ZoomInfo Technologies Inc. (NASDAQ: GTM)

Sector: Technology Industry: Software - Application CIK: 0001794515
Market Cap 3.49 Bn
P/B 2.28
P/E 33.55
P/S 2.82
ROIC (Qtr) 4.48
Div Yield % 0.00
Rev 1y % (Qtr) 4.74
Total Debt (Qtr) 1.56 Bn
Debt/Equity (Qtr) 1.02

About

ZoomInfo Technologies Inc., a prominent name in the modern go-to-market software, data, and intelligence industry, is often identified by its stock symbol, ZI. The company is a significant player in the sales intelligence and data analytics sector, providing a robust platform that caters to the needs of sales, marketing, operations, and recruiting teams. The core of ZoomInfo's business revolves around its comprehensive platform, which is designed to deliver high-quality intelligence and analytics. This platform is a powerful tool that enables professionals...

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Price action

Investment thesis

Bull case

  • Healthy cash reserves of 124.80M provide 10.23x coverage of short-term debt 12.20M, demonstrating strong liquidity position and minimal refinancing risk.
  • Operating cash flow of 430.90M provides exceptional 10.31x coverage of interest expenses 41.80M, showing strong debt service capability.
  • Robust free cash flow of 347.30M exceeds capital expenditure of 83.60M by 4.15x, indicating strong organic growth funding capability.
  • Strong tangible asset base of 4.45B provides 2.85x coverage of total debt 1.56B, indicating robust asset backing and low credit risk.
  • Tangible assets of 4.45B provide exceptional 10.29x coverage of deferred revenue 431.90M, showing strong service capability backing.

Bear case

  • Operating cash flow of 430.90M barely covers its investment activities of (94.50M), with a coverage ratio of -4.56, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of (94.50M) provide weak support for R&D spending of 196.20M, which is -0.48x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Operating cash flow of 430.90M provides insufficient coverage of deferred revenue obligations of 431.90M, which is 1x, raising concerns about future service delivery capabilities.
  • The company's operating cash flow of 430.90M shows concerning coverage of stock compensation expenses of 123M, with a 3.50 ratio indicating potential earnings quality issues.
  • Operating earnings of 186.30M show weak coverage of depreciation charges of 88.50M, with a 2.11 ratio indicating high capital intensity and potential reinvestment needs.

Product and Service Breakdown of Revenue (2024)

Geographical Breakdown of Revenue (2024)

Peer comparison

Companies in the Software - Application
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 SAP Sap Se 288.31 Bn 34.60 6.72 10.73 Bn
2 CRM Salesforce, Inc. 248.32 Bn 34.38 6.16 11.14 Bn
3 SHOP Shopify Inc. 212.27 Bn 119.19 19.85 1.12 Bn
4 INTU Intuit Inc. 180.73 Bn 43.89 9.30 6.78 Bn
5 UBER Uber Technologies, Inc 178.38 Bn 10.72 3.60 12.19 Bn
6 NOW ServiceNow, Inc. 146.98 Bn 84.91 11.60 2.40 Bn
7 ADBE Adobe Inc. 144.48 Bn 20.77 6.23 6.64 Bn
8 ADP Automatic Data Processing Inc 108.20 Bn 26.16 5.18 9.77 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.77 2.65
EV to Cash from Ops. EV/CFO 11.33 13.37
EV to Debt EV to Debt 3.12 57.69
EV to EBIT EV/EBIT 26.20 19.12
EV to EBITDA EV/EBITDA 16.78 15.00
EV to Free Cash Flow [EV/FCF] EV/FCF 14.05 14.69
EV to Market Cap EV to Market Cap 1.40 -92.28
EV to Revenue EV/Rev 3.94 4.60
Price to Book Value [P/B] P/B 2.28 4.26
Price to Earnings [P/E] P/E 33.55 -136.90
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 0.00 -3.95
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 4.25
Dividend per Basic Share Div per Share (Qtr) 0.00 0.15
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 2.52
Interest Coverage Int. cover (Qtr) 4.46 -52.32
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -55.39 -259.78
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -15.50 9,763.58
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 1.61
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 1,179.04 -263.15
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 31.99 56.46
EBIT Growth (1y) % EBIT 1y % (Qtr) -35.18 -225.15
EBT Growth (1y) % EBT 1y % (Qtr) -41.38 -86.10
EPS Growth (1y) % EPS 1y % (Qtr) 933.33 123.84
FCF Growth (1y) % FCF 1y % (Qtr) 3.55 -36.82
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -0.25 95.08
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.19 0.58
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.02
Cash Ratio Cash Ratio (Qtr) 0.22 3.75
Current Ratio Curr Ratio (Qtr) 0.67 8.16
Debt to Equity Ratio Debt/Equity (Qtr) 1.02 0.17
Interest Cover Ratio Int Coverage (Qtr) 4.46 -52.32
Times Interest Earned Times Interest Earned (Qtr) 4.46 -52.32
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 22.20 -100.06
EBIT Margin % EBIT Margin % (Qtr) 15.03 -164.24
EBT Margin % EBT Margin % (Qtr) 11.66 -116.94
Gross Margin % Gross Margin % (Qtr) 83.70 58.20
Net Profit Margin % Net Margin % (Qtr) 8.40 -121.65