Shares of ZoomInfo (ZI +0.76%) soared 14.4% on Tuesday after the business data platform provider announced strong quarterly results.
Zoominfo's fourth-quarter 2023 revenue grew 5% year over year to $316.4 million, translating to non-GAAP (adjusted) net income of $0.26 per share. Analysts, on average, were only modeling earnings of $0.25 per share on slightly lower revenue.
NASDAQ: ZI
Key Data Points
ZoomInfo leans into its AI advantage
ZoomInfo Founder and CEO Henry Schuck noted that the company remains comfortably cash-flow positive, delivering unlevered free cash flow of $126 million during the quarter. Schuck also highlighted ZoomInfo's recent introduction of ZoomInfo Copilot, its generative AI-powered solution that provides recommendations to users for who to contact, when to engage them, and even what to say across different channels.
Meanwhile, ZoomInfo's net revenue retention for the full year arrived at 87%, contracting from 104% in 2022. Many customers have certainly tightened their purse strings of late, but ZoomInfo seems to be doing well at controlling the factors within its control as it pertains to its value proposition. According to a recent survey of over 7,000 users, ZoomInfo customers bring in 32% more revenue, on average, by closing more deals than they did prior to using the platform.
What's next for ZoomInfo stock?
For the full year 2024, ZoomInfo issued guidance calling for revenue of $1.26 billion to $1.28 billion -- roughly in line with expectations and up a modest 2.5% year over year at the midpoint -- with adjusted earnings per share of $0.99 to $1.01. Most analysts were modeling full-year 2024 earnings near the lower end of ZoomInfo's outlook range.
In the end, this slightly better-than-expected quarterly update might not drop any jaws in the bear camp. But with shares of ZoomInfo still down around 32% over the past year, even after today's pop, it's no surprise to see some bullish investors stepping back in today.
