ZI - ZoomInfo: Not Expecting Copilot AI To Save This Company's Growth Trajectory

2024-06-19 23:29:14 ET

Summary

• ZoomInfo's stock has fallen over 30% year to date, with little confidence in a turnaround due to stagnant growth and high debt.
• The company's new AI features may not be enough to boost sales, especially in a competitive CRM market where ZoomInfo lags behind more prominent players.
• Q1 results showed decelerating revenue growth and low net retention rates, with profitability remaining stagnant.
• Though cheap, a turnaround is unlikely for ZoomInfo, as it continues to shed customers.

Sometimes, certain tech companies just fall out of fashion: not just with investors, but with their customers as well. This is especially true in competitive software categories like CRM, where ZoomInfo ( ZI ) has dragged its feet and ended up becoming a distant laggard behind much more formidable players like Salesforce ( CRM )....

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