ZoomInfo Under Investigation for Customer Defaults, Cuts Annual Revenue Guidance by $65 Million
Written by Emily J. Thompson, Senior Investment Analyst
Source: PRnewswire
Updated: 58 minutes ago0mins
- Customer Default Investigation: ZoomInfo is under investigation by Kahn Swick & Foti due to $33 million in losses from customer non-payments, indicating significant financial strain that could undermine shareholder confidence.
- New Risk Model Implementation: The company has adopted a new business risk model requiring upfront payments from small business customers, reflecting a decline in the payment capacity of its client base, which may lead to customer attrition.
- Revenue Guidance Cut: ZoomInfo has reduced its annual revenue guidance by $65 million, from a range of $1.255 billion to $1.27 billion down to $1.19 billion to $1.205 billion, signaling a pessimistic outlook for future performance.
- Legal Action Progress: The company and its executives are facing a securities class action lawsuit for failing to disclose material information, with the court partially denying the company's motion to dismiss, allowing the case to proceed, which may further impact the company's reputation and stock price.
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Analyst Views on GTM
Wall Street analysts forecast GTM stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for GTM is 12.25 USD with a low forecast of 8.00 USD and a high forecast of 15.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
12 Analyst Rating
2 Buy
5 Hold
5 Sell
Hold
Current: 9.910
Low
8.00
Averages
12.25
High
15.00
Current: 9.910
Low
8.00
Averages
12.25
High
15.00
Goldman Sachs
NULL -> Sell
downgrade
2025-11-05
Reason
Goldman Sachs
Price Target
2025-11-05
downgrade
NULL -> Sell
Reason
Goldman Sachs raised the firm's price target on ZoomInfo to $10.70 from $9.40 and keeps a Sell rating on the shares.
UBS
Neutral
maintain
$12 -> $13
2025-11-04
Reason
UBS
Price Target
$12 -> $13
2025-11-04
maintain
Neutral
Reason
UBS raised the firm's price target on ZoomInfo to $13 from $12 and keeps a Neutral rating on the shares. The tone is improving and the trajectory is steady for ZoomInfo, the analyst tells investors in a research note.
Citi
Neutral
maintain
$11 -> $13
2025-11-04
Reason
Citi
Price Target
$11 -> $13
2025-11-04
maintain
Neutral
Reason
Citi raised the firm's price target on ZoomInfo to $13 from $11 and keeps a Neutral rating on the shares after its Q3 earnings beat. The company reported an above average top line beat, with continued success upmarket and sequential improvements within the downmarket customer base, the analyst tells investors in a research note. The firm adds that it has come away incrementally more positive on the company's ability to grow.
Barclays
Equal Weight
maintain
$13 -> $14
2025-11-04
Reason
Barclays
Price Target
$13 -> $14
2025-11-04
maintain
Equal Weight
Reason
Barclays raised the firm's price target on ZoomInfo to $14 from $13 and keeps an Equal Weight rating on the shares post the Q3 report. The company is seeing stability in its down-market business and improving upsell momentum with Copilot and Operations, the analyst tells investors in a research note.
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About GTM
ZoomInfo Technologies Inc. provides a go-to-market intelligence and engagement platform for sales, marketing, operations, and recruiting professionals. Its cloud-based platform provides workflow tools with integrated and comprehensive information on organizations and professionals to help users identify target customers and decision makers. Its cloud-based operating system for revenue professionals delivers comprehensive intelligence and analytics to provide sales, marketing, operations, and recruiting professionals accurate information and insights on the organizations and professionals they target. It delivers intelligence at scale by leveraging an AI and ML-powered engine that gathers data from millions of sources and standardizes, matches to entities, verifies, cleans, and applies the processed data to companies and people at scale. The Company aggregates and extracts distinct types of data, such as revenue, locations, technologies, keywords, contact information, and others.
About the author
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Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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