Shares of ZoomInfo Technologies (ZI, Financial) dramatically rose today, gaining 23.03% as investors responded to the company's fourth-quarter 2024 financial results. The stock now trades at $11.725, reflecting a positive market reaction to the company's financial performance.
ZoomInfo Technologies operates a go-to-market intelligence platform for sales and marketing teams, focusing on delivering comprehensive data and insights. Despite a 2% decrease in Q4 revenue from the previous year, totaling $309 million, ZoomInfo's addition of 58 new customers spending $100,000 annually was a notable achievement. This brings their total high-value customers to 1,867, indicating potential growth despite the recent decline.
Analysts have upgraded their outlook on ZoomInfo's stock due to results surpassing expectations. Although the company projects flat revenue of approximately $1.2 billion for 2025, the stabilization in decline has reassured investors, suggesting that the company might be on a recovery trajectory. Furthermore, ZoomInfo forecasts unlevered free cash flow between $420 million and $440 million in 2025, slightly less than the $447 million in 2024, but still a figure that suggests resilience.
In terms of financial health, ZoomInfo Technologies carries a market cap of $4.026 billion and has a high P/E ratio of 146.56, indicating it is priced for growth. Despite some warning signs, such as a distressed Altman Z-score of 0.67 and a declining operating margin, the company exhibits strengths including a Beneish M-Score of -2.8, implying it is unlikely to manipulate earnings. Additionally, the stock price, price-to-book (P/B) ratio, and price-to-sales (P/S) ratio are all close to five-year lows, potentially making the stock attractive to value investors.
ZoomInfo's GF Value estimate is $29.14, suggesting it is currently undervalued, which might present an opportunity for investors. For more details on the GF Value, visit the GF Value page for ZoomInfo Technologies.
