– Is ZoomInfo Technologies (ZI) a Smart Long-term Buy?
ZoomInfo not only arms a salesperson with this information, it helps them prioritize it for hundreds or thousands of accounts. You couldn’t do that in the old days. The company has been successful in rolling up similar businesses through the years. Not only did Schuck acquire the business he worked at in , he purchased another competitor in In , he raised funds to buy ZoomInfo and subsequently adopted the name for the entire company. More recently, the acquisition strategy has been to bolster its artificial intelligence capability.
ZoomInfo announced the purchases of Chorus. The first offers something called conversation intelligence. It records calls and helps sales teams learn how to get better results through coaching. With both deals ZoomInfo is staying true to its core — helping supercharge sales.
Like many cloud-based companies serving the needs of businesses, ZoomInfo has put up some incredible growth numbers. And it is maintaining the pace. The company posted second-quarter results in early August. It’s also obvious the company is scaling. The company’s biggest proprietary asset is its database of contacts, which in some cases it pulls from its own customers it offers companies a discounted subscription rate if they also provide contacts from their own company to be added to the database to be cold-called.
ZoomInfo competes with a number of other lead-gen platforms LinkedIn, actually, is a notable one as well as general CRMs like Salesforce. Do ZoomInfo’s growth rates look astounding? Sure, they do. But we note as well that ZoomInfo is starting to pivot into the classic software playbook of buying up companies to bolster growth.
Can ZoomInfo’s growth pace scale? Will the company’s premium valuation multiples hold then, when growth has slowed to a much lower pace? Debt load. ZoomInfo is already in a fairly deep net debt position, unlike many other SaaS stocks – hence, its firepower to buy up new companies is going to be limited. ZoomInfo’s valuation is already incredibly rich; and doesn’t leave much room for upside when many fellow high-quality growth stocks are currently on sale.
Q4 download Let’s now discuss ZoomInfo’s most recent quarterly results in greater detail. More importantly, the Administration has publicly backed Federal funding for a massive build-out of EV charging infrastructure. This provides a real opening for investors. The modern EV industry is young, and provides investors with an array o. The CEO of the electric vehicle maker wants to appease worried markets after one of his worrying messages about Tesla.
Using technical analysis of the charts of those stocks, and, when appropriate, recent actions and grades from TheStreet’s Quant Ratings, , we zero in on three names. While we will not be weighing in with fundamental analysis, we hope this piece will give investors interested in stocks on the way down a good starting point to do further homework on the names. Snap Inc. Elon Musk is almost everywhere.
When it’s not news about one of his multiple companies — Tesla , SpaceX, The Boring Company, Neuralink — he posts about politics, geopolitical affairs, or engages with his millions of followers on a variety of topics, ranging from his states of mind to metaphysical questions such as happiness. Brent crude was up 91 cents, or 0. CPI inflation data is out on Friday. Stocks fell last week, but was it constructive?
Tesla tumbled on Elon Musk’s “super bad” warning. Apple WWDC is due. Within the next 15 years, people 65 or older are expected outnumber those under 18, for the first time in U. With high inflation and the Fed likely to raise interest rates, it could be a difficult year for many growth companies. SaaS companies, in general, are often more highly valued than the overall market because of fast growth and recurring revenues make future revenues more predictable.
However, what might hurt many SaaS companies in is the inability to at least show profitability on the operating level. ZoomInfo is one SaaS that is a fast grower that has seen revenue growth accelerate over the past quarter and is also profitable. The company’s management appears disciplined by not totally sacrificing profitability in the name of growth.
The only chink in ZoomInfo’s armor is investors will have to watch the debt situation closely. ZoomInfo is a buy for investors that want to continue to invest in growth in a market that has become decidedly “Risk-off”. ZoomInfo has very high upside but less downside than many other growth companies that an investor might consider in the current market environment. I wrote this article myself, and it expresses my own opinions.
I am not receiving compensation for it other than from Seeking Alpha. I have no business relationship with any company whose stock is mentioned in this article. Star Investments 3. What does ZoomInfo do? Acquisitions ZoomInfo was originally founded and operated as DiscoverOrg until February , when it acquired its competitor Zoom Information and rebranded the company as ZoomInfo.
This is one of ZoomInfo’s most important acquisitions and the company almost immediately launched several conversational products on their platform including Chorus Momentum Pipeline View and a native Chorus app for Zoom Video NASDAQ: ZM Last but not least, In September , ZoomInfo acquired RingLead , a comprehensive data quality management tool that helps companies manage incomplete, inaccurate and inconsistent customer data that is siloed in disconnected systems.
ZoomInfo has Optionality As all of the above acquisitions show, ZoomInfo is not satisfied with simply being a company and contact data provider but is very, very early in the process of transforming into a true end-to-end go-to-market platform. Source: CEO Henry Schuck – ZoomInfo Q3 earnings release ZoomInfo management’s idea of expanding beyond simply being a contact data provider is somewhat analogous to Amazon moving from only being a first party seller marketplace of books to being a first party seller marketplace of many other products to later becoming a third-party seller marketplace.
Source: CEO Henry Schuck – ZoomInfo Q3 earnings release I expect that in future years that ZoomInfo’s DBNRR number will go up both because the company has been investing more to attract Enterprise customers which churn less and because ZoomInfo should see more expansion with the additional products that they are building on to their platform. The following is a list of ZoomInfo moats that I have identified from weakest to strongest: Network effect moat : ZoomInfo claims to have a network effect moat where with each new customer that joins has the effect of making the overall platform more valuable to existing customers.
I think that whatever network effect that ZoomInfo thinks it has is a rather weak one. The best network effects are often achieved by full-fledged social networks and in that regards, I think LinkedIn has a far more powerful network effect than ZoomInfo.
Intangible Moat : ZoomInfo is building a brand among customers for having high quality data. There are not many companies that have as high quality company and contact data as ZoomInfo. Bloomberg — From Seattle to Silicon Valley to Austin, a grim new reality is setting in across the tech landscape: a heady, decades-long era of rapid sales gains, boundless jobs growth and ever-soaring stock prices is coming to an end. Judging by the recent decisions announced by the big names in the sector, it is even logical to say that what industry sources call “crypto winter” will continue for several more weeks, at least, even if volatility is the key word in the space.
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Is zoominfo a good investment – is zoominfo a good investment:
Nov 02, · This is entirely a matter for you to decide. ZoomInfo has certainly done well over the past 12 months, but you will need to do your own research, remembering that prices can go down as well as up, and that you should never invest more money than you can afford to lose. Further reading ZoomInfo stock more than doubles in three days of trading. ZoomInfo Technologies Stock Highlights Most reasonable investors view market volatility as an opportunity to invest at a favorable price or to sell short against a bearish trend. If you consider yourself one of those investors, make sure you clearly understand your entering Deviation: Jan 14, · ZoomInfo is a company in heavy growth mode, yet the company is disciplined by wanting to maintain profitability. Most SaaS companies achieve gross margins in the 75%% range. ZoomInfo has gross.
– Is ZoomInfo (ZI) A Great Long-Term Investment?
Wall Street expects a year-over-year increase in earnings on higher revenues when ZoomInfo ZI reports results for the quarter ended June While this widely-known consensus outlook is important in gauging the company’s earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.
The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on August 2. On the other hand, if they miss, the stock may move lower. While management’s discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it’s worth having a handicapping insight into the odds of a positive EPS surprise.
The consensus EPS estimate for the quarter has been revised 2. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period. Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts. Estimate revisions ahead of a company’s earnings release offer clues to the business conditions for the period whose results are coming out. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model’s predictive power is significant for positive ESP readings only. Please note that a negative Earnings ESP reading is not indicative of an earnings miss.
For ZoomInfo, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company’s earnings prospects. While calculating estimates for a company’s future earnings, analysts often consider to what extent it has been able to match past consensus estimates.
So, it’s worth taking a look at the surprise history for gauging its influence on the upcoming number. An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss. That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success.
Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they’ve reported. ZoomInfo appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
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Click to get this free report ZoomInfo Technologies Inc. Zacks Investment Research. Stock splits typically have led to oversized returns, says Bank of America. Look beyond the popular growth stocks. A healthy stream of income awaits. The CEO of the electric vehicle maker wants to appease worried markets after one of his worrying messages about Tesla. It’s certainly understandable; getting more shares of your favorite company can bring a smile to the faces of even the most stoic among us.
It’s also true that companies that announce their intentions to split their stock tend to see their share prices run up as the split date approaches. All this buying can drive share prices up, bringing in more momentum traders and adding fuel to the fire. Energy prices are soaring. But bargain-hunter Buffett continues to bet on big oil. Stocks fell last week, but was it constructive? Tesla tumbled on Elon Musk’s “super bad” warning. Apple WWDC is due. All three major indexes finished the week lower.
Meanwhile, the Federal Reserve enters a blackout period before its next policy-setting meeting later this month. Although big drops in the stock market can be unnerving and tug on investors’ emotions, they’re also, historically, an excellent time to put your money to work. Corrections and bear markets tend to run their course relatively quickly, and all notable declines throughout history have eventually been erased by a bull market rally.
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These innovative growth stocks have the potential to lead investors to financial independence in less than two decades. As the world faces war, an ongoing public health crisis, and social injustice, corporate executives have found themselves facing questions from their own employees about whether or not they plan to take a stand.
From buying groceries to gasoline to automobiles, inflation has hammered Americans’ purchasing power. In fact, the most well-known metric of inflation has soared to a four-decade high. Bloomberg — From Seattle to Silicon Valley to Austin, a grim new reality is setting in across the tech landscape: a heady, decades-long era of rapid sales gains, boundless jobs growth and ever-soaring stock prices is coming to an end.
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