ZI - ZoomInfo: Meager Growth Spells Problems

2024-03-15 22:47:22 ET

Summary

• ZoomInfo's share price has declined over 10% this year, driven by rapidly slowing growth rates.
• The company's minimal growth projections for FY24 and overexposure to the software industry are red flags for investors.
• ZI faces tough competition in the CRM software market and has a large debt load.
• Its valuation at ~5x revenue isn't cheap enough to warrant an investment.

In today's very expensive stock market, investors are demanding terrific results to justify valuation premiums; and in the tech sector where headcount reductions and sales slowdowns have become the norm rather than the exception, stocks have seen wild swings in in the Q4 earnings season....

For further details see: