Key takeaways
- ZoomInfo shares rose sharply on Tuesday after the company reported better-than-expected fourth-quarter results and highlighted its recently launched AI-powered generative solution, ZoomInfo Copilot.
- The company said it ended the quarter with 1,820 customers generating at least $100,000 in annual contract value.
- ZoomInfo stock may turn bullish if the price breaks out of a multi-month downtrend line, which currently sits near $21.50.
ZoomInfo Technologies Inc.
Source: TradingView.com.
ZoomInfo Technologies (ZI) shares rose sharply before Tuesday's opening bell after the marketing intelligence software maker posted quarterly results that beat Wall Street estimates amid a growing pile of cash.
ZoomInfo reported fourth-quarter adjusted earnings of 26 cents per share, a penny above the 25 cents per share figure analysts were expecting. Revenue in the period of $316.4 million grew 5% from a year ago and comfortably exceeded the $310.6 million Street forecast. Additionally, the company's unlevered free cash flow 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 23 to 24 cents per share and revenue of $307 million to $310 million. For the full year, the company expects sales to range between $1.26 billion and $1.28 billion, versus $1.275 billion under the consensus model. Meanwhile, ZoomInfo's final 2024 guidance of 99 cents to $1.01 per share is in line with analyst projections.
ZoomInfo CEO Henry Schuck also used the earnings announcement to highlight the recent launch of ZoomInfo Copilot, an AI-powered tool that unifies a company's marketing data and applies generative AI to identify personalized insights.
ZI stock appears to be forging an inverse head and shoulders bottom, and the pattern will likely be confirmed today with a close above its neckline around $19. If the stock has a prolonged 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 long-term sentiment in favor of the bulls.
ZoomInfo shares rose 18% to $18.90 about an hour before the opening bell rang.
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