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ZoomInfo (ZI) to Report Q3 Earnings: What's in the Cards?

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Zoominfo Technologies (ZI - Free Report) is set to release third-quarter 2020 results on Nov 9.

Markedly, this would be ZoomInfo’s second earnings call as a publicly traded company. On Jun 8, it completed its initial public offering and began trading on Nasdaq under the ticker ZI.

In second-quarter 2020, ZoomInfo reported revenues of $111.2 million, up 40% year over year. Moreover, adjusted earnings were 7 cents per share.

For the to-be-reported quarter, ZoomInfo expects revenues between $116 million and $118 million. Moreover, earnings are expected in the 8-9 cents per share range.

The Zacks Consensus Estimate for third-quarter revenues is currently pegged at $116.8 million, indicating 5% growth from the figure reported in the previous quarter. Moreover, the consensus mark stayed at 30 cents per share over the past 30 days.
 

ZoomInfo Technologies Inc. Price and EPS Surprise

ZoomInfo Technologies Inc. Price and EPS Surprise

ZoomInfo Technologies Inc. price-eps-surprise | ZoomInfo Technologies Inc. Quote

 

Let’s see how things shaped up prior to this announcement.

Factors to Note

ZoomInfo’s third-quarter results are expected to benefit from an expanding customer base as well as solid retention rate.

Notably, this leading go-to-market intelligence platform provider ended the second quarter with more than 650 customers with $100K or greater in annual contract value (“ACV”). ACV from these customers surged 60% year over year. The momentum is expected to have continued in the to-be-reported quarter.

Moreover, ZoomInfo follows a subscription-based business model which makes it resilient against the coronavirus-led disruptions. This is expected to have benefited top-line growth.

However, margins are expected to have remained pressed due to incremental sales & marketing expenses related to signing new customers as well as retaining and upselling to existing customers in the to-be-reported quarter.

What Our Model Indicates

Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.

Zoominfo has an Earnings ESP of 0.00% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks to Consider

Here are a few companies worth considering as our model shows that these have the right combination of elements to beat on earnings this reporting cycle:

NVIDIA (NVDA - Free Report) has an Earnings ESP of +1.75% and is #2 Ranked. You can see the complete list of today’s Zacks #1 Rank stocks here.

CMC Materials has an Earnings ESP of +1.45% and a Zacks Rank #2.    

Intuit (INTU - Free Report) has an Earnings ESP of +39.88% and is #3 Ranked.

These Stocks Are Poised to Soar Past the Pandemic

The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.

Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.

See the 5 high-tech stocks now>>


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