Today, ZoomInfo Technologies has released its 10-K report. The company provides go-to-market intelligence and engagement platforms for sales and marketing teams globally. It serves enterprises, mid-market companies, and small businesses across various industries. As a result of this announcement, the company's shares have moved -1.0% on the market and are now trading at a price of $17.39.
In the annual report for the year ended December 31, 2023, ZoomInfo Technologies reported a program to repurchase up to $100.0 million of the Company’s Common Stock, and in July 2023, the Board approved an additional $500.0 million of share repurchase authorization. During the year ended December 31, 2023, the Company repurchased and subsequently retired 22,627,664 shares of Common Stock at an average price of $17.68 for an aggregate $400.1 million.
Key factors affecting ZoomInfo's performance include continuing to acquire new customers and increasing the usage of its platform. As of December 31, 2023, the company had over 35,000 customers, compared to 30,000 in 2022 and 25,000 in 2021. The net annual retention rate was 87% as of December 31, 2023.
The company also highlighted factors affecting the comparability of its results of operations, such as the impact of reorganization transactions and acquisitions. ZoomInfo Technologies reported that it derives primarily all of its revenue from subscription services and the remainder from recurring usage-based services and other revenue.
For more information, read the company's full 10-K submission here.
| 2019 | 2020 | 2021 | 2022 | 2023 | |
|---|---|---|---|---|---|
| Revenue (M) | n/a | $476 | $747 | $1,098 | $1,225 |
| Gross Margins | n/a | 77.0% | 82.0% | 83.0% | 85.0% |
| Net Margins | n/a | -1.0% | 16.0% | 6.0% | 11.0% |
| Net Income (M) | -$78 | -$4 | $117 | $63 | $136 |
| Net Interest Expense (M) | $24 | $69 | $44 | $48 | $46 |
| Depreciation & Amort. (M) | $12 | n/a | $69 | $88 | $89 |
| Avg. Price | n/a | $42.01 | $56.1 | $48.39 | $17.56 |
| Free Cash Flow (M) | $13 | $153 | $276 | $388 | $402 |
| CAPEX (M) | $4 | $17 | $24 | $29 | $24 |
| Total Debt (M) | $1,203 | $745 | $2,466 | $2,471 | $1,233 |
| Current Ratio | 0.61 | 1.37 | 1.08 | 1.45 | 1.49 |
ZoomInfo Technologies is a company with rapidly growing revenues, increasing capital expenditures, and wider gross margins than its industry peers. These factors indicate a competitive advantage and potential for sustained growth. However, the company's operating margins have lagged behind the industry average, suggesting potential inefficiencies in its operations.
ZoomInfo Technologies appears to be fairly valued at its current price of $17.39. The company's growth prospects and competitive positioning are counterbalanced by its operational inefficiencies and high leverage. Investors should closely monitor the company's ability to improve its operating margins and reduce its debt levels before considering an investment.
