ZoomInfo (ZI) To Report Earnings Tomorrow: Here Is What To Expect

sales intelligence platform ZoomInfo will be reporting results tomorrow afternoon. Here’s what investors should know.

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

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 be flat year on year at $307.7 million, slowing from the 15.5% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.23 per share.

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. ZoomInfo has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 1.5% on average.

Looking at ZoomInfo’s peers in the sales and marketing software segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Freshworks delivered year-on-year revenue increase of 20%, beating analysts’ expectations by 3%, and Zeta reported revenues up 32.6%, topping estimates by 7.2%. Freshworks traded down 5.8% following the results while Zeta was up 11.9%.

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

Growth stocks have seen elevated volatility as investors debate the Fed’s monetary policy, and while some of the sales and marketing software stocks have fared somewhat better, they have not been spared, with share prices down 3.7% on average over the last month. ZoomInfo is down 12.8% during the same time and is heading into earnings with an average analyst price target of $16.9 (compared to the current share price of $10.38).

Today’s young investors won’t have read the timeless lessons in 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, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next.