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Key Takeaways
- ZoomInfo shares rose sharply on Tuesday after the company delivered better-than-expected fourth-quarter results and highlighted its recently launched generative AI-powered solution, ZoomInfo Copilot.
- The company said it ended the quarter with 1,820 customers that generated at least $100,000 in annual contract value.
- ZoomInfo shares may turn bullish if the price breaks above a multi-month downtrend line, currently sitting near $21.50.
ZoomInfo Technologies Inc.
Source: TradingView.com.
Shares in ZoomInfo Technologies (ZI) moved sharply higher ahead of Tuesday’s opening bell after the marketing intelligence software maker posted quarterly results that came in ahead of Wall Street estimates amid a growing cash pile.
ZoomInfo reported fourth-quarter adjusted earnings of 26 cents per share, a penny above the 25 cent-a-share figure analysts had expected. Revenue in the period of $316.4 million grew 5% from a year earlier and handily topped the $310.6 million Street forecast. Moreover, the company’s unlevered free cashflow increased 3% year-over-year to $126 million. The marketing software solutions provider also said it ended the quarter with 1,820 customers that had at least $100,000 in annual contract value.
Looking ahead, ZoomInfo expects first-quarter adjusted earnings of between 23 and 24 cents per share on revenue of $307 million to $310 million. For the full year, the company sees sales ranging between $1.26 billion and $1.28 billion, versus consensus modeling of $1.275 billion. Meanwhile, ZoomInfo’s 2024 bottom-line guidance of 99 cents to $1.01 per share matches analysts’ projections.
ZoomInfo Chief Executive Officer Henry Schuck also used the earnings announcement to highlight the recent launch of ZoomInfo Copilot—an AI-powered tool that unifies a company’s go-to-market data and applies generative AI to identify customized insights.
ZI shares appear to be carving out an inverse head and shoulder bottom, with the pattern possibly confirming today upon a close above its neckline around $19. If the stock has an extended post-earnings rally, monitor how the price responds to a multi-month downtrend line, which currently sits near $21.50. A volume-backed breakout above this closely watched chart level could potentially shift longer-term sentiment back in favor of the bulls.
ZoomInfo shares were up 18% at $18.90 about an hour before the opening bell.
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