Sales intelligence platform ZoomInfo will be announcing earnings results tomorrow after market close. Here's what to expect.
Last quarter ZoomInfo reported revenues of $267.1 million, up 53.5% year on year, beating analyst revenue expectations by 5.3%. It was a strong quarter for the company, with exceptional revenue growth and a solid beat of analyst estimates. The company added 140 enterprise customers paying more than $100,000 annually to a total of 1,763.
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 40.9% year on year to $278.4 million, slowing down from the 60.1% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.20 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 6.34%.
Looking at ZoomInfo's peers in the sales and marketing software segment, some of them have already reported Q3 earnings results, giving us a hint of what we can expect. Zendesk delivered top-line growth of 20.1% year on year, missing analyst estimates by 2% and UserTesting reported revenues up 27.8% year on year, exceeding estimates by 2.91%. Zendesk traded flat on the results, and UserTesting was up 91.7% on acquisition announcement at $7.5 per share. Read our full analysis of Zendesk's results here and UserTesting's results here.
Investors in the sales and marketing software segment have had steady hands going into the earnings, with the stocks up on average 1.87% over the last month. ZoomInfo is up 3.08% during the same time, and is heading into the earnings with analyst price target of $64.40, compared to share price of $45.16.
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.