ZI - ZoomInfo Earnings: Everyone Got Too Bearish Including Me (Rating Upgrade)
2024-02-13 10:16:57 ET
Summary
- Despite ZoomInfo's surprising Q4 results and recent stock surge, I remain cautiously neutral in my stance, refraining from turning bullish or staying bearish.
- The stock's valuation, with a forward free cash flow multiple of 17x and limited revenue growth outlook, raises concerns about the risk-reward of this stock.
- Challenges persist, notably the impact of a weaker macro environment, resulting in a drop in Net Revenue Retention to 87% y/y, signaling hurdles in upsells and seat downsells.
Investment Thesis
ZoomInfo ( ZI ) Q4 results took investors by surprise, with the stock soaring more than 20% premarket....
ZoomInfo Earnings: Everyone Got Too Bearish, Including Me (Rating Upgrade)