ZoomInfo $ZI 3Q21 Earnings
- Rev $198m +60% ↗️
- GP $160m +65% ↗️ margin % +246bps✅
- NG EBIT $78m +34% ↗️ margin 39%⭐️ -773bps↘️
- NG Net Income $51m +18% ↗️ margin 26% -903bps↘️
- 9M OCF $228m +122% 🚀 margin 43% ⭐️ +1294bps✅
- 9M FCF $263m +57% ↗️ margin 50% ⭐️ +40bps➡️
- Rev $198m +60% ↗️
- GP $160m +65% ↗️ margin % +246bps✅
- NG EBIT $78m +34% ↗️ margin 39%⭐️ -773bps↘️
- NG Net Income $51m +18% ↗️ margin 26% -903bps↘️
- 9M OCF $228m +122% 🚀 margin 43% ⭐️ +1294bps✅
- 9M FCF $263m +57% ↗️ margin 50% ⭐️ +40bps➡️
Business Metrics
- FY20 108% NRR
- Organic Rev Growth 54% vs 60%
- Cust >$100k Count >1,250 +70% ↗️
- Cust >$100k ACV +85% ↗️ (~40% of rev)
- International Rev $80m ARR (~11%) +80% ↗️
⭐️ Data Moat: Info on 150m business professionals and 100m companies.
- FY20 108% NRR
- Organic Rev Growth 54% vs 60%
- Cust >$100k Count >1,250 +70% ↗️
- Cust >$100k ACV +85% ↗️ (~40% of rev)
- International Rev $80m ARR (~11%) +80% ↗️
⭐️ Data Moat: Info on 150m business professionals and 100m companies.
1 | ❌📉 Adj EBIT Margin has been steadily declining, and likely to continue for now…
$ZI starting from a position of strength, digest acquisitions, continuing to invest in sales to drive growth, expect LT margins to eventually reverse back higher. For now, growth is priority.
$ZI starting from a position of strength, digest acquisitions, continuing to invest in sales to drive growth, expect LT margins to eventually reverse back higher. For now, growth is priority.
2 | $ZI is reinvesting for growth.
“…maintaining COGS, R&D & G&A as a % of combined revenue in the low 30s…then managing S&M costs as a % of revenue based on the growth that we drive…to deliver sustainable growth over the LT accompanied by a leading profitability profile.”
“…maintaining COGS, R&D & G&A as a % of combined revenue in the low 30s…then managing S&M costs as a % of revenue based on the growth that we drive…to deliver sustainable growth over the LT accompanied by a leading profitability profile.”
3 | Expect uFCF Conversion in 100-110% range
“We continue to expect that on an annual basis, unlevered free cash flow conversion will be in the range of 100% to 110% as a percentage of adjusted operating income.”
“We continue to expect that on an annual basis, unlevered free cash flow conversion will be in the range of 100% to 110% as a percentage of adjusted operating income.”
Final Takeaways on ZoomInfo $ZI:
➡️ Rare combination of high revenue growth, superior profit & FCF margins. Margins are moderating lower due to higher S&M & M&A, as $ZI is reinvesting for faster growth, higher GPM, retention, larger customers, INT expansion remains encouraging.
➡️ Rare combination of high revenue growth, superior profit & FCF margins. Margins are moderating lower due to higher S&M & M&A, as $ZI is reinvesting for faster growth, higher GPM, retention, larger customers, INT expansion remains encouraging.
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