Raymond James maintains ZoomInfo stock with Market Perform rating

On Monday, Raymond (NSE:RYMD) James analyst Brian Peterson maintained a Market Perform rating for ZoomInfo Technologies (NASDAQ:ZI), following the company’s quarterly financial results. Peterson noted that ZoomInfo’s revenue exceeded expectations by 3%, which was consistent with the 4% upside seen in the fourth quarter of 2024. The company maintains impressive gross profit margins of 88.2%, according to InvestingPro data. The growth in customer accounts spending over $100,000 was slight quarter over quarter but represented a 6% increase year over year.

Key performance indicators (KPIs) for ZoomInfo showed modest improvements. The Net Revenue Retention (NRR) rate saw a quarter-over-quarter expansion but remained at 87%. Meanwhile, the calculated Remaining Performance Obligations (cRPO) growth was flat compared to the same period last year, which is an improvement from a 1% decline in the fourth quarter of 2024. The sequential decline in cRPO also showed betterment when compared to the prior year’s levels. InvestingPro analysis indicates the company maintains a "GOOD" overall financial health score, suggesting operational stability despite these metrics.

ZoomInfo’s full-year financial guidance was cautiously optimistic, increasing by less than the $10 million mid-point beat reported in the recent results. Peterson highlighted that this conservative forecast aligns with a broader trend of companies in the sector adjusting their forward-looking estimates amidst economic uncertainty. According to InvestingPro data, net income is expected to grow this year, with analysts projecting EPS of $1.03 for fiscal year 2025.

After the market closed on Monday, ZoomInfo’s stock showed little change, which Peterson interpreted as a neutral response to the company’s performance. He concluded that the current results represent a positive move for ZoomInfo, though the market’s reaction post-announcement was not immediately clear. The stock has shown strong momentum recently, with a 13.3% return over the past week, though it remains 21% lower over the past six months. For deeper insights into ZoomInfo’s valuation and growth prospects, investors can access comprehensive analysis through the Pro Research Report available on InvestingPro.

In other recent news, ZoomInfo Technologies reported its first-quarter earnings, surpassing analyst expectations. The company posted adjusted earnings per share of $0.23, slightly above the consensus estimate of $0.22. Revenue for the quarter was $305.7 million, exceeding the anticipated $295.56 million, despite a 1% year-over-year decline. ZoomInfo also raised its full-year 2025 outlook, projecting revenue between $1.195 billion and $1.205 billion, with adjusted EPS expected to be between $0.96 and $0.98. Barclays (LON:BARC) maintained an Equalweight rating on ZoomInfo with a price target of $9.00, noting the company’s performance could positively impact investor sentiment. ZoomInfo forecasts second-quarter revenue between $295 million and $298 million, with adjusted EPS ranging from $0.22 to $0.24, both ahead of consensus estimates. The company closed the quarter with 1,868 customers, each generating $100,000 or more in annual contract value, marking an increase of 108 from the previous year. Additionally, ZoomInfo repurchased 8.6 million shares for $95 million and plans to change its ticker symbol to "GTM" on May 13. Despite these developments, the company’s shares fell 2.8% in after-hours trading, indicating that investors might have anticipated even more robust results.

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