One-glance verdict
Undervalued
$21.98 our estimate vs market $4.09
Wall Street consensus: $4.60 (-79.1% lower than our fair-value estimate)
81% below our estimate, below the bear case
Fundamentals snapshot
ZoomInfo Technologies Inc.
GTM · NMS · Technology · Software - Application
Current price
$4.09
52-week range
$2.54 - $12.31
Market cap
$1.19B
Balance sheet
Watch
5.30x Adequate
Net debt $1.37B. Interest coverage shows how many times profit covers the interest bill.
What stands out
2 Rewards
2 Risks
2 rewards · 2 risks
- Reward Revenue grew 0.7% last year.
- Reward Free cash flow was positive in 8/10 years.
- Risk Net debt grew 80.9% over 3 years.
- Risk Return on equity was -45.4% last year — the company lost money on shareholders' equity.
What this company does
ZoomInfo Technologies Inc.
ZoomInfo provides a software platform that helps businesses find and connect with potential new customers, acting like a powerful digital phonebook for sales and marketing teams. The company makes money primarily from recurring revenue (predictable income from ongoing subscriptions) as its clients pay to access this database and its sales tools. This is important because it allows other companies to target their sales efforts more accurately, which can save time and help them grow their own business.
How the company got here
ZoomInfo started in 2007 as a company named DiscoverOrg, founded by Henry Schuck and Kirk Brown. Its main goal was to help salespeople find the right contacts at other businesses. A major turning point came in 2019 when it bought a competitor, also named Zoom Information, and took on the ZoomInfo brand for the combined company. After this big merger, the company went public in 2020, meaning its shares became available for anyone to buy on the stock market. Since then, it has continued to buy other smaller companies to add new features to its platform, like tools for analyzing sales calls and managing data.
What it actually does
ZoomInfo operates a large online database that is like a digital phone book and research tool for businesses. It collects vast amounts of information on companies and the people who work at them. Sales, marketing, and recruiting teams at other companies pay to access this platform. They use it to find potential customers, get verified contact information like email addresses and phone numbers, and learn when a company might be ready to buy a new product or service. The platform helps these teams target the right people and companies, making their jobs more efficient.
Subscription Platform
The vast majority of ZoomInfo's revenue (the money it brings in) comes from selling subscriptions to its online platform. Think of it like a Netflix or Spotify subscription, but for business data. Customers, which range from small businesses to large corporations, pay a recurring fee, often yearly, to get access to the data and tools. This subscription model provides a steady and predictable stream of income for the company. The price of the subscription depends on how many employees will be using it and which specific features they need.
SalesOS
This is ZoomInfo's main product, designed specifically for sales teams. It provides them with detailed profiles of companies and employees, including direct phone numbers and email addresses. SalesOS also offers tools that signal when a company might be looking to buy, known as 'buyer intent' data (clues that a company is researching a product or service). This helps salespeople focus their efforts on leads (potential customers) who are more likely to make a purchase. This is the core of ZoomInfo's business and what most customers pay for.
MarketingOS, TalentOS, and OperationsOS
Beyond just sales, ZoomInfo packages its data for other business departments. MarketingOS gives marketing teams the data to run targeted advertising campaigns and find the right audience for their products. TalentOS is for recruiters, helping them find and contact potential job candidates with the right skills and experience. OperationsOS helps companies clean up and manage the data they already have in their own systems, making it more accurate and useful. While smaller than the sales-focused product, these offerings represent different ways the company makes money from its core database.
What management is betting on now
The company's leadership is currently focused on a few key areas to grow the business. They are concentrating more on selling to larger companies, often called 'upmarket' customers, because they tend to be more stable and spend more money. A major priority is integrating artificial intelligence (AI) into their platform, with new tools like 'Copilot' designed to automatically find sales opportunities for users. Management is also focused on returning value to shareholders by using company cash for share buybacks (when a company buys its own stock to reduce the number of shares available, which can make the remaining ones more valuable).
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$600.00K
FY2024 Q4
$85.60M
FY2025 Q1
$104.40M
FY2025 Q2
$86.90M
FY2025 Q3
$70.90M
FY2025 Q4
$127.10M
FY2026 Q1
$90.60M
FY2026 Q2
$69.70M
Revenue
$310.40M
Net income
$-643.70M
Diluted EPS
-2.19
Operating cash flow
$87.30M
Free cash flow
$69.70M
Fetching…
Sources
Revenue
$310.20M
Net income
$29.30M
Diluted EPS
0.10
Operating cash flow
$114.70M
Free cash flow
$90.60M
Fetching…
Sources
Revenue
$319.10M
Net income
$34.70M
Diluted EPS
0.11
Operating cash flow
$143.50M
Free cash flow
$127.10M
Fetching…
Sources
Revenue
$318.00M
Net income
$38.70M
Diluted EPS
0.12
Operating cash flow
$93.80M
Free cash flow
$70.90M
Fetching…
Sources
Revenue
$306.70M
Net income
$24.00M
Diluted EPS
0.07
Operating cash flow
$108.90M
Free cash flow
$86.90M
Fetching…
Sources
Revenue
$305.70M
Net income
$26.80M
Diluted EPS
0.08
Operating cash flow
$119.20M
Free cash flow
$104.40M
Fetching…
Sources
Revenue
$309.10M
Net income
$14.60M
Diluted EPS
0.04
Operating cash flow
$109.00M
Free cash flow
$85.60M
Fetching…
Sources
Revenue
$303.60M
Net income
$23.80M
Diluted EPS
0.07
Operating cash flow
$18.20M
Free cash flow
$600.00K
Fetching…
Sources
Is it cheap or expensive?
Fair value $21.98 vs current price $4.09
Wall Street consensus is the average analyst price target: $4.60 (-79.1% lower than our fair-value estimate).
Our most-likely fair value is $21.98 a share — about 437.3% above today's price of $4.09, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Watch
Net debt $1.4B. Interest coverage 5.3x.
Net debt
$1.37B
Interest coverage
5.30x
ZoomInfo Technologies Inc.'s profit covers its interest bill about 5.3 times over. which is weaker than most peers shown here.
Watch
Worse cushion
Baseline
Better cushion
GTM
BASELINE
ZoomInfo Technologies Inc.
Total debt $1.52B Interest coverage 5.30x This is the baseline the peer rows are being compared against.
Total debt $236.91M Interest coverage 13.03x +146% vs GTM Carries about 2.5x more debt cushion than GTM.
Total debt $220.25M Interest coverage 77.64x +1,365% vs GTM Carries about 14.7x more debt cushion than GTM.
Total debt $72.02M Interest coverage 221.32x +4,077% vs GTM Carries about 41.8x more debt cushion than GTM.
What you should know
The case for and against GTM
2 Rewards
2 Risks
Rewards
-
Revenue grew 0.7% last year.
-
Free cash flow was positive in 8/10 years.
Risks
-
Net debt grew 80.9% over 3 years.
-
Return on equity was -45.4% last year — the company lost money on shareholders' equity.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
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Forward P/E
3.63x
P/B
1.44x
P/S
0.95x
EV/EBITDA
7.56x
PEG ratio
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Profitability
How much profit each dollar creates
Gross margin
86.5%
Operating margin
20.6%
Net margin
-43.0%
ROE
-45.4%
ROA
2.9%
Health
Liquidity and balance-sheet strength
Debt / equity
1.83x
Current ratio
0.65x
Quick ratio
0.56x
Total debt
$1.52B
Total cash
$152.90M
Growth
How the business has been compounding
Revenue TTM
$1.26B
Revenue 5Y CAGR
13.7%
EPS TTM
-1.83
EPS 5Y CAGR
33.4%
Cash flow
How much cash the business throws off
Operating CF TTM
$439.30M
Free CF TTM
$389.30M
FCF margin
31.0%
Dividend
Shareholder payout
Yield
—
Payout ratio
0.0%
Last ex-div date
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