JMP maintains ZoomInfo stock Market Perform after mixed 1Q25 results

Published 13/05/2025, 10:20
JMP maintains ZoomInfo stock Market Perform after mixed 1Q25 results

On Tuesday, JMP Securities analyst Patrick Walravens reiterated a Market Perform rating for ZoomInfo Technologies (NASDAQ:ZI) following the company’s release of its first-quarter financial results for 2025. ZoomInfo reported non-GAAP earnings per share (EPS) of $0.23, slightly above the consensus estimate of $0.22. The operating margins reported were 33.0%, narrowly missing the consensus estimate of 33.1%. According to InvestingPro data, the company maintains impressive gross profit margins of 87.83%, demonstrating strong operational efficiency. InvestingPro subscribers have access to 8 additional key insights about ZoomInfo’s financial performance.

The company’s unlevered free cash flow was notably higher than expected at $124.5 million, surpassing the $84.4 million estimated by Citizens. ZoomInfo’s revenue for the quarter stood at $306 million, exceeding the consensus estimate of $295 million. While this represents a 1% year-over-year decline, it shows improvement from the 3% year-over-year decline reported in the previous quarter. InvestingPro analysis indicates that net income is expected to grow this year, suggesting potential recovery momentum.

The calculated remaining performance obligation (cRPO), an indicator of future revenue, was $850 million. This figure was also higher than Citizens’ projection of $836 million but still marked a 1% decrease compared to the same period last year, showing a smaller contraction than the 2% year-over-year decline seen last quarter.

Despite these mixed results, ZoomInfo’s stock experienced a slight downturn of approximately 1% in after-market trading. Recent data from InvestingPro shows the stock has actually gained nearly 16% over the past week, though it remains below its Fair Value estimate. The company maintains a "GOOD" overall financial health score, suggesting strong fundamental positioning despite market volatility. For detailed analysis and comprehensive valuation metrics, investors can access ZoomInfo’s Pro Research Report, part of InvestingPro’s coverage of over 1,400 US stocks.

The reaffirmed Market Perform rating indicates that JMP Securities believes the stock will perform in line with the market or its sector in the near future, based on the financial figures reported and the current market conditions.

In other recent news, ZoomInfo Technologies Inc. reported its Q1 2025 earnings, which exceeded market expectations. The company achieved an earnings per share (EPS) of $0.23, surpassing the forecasted $0.22, and reported revenue of $306 million, outpacing the anticipated $295.56 million. This positive financial performance was accompanied by a significant increase in adjusted operating income, which reached $101 million with a 33% margin. Additionally, ZoomInfo’s operating cash flow was reported at $119 million, and unlevered free cash flow stood at $125 million, representing a 41% margin. The company maintains its full-year 2025 revenue guidance between $1.195 billion and $1.205 billion. In other developments, ZoomInfo has been focusing on expanding its upmarket presence and innovating with new AI-powered products. Despite economic uncertainties, the company’s strategic initiatives appear to be strengthening its market position.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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