Recently, Go-To-Market intelligence provider ZoomInfo (Nasdaq: ZI) reported its quarterly results that surpassed market expectations. The company is focusing on expanding its partner network to ensure that it makes a bigger impact on the market.
ZoomInfo’s fourth quarter revenues grew 53% to $140.4 million, surpassing the market’s forecast of $130.44 million. ZoomInfo reported an EPS of $0.12, again beating analysts’ estimate of $0.10.
Among key metrics, ZoomInfo now has more than 20,000 customers including 850 customers with $100,000 or greater in annual contract value.
For the fiscal year, ZoomInfo reported revenues of $476.2 million, growing 62%, and an EPS of $0.34
ZoomInfo expects revenues in between $144-$146 million for the first quarter, compared with the market’s expectations at $145.48 million. EPS is forecasted to be $0.10-$0.11 versus analyst estimate of $0.10. ZoomInfo expects revenues of $645-$655 million for the year, with EPS of $0.47-$0.49. The market was looking for revenues of $653.44 million for the year with an EPS of $0.48.
ZoomInfo’s Partner Focus
Recently, ZoomInfo announced a partnership with Leadspace that will provide sales and marketing teams with a combination of B2B intelligence and an enterprise-level data management and activation tools. As part of the partnership, Leadspace’s customers will get access to ZoomInfo’s B2B intelligence, allowing them to market more efficiently and effectively. Additionally, the two companies will build a platform-level integration that will enable users to access and activate data and intelligence that was previously locked. The Leadspace CDP provides a data-agnostic, AI powered, cross-channel infrastructure while ZoomInfo provides data that marketing teams require to connect and engage with customers.
ZoomInfo is banking on partners to expand its market reach. It recently announced a new ZoomInfo Partner Program that will help companies accelerate their go-to-market activities. The program allows partners to build custom engagements with the ZoomInfo platform to help them generate new revenue and grow their businesses. The ZoomInfo Partner Program can be customized to meet the needs of partners’ different business models, creating flexibility as companies evolve. Companies can either become Solution or Technology Partners. Solution Partners will help other businesses increase their network by connecting them with other customers, industry influencers, integrators, sales and marketing consultants. Technology Partners will enable integrations in the ZoomInfo platform to bring efficiency, convenience, and increased revenue to customers.
Analysts were pleased with ZoomInfo’s performance. Its net dollar retention recovered through the second half of the year and Q4’s retention momentum exceeded last year’s levels. Analysts also believe that sales intelligence market has experienced a three-four year pull-forward in market growth due to COVID, primarily driven by the fact that nearly 80% of B2B buyers now prefer the new normal for remote sales. ZoomInfo is clearly benefiting from this trend.
Its stock is currently trading at $47.27 with a market capitalization of $18.5 billion. It was trading at a 52-week low of $30.83 in September last year. It reached a 52-week high of $64.40 in February this year. ZoomInfo went public in June last year, when it raised $935 million at a valuation of $8.2 billion. It had priced its stock at $21 apiece.
Disclosure: All investors should make their own assessments based on their own research, informed interpretations, and risk appetite. This article expresses my own opinions based on my own research of product-market fit, channel execution, and other factors. My primary interest is in product strategy. While this may have bearing on stock movements, my writings tend to focus on long-term implications. The information presented is illustrative and educational, but should not be regarded as a complete analysis nor recommendation to buy or sell the securities mentioned herein. I am not a registered investment adviser and I am not receiving compensation for this article.