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Sales reps are always looking for a way to get more leads faster, and the enterprise data provider ZoomInfo Technologies (NASDAQ: ZI) helps to speed up this process.
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The title fell 9.18% in the general decline of the market. There is nothing to panic about at this point, as about three-quarters of the stocks are following the direction of the market at any given time, and plenty of growth stocks have been hammered in the past week.
Keep in mind: Any time the market or an individual stock pulls back after a strong rally, editors often attribute the sale to a current event. In this case, the Omricon variant of the Covid-19 virus is to blame. But it’s also possible that investors are looking to take profits off the table after this year’s big rallies, especially as year-end tax rulings loom.
ZoomInfo went public in June 2020, as the first tech IPO after last year’s Covid lockdowns. It climbed more than 60% on its first day of trading, illustrating investor enthusiasm for subscription software makers, a high-growth category whose promise was highlighted following work orders at residence.
ZoomInfo helps corporate users integrate their sales and marketing data with cloud-based systems created by Microsoft, Oracle, and Salesforce, among others.
The Vancouver, Washington company has a market cap of $ 27.85 billion, a testament to its rallies in recent months and its successful IPO.
The stock is up 1.26% in the past month, 13.47% in the past three months and 45.16% year-to-date.
Shares closed at $ 70.01 on Friday, down $ 0.77 or 1.09% for the session.
Increase in the annual contract value
When the company announced its third quarter on November 1, Founder and CEO Henry Schuck said the company ended the quarter with more than 25,000 customers, of which more than 1,250 customers have an annual contract value of over $ 100,000. . “The number of clients with over $ 100,000 in LCA has increased by over 70% year over year,” he said.
ZoomInfo increased its profits at a rate of 18%, to $ 0.13 per share, beating views by a dime. Revenue was $ 197.6 million, up 60%, also beating analysts’ expectations, according to MarketBeat earnings data. The company said 54% of that revenue came from organic growth.
During the earnings call, CFO Cameron Hyzer explained the customer base.
“Customers with more than $ 100,000 of ACV now represent over 40% of our subscription revenue, and the ACV contributed by these customers has increased by more than 85% from the third quarter of 2020,” said Hyzer.
Hyzer added that third quarter adjusted operating income was $ 78 million. “This exceeded our forecast revenue range of $ 72 million to $ 74 million and represents an adjusted operating margin of 39%. The weak margin performance combined with organic revenue growth of 54% is in line with the growth and profitability framework we set out in our recent day of analysis, ”he said.
The company raised its revenue forecast for the full year to a range of $ 731 million to $ 733 million, from $ 703 million to $ 707 million previously. ZoomInfo’s full-year profit forecast has been raised by a dime to a range of $ 0.51 to $ 0.52 per share.
Moves in tandem with a larger market
ZoomInfo’s shares have moved roughly in line with the broader market over the past few sessions. The stock hit a new high of $ 79.17 on November 19 as the market began to see choppy trading.
Despite the big pullback last week, the stock found support above its 50-day moving average, a good sign that institutions have not (yet) decided to bail out. Of course, if the general market decline continues, that could change if ZoomInfo continues to decline.
At this point, due to the downside in both the stock and the market in general, now is not the time to risk a buy. However, the company’s bright future bodes well for a potential purchase. Watch for a signal, such as a trendline or a rise in price, that clears a pattern buy point. In addition, it is preferable that the market at large also has an upward trend; it is additional assurance that institutional buyers are in the mood to buy their portfolios.