ZoomInfo (ZI) to Report Earnings Tomorrow: Here’s What to Expect

Sales intelligence platform ZoomInfo will report results tomorrow afternoon. Here’s what investors need to know.

ZoomInfo met analysts’ revenue expectations in the latest quarter, reporting revenue of $310.1 million, up 3.1% year over year. It was a weak quarter for the company, with billings missing analysts’ estimates and full-year revenue guidance falling short of analysts’ expectations. The company lost 60 enterprise customers paying more than $100,000 annually and ended up with 1,760.

Is ZoomInfo a buy or sell on earnings? Read our full analysis here, it’s free.

Analysts are expecting ZoomInfo revenue to be flat year over year for the quarter at $307.7 million, down from the 15.5% increase seen in the same quarter last year. Adjusted earnings are expected to be $0.23 per share.

Most analysts covering the company have reaffirmed their estimates over the past 30 days, suggesting they expect the company to maintain its earnings trajectory. ZoomInfo has missed Wall Street revenue estimates just once over the past two years, beating revenue expectations by an average of 1.5%.

Looking at ZoomInfo’s competitors in the sales and marketing software segment, some have already reported Q2 results, giving us a hint of what to expect. Freshworks reported year-over-year revenue growth of 20%, beating analyst expectations by 3%, and Zeta reported revenue growth of 32.6%, beating estimates by 7.2%. Freshworks fell 5.8% after the results, while Zeta rose 11.9%.

Read our full analysis of Freshworks results here and Zeta results here.

Growth stocks have seen increased volatility as investors debate the Fed’s monetary policy, and while some sales and marketing software stocks have fared slightly better, they haven’t been spared, with shares down an average of 3.7% over the past month. ZoomInfo is down 12.8% in the same time frame and is heading for earnings with an average analyst price target of $16.90 (up from the current share price of $10.38).

Today’s young investors haven’t read the timeless lessons of Gorilla Game: Picking Winners In High Technology, because it was written more than 20 years ago, when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, enterprise software stocks that are leveraging their own generative AI capabilities could be the Gorillas of the future. So in that spirit, we’re excited to present our special free report on profitable, high-growth enterprise software stocks that are already riding the automation wave and looking to catch the next generative AI.