ZoomInfo Technologies, Inc. (ZI) shares are on the rise after the company reported better-than-expected fourth-quarter financial results. The company’s quarterly earnings of 26 cents per share beat the analyst consensus estimate of 25 cents and remained unchanged from the same period last year. ZoomInfo also reported quarterly sales of $316.4 million, beating the analyst consensus estimate of $310.64 million and representing a 4.87% increase over sales from the previous year.
In addition to its strong fourth-quarter performance, ZoomInfo provided guidance for the first quarter and fiscal year 2024. The company expects first-quarter revenue between $307 million and $310 million, slightly surpassing the estimated $308.73 million. For the fiscal year 2024, ZoomInfo forecasts revenue between $1.26 billion and $1.28 billion, exceeding the estimated $1.27 billion. Earnings per share for the fiscal year are projected to be between 99 cents and $1.01.
Following the release of the earnings report, analysts have expressed positive outlooks for ZoomInfo Technologies. Piper Sandler analyst Brent Bracelin maintained an Overweight rating on the stock and raised the price target from $23 to $24. Similarly, Needham analyst Joshua Reilly reiterated a Buy rating and maintained a $25 price target.
ZoomInfo Technologies’ revenue growth in FY23 was 12.88%, indicating positive prospects for the company’s future. Various factors, including the macroeconomic environment, demand for products and services, and competition, contribute to this growth. However, investors should consider macro factors such as interest rates, inflation, and labor market conditions, which may impact the company’s performance in the coming year.
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When comparing ZoomInfo Technologies to its peers, it is important to analyze the stock in relation to companies with similar products or in the same industry. ZoomInfo Technologies operates in the Communication Services sector and has experienced average annual growth of -31.84%, compared to the -18.73% average of its peer companies. Although its growth is below the sector average, it is essential to consider the broader sector movement and industry trends.
As of the time of publication, ZoomInfo shares were trading at $17.61, reflecting a nearly 10% increase.
Overall, ZoomInfo Technologies’ strong financial performance, positive guidance, and favorable analyst ratings suggest a promising outlook for the company. Investors should closely monitor macroeconomic conditions and industry trends to make informed decisions about ZoomInfo Technologies’ stock.
