ZoomInfo Technologies Q2 Results: Revenue Below Expectations, EPS Below Expectations, Soft Outlook, CFO Change and More – ZoomInfo Technologies (NASDAQ:ZI)

ZoomInfo Technologies Inc ZI shares are trading lower in Monday’s after-hours session after the company reported worse-than-expected second-quarter financial results and announced a management shakeup. Here’s what you need to know.

• Q2 revenues: $291.5 million vs. $307.73 million estimate

• Earnings per share in Q2: 17 cents, compared with an estimate of 23 cents

Total revenue fell 6% year over year. ZoomInfo reported generating $126.3 million in cash flow from operations and $120 million in free cash flow during the quarter. The company ended the quarter with $385.9 million in cash and cash equivalents.

“In the second quarter, we implemented a number of initiatives to position the company for long-term success. Following the successful launch of ZoomInfo Copilot, our AI-powered go-to-market platform, we are further accelerating this transformation to the next level,” he said. Henry SchuckFounder and CEO of ZoomInfo.

“To that end, in a quarter in which we added 100,000 more ACV clients, we recorded our best quarter in terms of new business in the mid- and large-cap segment, while also stabilizing net revenue retention.”

See also: Palantir Q2 Results: Revenue Up, EPS Up, Customers Up 41% on Strength of US Retail Market – ‘A Relentless Wave of Demand’

Perspectives: ZoomInfo is forecasting third-quarter revenue of $298 million to $301 million, compared with estimates of $307.7 million, according to Benzinga Pro. The company is forecasting adjusted net income of 21 cents to 22 cents per share, compared with estimates of 23 cents per share.

“We have implemented a new business risk model to reduce write-offs and revised our estimates for receivables collection. I am confident that this will strengthen our future financial position and enable the company to deliver strong and growing free cash flow,” Schuck said.

Management is currently discussing quarterly results in a conference call beginning at 4:30 p.m. ET.

What else: ZoomInfo also announced that its CFO Cameron Hyzer will step down from his role. Hyzer will remain in an advisory capacity until Oct. 7 to facilitate a smooth transition. Graham O’Brien was appointed interim CFO, effective September 6.

ZI price action: According to Benzinga Pro, at the time of publication on Monday, ZoomInfo shares were down 13.37% after the close of trading to $8.49.

Photo: courtesy of ZoomInfo.