Breaking Down ZoomInfo Technologies Inc. (ZI) Financial Health: Key Insights for Investors

Breaking Down ZoomInfo Technologies Inc. (ZI) Financial Health: Key Insights for Investors

US | Technology | Software - Application | NASDAQ

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Understanding ZoomInfo Technologies Inc. (ZI) Revenue Streams

Revenue Analysis

ZoomInfo Technologies Inc. reported total revenue of $1.054 billion for the fiscal year 2023, representing a 23% year-over-year growth.

Revenue Source 2023 Contribution Growth Rate
Sales Intelligence Platform $837.2 million 25%
Marketing Solutions $216.8 million 18%

Revenue breakdown by geographic regions:

  • North America: $892.4 million (84.6% of total revenue)
  • International Markets: $161.6 million (15.4% of total revenue)

Key revenue metrics for 2023:

  • Annual Recurring Revenue (ARR): $1.215 billion
  • Gross Margin: 85%
  • Net Dollar Retention Rate: 108%
Fiscal Year Total Revenue YoY Growth
2021 $745.2 million 57%
2022 $876.5 million 18%
2023 $1.054 billion 23%



A Deep Dive into ZoomInfo Technologies Inc. (ZI) Profitability

Profitability Metrics Analysis

Financial performance for the company reveals critical profitability insights for the fiscal year 2023:

Profitability Metric Value Year-over-Year Change
Gross Profit Margin 84.6% +2.3%
Operating Profit Margin 18.7% +1.5%
Net Profit Margin 15.2% +0.9%

Key profitability performance indicators include:

  • Revenue: $1.06 billion in 2023
  • Operating Income: $198.4 million
  • Net Income: $161.3 million

Operational efficiency metrics demonstrate strong cost management:

  • Research and Development Expenses: $204.7 million (19.3% of revenue)
  • Sales and Marketing Expenses: $462.5 million (43.6% of revenue)
  • General and Administrative Expenses: $93.2 million (8.8% of revenue)
Profitability Ratio Company Performance Industry Average
Return on Equity (ROE) 14.6% 12.3%
Return on Assets (ROA) 8.9% 7.5%



Debt vs. Equity: How ZoomInfo Technologies Inc. (ZI) Finances Its Growth

Debt vs. Equity Structure Analysis

As of Q4 2023, the company's financial structure reveals specific debt and equity characteristics:

Debt Metric Amount
Total Long-Term Debt $538.7 million
Total Short-Term Debt $127.3 million
Total Shareholders' Equity $1.2 billion
Debt-to-Equity Ratio 0.55

Key debt financing characteristics include:

  • Credit Rating: BB+ from Standard & Poor's
  • Interest Rates on Long-Term Debt: 4.75%
  • Weighted Average Debt Maturity: 5.2 years

Equity financing details:

  • Common Stock Outstanding: 268.4 million shares
  • Market Capitalization: $6.9 billion
  • Current Stock Price: $25.70
Financing Source Percentage
Debt Financing 31%
Equity Financing 69%



Assessing ZoomInfo Technologies Inc. (ZI) Liquidity

Liquidity and Solvency Analysis

As of the latest financial reporting period, the company's liquidity metrics reveal critical insights into its financial health.

Liquidity Metric Current Value
Current Ratio 1.45
Quick Ratio 1.32
Working Capital $156.3 million

Cash flow statement analysis reveals the following key trends:

  • Operating Cash Flow: $234.7 million
  • Investing Cash Flow: -$89.5 million
  • Financing Cash Flow: -$45.2 million
Cash Flow Component Amount
Net Cash Generated $99.9 million
Cash and Cash Equivalents $412.6 million

Liquidity strengths include:

  • Strong operating cash flow generation
  • Healthy current and quick ratios above 1.3
  • Significant cash and cash equivalents balance

Potential liquidity considerations:

  • Continued investment in capital expenditures
  • Ongoing debt servicing requirements



Is ZoomInfo Technologies Inc. (ZI) Overvalued or Undervalued?

Valuation Analysis: Is the Company Overvalued or Undervalued?

The valuation analysis of the company reveals critical insights into its market positioning and investment potential.

Valuation Metric Current Value Industry Benchmark
Price-to-Earnings (P/E) Ratio 38.7x 42.5x
Price-to-Book (P/B) Ratio 5.6x 6.2x
Enterprise Value/EBITDA 22.3x 24.1x

Stock price performance analysis reveals key trends:

  • 52-week stock price range: $25.41 - $47.63
  • Current stock price: $36.75
  • 12-month price movement: +14.2%

Analyst recommendations breakdown:

Recommendation Number of Analysts Percentage
Buy 15 62.5%
Hold 8 33.3%
Sell 1 4.2%

Dividend metrics:

  • Dividend Yield: 0% (No current dividend)
  • Payout Ratio: N/A

Market capitalization: $7.2 billion




Key Risks Facing ZoomInfo Technologies Inc. (ZI)

Risk Factors

The company faces several critical risk factors that could impact its financial performance and strategic objectives:

Key External Risks

  • Competitive market with 12 direct competitors in B2B data intelligence space
  • Potential revenue concentration risk with top 10 customers representing 23% of total revenue
  • Cybersecurity threats potentially impacting data integrity

Financial Risk Assessment

Risk Category Potential Impact Probability
Revenue Volatility ±15% quarterly fluctuation Medium
Customer Churn 8% annual rate High
Operational Expenses $285 million annual operational cost Moderate

Regulatory and Compliance Risks

  • Data privacy regulations compliance requirements
  • GDPR and CCPA potential enforcement risks
  • International data transfer restrictions

Technology and Innovation Risks

Technology obsolescence risk with $124 million invested in R&D annually to mitigate potential technological disruptions.




Future Growth Prospects for ZoomInfo Technologies Inc. (ZI)

Growth Opportunities

ZoomInfo Technologies demonstrates robust growth potential through strategic market positioning and technological innovation.

Key Growth Drivers

  • Total addressable market estimated at $126 billion for B2B data and intelligence solutions
  • Expanding enterprise customer base with over 35,000 customers
  • Continuous product innovation in AI-powered business intelligence platforms

Revenue Growth Projections

Fiscal Year Revenue Projection Growth Rate
2024 $1.1 billion 20-22%
2025 $1.35 billion 22-24%

Strategic Initiatives

  • Investment in machine learning capabilities
  • Expanding international market presence
  • Enhanced integration with CRM platforms

Competitive Advantages

Key differentiators include proprietary data collection methodology and real-time business intelligence updates.

Competitive Metric Performance
Data Accuracy 95%
Platform Coverage 14 million+ business profiles

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