Analysts Remain Positive on ZoomInfo After ‘Very Good’
2022.05.03 15:17
Analysts Remain Positive on ZoomInfo (ZI) After ‘Very Good’
ZoomInfo Technologies (NASDAQ:ZI) boosted its adjusted EPS outlook for the full year, driving its shares modestly up in post-market 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
