© Reuters. Analysts Remain Positive on ZoomInfo (ZI) After ‘Very Good’
Zoominfo Technologies (ZI) boosted its adjusted EPS outlook for the full year, driving its shares modestly up in postmarket trading.
The software-as-a-service company (SaaS) reported better than expected Q1 adjusted EPS of 18c, up from 13c in the year-ago period and the consensus estimates of 15c per share. Revenue came in at $241.7 million, up 58% YoY and above the analyst expectations of $227.7 million.
Looking ahead to Q2, the company expects adjusted EPS in the range of 17c to 18c, missing the expected 17c. Revenue is estimated to be in the range of $253 million to $255 million, while analysts were looking for $242.1 million.
Zoominfo also said it bought a recruitment marketing and employer branding platform Comparably.
BofA analyst Koji Ikeda noted “strong Q1” and raised guidance that prompted him to raise the price target to $76.00 per share.
“We believe ZoomInfo’s Q1 results were very good, as the business delivered an upper software echelon Rule-of-109 profile (58% revenue growth + 51% uFCF margins, demonstrating its attractive value proposition and efficient operating structure. We are encouraged by ZoomInfo’s four pronged product approach (SalesOS, MarketingOS, TalentOS, and OperationsOS) that creates an attractive end-market monetization opportunity,” Ikeda wrote to clients.
Stifel analyst J. Parke Lane cut the price target to $75.00 per share from the prior $85.00 to reflect multiple compression in the group although he remains very positive.
“Considering the scale of the opportunity and the use-case the company’s platform serves, we believe ZoomInfo is one of the most compelling names in our coverage. We maintain our Buy rating,” the analyst said.
By Senad Karaahmetovic
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