ZoomInfo Technologies Q4 Earnings: Revenue Beat, EPS Beat, Strong Guidance, Shares Surge

ZoomInfo Technologies Inc. (NASDAQ: ZI) reported its fourth-quarter and full-year 2024 financial results, surpassing analyst expectations and driving a significant surge in its share price. The company's strong performance was marked by a revenue beat, earnings per share (EPS) beat, and robust guidance, which has investors bullish on the stock's prospects.



Q4 Earnings Highlights

ZoomInfo's Q4 revenue reached $309.1 million, exceeding estimates of $297.63 million by a substantial margin. The company's adjusted EPS of 26 cents also surpassed the expected 22 cents, demonstrating strong earnings growth. Total revenue for the quarter was down 2% year-over-year, but the company's impressive adjusted operating income margin of 37% highlighted its commitment to profitability.



Full-Year 2024 Results

For the full year, ZoomInfo generated $1,214.3 million in revenue, with an adjusted operating income margin of 35%. The company added 58 customers with $100,000+ annual contract value in Q4, bringing the total to 1,867 customers. However, the net revenue retention rate stood at 87%, signaling a concerning trend of customer downselling or churn.

Capital Allocation and Share Repurchases

ZoomInfo conducted significant share repurchases in 2024, buying back 46.8 million shares (12% of total shares) at an average price of $12.01, totaling $562.3 million. The company's board approved an additional $500 million share repurchase authorization in February 2025, indicating management's confidence in the company's intrinsic value.

Strong Guidance

ZoomInfo expects first-quarter revenue to be in the range of $294 million to $297 million, compared to estimates of $292.41 million. The company anticipates first-quarter adjusted earnings of 22 cents to 23 cents per share, in line with analyst estimates of 22 cents per share. For the full year, ZoomInfo forecasts revenue between $1.185 billion and $1.205 billion, with adjusted earnings of 95 cents to 97 cents per share.

Market Reaction and Expert Insights

ZoomInfo shares surged in after-hours trading Tuesday, up 18.05% to $11.25, following the strong earnings report. Analysts have praised the company's performance, with some raising their price targets and maintaining their 'buy' or 'hold' ratings. However, investors should monitor the company's ability to reaccelerate revenue growth, address customer churn, and balance shareholder returns with long-term growth investments.

In conclusion, ZoomInfo Technologies' Q4 earnings report demonstrated the company's ability to deliver strong financial performance despite revenue challenges. With a focus on profitability, operational efficiency, and shareholder returns, the company has positioned itself for continued success in the go-to-market intelligence market. As investors assess the long-term sustainability of this strategic pivot, they should closely monitor ZoomInfo's progress in reaccelerating revenue growth and addressing customer churn.