Sales intelligence platform ZoomInfo will be announcing earnings results tomorrow after market hours. Here’s what to expect.
ZoomInfo beat analysts’ revenue expectations by 1.5% last quarter, reporting revenues of $303.6 million, down 3.3% year on year. It was a mixed quarter for the company, with full-year EPS guidance exceeding analysts’ expectations but decelerating growth in large customers. It added 12 enterprise customers paying more than $100,000 annually to reach a total of 1,809.
Is ZoomInfo a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting ZoomInfo’s revenue to decline 5.9% year on year to $297.7 million, a reversal from the 4.9% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.23 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. ZoomInfo has missed Wall Street’s revenue estimates twice over the last two years.
Looking at ZoomInfo’s peers in the sales and marketing software segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Freshworks delivered year-on-year revenue growth of 21.5%, beating analysts’ expectations by 2.7%, and HubSpot reported revenues up 20.8%, topping estimates by 4.4%. Freshworks’s stock price was unchanged after the results, while HubSpot was up 4.3%.
Read our full analysis of Freshworks’s results here and HubSpot’s results here.
Valuation multiples for many growth stocks have not yet reverted to their early 2021 highs, but the market has been optimistic as of late due to a soft landing. This is an economic situation where rate hikes successfully quelled inflation but did not send the economy into a recession. Furthermore, recent rate cuts and Donald Trump's triumph in the 2024 Presidential election have been tailwinds for the market, and while some of the sales and marketing software stocks have shown solid performance, the group has generally underperformed, with share prices down 2.8% on average over the last month. ZoomInfo is down 3.4% during the same time and is heading into earnings with an average analyst price target of $11.20 (compared to the current share price of $9.77).
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