Zoominfo Technologies Intrinsic Value Calculator – ZOOMINFO TECHNOLOGIES Reports Strong Fourth Quarter Earnings for FY2022
February 23, 2023
Earnings Overview
ZOOMINFO TECHNOLOGIES ($NASDAQ:ZI) released their financial results for the fourth quarter of FY2022, which ended on December 31, 2022. Total revenue for this period totaled USD 23.2 million, representing a decrease of 84.0% compared to the corresponding quarter in the previous year. However, net income showed an increase of 35.7% year over year, amounting to USD 301.7 million.
Transcripts Simplified
In Q4, ZoomInfo Technologies delivered revenue of $302 million, up 36% year-over-year. Adjusted operating income in Q4 was $127 million, a margin of 42%, up 100 basis points sequentially and up 360 basis points compared to the fourth quarter of last year. For the full year, ZoomInfo Technologies delivered revenue of $1.1 billion, up 47% compared to 2021 and delivered adjusted operating income of $448 million and unlevered free cash flow of $457 million. They expect to deliver 17% revenue growth for 2023 at the midpoint, with an implied AOI margin of 41%, up 50 basis points compared to 2022.
Net revenue retention for the year was 104%. Sales reps are spending more time on deals and renewals than they have in the past, limiting their ability to drive more upsell opportunities with existing customers, and they are working to improve efficiency by adding capacity, shifting account loads, reallocating resources, and automating low end tasks.
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Zoominfo Technologies. More…
| Total Revenues | Net Income | Net Margin |
| 1.1k | 63.2 | 6.0% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Zoominfo Technologies. More…
| Operations | Investing | Financing |
| 417 | -281.1 | -25.9 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Zoominfo Technologies. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 7.14k | 4.86k | 5.44 |
Key Ratios Snapshot
Some of the financial key ratios for Zoominfo Technologies are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 55.3% | 51.5% | 22.1% |
| FCF Margin | ROE | ROA |
| 35.3% | 6.8% | 2.1% |
Market Price
The stock opened at $28.7 and closed at the same price, which was a 1.2% decline from its previous closing price of 29.1. The company’s stock performance was driven by strong performance in its core business, as well as a 5% increase in customer count and a 6% rise in subscription-based revenue. Overall, ZOOMINFO TECHNOLOGIES‘ strong fourth-quarter earnings report provided investors with a great deal of confidence in the company and its prospects going forward. Live Quote…
Analysis – Zoominfo Technologies Intrinsic Value Calculator
We at GoodWhale recently conducted an analysis of ZOOMINFO TECHNOLOGIES‘ wellbeing. After thorough evaluation, we concluded that the fair value of ZOOMINFO TECHNOLOGIES share is around $48.9. This was calculated by our proprietary Valuation Line. Upon further inspection, we found that currently the stock is being traded at $28.7, which implies that it is undervalued by 41.3%. More…
Peers
Its competitors include Salesforce Inc, Snowflake Inc, Microsoft Corp.
– Salesforce Inc ($NYSE:CRM)
Salesforce is a cloud-based customer relationship management software company. They offer a variety of software solutions for businesses of all sizes, including Sales Cloud, Service Cloud, Marketing Cloud, Commerce Cloud, and more. Their products are designed to help businesses automate and streamline their sales, marketing, customer service, and commerce processes. Salesforce has a market cap of $162.59B as of 2022 and a Return on Equity of 0.08%.
– Snowflake Inc ($NYSE:SNOW)
Snowflake Inc is a data warehouse company that focuses on cloud-based data warehousing. The company has a market cap of 51.3B as of 2022 and a Return on Equity of -8.11%. Snowflake was founded in 2012 and is headquartered in San Mateo, California. The company went public in September 2020.
– Microsoft Corp ($NASDAQ:MSFT)
Microsoft Corporation is an American multinational technology company with a market cap of 1.7 trillion as of April 2021. It develops, manufactures, licenses, supports, and sells computer software, consumer electronics, personal computers, and services. Its best known software products are the Microsoft Windows line of operating systems, the Microsoft Office suite, and the Internet Explorer and Edge web browsers. Its flagship hardware products are the Xbox video game consoles and the Microsoft Surface lineup of tablets, laptops, and desktop computers. The company also has a cloud computing division called Azure and a professional social network LinkedIn.
Summary
ZOOMINFO TECHNOLOGIES reported their financial results of the fourth quarter of FY2022, which showed total revenue of USD 23.2 million, a decrease of 84.0%. However, net income saw an increase of 35.7% year over year, reaching USD 301.7 million. Given the decrease in revenue yet increase in income, investors may be encouraged to consider investing in the company due to its potentially lucrative returns. Over the long term, the stock may be undervalued at the current market price and could potentially see growth as the company continues to launch new products and expand its presence in the market.
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