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ZoomInfo Q4 Earnings Report Preview: What To Look For


Jabin Bastian /
2022/02/14 5:49 am EST
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Sales intelligence platform ZoomInfo will be reporting earnings tomorrow after market hours. Here's what investors should know.

Last quarter ZoomInfo reported revenues of $197.6 million, up 60.1% year on year, beating analyst revenue expectations by 7.5%. It was a very strong quarter for the company, with an exceptional revenue growth and a very optimistic guidance for the next quarter. The company added 150 enterprise customers paying more than $100,000 annually to a total of 1,250.

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 39.8% year on year to $195.4 million, slowing down from the 53.3% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.13 per share.

ZoomInfo Total Revenue

The analysts covering the company have been growing increasingly bullish about the business heading into the earnings, with revenue estimates seeing 12 upwards revisions over the last thirty days. 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 6.23%.

Looking at ZoomInfo's peers in the sales software segment, some of them have already reported Q4 earnings results, giving us a hint of what we can expect. Freshworks (NASDAQ:FRSH) delivered top-line growth of 44.4% year on year, beating analyst estimates by 5.12% and HubSpot (NYSE:HUBS) reported revenues up 46.5% year on year, exceeding estimates by 3.29%. Freshworks traded down 17.9% on results, HubSpot was up 1.97%. Read our full analysis of Freshworks 's results here and HubSpot's results here.

Investors in the software segment have had steady hands going into the earnings, with the stocks up on average 1.62% over the last month. ZoomInfo is up 15.5% during the same time, and is heading into the earnings with analyst price target of $73.3, compared to share price of $56.9.

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.