Shares of ZoomInfo Technologies (ZI -1.01%), a software-as-a-service company, were spiking on Tuesday after the company reported better-than-expected results for the second quarter.
Sales and earnings both outpaced Wall Street's consensus average estimates, spurring investors to flock to the tech stock today and driving its shares up 10.4% as of 10:49 a.m. ET.
ZoomInfo reported revenue of $267.1 million in the quarter, a massive increase of 54% from the year-ago quarter, which easily beat analysts' consensus estimate of $252.4 million. The company's adjusted earnings per share of $0.21, a 50% year-over-year increase, also surpassed Wall Street's average estimate of $0.17 per share.
"Our platform strategy is resonating with customers, and we delivered another record quarter, combining strong revenue growth, profitability, and free cash flow," CEO Henry Schuck said in a press release.
The company also noted that it now has 1,763 customers with $100,000 or greater in annual contract value, up from 1,100 in the year-ago quarter.
Part of the company's success in the quarter is thanks to a series of acquisitions it made over the past year that have paid off. "We quickly integrated acquisitions, drove them to profitability ahead of plan, and continued to invest in the business," Schuck said on the company's earnings call.
Investors were also happy to see ZoomInfo's management raise the company's full-year earnings outlook to $0.79 per share at the midpoint of guidance, up from its previous guidance of $0.76.
Management also increased its revenue outlook for the year to about $1.08 billion, up from its previous guidance of about $1.07 billion.
With the company's strong performance in the quarter and management raising its outlook for the full year, it's no surprise to see ZoomInfo's shares rising today.