Zoominfo Slumps on Outlook Cut

ZoomInfo (ZI:US) shares fell as much as 17% in early Tuesday trading after the infrastructure software company slashed its full-year revenue outlook.

The company reported a Q2 EPS of $0.26, topping the consensus for an EPS of $0.23. Revenue rose 16% year-over-year to $308.6 million, missing the average analyst estimate for Q2 revenue of $310.8 million.

“In Q2 we delivered another quarter of revenue growth, increased profitability, and free cash flow generation,” said Henry Schuck, ZoomInfo Founder and CEO. 

“Today we help more than 35,000 businesses use the data, insights, and workflows in the ZoomInfo platform to engage with customers and win faster. Businesses in all industries are leveraging our platform as an integral part of their technology stack to modernize how they go to market.”

In addition to a revenue miss, shares were hit by the weak Q3 forecast. ZI sees adjusted Q3 EPS between $0.24 to $0.25, just below the market at $0.26. Revenue is seen in the region of $309 million - $312 million, again missing the $325.8 million analyst target.

As a result, the company was forced to cut its full-year forecast. ZI now sees full-year EPS at $0.995 on revenue of $1.23 billion, down from the prior forecast for EPS of $1.00 on revenue of $1.28 billion. The Street was looking for FY adjusted EPS of $0.98 on revenue of  $1.28 billion.

Congressman Ro Khanna was consistently trading ZI shares throughout 2022. The stock was down more than 13% year-to-date through Monday’s close.