Last Updated: 08 Nov 2024
Executive Summary
ZoomInfo Technologies Inc. (ZI) is a leading provider of cloud-based go-to-market intelligence platforms for sales and marketing teams. The company has experienced strong growth in recent years, driven by the increasing adoption of its software by businesses looking to improve their sales and marketing performance. Despite recent market volatility, ZI's stock remains attractive, supported by strong fundamentals and a positive long-term outlook.
Company Overview
ZI was founded in 2007 and is headquartered in Vancouver, Washington. The company's platform provides businesses with access to a comprehensive database of company and contact information, as well as tools for prospecting, lead generation, and customer relationship management. ZI's software is used by over 25,000 customers worldwide, including many Fortune 500 companies.
Fundamental Analysis
ZI's financial performance has been impressive in recent years. The company's revenue has grown by over 30% annually since 2019, and its profitability has also improved significantly. In the latest quarter, ZI reported revenue of $1.23 billion and EBITDA of $215.4 million. The company's EPS was $0.04, and its profit margin was 1.25%.
ZI's balance sheet is also strong. The company has $1.2 billion in cash and equivalents and no debt. This provides ZI with ample financial flexibility to invest in growth initiatives and return capital to shareholders.
Technical Analysis
ZI's stock price has been volatile in recent months, but it has generally trended higher over the past year. The stock is currently trading at $11.77, which is below its 52-week high of $19.39 but above its 52-week low of $7.65. The stock's 50-day moving average is $10.28, and its 200-day moving average is $12.92.
Short Term Outlook
ZI's stock is likely to remain volatile in the short term, as the market continues to react to macroeconomic factors and earnings reports. However, the company's strong fundamentals and positive long-term outlook should provide support for the stock price.
Long Term Outlook
ZI is well-positioned to continue growing in the long term. The company's platform is essential for businesses looking to improve their sales and marketing performance, and the market for these solutions is expected to grow significantly in the coming years. ZI is also investing heavily in research and development, which should help it to maintain its competitive advantage.
Analyst Recommendations
Analysts are generally positive on ZI's stock. The consensus analyst rating is "buy," and the average analyst target price is $11.25. This suggests that analysts believe ZI's stock is undervalued at current levels.
