and high-quality data and analytics. The platform is designed to empower sales and marketing professionals with actionable insights about organizations and professionals, primarily in the United States. This enables businesses to streamline their go-to-market strategies effectively.
Financial Performance Highlights
ZoomInfo's financial achievements this quarter reflect its robust operational efficiency and strategic initiatives. The company reported a GAAP operating income of $43.0 million and an adjusted operating income of $119.4 million. Despite a slight year-over-year decline in operating income, the adjusted operating income margin stood strong at 39%. Furthermore, the company demonstrated solid liquidity management, with GAAP cash flow from operations amounting to $115.9 million and unlevered free cash flow reaching $122.7 million.
Strategic and Operational Milestones
ZoomInfo has continued to strengthen its market position through several strategic accomplishments. Notably, it was recognized as a leader in The Forrester Wave report for B2B Marketing and Sales Data Providers, achieving top scores in key categories. The company also published its 2023 sustainability report, showcasing its commitment to environmental, social, and governance (ESG) principles. Additionally, ZoomInfo ended the quarter with 1,760 customers having $100,000 or greater in annual contract value, underscoring its strong customer retention and value proposition.
Future Outlook and Analyst Expectations
Looking ahead, ZoomInfo provided guidance for the second quarter and full year of 2024, projecting GAAP revenue between $306 million and $309 million for Q2, and adjusting its full-year revenue forecast to range between $1.255 billion and $1.27 billion. These projections align closely with the companys strategic goals and market expansion plans. For the full year, the company anticipates an adjusted net income per share between $1.00 and $1.02, consistent with analyst expectations.
Conclusion
ZoomInfo's first-quarter performance highlights its ability to navigate market dynamics effectively and leverage its technological capabilities to maintain a competitive edge. With continued focus on innovation, such as the upcoming introduction of the GenAI-powered ZoomInfo Copilot, ZoomInfo is well-positioned to sustain growth and profitability, aligning with its long-term strategic objectives.
For detailed financial metrics and further information, stakeholders and potential investors are encouraged to view the full earnings report and supplementary materials available on the companys investor relations website.
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Explore the complete 8-K earnings release (here) from ZoomInfo Technologies Inc for further details.
This article first appeared on GuruFocus.
