Zoominfo Technologies Inc (NASDAQ:ZI) stock rallies 13.45% (As on February 13, 11:32:04 AM UTC-4, Source: Google Finance) after the company surpasses the market’s expectations for the fourth quarter of FY 23. During the quarter, Introduced ZoomInfo Copilot, an AI-powered solution that unifies a company’s go-to-market (GTM) data — including first-party CRM data and ZoomInfo’s best-in-class data and applies generative AI to sift through the noise and identify insights sellers actually want. As of December 31, 2023, the company’s net revenue retention rate was 87%. The company closed the quarter with 1,820 customers with $100,000 or greater in annual contract value. The company delivered Adjusted Operating Income of $126.5 million, Adjusted Operating Income Margin of 40%, GAAP Cash Flow from Operations of $128.8 million and Unlevered Free Cash Flow of $126.0 million. A record number of new customer acquisitions were made in Q4, with significant enterprise customers like Uber and Amazon.
Meanwhile, the total number of layoffs is significantly lower than the previous year, with current layoffs being more surgical and thoughtful. ZoomInfo emphasized a focus on improving free cash flow through better collections and reduced write-offs. The company expressed confidence in its sales organization and the team’s ability to execute, especially in the enterprise segment.
ZI in the fourth quarter of FY 23 has reported the adjusted earnings per share of 26 cents, beating the analysts’ estimates for the adjusted earnings per share of 25 cents. The company had reported the adjusted revenue growth of 5 percent to $316.4 million in the fourth quarter of FY 23, beating the analysts’ estimates for revenue of $310.68 billion.
Additionally, during the year ended December 31, 2023, the Company repurchased and subsequently retired 22,627,664 shares of Common Stock at an average price of $17.68, for an aggregate $400.1 million.
ZoomInfo Technologies Inc. sees Q1 2024 EPS to be in the range of $0.23-$0.24, versus the consensus of $0.23. ZoomInfo Technologies Inc. sees Q1 2024 revenue to be in the range of $307-310 million, versus the consensus of $308.7 million. The company expects adjusted operating income to be between $492M and $502M. The company plans to migrate all customers to its AI-enabled platform in the latter half of the year. A single-seat SKU released in Q4 has seen positive traction and revenue growth. The company anticipates Q1 to be challenging, with potential downsell pressure due to budget scrutiny by customers.