This post was originally published on this site
Shares of ZoomInfo Technologies (NASDAQ:ZI) are up over 12% in premarket Tuesday after the software company delivered a beat-and-raise quarter.
ZoomInfo reported an adjusted EPS of $0.21 to top the analyst consensus of $0.18. Revenue came in at $267.1 million to bear the $254.4 million expected.
For this quarter, the company is calling for adjusted EPS of between $0.19 and $0.20, slightly ahead of the consensus of $0.19. Revenue is seen at between $277 million and $279 million, again better than the consensus of $272.1 million.
On a full-year basis, ZI sees adjusted EPS between $0.78 to $0.80, higher than the prior outlook of $0.75 to $0.77, and better than the estimate of $0.76.
A Goldman Sachs analyst believes ZI shares are up sharply in premarket due to the +40% operating margin guide and de-risked 2H22 setup.
“Our conviction in ZI remains strong, and we believe the company is in the early stages of becoming an end-to-end digital GTM platform, with a balanced business model (growth, profitability, and free cash flow generation). Based on our 2Q22 estimates the company operates at a Rule of 94 (revenue growth of 53% + uFCF margin of 41%), well above SaaS peers. We view ZI’s risk/reward as highly favorable at current levels,” he said in a client note.
A Wolfe Research analyst hiked the price target on ZI stock to $55 from $45 after the company delivered a “solid set of results”.
“While it is true that ZI is not immune to a weakening macro and the beat and raise cadences are contracting, the bigger truth is that they are STILL beating AND raising (in an environment where companies are starting to miss and lower),” the analyst said in a note.
“For those that call this ‘just a data company’, we would point to the stat that advanced functionality now represents 29% of ACV with that ACV more than doubling over the past 12 months.”
