sales intelligence platform ZoomInfo will be reporting results tomorrow after market hours. Here's what investors should know.
ZoomInfo beat analysts' revenue expectations by 1.9% last quarter, reporting revenues of $316.4 million, up 4.9% year on year. It was a mixed quarter for the company, with an impressive beat of analysts' billings estimates but management forecasting growth to slow. It lost 49 enterprise customers paying more than $100,000 annually and ended up with a total of 1,820.
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 grow 2.7% year on year to $308.9 million, slowing from the 24.4% 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 2.2% on average.
Looking at ZoomInfo's peers in the sales and marketing software segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Freshworks delivered year-on-year revenue growth of 19.9%, meeting analysts' expectations, and Sprout Social reported revenues up 28.7%, in line with consensus estimates. Freshworks traded down 19.6% following the results while Sprout Social was also down 40.1%.
Read our full analysis of Freshworks's results here and Sprout Social's results here.
Growth stocks have been quite volatile since the start of 2024, and while some of the sales and marketing software stocks have fared somewhat better, they have not been spared, with share prices down 3.1% on average over the last month. ZoomInfo is up 2.8% during the same time and is heading into earnings with an average analyst price target of $21.7 (compared to the current share price of $16.28).
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