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ZoomInfo Surprises With Q3 Earnings Beat, But Stock Slides As Revenue Growth Lags
ZoomInfo Technologies Inc. (NASDAQ: ZI ) shares traded lower premarket on Wednesday after the company reported third-quarter results .
On Tuesday, the company reported revenue of $303.6 million, beating estimates of $299.4 million, and adjusted EPS of 28 cents, exceeding the consensus of 22 cents .
Total revenue was down 3% on a year-over-year basis in the quarter. ZoomInfo ended the quarter with 1,809 customers generating $100,000 or more in annual contract value, marking an increase of 12 customers compared to the previous quarter.
Adjusted operating income was $111.7 million, down 11% year over year, with a 37% margin.
ZoomInfo said it generated $18.2 million in cash flow from operations and $110.7 million in unlevered free cash flow during the quarter. The company ended the quarter with $147.7 million in cash and cash equivalents.
Henry Schuck, ZoomInfo founder and CEO said, “Net revenue retention was stable for the third consecutive quarter and we again grew our $100k and million dollar customer cohorts.”
In the quarter, the company repurchased shares worth $242.1 million.
Outlook: ZoomInfo sees fourth-quarter revenue in the range of $296 million to $299 million versus estimates of $296.8 million and adjusted EPS of $0.22 – $0.23 (vs. consensus of $0.23), according to Benzinga Pro .
The company revised FY24 revenue outlook to $1.201 billion – $1.204 billion (from $1.190 – $1.205 billion) vs $1.198 billion estimate and adjusted EPS to $0.92 – $0.93 (from $0.86 – $0.88) vs. consensus of $0.88 .
Investors can gain exposure to the stock via WisdomTree Cloud Computing Fund (NASDAQ: WCLD ).
Price Action: ZoomInfo shares were down 15.1% at $11.10 premarket at the last check Wednesday.
Photo via Alexandra Koch from Pixabay
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This article ZoomInfo Surprises With Q3 Earnings Beat, But Stock Slides As Revenue Growth Lags originally appeared on Benzinga.com
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