Sales intelligence platform ZoomInfo will be announcing earnings results tomorrow after market close. Here's what you need to know.
Last quarter ZoomInfo reported revenues of $300.7 million, up 24.4% year on year, in line with analyst expectations. It was a weaker quarter for the company, with decelerating growth in large customers. The company lost 21 enterprise customers paying more than $100,000 annually and ended up with a total of 1,905.
Is ZoomInfo buy or sell heading into the earnings? Read our full analysis here, it's free.
This quarter analysts are expecting ZoomInfo's revenue to grow 16.5% year on year to $311.1 million, slowing down from the 53.5% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.23 per share.
Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company has a history of exceeding Wall St's expectations, beating revenue estimates every single time over the past two years on average by 4.65%.
Looking at ZoomInfo's peers in the sales and marketing software segment, only VeriSign has so far reported results, delivering top-line growth of 5.71% year on year, missing analyst estimates by 0.29%. The stock was down 2.09% on the results. Read our full analysis of VeriSign's earnings results here.
There has been positive sentiment among investors in the software segment, with the stocks up on average 6.45% over the last month. ZoomInfo is up 0.08% during the same time, and is heading into the earnings with analysts' average price target of $31.37, compared to share price of $26.20.
One way to find opportunities in the market is to watch for generational shifts in the economy. Almost every company is slowly finding itself becoming a technology company and facing cybersecurity risks and as a result, the demand for cloud-native cybersecurity is skyrocketing. This company is leading a massive technological shift in the industry and with revenue growth of 70% year on year and best-in-class SaaS metrics it should definitely be on your radar.
The author has no position in any of the stocks mentioned.