ZoomInfo Technologies Inc ZI shares are trading lower in Monday’s after-hours session after the company reported worse-than-expected financial results for the second quarter and announced a management transition. Here’s what you need to know.
- Q2 Revenue: $291.5 million, versus estimates of $307.73 million
- Q2 EPS: 17 cents, versus estimates of 23 cents
Total revenue was down 6% on a year-over-year basis. ZoomInfo said it generated $126.3 million in cash flow from operations and $120 million in free cash flow during the quarter. The company ended the quarter with $385.9 million in cash and cash equivalents.
“In the second quarter, we implemented a number of initiatives to position the company for long-term success. Having successfully launched ZoomInfo Copilot, our AI-powered go-to-market platform, we are further accelerating a shift upmarket,” said Henry Schuck, founder and CEO of ZoomInfo.
“To that end, in the quarter we grew our $100k ACV customer cohort sequentially, had our best new business quarter in the mid-market and enterprise, while we stabilized net revenue retention.”
Outlook: ZoomInfo sees third-quarter revenue in the range of $298 million to $301 million versus estimates of $307.7 million, according to Benzinga Pro. The company anticipates adjusted net income of 21 cents to 22 cents per share versus estimates of 23 cents per share.
“We deployed a new business risk model to reduce write-offs and made a change in estimates related to the collectibility of receivables. I am confident that this will strengthen our future financial position and enable the company to deliver strong and growing free cash flow,” Schuck said.
Management is currently discussing these quarterly results on a conference call that kicked off at 4:30 p.m. ET.
What Else: ZoomInfo also announced that CFO Cameron Hyzer will step down from his role. Hyzer will remain in an advisory capacity until Oct. 7 to help facilitate a smooth transition. Graham O’Brien has been named interim CFO, effective Sept. 6.
ZI Price Action: ZoomInfo shares were down 13.37% after hours at $8.49 at the time of publication Monday, according to Benzinga Pro.
Photo: courtesy of ZoomInfo.
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