ZoomInfo beats on Q4 earnings, issues weaker-than-expected guidance for 2023

Yahoo Finance Live’s Brian Sozzi, Brad Smith, and Julie Hyman break down the stock performance and earnings for ZoomInfo.

Video Transcript

BRAD SMITH: Also watching shares of ZoomInfo ticker symbol ZI after the software company-- software and data company topped estimates for the fourth quarter, exceeding expectations on the top and bottom lines. However, they did issue here weaker than expected guidance for the full year. You are taking a look at some of the actuals versus the estimates on your screen there.

And one thing that did kind of jump out to me within the ZoomInfo report as I just thumbed through my notes here, it was the fact that they were talking about here demonstrating this value proposition driving a go to market motion for customers, quick time to value, tangible long term ROI. All that to say, this is still a business that has about 4,300 Zoominfo users across sales, marketing, operations, and talent roles.

But, it's really just about how they're going to grow out the business from here and make it so that investors get a sense of what the actual growth trajectory looks like. Because to me, if I read this report, and we read a lot of earnings reports, but I look through this and I'm just like, OK, this just seems like a lot of jargon. And any time there's overly a lot of jargon in earnings reports, that kind of gives you the sense that, all right, what else is underneath of the water around a company like this?

BRIAN SOZZI: It is-- of course, it's led by Henry Schuck who's a frequent member or come person that comes on and talks about his business. But, the sales up last year 47%, the company still outlining sales growth for this year, still outlining operating margin improvements year over year. It's just another, I think, just caught in this tech cycle wave where it's whatever you do, is just not going to please the stream.

JULIE HYMAN: Well, the first quarter outlook was bad. That's why the stock is down, right? It wasn't that bad considering how much the shares are down. But, when your revenue at most is going to be $301 million and the street is looking for almost $305 million, it's not great in this environment. UBS, by the way, also downgraded the stock to neutral saying that the shares could be rangebound in the meantime. So none of that helping matters.

BRAD SMITH: Well, we'll continue to track shares of all of these companies moving forward.