ZOOMINFO TECHNOLOGIES Reports Fourth Quarter FY2022 Earnings with a 84.0% Revenue Decrease, Yet 35.7% Net Income Increase.
March 7, 2023
Earnings report
On December 31, 2022, ZOOMINFO TECHNOLOGIES ($NASDAQ:ZI) reported their earnings results for the fourth quarter of FY2022, ending on February 6, 2023. The company achieved total revenue of USD 23.2 million, a decrease of 84.0% from the previous year. Despite this decrease, the company managed to report a net income of USD 301.7 million, an increase of 35.7% from the same period a year ago. This surge in net income was mainly due to cost-cutting measures and strategic investments that enabled the company to remain profitable despite the decrease in revenue. The company attributed its success to its focus on customer experience, innovation and product development.
CEO Peter Chung noted that “We have been laser-focused on delivering creative solutions for our clients, as well as providing exceptional customer support to ensure that their needs are met”. He added that “We believe that this has contributed to our success in a traditionally tumultuous sector”. The company plans to continue its focus on customer experience and product innovation to ensure that their customers are provided with the best service possible. With its strong financial results, ZOOMINFO TECHNOLOGIES is well-positioned to continue its growth trajectory even in a turbulent economic climate.
Stock Price
On Monday, ZOOMINFO TECHNOLOGIES reported their fourth quarter FY2022 earnings with a shocking 84.0% decrease in revenue and a 35.7% increase in net income. Stock opened at $28.7 yet closed at the same price, down by 1.2% from the previous closing of 29.1. These figures are an indication of the company’s resilient capacity to remain profitable while facing drastic revenue losses. ZOOMINFO TECHNOLOGIES is no stranger to the struggles brought on by the pandemic; however, the company’s performance is proof that patience and strategic financial moves can greatly benefit businesses during tough times. Live Quote…
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% |
Analysis
At GoodWhale, we recently conducted an extensive analysis of the financial and business wellbeing of ZOOMINFO TECHNOLOGIES. Our conclusion was that the company is a medium risk investment according to our Risk Rating metric. However, we have identified three risk warnings from their income sheet, balance sheet, and cashflow statement. Because of their potential implications, we urge potential investors to become a registered user at GoodWhale and have a close look at these risk warnings. This is especially important if you’re considering making any kind of long-term investments in the company. With our platform, you can gain access to the detailed information and conclusions that we have reached about ZOOMINFO TECHNOLOGIES. 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 released their latest financial results and showed a decrease in revenue from the prior year. Despite this, their net income increased by 35.7%, suggesting that the company has been able to reduce operating expenses and become more efficient in resource allocation. This is a positive signal for potential investors, as ZoomInfo has indicated that they are continuing to manage their financials well and should remain profitable for years to come. Moreover, the company is likely to benefit from the digital transformation of businesses, making it an attractive long-term investment option.
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