On August 5, 2024, ZoomInfo Technologies Inc (ZI, Financial) released its 8-K filing detailing its financial results for the second quarter ended June 30, 2024. ZoomInfo Technologies Inc provides a go-to-market intelligence platform for sales and marketing teams, delivering comprehensive and high-quality intelligence and analytics to professionals.
Performance Overview
ZoomInfo Technologies Inc (ZI, Financial) reported GAAP revenue of $291.5 million for Q2 2024, a 6% decrease year-over-year, falling short of the analyst estimate of $307.73 million. The company also posted a GAAP operating loss of $20.0 million, contrasting with an adjusted operating income of $81.6 million. The adjusted operating income margin stood at 28%, while the GAAP operating loss margin was 7%.
Key Financial Metrics
| Metric | Q2 2024 | Change YoY |
|---|---|---|
| Revenue | $291.5 million | (6)% |
| Operating Loss | $(20.0) million | NM* |
| Adjusted Operating Income | $81.6 million | (35)% |
| Net Loss Per Share (Diluted) | $(0.07) | — |
| Adjusted Net Income per share (Diluted) | $0.17 | — |
| Cash Flow from Operating Activities | $126.3 million | 8% |
| Unlevered Free Cash Flow | $120.0 million | (1)% |
*Change YoY as a percentage is not meaningful
Strategic Initiatives and Challenges
During the quarter, ZoomInfo Technologies Inc (ZI, Financial) launched ZoomInfo Copilot, an AI-powered go-to-market platform aimed at enhancing sales team efficiency. The company also implemented a new business risk model to reduce write-offs and required upfront pre-payment for services from certain smaller customers. These changes led to incremental charges of $33 million, impacting revenue and bad debt expense.
“In the second quarter, we implemented a number of initiatives to position the company for long-term success,” said Henry Schuck, ZoomInfo founder and CEO. “Having successfully launched ZoomInfo Copilot, our AI-powered go-to-market platform, we are further accelerating a shift upmarket.”
Financial Achievements
Despite the challenges, ZoomInfo Technologies Inc (ZI, Financial) achieved several milestones. The company closed the quarter with 1,797 customers having $100,000 or greater in annual contract value, an increase of 37 from the prior quarter. Additionally, ZoomInfo collaborated with Google Cloud to enhance generative AI models and received TrustArc’s first-ever AI certification focused on data protection and privacy.
Income Statement Highlights
ZoomInfo Technologies Inc (ZI, Financial) reported a gross profit of $245.6 million for Q2 2024, down from $265.0 million in the same period last year. Operating expenses increased to $265.6 million from $205.4 million, driven by higher general and administrative costs. The net loss for the quarter was $24.4 million, translating to a net loss per share of $(0.07).
Balance Sheet and Cash Flow
As of June 30, 2024, ZoomInfo Technologies Inc (ZI, Financial) had total assets of $6.68 billion, with cash and cash equivalents amounting to $385.9 million. The company generated $126.3 million in cash flow from operations and reported unlevered free cash flow of $120.0 million.
Analysis and Outlook
ZoomInfo Technologies Inc (ZI, Financial) faces challenges in stabilizing revenue and managing operational costs. However, the strategic initiatives and partnerships, particularly in AI, position the company for potential long-term growth. The company's focus on high-value customers and operational efficiency could drive future performance, despite the current financial setbacks.
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Explore the complete 8-K earnings release (here) from ZoomInfo Technologies Inc for further details.
