VANCOUVER – ZoomInfo Technologies Inc. (NASDAQ: ZI) reported first-quarter earnings that slightly beat analyst estimates, but its stock fell nearly16% due to a weaker-than-expected outlook for the second quarter.
The company, known for its go-to-market platform, announced its financial results for the quarter ended March 31, 2024, today.
The company posted adjusted earnings per share (EPS) of $0.26, marginally surpassing the analyst consensus of $0.23. Revenue for the quarter was $310.1 million, a modest 3% increase YoY, and slightly ahead of the consensus estimate of $308.76 million.
Despite this growth, the company’s guidance for the second quarter and the full year disappointed investors, leading to a significant 16% drop in the stock price.
For the second quarter of 2024, ZoomInfo anticipates adjusted EPS between $0.23 and $0.24, which falls below the analyst consensus of $0.25. The company’s revenue forecast for the same period is set at $306 million to $306 million, also below the consensus of $313 million.
For the full year 2024, ZoomInfo expects adjusted EPS between $1.00 and $1.02, with the midpoint matching the consensus of $1.00. The revenue guidance for the year is $1.255 billion to $1.27 billion, with the midpoint just below the consensus of $1.27 billion.
Henry Schuck, ZoomInfo Founder and CEO, commented on the results, “We delivered another quarter of revenue growth, with better-than-expected profitability, and stabilizing net revenue retention.”
He also expressed enthusiasm for the upcoming launch of ZoomInfo Copilot, a GenAI-powered solution aimed at transforming go-to-market strategies.
In addition to its financial performance, ZoomInfo was recognized as a leader in The Forrester Wave™ report for B2B Marketing and Sales Data Providers and published its 2023 sustainability report. The company closed the quarter with 1,760 customers with annual contract values of $100,000 or greater and approved an additional $500 million for its share repurchase program.
ZoomInfo’s stock movement today reflects investor concern over the company’s soft guidance for the upcoming quarters, overshadowing the slight beat in the first quarter’s earnings and revenue.
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