ZoomInfo Technologise (NASDAQ: ZI) up 15% after the leading software company recorded a beat-and-raise quarter.
ZoomInfo beats analyst estimates
ZoomInfo Technologies recorded $0.21 adjusted EPS in the quarter beating the $0.18 analyst consensus. The company brought in a total revenue of $267.1 million crushing the $54.4 analyst estimates.
In the same quarter, ZoomInfo reporting an adjusted EPS in the range of 19c and 20c, which is slightly higher than the consensus estimate of 19c. Total revenue the company is calling for is around $277 million to $279 million, which is also better than the $272.1 million analyst estimates.
On FY basis, the company expects an adjusted EPS of between 78c to 60c, better than the previous forecast 75c to 77c, as well as higher than the 76c analyst estimate.
The company’s Chief Executive Officer and Founder, Henry Schuck, said:
Our platform strategy is resonating with customers, and we delivered another record quarter, combining strong revenue growth, profitability, and free cash flow.
The company forecasts a third quarter EPS of between 19c to 22c, topping the analyst estimate of 19c.
Analyst comments and estimates
Kash Rangan, an analyst at Goldman Sachs, believes ZoomInfo stock have risen because of the de-risked 2H22 set up and plus 40% operating margin guide.
Mr. Rangan said:
Our conviction in ZI remains strong, and we believe the company is in the early stages of becoming an end-to-end digital GTM platform, with a balanced business model (growth profitability and free cash flow generation. Based on our 2Q22 estimates the company operates at a rule of 94 (revenue growth of 53% + uFCF margin of 41%) well above SaaS peers.
Alex Zukin, an analyst from Wolfe Research, said:
While it’s true ZI is not immune to a weakening macro and the beat and raise cadence are contracting, the bigger truth is that they are STILL beat AND raising (in an environment where companies are starting to miss and lower)
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