ZoomInfo's Q2 Results and Forecast Fall Short, Shares Plummet 15%

ZoomInfo Technologies reported Q2 results that failed to meet investor expectations, leading to a 15% decline in shares. The company's 2025 forecast was also deemed insufficient, causing a significant drop in the stock. GTM stock is currently among the top losers in the S&P MidCap 400.

ZoomInfo Technologies Inc. (GTM), a leading provider of go-to-market intelligence and engagement platform for sales and marketing teams, reported its Q2 2025 earnings on August 4th, which failed to meet investor expectations. The company reported GAAP revenue of $307 million, adjusted operating income of $105 million, and net revenue retention of 89%, all of which were in line with the company's guidance [1]. However, the stock experienced a 15% decline, making GTM one of the top losers in the S&P MidCap 400.

The company's 2025 forecast was also deemed insufficient, causing a significant drop in the stock. Analysts predicted earnings of $0.23 per share and revenue of $296.40 million, but ZoomInfo's actual results were slightly above these estimates [2]. The company's full-year 2025 guidance for GAAP revenue was $1.215 billion to $1.225 billion, adjusted operating income between $433 million to $437 million, and non-GAAP net income between $0.99 to $1.01 per share [1].

ZoomInfo's upmarket growth accelerated, with 72% of its business coming from larger upmarket customers, contributing to higher profitability. However, the downmarket segment declined by 11% year over year, contributing less to total adjusted operating income. The company also experienced a 6% reduction in force, indicating ongoing efforts to optimize efficiency and reduce costs [1].

Despite the missed expectations, ZoomInfo's stock remains attractive to some investors. The company has a market cap of $3.84 billion, a price-to-earnings ratio of 374.12, and a price-to-earnings-growth ratio of 13.05. Institutional investors own 95.47% of the company's stock, with a mix of ratings including four sell, twelve hold, and three buy ratings from analysts [2].

In conclusion, ZoomInfo Technologies' Q2 2025 results failed to meet investor expectations, leading to a significant drop in the stock. However, the company's strong upmarket growth and focus on customer value present opportunities for future growth.

References:
[1] https://finance.yahoo.com/news/zoominfo-technologies-inc-gtm-q2-070458593.html
[2] https://www.marketbeat.com/instant-alerts/zoominfo-technologies-zi-to-release-earnings-on-monday-2025-07-28/