ZoomInfo CEO Buys More Stock as Shares Surge Over 20%

ZoomInfo Technologies Inc. (NASDAQ: ZI) shares have been on a rollercoaster ride, surging over 20% in after-hours trading on Tuesday, March 14, 2023. The company's CEO, Henry Schuck, has attributed this significant increase to operational improvements and AI innovation, which have helped the company deliver better-than-expected financial performance. In this article, we will explore the factors contributing to ZoomInfo's stock price surge and discuss the potential long-term benefits for investors.



ZoomInfo's strong financial performance in the fourth quarter and full-year 2024 has been a significant driver of its stock price increase. The company reported Q4 revenue of $309.1 million, surpassing estimates of $297.63 million, and adjusted EPS of 26 cents, beating estimates of 22 cents (Source: Benzinga). Additionally, ZoomInfo's adjusted operating income margin for Q4 was 37%, and for the full year, it was 35%. These strong profitability metrics indicate a healthy business.



ZoomInfo's AI innovation and commitment to customer success have also played a crucial role in driving its financial performance and shareholder returns. The company's AI-driven platform helps users identify target customers and decision-makers, enabling them to expand their markets, accelerate sales cycles, and drive revenue. This has led to a 12.7% increase in stock price following the announcement of its Q4 and full-year 2024 financial results.

Moreover, ZoomInfo's board approved a share repurchase program authorizing the company to repurchase up to $100 million of its common stock. This program can enhance shareholder value by reducing the number of outstanding shares, potentially increasing earnings per share (Source: Business Wire). The company repurchased $562.3 million of its common stock in 2024 and ended the year with $137.6 million remaining under the repurchase program. Additionally, the company's board approved an additional $500 million buyback authorization in February 2025.



ZoomInfo's positive outlook for 2025 has also contributed to its stock price surge. The company expects first-quarter revenue to be in the range of $294 million to $297 million and full-year 2025 revenue to be between $1.185 billion and $1.205 billion. The company also anticipates full-year adjusted earnings of 95 cents to 97 cents per share (Source: Benzinga).

ZoomInfo's AI innovation and commitment to customer success position it to offer several potential long-term benefits for investors. These include improved customer retention, increased market share, enhanced operational efficiency, and a competitive advantage. By maintaining its focus on AI capabilities and technological differentiation, ZoomInfo can continue to deliver strong financial performance and maintain its position as a leading go-to-market intelligence platform.

In conclusion, ZoomInfo's stock price surge is driven by its strong financial performance, AI innovation, commitment to customer success, and positive outlook for 2025. The company's focus on these areas positions it to offer potential long-term benefits for investors, such as improved customer retention, increased market share, enhanced operational efficiency, and a competitive advantage. As ZoomInfo continues to execute its strategic pivot and invest in AI capabilities, investors can expect the company to deliver strong financial performance and maintain its position as a leading go-to-market intelligence platform.