ZoomInfo Technologies reported September-quarter profit and revenue that topped Wall Street estimates. But ZI stock lost more than a fourth of its value Wednesday as billings missed amid a weaker-than-expected outlook.
ZoomInfo earnings came in at 24 cents a share, up 85% from a year earlier, topping estimates for 20-cent profit. Including acquisitions, revenue rose 46% to $287.6 million. Further, sales topped estimates of $278 million.
For the December quarter, ZoomInfo forecast earnings of 21 cents a share on revenue of $299 million at the midpoint of its outlook, in line with analyst estimates.
ZI stock plummeted 29% to close at 30.81 on the stock market today.
ZI Stock: A Miss On Billings
"While the company delivered revenue ahead of consensus, the miss on billings ($257 million vs. consensus of $284 million) and management's commentary about the worsening macro backdrop with weak Q4 guidance sent shares down," Siti Panigrahi, ZI stock analyst at Mizuho Securities, said in a note to clients.
At RBC Capital, analyst Rishi Jaluria said in his note: "Q3 revenue upside was less than usual, next quarter revenue guidance lacked upside to consensus (first time since IPO) and leading indicators (billings) decelerated meaningfully. On the bright side, the company continues to protect margins."
ZoomInfo's core asset is a huge database of contact and account information that services some 120 million business professionals. Also, sales and marketing teams use ZoomInfo's database to identify, engage and track their best potential customers.
With acquisitions, ZoomInfo has morphed into a broad business intelligence company.
Meanwhile, heading into the ZoomInfo earnings report, ZI stock owned a Relative Strength Rating of 46 out of a best possible 99.
Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on 5G wireless, artificial intelligence, cybersecurity and cloud computing.
