ZI

ZoomInfo Technologies Inc.

TMT, Software


Presented:01/18/2024
Price:$15.41
Cap:$6.01B
Current Price:$10.16
Cap:$3.71B

Presented

Date01/18/2024
Price$15.41
Market Cap$6.01B
Ent Value$7.28B
P/E Ratio45.54x
Book Value$5.72
Div Yield0%
Shares O/S389.78M
Ave Daily Vol7,263,582
Short Int4.23%

Current

Price$10.16
Market Cap$3.71B
ZoomInfo Technologies, Inc. is a holding company, which engages in the provision of a cloud-based platform that offers information on organizations and professionals for sales and marketing teams. It offers sales leadership, sales development, marketing, and demand generation, sales and marketing operations, and recruiting. The company was founded by Henry L. Schuck and Kirk N. Brown in 2007 and is headquartered in Vancouver, WA.

Publicly traded companies mentioned herein: Experian PLC (EXPN LN), TransUnion (TRU), ZoomInfo Technologies Inc (ZI)

Highlights

The presenter is long shares of ZoomInfo Technologies Inc (ZI), the market-leading contact information provider for salespeople. The business is highly levered to headcount, particularly sales headcounts at technology companies, and 2023 was a difficult environment for technology sales. This caused some degree of natural attrition as ZI’s customers reduced headcounts, but the presenter believes there was excess churn as ZI’s aggressive sales force likely oversold to customers in 2021 and 2022 when revenues grew ~50% per year. As such, the company’s revenue growth decelerated throughout 2023, with the Street forecasting LSD% revenue growth in Q4 (ZI reports Q4 on 2/12). Despite a bearish outlook on 2024 growth, he expects a reacceleration to 15% topline growth in 2025 (cyclical improvement & lower churn), generating $1.25 of EPS. Underwriting an earnings multiple of 20x – 25x, in line with other slow growth data businesses, implies upside from the current $15 share price to $25 – $31.

  • Signing up and creating account with us unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

  • Signing up and creating account with us unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

Request access to DeMatteo Research for full access

Request Access

Already have an account?

Idea Discussion

Commentor 1 - 2 weeks ago

Signing up and creating account with us, unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

Commentor 1 - 2 weeks ago

Signing up and creating account with us, unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

Idea Discussions display submitted commentary from our investor community.

To read and participate in the discussion with the presenter and investor base, request access to DeMatteo

Request Access

Already have an account?

An error occurred loading this content. Try again later or contact us.