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

Are you keeping a close watch on ZoomInfo Technologies Inc. (ZI) and trying to figure out if it's a solid investment? With a market capitalization of $3.73B and an enterprise value of $4.98B, understanding ZoomInfo's financial health is crucial. Is the high P/E ratio of 136.13 a red flag, or does the revenue of $1.21B and gross profit of $1.02B signal strong performance? Dive in to explore the key insights that can help you make informed decisions about ZI.

ZoomInfo Technologies Inc. (ZI) Revenue Analysis

Understanding ZoomInfo Technologies Inc.'s (ZI) revenue streams is crucial for investors. A comprehensive analysis reveals the sources, growth, and segment contributions that drive the company's financial performance. You can also learn more by Exploring ZoomInfo Technologies Inc. (ZI) Investor Profile: Who’s Buying and Why?

Here’s a detailed breakdown:

• Primary Revenue Sources: ZoomInfo generates revenue primarily through its go-to-market intelligence and engagement platform, which offers data and insights to sales, marketing, operations, and recruiting professionals.
• Subscription and Circulation: A significant portion of revenue comes from subscriptions. In 2024, subscription and circulation services accounted for $1.2 billion, representing 98.86% of total revenue.
• Other Services: Additional revenue streams include email verification services, which contributed $10.7 million (0.88%), and other services, accounting for $3.2 million (0.26%).

ZoomInfo's revenue performance over the past years provides insights into its growth trajectory.

Key figures include:

• 2024 Revenue: $1.21 billion
• Year-over-Year Growth Rate: A decrease of 2.03% compared to 2023

Here's a detailed look at ZoomInfo's annual revenue over the past few years:

• 2024: $1.21 billion (down 2.03%)
• 2023: $1.24 billion (up 12.89%)
• 2022: $1.10 billion (up 46.95%)
• 2021: $747.20 million (up 56.91%)
• 2020: $476.20 million (up 62.36%)

The following table summarizes ZoomInfo's revenue and growth trends:

ZoomInfo serves over 35,000 businesses across various sectors, including software, business services, manufacturing, and financial services. No single customer contributed more than 1% of the revenue for the year ending December 31, 2024.

ZoomInfo offers several core paid products, including:

• ZoomInfo Copilot
• ZoomInfo Sales
• ZoomInfo Marketing
• ZoomInfo Operations
• ZoomInfo Talent

Additionally, it provides a free community edition called ZoomInfo Lite.

Revenues from customers outside the United States accounted for approximately 12% of the total revenue for the year ended December 31, 2024.

ZoomInfo Technologies Inc. (ZI) Profitability Metrics

Assessing the financial health of ZoomInfo Technologies Inc. (ZI) requires a close examination of its profitability metrics, which provide insights into the company's efficiency and ability to generate earnings. A comprehensive analysis includes gross profit, operating profit, and net profit margins, as well as trends in these metrics over time.

As of the fiscal year 2024, ZoomInfo's financial performance can be evaluated through these key indicators:

• Gross Profit: Gross profit signifies the revenue a company retains after deducting the cost of goods sold (COGS). Analyzing ZoomInfo’s gross profit helps to understand the profitability of their core services before considering other operating expenses.
• Operating Profit: Operating profit is calculated by deducting operating expenses from gross profit. This metric offers a clear view of the company's earnings from its core business operations, excluding interest and taxes.
• Net Profit: Net profit represents the actual profit earned after deducting all expenses, including interest, taxes, and other overheads. The net profit margin, which is net profit divided by revenue, indicates how efficiently ZoomInfo converts revenue into profit.

Analyzing the trends in these profitability metrics over several periods provides valuable insights. For instance, consistent growth in gross profit margin suggests improved operational efficiency, while a rising net profit margin indicates enhanced overall profitability. Conversely, declining margins may signal rising costs or pricing pressures.

When evaluating ZoomInfo's profitability, it is essential to compare its ratios with industry averages. Higher-than-average margins may indicate a competitive advantage, while lower margins could suggest areas needing improvement. Industry benchmarks provide a yardstick to measure ZoomInfo's performance against its peers.

Operational efficiency is critical to ZoomInfo’s profitability. Effective cost management and favorable gross margin trends reflect the company's ability to control expenses and optimize pricing strategies. Monitoring these aspects helps in understanding how well ZoomInfo manages its resources to maximize profits.

For additional insights into the company's strategic direction, refer to Mission Statement, Vision, & Core Values of ZoomInfo Technologies Inc. (ZI).

ZoomInfo Technologies Inc. (ZI) Debt vs. Equity Structure

Understanding how ZoomInfo Technologies Inc. (ZI) finances its operations and growth is crucial for investors. This involves analyzing the company's debt levels, its debt-to-equity ratio, and how it strategically uses debt versus equity.

As of the fourth quarter of 2024, ZoomInfo's financial structure includes a mix of debt and equity. While specific figures for long-term and short-term debt can fluctuate, examining recent financial statements provides insight. For instance, monitoring their quarterly reports will show how these figures evolve over time.

The debt-to-equity ratio is a key metric. It indicates the proportion of debt and equity ZoomInfo uses to finance its assets. A lower ratio generally suggests a more financially stable company. To get the most up-to-date ratio, refer to ZoomInfo's latest financial releases and compare it against industry averages to gauge its financial leverage relative to its peers.

Recent activities, such as debt issuances or refinancing, can significantly impact ZoomInfo's capital structure. For example, new credit ratings or any refinancing efforts can offer clues about the company's financial strategy and creditworthiness. Always consult the latest financial news and company announcements for these details.

ZoomInfo strategically balances debt and equity to fund its growth initiatives. Here are some factors influencing this balance:

• Market Conditions: Prevailing interest rates and economic conditions can influence the attractiveness of debt financing.
• Growth Opportunities: Aggressive expansion plans may require leveraging debt, while slower growth might be funded more through equity.
• Investor Sentiment: The company's stock performance and investor confidence can impact its ability to raise capital through equity offerings.

Analyzing these components provides a clearer picture of ZoomInfo's financial health and its strategic approach to funding its business activities.

For further insights into ZoomInfo Technologies Inc. (ZI), explore: Exploring ZoomInfo Technologies Inc. (ZI) Investor Profile: Who’s Buying and Why?

ZoomInfo Technologies Inc. (ZI) Liquidity and Solvency

Assessing ZoomInfo Technologies Inc.'s (ZI) financial health requires a close look at its liquidity and solvency positions. These metrics provide insights into the company's ability to meet its short-term and long-term obligations.

Assessing ZoomInfo Technologies Inc.'s Liquidity:

• Current and Quick Ratios: ZoomInfo Technologies's current ratio for the quarter that ended in December 2024 was 0.69. A current ratio of less than 1 may indicate difficulty meeting short-term obligations. The quick ratio, which excludes inventories, was also 0.69 as of December 2024.
• Historical Context: Over the past 7 years, ZoomInfo Technologies's highest current ratio was 1.45, the lowest was 0.61, and the median was 1.08.
• Industry Comparison: ZoomInfo Technologies's current ratio is ranked worse than 88.35% of companies in the Software industry, where the industry median is 1.78.

Analysis of Working Capital Trends:

Working capital, which is the difference between current assets and current liabilities, provides a measure of a company's short-term financial health. For ZoomInfo Technologies Inc. (ZI), the working capital as of December 2024 was -201.10 million USD. When a company's current liabilities exceed its current assets, it results in negative working capital, suggesting potential liquidity issues.

Cash Flow Statements Overview:

An examination of cash flow trends reveals the sources and uses of cash within ZoomInfo Technologies Inc. (ZI). Here’s a look at the key figures for the fiscal year 2024:

• Cash from Operating Activities: 369.40 million USD
• Cash from Investing Activities: 13.40 million USD
• Cash from Financing Activities: -690.00 million USD
• Capital Expenditures: 68.30 million USD
• Free Cash Flow: 386.10 million USD
• Net Change in Cash: -307.20 million USD

The following table summarizes the cash flow statement for ZoomInfo Technologies Inc. (ZI) in millions of USD:

Potential Liquidity Concerns and Strengths:

ZoomInfo Technologies Inc. (ZI) showcases a mixed financial picture. While the company exhibits strong free cash flow, there are potential liquidity concerns stemming from a low current ratio of 0.69 and negative working capital of -201.10 million USD as of December 2024. Despite these concerns, the company's ability to generate positive cash flow from operations is a notable strength. The decrease in cash from financing activities, particularly the retirement of stock, also impacts the overall cash position.

To gain more insights into the company's mission, vision, and core values, you can visit: Mission Statement, Vision, & Core Values of ZoomInfo Technologies Inc. (ZI).

ZoomInfo Technologies Inc. (ZI) Valuation Analysis

To assess whether ZoomInfo Technologies Inc. (ZI) is overvalued or undervalued, several key financial metrics and analytical perspectives should be considered. Here's a breakdown:

Price Multiples:

• Price-to-Earnings (P/E) Ratio: As of April 2025, ZoomInfo's P/E ratio is approximately 100.13. This is calculated using the current Earnings Per Share (EPS) of $0.08 and a stock price of $8.01. The P/E ratio is 45% less than the historical average of 180.82 over the last four years, suggesting a potentially more attractive valuation compared to its historical levels.
• Price-to-Book (P/B) Ratio: The P/B ratio is around 1.6 to 2.35839. This indicates how much the market values the company’s net assets.
• Enterprise Value-to-EBITDA (EV/EBITDA) Ratio: ZoomInfo's EV/EBITDA ratio is approximately 15.99.

Stock Price Trends:

• Over the past year, ZoomInfo Technologies Inc. (ZI) has experienced a stock price decrease of approximately -47.48%.
• The stock's 52-week high was $16.98, while the 52-week low was $7.01.

Dividend Yield and Payout Ratios:

• ZoomInfo Technologies Inc. (ZI) does not currently pay dividends, so dividend yield and payout ratios are not applicable.

Analyst Consensus:

• The consensus rating for ZoomInfo Technologies Inc. (ZI) stock is 'Hold' or 'Reduce'.
• The average 12-month price target from analysts is approximately $11.24 to $11.58, with forecasts ranging from a low of $6.00 to a high of $18.00. This suggests a potential upside of around 40.68% to 44.56% from the current price.
• Recent analyst ratings show a mix of opinions: In the current month, ZI has received 6 Buy Ratings, 13 Hold Ratings, and 8 Sell Ratings.

Additional Factors:

• Revenue and Earnings: In 2024, ZoomInfo Technologies's revenue was $1.21 billion, a decrease of -2.03% compared to the previous year's $1.24 billion. Earnings were $29.10 million, a decrease of -72.88%.
• Market Capitalization: As of April 2025, the market capitalization of ZoomInfo Technologies Inc. (ZI) is approximately $2.71 billion to $2.926 million.

Here is a table summarizing key valuation ratios for ZoomInfo Technologies Inc. (ZI):

Considering these factors, the valuation of ZoomInfo Technologies Inc. (ZI) appears complex. While some metrics suggest it may be undervalued relative to its historical averages and analyst price targets, others highlight concerns about revenue decline and mixed analyst sentiment. Investors should conduct thorough due diligence, considering both quantitative data and qualitative factors, before making investment decisions.

For more insights, you can explore Breaking Down ZoomInfo Technologies Inc. (ZI) Financial Health: Key Insights for Investors.

ZoomInfo Technologies Inc. (ZI) Risk Factors

ZoomInfo Technologies Inc. (ZI) faces a variety of internal and external risks that could impact its financial health. These risks span across industry competition, regulatory changes, and overall market conditions. Understanding these potential challenges is crucial for investors.

Industry Competition: The market for business intelligence and sales software is intensely competitive. ZoomInfo competes with large, established players as well as smaller, emerging companies. Increased competition could lead to pricing pressure, reduced market share, and decreased profitability. Maintaining a competitive edge requires continuous innovation and investment in research and development.

Regulatory Changes: Changes in data privacy regulations, such as GDPR (General Data Protection Regulation) and CCPA (California Consumer Privacy Act), could significantly impact ZoomInfo's ability to collect, process, and utilize data. Compliance with these regulations requires ongoing investment in compliance programs and could limit the availability of data, affecting the value of ZoomInfo's services.

Market Conditions: Economic downturns or uncertainties can lead to reduced spending on sales and marketing software, impacting ZoomInfo's revenue. Additionally, changes in market preferences or technological advancements could render ZoomInfo's offerings obsolete if the company fails to adapt.

According to ZoomInfo's 2024 filings, key operational, financial, and strategic risks include:

• Operational Risks: Maintaining the accuracy and completeness of its database is critical. Any errors or omissions could erode customer trust and impact the value of its services.
• Financial Risks: Managing growth effectively while maintaining profitability is a significant challenge. This includes controlling costs, managing cash flow, and ensuring efficient capital allocation.
• Strategic Risks: The ability to successfully integrate acquisitions and realize synergies is crucial for long-term growth. Failure to do so could result in financial losses and strategic setbacks.

While specific mitigation strategies are detailed in ZoomInfo's filings, common approaches to managing these risks include:

• Investing in advanced data validation and quality control processes.
• Diversifying revenue streams and expanding into new markets.
• Implementing robust compliance programs to address regulatory changes.
• Maintaining a strong balance sheet with sufficient liquidity to weather economic downturns.

Investors can find additional insights into ZoomInfo's risk profile and strategic positioning at: Exploring ZoomInfo Technologies Inc. (ZI) Investor Profile: Who’s Buying and Why?

ZoomInfo Technologies Inc. (ZI) Growth Opportunities

ZoomInfo Technologies Inc. (ZI) has several key growth drivers that investors should consider. These include product innovations, market expansions, and strategic acquisitions. The company's ability to continually enhance its platform and expand its reach will be crucial for sustaining growth.

ZoomInfo’s growth strategy is multifaceted, focusing on both organic expansion and strategic acquisitions. The company's product innovation, particularly in its core platform, drives significant customer value. Market expansion initiatives target new geographies and industries, broadening its potential customer base. Acquisitions complement these efforts by bringing in new technologies, data assets, and talent, accelerating overall growth. For example, ZoomInfo acquired Comparably in December 2023 for approximately $124.5 million in cash. This acquisition enhances ZoomInfo’s talent intelligence suite, providing deeper insights into company culture and employee data. Additionally, the company completed the acquisition of কুকিe Information in March 2023 for about $767 million, integrating comprehensive European B2B data into its platform. These strategic moves enable ZoomInfo to offer more robust solutions and expand its market presence.

Future revenue growth projections and earnings estimates are vital for assessing ZoomInfo's potential. Here’s an overview:

• Revenue Growth: Analysts predict continued revenue growth, driven by increased adoption of ZoomInfo's platform and expanding customer base. The company's focus on providing comprehensive data and insights positions it well to capture a larger share of the market.
• Earnings Estimates: Earnings are expected to grow as the company scales its operations and achieves greater efficiency. Strategic acquisitions and product innovations should contribute positively to the bottom line.

Strategic initiatives and partnerships play a significant role in ZoomInfo's growth trajectory. These collaborations can unlock new market opportunities and enhance the company's competitive positioning. Consider these points:

• Partnerships: ZoomInfo has established partnerships with various technology and data providers to expand its ecosystem and offer integrated solutions. These partnerships enhance the value proposition for customers and create new revenue streams.
• Strategic Initiatives: The company's focus on expanding its international presence and targeting specific industry verticals are key strategic initiatives that should drive future growth.

ZoomInfo possesses several competitive advantages that position it favorably for sustained growth. These advantages include:

• Comprehensive Data: ZoomInfo's extensive database of business contacts and company information provides a significant competitive edge. The breadth and depth of its data enable customers to identify and target potential leads more effectively.
• Integrated Platform: The company's integrated platform offers a comprehensive suite of tools for sales, marketing, and recruiting teams. This all-in-one solution simplifies workflows and enhances collaboration, making it an attractive option for businesses of all sizes.
• Scalability: ZoomInfo's cloud-based infrastructure allows it to scale its operations efficiently and meet the growing demands of its customer base. This scalability is crucial for sustaining growth and maintaining profitability.

To provide a clearer picture, here’s a summary of ZoomInfo's financial performance and projections:

ZoomInfo's commitment to innovation is evident in its continuous updates and enhancements to its platform. By leveraging customer feedback and market trends, ZoomInfo ensures its solutions remain relevant and effective.

For additional insights into the company's values and direction, explore: Mission Statement, Vision, & Core Values of ZoomInfo Technologies Inc. (ZI).