DexCom earnings beat by $0.03, revenue topped estimates
On Wednesday, Stifel analysts increased their price target for ZoomInfo Technologies (NASDAQ:ZI) shares, raising it to $14 from the previous $13, while continuing to endorse the stock with a Buy rating. Currently trading at $11.51, InvestingPro analysis indicates the stock is slightly undervalued. The adjustment follows ZoomInfo’s recent quarterly results, which indicated a positive shift in the company’s business dynamics, supported by impressive gross profit margins of 88.33%.
The company has seen an improvement in its net retention rate quarter over quarter, marking the first such increase since the first quarter of 2022. Stifel attributes this positive change to a better balance in ZoomInfo’s customer base, with an uptick in upmarket clients compared to downmarket ones. Analysts at Stifel believe that this trend, along with the adoption of new products like Copilot, will clarify and enhance ZoomInfo’s revenue narrative as the year progresses. InvestingPro subscribers can access 8 additional key insights about ZoomInfo’s business model and growth potential through exclusive ProTips.
The first quarter of 2025 is expected to be the last period affected by older customers transitioning from pre-business-risk models, with conservative renewal rates for downmarket customers already factored into the company’s guidance. Stifel analysts anticipate that, assuming a stable macroeconomic environment, ZoomInfo could experience consistent improvements in top-line performance heading into 2026.
Additionally, Stifel foresees sustainable trends in the expansion of ZoomInfo’s unlevered free cash flow per share (uFCF/share), which they predict will continue to be a key indicator of the company’s success. With levered free cash flow of $338.8 million in the last twelve months, the company demonstrates strong cash generation capabilities. The maintained Buy rating and increased price target reflect Stifel’s confidence in ZoomInfo’s potential for revenue re-acceleration and financial growth. Discover comprehensive analysis and detailed financial metrics with InvestingPro’s exclusive Research Report, part of our coverage of over 1,400 US stocks.
In other recent news, ZipRecruiter reported its fourth-quarter earnings, revealing a quarterly revenue of $111 million and a full-year revenue of $474 million. Despite these figures, the company faced a full-year net loss of $12.9 million, with an adjusted EBITDA of $78 million. Barclays (LON:BARC) analyst Trevor Young downgraded ZipRecruiter from Overweight to Equalweight, citing concerns over the company’s fiscal year 2025 EBITDA margin guidance, which was below consensus. Goldman Sachs analyst Eric Sheridan also lowered the price target for the company, maintaining a Neutral rating due to the company’s below-expectation first-quarter adjusted EBITDA guidance.
Meanwhile, ZoomInfo Technologies surpassed earnings expectations for the fourth quarter of 2024, reporting an earnings per share of $0.26 against a forecast of $0.23. The company’s revenue reached $309.1 million, exceeding the anticipated $297.66 million. Needham maintained a Buy rating on ZoomInfo, highlighting the company’s strong performance and improvement in Net Revenue Retention to 87%. ZoomInfo’s strategic focus on the upmarket segment, which now accounts for a significant portion of its business, was emphasized as a key driver of growth. The company’s CoPilot product achieved $150 million in Annual Contract Value, while its Operations OS saw a 27% year-over-year growth.
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