ZoomInfo Beats Earnings Expectations But Faces Revenue Decline, Shares Drop 16%

ZoomInfo (NASDAQ:ZI) reported third-quarter results that exceeded analyst expectations, but its shares dropped nearly 16% in pre-market today as the company faced a year-over-year revenue decline and provided guidance that aligned closely with market forecasts.

For the quarter, the go-to-market platform provider posted adjusted earnings per share of $0.28, outperforming the consensus estimate of $0.22. Revenue reached $303.6 million, slightly ahead of the expected $299.35 million but reflecting a 3% decline compared to the same period last year.

The company’s guidance for the fourth quarter aligned closely with analyst projections, forecasting earnings per share between $0.22 and $0.23, compared to the consensus of $0.23. Expected revenue for the quarter ranged from $296 million to $299 million, compared to the Street consensus estimate of $296.9 million.

For the full year 2024, ZoomInfo adjusted its guidance slightly upward. The company projected earnings per share of $0.92 to $0.93, surpassing the consensus estimate of $0.88, and anticipated revenue of $1.201 billion to $1.204 billion, narrowly exceeding the $1.198 billion consensus.