ZoomInfo Achieves Growth with Strong Q4 2024 Results

ZoomInfo announces solid financial performance in Q4 2024. The company recorded $309 million in revenue, exceeding expectations, and improving its profit margins due to a strategic focus on upmarket growth.

Date: 26-02-2025

AI Rating: 7

Financial Performance Overview: The report highlights ZoomInfo's robust financial metrics for Q4 2024, showcasing a GAAP revenue of $309 million and an impressive adjusted operating income of $116 million, corresponding to a profit margin of 37%. The revenue growth is attributed to their strategic shift towards upmarket customers, which comprises over two-thirds of their business and shows promising mid-single-digit growth prospects.

Net Revenue Retention (NRR): The analysis indicates an increase in net revenue retention to 87% for Q4, marking the first sequential increase since Q1 of 2022. This improvement demonstrates the company's successful customer retention strategies and expansion efforts in their high-value customer segments.

Adjusted Operating Income and Profit Margins: The report provides details about the improved operating income and margins. With operating income reaching $116 million and a margin of 37%, this reflects the successful implementation of operational improvements and a refined focus on the more profitable upmarket segment.

Free Cash Flow (FCF): The company reported unlevered free cash flow of $94 million for the quarter, representing a solid FCF margin of 30%. The consistent generation of free cash flow confirms the company’s strong operational performance and financial health.

Outlook and Market Position: Management expressed optimism about future growth, anticipating that increased focus on their Copilot product and operations business will drive further expansion in the upmarket segment. They expect continued improvement in adjusted operating income and margins due to this strategic pivot. As they continue to prioritize high-value clients, ZoomInfo aims to solidify its position as a leader in the data and AI provider market.

Stocks: ZI