Shares of ZoomInfo (NASDAQ:ZI) have zoomed lower today, down by 10% as of 12:40 p.m. EDT, after the company reported second-quarter earnings. This is ZoomInfo's first earnings release as a public company.
Revenue in the second quarter jumped 62% to $110.9 million, which was ahead of the $105.6 million in sales that analysts were expecting. That resulted in adjusted net income of $27 million, or $0.07 per share. Wall Street was looking for just $0.05 per share in adjusted profits. ZoomInfo, which operates a business-to-business (B2B) database, completed its IPO in early June.
"We have an extraordinary opportunity ahead of us, as the need for strategic intelligence has never been greater," CEO Henry Schuck said in a statement. "As companies navigate a highly complex business landscape and reimagine the way they go to market, we provide their sales and marketing teams with the right technologies, tools, and insights to hit their numbers."
Despite the better-than-expected results, investors may still have lingering concerns about ZoomInfo's valuation. The stock currently trades at approximately 20 times sales.
Guidance for the third quarter calls for revenue of $116 million to $118 million, which is ahead of the consensus estimate of $112.7 million. Adjusted earnings per share are forecast at $0.08 to $0.09, roughly in line with Wall Street's expectations of $0.08 per share. For full-year 2020, revenue should be $451 million to $455 million.