ZoomInfo Technologies Inc (ZI) Reports Q3 2023 Earnings: Revenue Grows 9% YoY to $313.8 Million
ZoomInfo Technologies Inc (NASDAQ:ZI) reported Q3 2023 revenue of $313.8 million, a 9% increase YoY.
The company's operating income for the quarter was $63.1 million, a 22% rise YoY.
ZoomInfo's GAAP operating income margin stood at 20%, with an adjusted operating income margin of 40%.
The company repurchased 8,800,000 shares of common stock at an average price of $18.19, for an aggregate $160.1 million.
ZoomInfo Technologies Inc (NASDAQ:ZI) announced its Q3 2023 financial results on October 30, 2023. The company reported a 9% YoY increase in revenue, reaching $313.8 million. The operating income for the quarter was $63.1 million, a 22% rise YoY. The GAAP operating income margin stood at 20%, with an adjusted operating income margin of 40%.
Financial Highlights
ZoomInfo's cash flow from operations was $80.8 million, and its unlevered free cash flow was $94.8 million. The company repurchased 8,800,000 shares of common stock at an average price of $18.19, for an aggregate $160.1 million, under the $600 million in total repurchase authorizations. By the end of the quarter, ZoomInfo had 1,869 customers with $100,000 or greater in annual contract value.
Business and Operating Highlights
ZoomInfo expanded its international coverage of businesses and professionals available on its platform. Over the last two years, the company has increased the number of global companies in its data platform by more than 6x, while tripling both the number of global contacts and the number of global mobile phone numbers. The company also introduced more customer-facing AI initiatives, including Chorus post-meeting briefs, that automatically draft follow-up emails after meetings. To date, more than 2.3 million meeting summaries have been generated.
Financial Outlook
For Q4 2023, ZoomInfo expects GAAP revenue to be between $309 and $312 million, and non-GAAP adjusted operating income to be between $122 and $124 million. For the full year 2023, the company expects GAAP revenue to be between $1.232 and $1.235 billion, and non-GAAP adjusted operating income to be between $494 and $496 million.
Balance Sheet and Cash Flow Highlights
As of September 30, 2023, ZoomInfo had cash and cash equivalents of $442.6 million and short-term investments of $125.3 million. The company's net cash provided by operating activities for the first nine months of 2023 was $306.1 million, and net cash used in investing activities was $11.1 million. During the same period, net cash used in financing activities was $266.6 million.
Explore the complete 8-K earnings release (here) from ZoomInfo Technologies Inc for further details.
This article first appeared on GuruFocus.
