ZoomInfo 2025 Q1 Earnings Beats Expectations as Net Income Climbs 77.5%

ZoomInfo (GTM) reported its fiscal 2025 Q1 earnings on May 12th, 2025. The company delivered positive results, surpassing analyst expectations with adjusted earnings per share (EPS) of $0.23, outperforming the anticipated $0.22. Revenue stood at $305.7 million, slightly above consensus estimates. ZoomInfo raised its full-year guidance, projecting revenue between $1.195 billion and $1.205 billion, along with adjusted EPS ranging from $0.96 to $0.98, indicating confidence in its strategic direction. Despite a modest revenue decline, the company demonstrated resilience in its financial performance.

Revenue

ZoomInfo's revenue for 2025 Q1 decreased by 1.4% to $305.70 million from $310.10 million in 2024 Q1. The subscription segment generated $301.90 million, while usage-based revenue accounted for $3.20 million. Other revenues contributed $600,000, culminating in the total revenue of $305.70 million for the quarter.

Earnings/Net Income

ZoomInfo's earnings per share (EPS) increased significantly by 100.0% to $0.08 in 2025 Q1 from $0.04 in 2024 Q1, showcasing continued growth. Net income rose to $26.80 million, a 77.5% increase from $15.10 million in the previous year. The EPS reflects strong financial health.

Post-Earnings Price Action Review

The strategy of acquiring ZoomInfo (GTM) shares following a dip in revenue at the time of financial report release and holding them for 30 days has consistently yielded impressive returns over the past five years, with an annualized return of 41.37%, significantly outperforming the market. This approach has proven effective in capturing the stock price rebound for GTM after earnings declines. The success of this strategy underscores its potential for investors seeking to capitalize on post-earnings recovery. The robust returns highlight the market's response to ZoomInfo's strategic initiatives and the resilience of its stock performance, even amid revenue fluctuations. Such trends emphasize the importance of timing in investment strategies, particularly with companies like ZoomInfo that demonstrate strong upmarket momentum and strategic adaptability.

CEO Commentary

Henry Schuck, Founder and CEO of ZoomInfo, expressed optimism about the company's performance, stating, "We delivered another consecutive quarter of better-than-expected financial results." He highlighted growth drivers, such as the expansion of their Go-To-Market Intelligence platform and improved net retention, with "71% of our business growing and accelerating growth." Schuck emphasized strategic priorities, including a shift upmarket and the launch of products like Go-To-Market Studio and Copilot to enhance customer engagement. He noted the importance of leveraging AI and third-party data, stating, "We are being very intentional with the down-market portion of our business," indicating a focused approach amidst economic uncertainties.

Guidance

For Q2 2025, ZoomInfo expects GAAP revenue in the range of $295 million to $298 million, with adjusted operating income between $101 million and $104 million. The full year 2025 guidance includes GAAP revenue projected at $1.195 billion to $1.205 billion, reflecting a negative 1.2% annual growth at the midpoint. Adjusted operating income is expected to be between $426 million and $436 million, with a non-GAAP net income forecast ranging from $0.96 to $0.98 per share based on 352 million weighted average diluted shares outstanding.

Additional News

ZoomInfo has announced a notable change in its Nasdaq Global Select stock ticker symbol from 'ZI' to 'GTM', effective May 13, 2025, aligning with its focus on go-to-market intelligence. This rebranding reflects the company's strategic emphasis on growth and market positioning. Additionally, ZoomInfo repurchased 8.6 million shares for $95 million during the first quarter, demonstrating a commitment to shareholder value and confidence in its financial health. The company also reported a significant increase in its customer base, with 1,868 clients generating at least $100,000 in annual contract value, up by 108 from the previous year. These developments indicate ZoomInfo's proactive approach to enhancing its market presence and financial stability amidst evolving business dynamics.