The chart below shows how ZI performed 10 days before and after its earnings report, based on data from the past quarters. Typically, ZI sees a +4.50% change in stock price 10 days leading up to the earnings, and a -6.45% change 10 days following the report. On the earnings day itself, the stock moves by -0.28%. This data can give you a slight idea of what to expect for the next quarter's release.
Positive
Strong Q3 Performance: In Q3, we delivered $304 million in revenue and adjusted operating income of $112 million, both better than the top end of the guidance we provided.
Customer Retention Stability: Our NRR stabilized at 85% for the third consecutive quarter, indicating strong customer retention and satisfaction.
Share Repurchase Impact: We retired 24 million shares, approximately 7% of our total shares outstanding, enhancing shareholder value.
Unlevered Free Cash Flow Growth: Unlevered free cash flow for the quarter was $111 million, up 17% year-over-year, demonstrating strong cash generation capabilities.
Q4 Revenue Expectations: We expect GAAP revenue in the range of $296 million to $299 million for Q4, reflecting continued growth momentum.
Negative
Decline in Revenue Growth: Q3 revenue growth was negative 2%, indicating a decline in performance compared to previous quarters.
Increased Cash Interest Burden: The company incurred cash interest of $19 million in the quarter, reflecting increased financial burdens.
Operational Improvements Impact: The operational improvements implemented did not yield expected results, as the business risk model disqualified a record number of high-risk small business transactions.
Share Retirement Impact: The company retired 24 million shares, approximately 7% of total shares outstanding, which may indicate a lack of confidence in future growth.
Customer Retention Challenges: The net revenue retention rate remained stable at 85%, suggesting challenges in customer retention and growth.
ZoomInfo Technologies (ZI) Q3 2024 Earnings Call Transcript
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