ZoomInfo Announces Third Quarter 2024 Financial Results
ZoomInfo (NASDAQ: ZI) announced its Q3 2024 financial results, showcasing a GAAP revenue of $303.6 million, a decrease of 3% YoY. The company reported a GAAP operating income of $43.5 million and an adjusted operating income of $111.7 million. GAAP and adjusted operating income margins were 14% and 37%, respectively. Cash flow from operations was $18.2 million, while unlevered free cash flow reached $110.7 million, a 17% increase. ZoomInfo also repurchased 24.5 million shares, approximately 7% of total shares, at an average price of $9.89. The company provided Q4 2024 guidance with GAAP revenue expected between $296-$299 million and adjusted net income per share between $0.22-$0.23.
Recent developments include enhancements to ZoomInfo Copilot, expanded partnerships, and recognition as a Leader in the 2024 Gartner Magic Quadrant for Account-Based Marketing Platforms. The company achieved a perfect 100% user satisfaction rating in multiple categories on G2.
ZoomInfo (NASDAQ: ZI) ha annunciato i risultati finanziari per il terzo trimestre del 2024, evidenziando un fatturato GAAP di 303,6 milioni di dollari, con una diminuzione del 3% su base annua. L'azienda ha riportato un utile operativo GAAP di 43,5 milioni di dollari e un utile operativo rettificato di 111,7 milioni di dollari. I margini di utile operativo GAAP e rettificato erano rispettivamente del 14% e del 37%. Il flusso di cassa dalle operazioni è stato di 18,2 milioni di dollari, mentre il flusso di cassa libero non gravato ha raggiunto i 110,7 milioni di dollari, con un aumento del 17%. ZoomInfo ha anche riacquistato 24,5 milioni di azioni, circa il 7% del totale, a un prezzo medio di 9,89 dollari. L'azienda ha fornito una previsione per il quarto trimestre del 2024, con un fatturato GAAP previsto tra 296 e 299 milioni di dollari e un reddito netto rettificato per azione compreso tra 0,22 e 0,23 dollari.
Sviluppi recenti includono miglioramenti a ZoomInfo Copilot, partnership ampliate e riconoscimenti come Leader nel Gartner Magic Quadrant 2024 per le Piattaforme di Marketing Basato su Account. L'azienda ha raggiunto un punteggio di soddisfazione degli utenti del 100% in diverse categorie su G2.
ZoomInfo (NASDAQ: ZI) anunció sus resultados financieros del tercer trimestre de 2024, mostrando un ingreso GAAP de 303.6 millones de dólares, una disminución del 3% interanual. La compañía reportó un ingreso operativo GAAP de 43.5 millones de dólares y un ingreso operativo ajustado de 111.7 millones de dólares. Los márgenes de ingreso operativo GAAP y ajustado fueron del 14% y 37%, respectivamente. El flujo de caja de las operaciones fue de 18.2 millones de dólares, mientras que el flujo de caja libre no apalancado alcanzó los 110.7 millones de dólares, un aumento del 17%. ZoomInfo también recompró 24.5 millones de acciones, aproximadamente el 7% del total, a un precio promedio de 9.89 dólares. La compañía proporcionó una guía para el cuarto trimestre de 2024, con ingresos GAAP esperados entre 296 y 299 millones de dólares y un ingreso neto ajustado por acción entre 0.22 y 0.23 dólares.
Los desarrollos recientes incluyen mejoras a ZoomInfo Copilot, asociaciones ampliadas y reconocimiento como Líder en el Cuadrante Mágico de Gartner 2024 para Plataformas de Marketing Basado en Cuentas. La compañía logró una calificación de satisfacción del usuario del 100% en múltiples categorías en G2.
ZoomInfo (NASDAQ: ZI)는 2024년 3분기 재무 결과를 발표하며 GAAP 매출이 3억 3백6십만 달러로 전년 대비 3% 감소했다고 밝혔다. 회사는 GAAP 운영 수익이 4천3백50만 달러, 조정된 운영 수익이 1억 1천1백70만 달러라고 보고했다. GAAP 및 조정된 운영 수익 마진은 각각 14% 및 37%이었다. 운영으로 인한 현금 흐름은 1천8백20만 달러였으며, 무차입 자유 현금 흐름은 1억 1천7백만 달러로 17% 증가했다. ZoomInfo는 또한 총 주식의 약 7%인 2천4백50만 주를 평균 주가 9.89달러에 재매입했다. 회사는 2024년 4분기 가이던스를 제공하며 GAAP 매출이 2억 9천6백만 달러에서 2억 9천9백만 달러 사이가 될 것으로 예상하고, 조정된 주당 순이익은 0.22달러에서 0.23달러 사이로 예상하고 있다.
최근 개발 사항으로는 ZoomInfo Copilot의 개선, 파트너십 확대 및 2024 Gartner Magic Quadrant에서 계정 기반 마케팅 플랫폼의 리더로 인정받은 것이 포함된다. 회사는 G2에서 여러 카테고리에서 100% 사용자 만족도 평가를 달성했다.
ZoomInfo (NASDAQ: ZI) a annoncé ses résultats financiers pour le troisième trimestre 2024, affichant un chiffre d'affaires GAAP de 303,6 millions de dollars, ce qui représente une diminution de 3 % par rapport à l'année précédente. La société a enregistré un résultat opérationnel GAAP de 43,5 millions de dollars et un résultat opérationnel ajusté de 111,7 millions de dollars. Les marges du résultat opérationnel GAAP et ajusté étaient respectivement de 14 % et 37 %. Le flux de trésorerie des opérations s'élevait à 18,2 millions de dollars, tandis que le flux de trésorerie libre non endetté a atteint 110,7 millions de dollars, soit une augmentation de 17 %. ZoomInfo a également racheté 24,5 millions d'actions, soit environ 7 % du total, à un prix moyen de 9,89 dollars. L'entreprise a donné des prévisions pour le quatrième trimestre 2024, avec un chiffre d'affaires GAAP attendu entre 296 et 299 millions de dollars et un bénéfice net ajusté par action compris entre 0,22 et 0,23 dollars.
Parmi les récents développements, on trouve des améliorations de ZoomInfo Copilot, des partenariats élargis et la reconnaissance en tant que Leader dans le rapport Magic Quadrant 2024 de Gartner pour les plateformes de marketing basées sur les comptes. La société a atteint un taux de satisfaction des utilisateurs de 100 % dans plusieurs catégories sur G2.
ZoomInfo (NASDAQ: ZI) gab die finanziellen Ergebnisse für das 3. Quartal 2024 bekannt und wies einen GAAP-Umsatz von 303,6 Millionen US-Dollar aus, was einen Rückgang von 3 % im Vergleich zum Vorjahr bedeutet. Das Unternehmen meldete einen GAAP-Betriebsgewinn von 43,5 Millionen US-Dollar und einen bereinigten Betriebsgewinn von 111,7 Millionen US-Dollar. Die Margen für GAAP- und bereinigten Betriebsgewinn lagen bei 14 % bzw. 37 %. Operativer Cashflow betrug 18,2 Millionen US-Dollar, während der unverschuldete freie Cashflow 110,7 Millionen US-Dollar erreichte, was einem Anstieg von 17 % entspricht. ZoomInfo kaufte auch 24,5 Millionen Aktien zurück, was etwa 7 % der gesamten Aktien entspricht, zu einem durchschnittlichen Preis von 9,89 US-Dollar. Das Unternehmen gab eine Prognose für das 4. Quartal 2024 ab, wobei ein GAAP-Umsatz zwischen 296 und 299 Millionen US-Dollar und ein bereinigter Gewinn pro Aktie zwischen 0,22 und 0,23 US-Dollar erwartet wird.
Zu den aktuellen Entwicklungen gehören Verbesserungen an ZoomInfo Copilot, erweiterte Partnerschaften und die Anerkennung als Marktführer im Gartner Magic Quadrant 2024 für Account-Based Marketing Plattformen. Das Unternehmen erzielte eine perfekte Benutzerzufriedenheitsbewertung von 100 % in mehreren Kategorien auf G2.
- Unlevered free cash flow increased by 17% YoY to $110.7 million.
- Repurchased 24.5 million shares, reducing total shares outstanding by 7%.
- Achieved a 100% user satisfaction rating in multiple G2 categories.
- Named a Leader in the 2024 Gartner Magic Quadrant for Account-Based Marketing Platforms.
- GAAP revenue decreased by 3% YoY to $303.6 million.
- GAAP operating income decreased by 31% YoY to $43.5 million.
- Cash flow from operations decreased by 77% YoY to $18.2 million.
Insights
Q3 results reveal concerning trends with
The company's strategic pivot towards enterprise customers and AI integration through Copilot shows promise, with users reporting significant improvements in engagement (
“We continued our move up-market, fueled by ZoomInfo Copilot and Operations growth, and we delivered strong financial results while improving the quality of new customers that we are bringing in. The entire company is more focused than ever on delighting both our new and existing users via robust product innovation and customer obsession,” said Henry Schuck, ZoomInfo founder and CEO. “Net revenue retention was stable for the third consecutive quarter and we again grew our
Third Quarter 2024 Financial Highlights:
-
GAAP Revenue of
$303.6 million 3% year-over-year. -
GAAP Operating income of
$43.5 million $111.7 million -
GAAP Operating income margin of
14% and Adjusted operating income margin of37% . -
GAAP Cash flow from operations of
$18.2 million $110.7 million
Recent Business and Operating Highlights:
-
Introduced a series of enhancements to ZoomInfo Copilot, including:
- Expanded our partner ecosystem, with new and improved integrations with G2, Gong, HubSpot, Microsoft Dynamics 365, SalesLoft, and TrustRadius.
- Account activity alerts across multiple channels, including Slack, Microsoft Teams, email and in-app.
- Incorporated new gen AI model delivering strategic account prioritization and a prioritized seller homepage based on key signals and insights.
- Improved Copilot analytics impact reporting dashboard.
- Named a Leader in the 2024 Gartner® Magic Quadrant™ for Account-Based Marketing (ABM) Platforms.
-
Achieved a perfect
100% user satisfaction rating for the Sales Intelligence, Buyer Intent, Lead Capture, and Market Intelligence categories as part of G2’s Fall 2024 reports. ZoomInfo products have collected more than 8,000 5-star reviews on G2. -
Expanded real-time buyer signals for more accurate and timely sales insights; with early users reporting a
58% increase in engagement, a62% increase in email response rates, and nearly25% of their pipeline attributed to action taken on Copilot signals. -
Closed the quarter with 1,809 customers with
$100,000 -
During the three months ended September 30, 2024, the Company repurchased 24,478,696 shares of Common Stock accounting for approximately
7% of total shares outstanding, at an average price of$9.89 $242.1 million 17% of outstanding shares.
Q3 2024 Financial Highlights (Unaudited) |
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GAAP Quarterly Results |
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Change YoY |
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Non-GAAP Quarterly Results |
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Change YoY |
Revenue |
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(3)% |
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Operating Income |
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(31)% |
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Adjusted Operating Income |
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(11)% |
Operating Income Margin |
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Adjusted Operating Income Margin |
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Net Income Per Share (Diluted) |
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Adjusted Net Income Per Share (Diluted) |
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Cash Flow from Operating Activities |
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(77)% |
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Unlevered Free Cash Flow |
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The Company uses a variety of operational and financial metrics, including non-GAAP financial measures, to evaluate its performance and financial condition. The accompanying financial data includes additional information regarding these metrics and a reconciliation of non-GAAP financial information for historical periods to the most directly comparable GAAP financial measure. The presentation of non-GAAP financial information should not be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP.
Business Outlook:
Based on information available as of November 12, 2024, ZoomInfo is providing guidance for the fourth quarter and full year 2024 as follows:
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Q4 2024 |
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Prior FY 2024 |
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FY 2024 |
GAAP Revenue |
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Non-GAAP Adjusted Operating Income |
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Non-GAAP Adjusted Net Income Per Share |
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Non-GAAP Unlevered Free Cash Flow |
Not Guided |
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Weighted Average Shares Outstanding |
362 million |
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375 million |
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378 million |
Conference Call and Webcast Information:
ZoomInfo will host a conference call today, November 12, 2024, to review its results at 4:30 p.m. Eastern Time, 1:30 p.m. Pacific Time. To participate in the live conference call via telephone, please register here. Upon registering, a dial-in number and unique PIN will be provided to join the conference call.
The call will also be webcast live on the Company’s investor relations website at https://ir.zoominfo.com/, where related presentation materials will be posted prior to the conference call. Following the conference call, an archived webcast of the call will be available for one year on ZoomInfo’s Investor Relations website.
Non-GAAP Financial Measures and Other Metrics:
To supplement our consolidated financial statements presented in accordance with GAAP, this press release contains non-GAAP financial measures, including Adjusted Operating Income, Adjusted Operating Income Margin, Adjusted Net Income, Adjusted Net Income Per Share, and Unlevered Free Cash Flow. We believe these non-GAAP measures are useful to investors in evaluating our operating performance because they eliminate certain items that affect period-over-period comparability and provide consistency with past financial performance and additional information about our underlying results and trends by excluding certain items that may not be indicative of our business, results of operations, or outlook.
Non-GAAP financial measures are not meant to be considered in isolation or as a substitute for the comparable GAAP measures, but rather as supplemental information to our business results. This information should be read only in conjunction with our consolidated financial statements prepared in accordance with GAAP. There are limitations to these non-GAAP financial measures because they are not prepared in accordance with GAAP and may not be comparable to similarly titled measures of other companies due to potential differences in methods of calculation and items or events being adjusted. In addition, other companies may use different measures to evaluate their performance, all of which could reduce the usefulness of our non-GAAP financial measures as tools for comparison. A reconciliation is provided at the end of this press release for each historical non-GAAP financial measure to the most directly comparable financial measure stated in accordance with GAAP. We do not provide a quantitative reconciliation of the forward-looking non-GAAP financial measures included in this press release to the most directly comparable GAAP measures due to the high variability and difficulty to predict certain items excluded from these non-GAAP financial measures; in particular, the effects of stock-based compensation expense, taxes and amounts under the exchange tax receivable agreement, deferred tax assets and deferred tax liabilities, and restructuring and transaction expenses. We expect the variability of these excluded items may have a significant, and potentially unpredictable, impact on our future GAAP financial results.
We define Adjusted Operating Income as income (loss) from operations adjusted for, as applicable, (i) the impact of fair value adjustments to acquired unearned revenue, (ii) amortization of acquired technology and other acquired intangibles, (iii) equity-based compensation expense, (iv) restructuring and transaction-related expenses, (v) integration costs and acquisition-related expenses, and (vi) legal settlement. We define Adjusted Operating Income Margin as Adjusted Operating Income divided by the sum of revenue and the impact of fair value adjustments to acquired unearned revenue.
We define Adjusted Net Income as net income (loss) adjusted for, as applicable, (i) the impact of fair value adjustments to acquired unearned revenue, (ii) loss on debt modification and extinguishment, (iii) amortization of acquired technology and other acquired intangibles, (iv) equity-based compensation expense, (v) restructuring and transaction-related expenses, (vi) integration costs and acquisition-related expenses, (vii) legal settlement, (viii) TRA liability remeasurement (benefit) expense, (ix) other (income) loss, net and (x) tax impacts of adjustments to net income (loss). We define Adjusted Net Income (Loss) Per Share as Adjusted Net Income (Loss) divided by diluted weighted average shares outstanding used for adjusted net income (loss) per share.
We define Unlevered Free Cash Flow as net cash provided by (used in) operating activities less (i) purchases of property and equipment and other assets, plus (ii) cash interest expense, (iii) cash payments related to restructuring and transaction-related expenses, (iv) cash payments related to integration costs and acquisition-related compensation, and (v) legal settlement payments. Unlevered Free Cash Flow does not represent residual cash flow available for discretionary expenditures since, among other things, we have mandatory debt service requirements.
Net revenue retention is a metric that we calculate based on customers of ZoomInfo at the beginning of the twelve-month period, and is calculated as: (a) the total annual contract value ("ACV") for those customers at the end of the twelve-month period, divided by (b) the total ACV for those customers at the beginning of the twelve-month period.
Cautionary Statement Regarding Forward-Looking Information
This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those expressed or implied by these statements. You can generally identify our forward-looking statements by the words “anticipate”, “believe”, “can”, “continue”, “could”, “estimate”, “expect”, “forecast”, “goal”, “intend”, “may”, “might”, “objective”, “outlook”, “plan”, “potential”, “predict”, “projection”, “seek”, “should”, “target”, “trend”, “will”, “would” or the negative version of these words or other comparable words. Any statements in this press release regarding future revenue, earnings, margins, financial performance, expenses, estimates, cash flow, growth in free cash flow, results of changes in operational procedures, liquidity, or results of operations (including, but not limited to, the guidance provided under “Business Outlook”), and any other statements that are not historical facts are forward-looking statements. We have based our forward-looking statements on beliefs and assumptions based on information available to us at the time the statements are made. We caution you that assumptions, beliefs, expectations, intentions and projections about future events may, and often do, vary materially from actual results. Therefore, we cannot assure you that actual results will not differ materially from those expressed or implied by our forward-looking statements.
Factors that could cause actual results to differ from those expressed or implied by our forward-looking statements include, among other things: future economic, competitive, and regulatory conditions, potential future uses of cash, the successful integration of acquired businesses, and future decisions made by us and our competitors. All of these factors are difficult or impossible to predict accurately and many of them are beyond our control. For a further list and description of these and other important risks and uncertainties that may affect our future operations, see Part I, Item 1A - Risk Factors in our most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission, which we may update in Part II, Item 1A - Risk Factors in Quarterly Reports on Form 10-Q we have filed or will file hereafter. Our forward-looking statements do not reflect the potential impact of any future acquisitions, mergers, dispositions, joint ventures, investments, or other strategic transactions we may make. Each forward-looking statement contained in this presentation speaks only as of the date of this press release, and we undertake no obligation to update or revise any forward-looking statements whether as a result of new information, future developments or otherwise, except as required by law.
Gartner Disclaimers
Gartner, Magic Quadrant for Account-Based Marketing Platforms, 11 November 2024
The Gartner content described herein (the “Gartner Content”) represents research opinion or viewpoints published, as part of a syndicated subscription service, by Gartner, Inc. ("Gartner"), and is not a representation of fact. Gartner Content speaks as of its original publication date (and not as of the date of this earnings press release), and the opinions expressed in the Gartner Content are subject to change without notice.
Gartner does not endorse any vendor, product, or service depicted in its research publications, and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner research publications consist of the opinions of Gartner’s research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose. GARTNER is a registered trademark and service mark of Gartner, Inc. and/or its affiliates in the
About ZoomInfo
ZoomInfo (NASDAQ: ZI) is the trusted go-to-market platform for businesses to find, acquire, and grow their customers. It delivers accurate, real-time data, insights, and technology to more than 35,000 companies worldwide. Businesses use ZoomInfo to increase efficiency, consolidate, technology stacks, and align their sales and marketing teams - all in one platform. ZoomInfo is a recognized leader in data privacy, with industry-leading GDPR and CCPA compliance measures and numerous data security and privacy certifications. For more information about how ZoomInfo can help businesses grow their revenue at scale, please visit www.zoominfo.com.
Website Disclosure
ZoomInfo intends to use its website as a distribution channel of material company information. Financial and other important information regarding the Company is routinely posted on and accessible through the Company’s website at https://ir.zoominfo.com/. Accordingly, you should monitor the investor relations portion of our website at https://ir.zoominfo.com/ in addition to following our press releases, SEC filings, and public conference calls and webcasts. In addition, you may automatically receive email alerts and other information about ZoomInfo when you enroll your email address by visiting the “Email Alerts” section of our investor relations page at https://ir.zoominfo.com/.
ZoomInfo Technologies Inc. |
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Condensed Consolidated Balance Sheets |
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(in millions, except share data) |
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September 30, |
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December 31, |
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2024 |
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2023 |
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(unaudited) |
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Assets |
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Current assets: |
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Cash and cash equivalents |
$ |
147.7 |
|
$ |
447.1 |
Short-term investments |
|
— |
|
|
82.2 |
Restricted cash, current |
|
— |
|
|
0.2 |
Accounts receivable, net |
|
163.0 |
|
|
272.0 |
Prepaid expenses and other current assets |
|
73.9 |
|
|
59.6 |
Income tax receivable |
|
6.1 |
|
|
3.2 |
Total current assets |
$ |
390.7 |
|
$ |
864.3 |
|
|
|
|
||
Restricted cash, non-current |
$ |
8.9 |
|
$ |
8.9 |
Property and equipment, net |
|
99.5 |
|
|
65.1 |
Operating lease right-of-use assets, net |
|
108.5 |
|
|
80.7 |
Intangible assets, net |
|
290.8 |
|
|
334.6 |
Goodwill |
|
1,692.7 |
|
|
1,692.7 |
Deferred tax assets |
|
3,692.9 |
|
|
3,707.1 |
Deferred costs and other assets, net of current portion |
|
110.9 |
|
|
114.9 |
Total assets |
$ |
6,394.9 |
|
$ |
6,868.3 |
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Liabilities and Stockholders’ Equity |
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Current liabilities: |
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Accounts payable |
$ |
21.1 |
|
$ |
34.4 |
Accrued expenses and other current liabilities |
|
109.5 |
|
|
113.8 |
Unearned revenue, current portion |
|
417.0 |
|
|
439.6 |
Income taxes payable |
|
0.3 |
|
|
2.0 |
Current portion of tax receivable agreements liability |
|
58.9 |
|
|
31.4 |
Current portion of operating lease liabilities |
|
11.4 |
|
|
11.2 |
Current portion of long-term debt |
|
5.9 |
|
|
6.0 |
Total current liabilities |
$ |
624.1 |
|
$ |
638.4 |
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Unearned revenue, net of current portion |
$ |
2.2 |
|
$ |
2.3 |
Tax receivable agreements liability, net of current portion |
|
2,736.0 |
|
|
2,786.6 |
Operating lease liabilities, net of current portion |
|
135.8 |
|
|
89.9 |
Long-term debt, net of current portion |
|
1,222.9 |
|
|
1,226.4 |
Deferred tax liabilities |
|
2.5 |
|
|
1.9 |
Other long-term liabilities |
|
3.0 |
|
|
3.5 |
Total liabilities |
$ |
4,726.5 |
|
$ |
4,749.0 |
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Stockholders' Equity: |
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Common stock, par value |
$ |
3.4 |
|
$ |
3.8 |
Additional paid-in capital |
|
1,351.3 |
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|
1,804.9 |
Accumulated other comprehensive income |
|
15.9 |
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|
27.3 |
Retained earnings |
|
297.8 |
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|
283.3 |
Total stockholders' equity |
$ |
1,668.4 |
|
$ |
2,119.3 |
Total liabilities and stockholders' equity |
$ |
6,394.9 |
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$ |
6,868.3 |
ZoomInfo Technologies Inc. |
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Consolidated Statements of Operations |
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(in millions, except per share amounts; unaudited) |
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Three Months Ended September 30, |
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Nine Months Ended September 30, |
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2024 |
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2023 |
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2024 |
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2023 |
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Revenue |
$ |
303.6 |
|
|
$ |
313.8 |
|
|
$ |
905.2 |
|
|
$ |
923.1 |
|
Cost of service: |
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|
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Cost of service(1) |
|
37.7 |
|
|
|
35.3 |
|
|
|
107.9 |
|
|
|
104.4 |
|
Amortization of acquired technology |
|
9.6 |
|
|
|
9.5 |
|
|
|
28.7 |
|
|
|
29.5 |
|
Gross profit |
$ |
256.3 |
|
|
$ |
269.0 |
|
|
$ |
768.6 |
|
|
$ |
789.2 |
|
Operating expenses: |
|
|
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|
|
|
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Sales and marketing(1) |
|
99.1 |
|
|
|
102.4 |
|
|
|
299.2 |
|
|
|
310.1 |
|
Research and development(1) |
|
47.7 |
|
|
|
47.6 |
|
|
|
139.7 |
|
|
|
143.2 |
|
General and administrative(1) |
|
60.6 |
|
|
|
50.5 |
|
|
|
247.0 |
|
|
|
130.4 |
|
Amortization of other acquired intangibles |
|
5.4 |
|
|
|
5.4 |
|
|
|
16.2 |
|
|
|
16.5 |
|
Total operating expenses |
$ |
212.8 |
|
|
$ |
205.9 |
|
|
$ |
702.1 |
|
|
$ |
600.2 |
|
Income from operations |
$ |
43.5 |
|
|
$ |
63.1 |
|
|
$ |
66.5 |
|
|
$ |
189.0 |
|
Interest expense, net |
|
9.6 |
|
|
|
11.9 |
|
|
|
29.5 |
|
|
|
33.8 |
|
Loss on debt modification and extinguishment |
|
— |
|
|
|
— |
|
|
|
0.7 |
|
|
|
2.2 |
|
Other income, net |
|
(1.0 |
) |
|
|
(8.0 |
) |
|
|
(3.5 |
) |
|
|
(29.1 |
) |
Income before income taxes |
$ |
34.9 |
|
|
$ |
59.2 |
|
|
$ |
39.8 |
|
|
$ |
182.1 |
|
Provision for income taxes |
|
11.1 |
|
|
|
29.0 |
|
|
|
25.3 |
|
|
|
69.3 |
|
Net income |
$ |
23.8 |
|
|
$ |
30.2 |
|
|
$ |
14.5 |
|
|
$ |
112.8 |
|
Net income per share of common stock: |
|
|
|
|
|
|
|
||||||||
Basic |
$ |
0.07 |
|
|
$ |
0.08 |
|
|
$ |
0.04 |
|
|
$ |
0.28 |
|
Diluted |
|
0.07 |
|
|
|
0.08 |
|
|
|
0.04 |
|
|
|
0.28 |
|
__________________ |
||
(1) |
Amounts include equity-based compensation expense, as follows: |
|
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
||||||||
(in millions) |
2024 |
|
2023 |
|
2024 |
|
2023 |
||||
Cost of service |
$ |
2.7 |
|
$ |
4.3 |
|
$ |
7.9 |
|
$ |
11.8 |
Sales and marketing |
|
12.3 |
|
|
17.5 |
|
|
38.1 |
|
|
54.6 |
Research and development |
|
10.5 |
|
|
11.7 |
|
|
29.5 |
|
|
34.0 |
General and administrative |
|
11.1 |
|
|
9.4 |
|
|
28.7 |
|
|
26.5 |
Total equity-based compensation expense |
$ |
36.6 |
|
$ |
42.9 |
|
$ |
104.2 |
|
$ |
126.9 |
ZoomInfo Technologies Inc. |
|||||||
Consolidated Statements of Cash Flows |
|||||||
(in millions; unaudited) |
|||||||
|
Nine Months Ended September 30, |
||||||
|
|
2024 |
|
|
|
2023 |
|
Operating activities: |
|
|
|
||||
Net income |
$ |
14.5 |
|
|
$ |
112.8 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
||||
Depreciation and amortization |
|
63.3 |
|
|
|
60.5 |
|
Amortization of debt discounts and issuance costs |
|
1.7 |
|
|
|
1.8 |
|
Amortization of deferred commissions costs |
|
49.5 |
|
|
|
57.2 |
|
Asset impairments and lease abandonment charges |
|
57.4 |
|
|
|
5.2 |
|
Gain on lease modification |
|
(1.5 |
) |
|
|
— |
|
Loss on debt modification and extinguishment |
|
0.7 |
|
|
|
2.2 |
|
Equity-based compensation expense |
|
104.2 |
|
|
|
126.9 |
|
Deferred income taxes |
|
11.0 |
|
|
|
68.5 |
|
Tax receivable agreement remeasurement |
|
9.9 |
|
|
|
(13.8 |
) |
Provision for bad debt expense |
|
39.3 |
|
|
|
22.0 |
|
Changes in operating assets and liabilities, net of acquisitions: |
|
|
|
||||
Accounts receivable, net |
|
69.7 |
|
|
|
(17.7 |
) |
Prepaid expenses and other current assets |
|
(21.1 |
) |
|
|
(4.5 |
) |
Deferred costs and other assets, net of current portion |
|
(30.4 |
) |
|
|
(53.0 |
) |
Income tax receivable |
|
(2.9 |
) |
|
|
(2.4 |
) |
Accounts payable |
|
(17.6 |
) |
|
|
(15.2 |
) |
Accrued expenses and other liabilities |
|
(64.7 |
) |
|
|
(27.6 |
) |
Unearned revenue |
|
(22.6 |
) |
|
|
(16.8 |
) |
Net cash provided by operating activities |
$ |
260.4 |
|
|
$ |
306.1 |
|
|
|
|
|
||||
Investing activities: |
|
|
|
||||
Purchases of short-term investments |
$ |
— |
|
|
$ |
(145.0 |
) |
Maturities of short-term investments |
|
82.2 |
|
|
|
151.5 |
|
Purchases of property and equipment and other assets |
|
(41.5 |
) |
|
|
(17.6 |
) |
Right of use asset initial direct costs |
|
(3.4 |
) |
|
|
— |
|
Cash paid for acquisitions, net of cash acquired |
|
(0.5 |
) |
|
|
— |
|
Net cash provided by (used in) investing activities |
$ |
36.8 |
|
|
$ |
(11.1 |
) |
|
|
|
|
||||
Financing activities: |
|
|
|
||||
Payments of deferred consideration |
$ |
(0.7 |
) |
|
$ |
(0.4 |
) |
Repayment of debt |
|
(4.5 |
) |
|
|
(4.5 |
) |
Payments of debt issuance and modification costs |
|
(2.1 |
) |
|
|
(2.7 |
) |
Proceeds from exercise of stock options |
|
— |
|
|
|
0.4 |
|
Taxes paid related to net share settlement of equity awards |
|
(18.1 |
) |
|
|
(17.0 |
) |
Proceeds from issuance of common stock under the ESPP |
|
2.8 |
|
|
|
4.6 |
|
Tax receivable agreement payments |
|
(31.6 |
) |
|
|
— |
|
Repurchase of common stock |
|
(542.6 |
) |
|
|
(247.0 |
) |
Net cash used in financing activities |
$ |
(596.8 |
) |
|
$ |
(266.6 |
) |
|
|
|
|||||
Net increase (decrease) in cash, cash equivalents, and restricted cash |
$ |
(299.6 |
) |
|
$ |
28.4 |
|
Cash, cash equivalents, and restricted cash at beginning of period |
|
456.2 |
|
|
|
424.1 |
|
Cash, cash equivalents, and restricted cash at end of period |
$ |
156.6 |
|
|
$ |
452.5 |
|
|
|
|
|
||||
Cash, cash equivalents, and restricted cash at end of period: |
|
|
|
||||
Cash and cash equivalents |
$ |
147.7 |
|
|
$ |
442.6 |
|
Restricted cash, non-current |
|
8.9 |
|
|
|
9.9 |
|
Total cash, cash equivalents, and restricted cash |
$ |
156.6 |
|
|
$ |
452.5 |
|
|
|
|
|
||||
Supplemental disclosures of cash flow information: |
|
|
|
||||
Interest paid in cash |
$ |
39.6 |
|
|
$ |
43.0 |
|
Cash paid for taxes |
|
11.9 |
|
|
|
7.5 |
|
|
|
|
|
||||
Supplemental disclosures of non-cash investing activities: |
|
|
|
||||
Property and equipment included in accounts payable and accrued expenses and other current liabilities |
$ |
8.9 |
|
|
$ |
0.2 |
|
Equity-based compensation included in capitalized software |
|
4.5 |
|
|
|
4.0 |
|
ZoomInfo Technologies Inc. |
|||||||||||||||
Reconciliation of GAAP Cash Flow from Operations to Non-GAAP Unlevered Free Cash Flow |
|||||||||||||||
(in millions; unaudited) |
|||||||||||||||
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
||||||||||||
|
|
||||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Net cash provided by operating activities (GAAP) |
$ |
18.2 |
|
|
$ |
80.8 |
|
|
$ |
260.4 |
|
|
$ |
306.1 |
|
Purchases of property and equipment and other assets |
|
(17.6 |
) |
|
|
(5.0 |
) |
|
|
(41.5 |
) |
|
|
(17.6 |
) |
Interest paid in cash |
|
19.3 |
|
|
|
18.4 |
|
|
|
39.6 |
|
|
|
43.0 |
|
Restructuring and transaction-related expenses paid in cash |
|
61.4 |
|
|
|
0.6 |
|
|
|
63.5 |
|
|
|
5.5 |
|
Integration costs and acquisition-related compensation paid in cash |
|
— |
|
|
|
— |
|
|
|
1.3 |
|
|
|
0.5 |
|
Litigation settlement payments(1) |
|
29.3 |
|
|
|
— |
|
|
|
30.0 |
|
|
|
— |
|
Unlevered Free Cash Flow (Non-GAAP) |
$ |
110.7 |
|
|
$ |
94.8 |
|
|
$ |
353.3 |
|
|
$ |
337.5 |
|
__________________ |
||
(1) |
Represents payments associated with certain legal settlements. For the three and nine months ended September 30, 2024, these payments primarily related to the settlement of class actions in |
|
ZoomInfo Technologies Inc. |
|||||||||||||||
Reconciliation from GAAP Income from Operations to Adjusted Operating Income |
|||||||||||||||
(in millions; unaudited) |
|||||||||||||||
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
||||||||||||
|
|
||||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Income from operations (GAAP) |
$ |
43.5 |
|
|
$ |
63.1 |
|
|
$ |
66.5 |
|
|
$ |
189.0 |
|
Impact of fair value adjustments to acquired unearned revenue(1) |
|
— |
|
|
|
0.1 |
|
|
|
— |
|
|
|
0.2 |
|
Amortization of acquired technology |
|
9.6 |
|
|
|
9.5 |
|
|
|
28.7 |
|
|
|
29.5 |
|
Amortization of other acquired intangibles |
|
5.4 |
|
|
|
5.4 |
|
|
|
16.2 |
|
|
|
16.5 |
|
Equity-based compensation expense |
|
36.6 |
|
|
|
42.9 |
|
|
|
104.2 |
|
|
|
126.9 |
|
Restructuring and transaction-related expenses(2) |
|
16.8 |
|
|
|
5.1 |
|
|
|
67.0 |
|
|
|
9.9 |
|
Litigation settlement(3) |
|
(0.2 |
) |
|
|
— |
|
|
|
30.0 |
|
|
|
— |
|
Adjusted Operating Income (Non-GAAP) |
$ |
111.7 |
|
|
$ |
126.2 |
|
|
$ |
312.6 |
|
|
$ |
372.1 |
|
|
|
|
|
|
|
|
|
||||||||
Revenue (GAAP) |
$ |
303.6 |
|
|
$ |
313.8 |
|
|
$ |
905.2 |
|
|
$ |
923.1 |
|
Impact of fair value adjustments to acquired unearned revenue |
|
— |
|
|
|
0.1 |
|
|
|
— |
|
|
|
0.2 |
|
Revenue for adjusted operating margin calculation (Non-GAAP) |
$ |
303.6 |
|
|
$ |
313.9 |
|
|
$ |
905.2 |
|
|
$ |
923.4 |
|
|
|
|
|
|
|
|
|
||||||||
Operating Income Margin (GAAP) |
|
14 |
% |
|
|
20 |
% |
|
|
7 |
% |
|
|
20 |
% |
Adjusted Operating Income Margin (Non-GAAP) |
|
37 |
% |
|
|
40 |
% |
|
|
35 |
% |
|
|
40 |
% |
__________________ |
||
(1) |
Represents the impact of fair value adjustments to acquired unearned revenue relating to services billed by an acquired company, prior to our acquisition of that company. These adjustments represent the difference between the revenue recognized based on management’s estimate of fair value of acquired unearned revenue and the receipts billed prior to the acquisition less revenue recognized prior to the acquisition. |
|
(2) |
Represents costs directly associated with acquisition or disposal activities, including employee severance and termination benefits, contract termination fees and penalties, and other exit or disposal costs. For the three and nine months ended September 30, 2024, this expense is primarily related to lease impairment and abandonment charges as well as lease restructuring activities. For the three and nine months ended September 30, 2023, this expense is primarily related to costs associated with a June 2023 reduction in force, and impairment charges related to the Ra’anana office and other offices. |
|
(3) |
Represents charges associated with certain legal settlements. For the nine months ended September 30, 2024, these charges related to costs incurred due to the Class Actions. |
|
ZoomInfo Technologies Inc. |
|||||||||||||||
Reconciliation of GAAP Net Income to Non-GAAP Adjusted Net Income |
|||||||||||||||
(in millions, except per share amounts; unaudited) |
|||||||||||||||
|
|
|
|
|
|
|
|
||||||||
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Net income (GAAP) |
$ |
23.8 |
|
|
$ |
30.2 |
|
|
$ |
14.5 |
|
|
$ |
112.8 |
|
Impact of fair value adjustments to acquired unearned revenue(1) |
|
— |
|
|
|
0.1 |
|
|
|
— |
|
|
|
0.2 |
|
Loss on debt modification and extinguishment |
|
— |
|
|
|
— |
|
|
|
0.7 |
|
|
|
2.2 |
|
Amortization of acquired technology |
|
9.6 |
|
|
|
9.5 |
|
|
|
28.7 |
|
|
|
29.5 |
|
Amortization of other acquired intangibles |
|
5.4 |
|
|
|
5.4 |
|
|
|
16.2 |
|
|
|
16.5 |
|
Equity-based compensation expense |
|
36.6 |
|
|
|
42.9 |
|
|
|
104.2 |
|
|
|
126.9 |
|
Restructuring and transaction-related expenses(2) |
|
16.8 |
|
|
|
5.1 |
|
|
|
67.0 |
|
|
|
9.9 |
|
Litigation settlement(3) |
|
(0.2 |
) |
|
|
— |
|
|
|
30.0 |
|
|
|
— |
|
TRA liability remeasurement expense (benefit) |
|
0.7 |
|
|
|
(2.6 |
) |
|
|
9.9 |
|
|
|
(13.8 |
) |
Other loss (income), net |
|
0.2 |
|
|
|
— |
|
|
|
(2.4 |
) |
|
|
— |
|
Tax impacts of adjustments to net income(4) |
|
10.8 |
|
|
|
14.4 |
|
|
|
1.4 |
|
|
|
26.8 |
|
Adjusted Net Income (Non-GAAP) |
$ |
103.7 |
|
|
$ |
105.0 |
|
|
$ |
270.2 |
|
|
$ |
311.0 |
|
|
|
|
|
|
|
|
|
||||||||
Diluted Net Income Per Share (GAAP) |
$ |
0.07 |
|
|
$ |
0.08 |
|
|
$ |
0.04 |
|
|
$ |
0.28 |
|
Impact of fair value adjustments to acquired unearned revenue per diluted share |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Loss on debt modification and extinguishment per diluted share |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Amortization of acquired technology per diluted share |
|
0.02 |
|
|
|
0.02 |
|
|
|
0.07 |
|
|
|
0.07 |
|
Amortization of other acquired intangibles per diluted share |
|
0.01 |
|
|
|
0.01 |
|
|
|
0.04 |
|
|
|
0.04 |
|
Equity-based compensation expense per diluted share |
|
0.10 |
|
|
|
0.10 |
|
|
|
0.27 |
|
|
|
0.31 |
|
Restructuring and transaction-related expenses per diluted share |
|
0.05 |
|
|
|
0.01 |
|
|
|
0.17 |
|
|
|
0.02 |
|
Litigation settlement per diluted share |
|
— |
|
|
|
— |
|
|
|
0.08 |
|
|
|
— |
|
TRA liability remeasurement expense (benefit) per diluted share |
|
— |
|
|
|
— |
|
|
|
0.03 |
|
|
|
(0.03 |
) |
Other loss (income), net per diluted share |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Tax impacts of adjustments to net income per diluted share |
|
0.03 |
|
|
|
0.04 |
|
|
|
— |
|
|
|
0.06 |
|
Adjusted Net Income Per Share (Non-GAAP) |
$ |
0.28 |
|
|
$ |
0.26 |
|
|
$ |
0.71 |
|
|
$ |
0.75 |
|
Shares for Adjusted Net Income Per Share(5) |
|
371 |
|
|
|
411 |
|
|
|
383 |
|
|
|
414 |
|
__________________ |
||
(1) |
Represents the impact of fair value adjustments to acquired unearned revenue relating to services billed by an acquired company, prior to our acquisition of that company. These adjustments represent the difference between the revenue recognized based on management’s estimate of fair value of acquired unearned revenue and the receipts billed prior to the acquisition less revenue recognized prior to the acquisition. |
|
(2) |
Represents costs directly associated with acquisition or disposal activities, including employee severance and termination benefits, contract termination fees and penalties, and other exit or disposal costs. For the three and nine months ended September 30, 2024, this expense is primarily related to lease impairment and abandonment charges as well as lease restructuring activities. For the three and nine months ended September 30, 2023, this expense is primarily related to costs associated with a June 2023 reduction in force, and impairment charges related to the Ra’anana office and other offices. |
|
(3) |
Represents charges associated with certain legal settlements. For the nine months ended September 30, 2024, these charges related to costs incurred due to the Class Actions. |
|
(4) |
Represents tax expense associated with GAAP Net income excluded from Adjusted Net Income (Non-GAAP). This includes the tax effects associated with equity compensation, remeasurement of deferred tax assets for the effect of state law changes, and TRA liability remeasurement. |
|
(5) |
Diluted earnings per share is computed by giving effect to all potential weighted average Common Stock, and any securities that are convertible into Common Stock, including options and restricted stock units. The dilutive effect of outstanding awards and convertible securities is reflected in diluted earnings per share by application of the treasury stock method, excluding deemed repurchases assuming proceeds from unrecognized compensation as required by GAAP. |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20241112049707/en/
Investor Contact:
Jeremiah Sisitsky
VP of Investor Relations
IR@zoominfo.com
Media Contact:
Meghan Barr
VP, Communications
(203) 216-1878
pr@zoominfo.com
Source: ZoomInfo
FAQ
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