ZoomInfo (ZI) Q3 Earnings: What To Expect

Sales intelligence platform ZoomInfo will be reporting results tomorrow after market close. Here’s what to look for.

ZoomInfo missed analysts’ revenue expectations by 5.3% last quarter, reporting revenues of $291.5 million, down 5.5% year on year. It was a softer quarter for the company, with underwhelming revenue guidance for the next quarter and a miss of analysts’ EBITDA estimates. It added 37 enterprise customers paying more than $100,000 annually to reach a total of 1,797.

Is ZoomInfo a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting ZoomInfo’s revenue to decline 4.6% year on year to $299.3 million, a reversal from the 9.1% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.22 per share.

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. ZoomInfo has missed Wall Street’s revenue estimates twice over the last two years.

Looking at ZoomInfo’s peers in the sales and marketing software segment, some have already reported their Q3 results, giving us a hint as to what we can expect. HubSpot delivered year-on-year revenue growth of 20.1%, beating analysts’ expectations by 3.5%, and Freshworks reported revenues up 21.5%, topping estimates by 2.7%. HubSpot traded up 7.7% following the results while Freshworks was also up 28.4%.

Read our full analysis of HubSpot’s results here and Freshworks’s results here.

There has been positive sentiment among investors in the sales and marketing software segment, with share prices up 11% on average over the last month. ZoomInfo is up 16.9% during the same time and is heading into earnings with an average analyst price target of $11.39 (compared to the current share price of $12.02).

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