ZoomInfo ( NASDAQ: ZI ) shares plunged ~25% Wednesday morning even as the software company beat Wall Street estimates with its third quarter results and raised full-year 2022 outlook.
Analysts cut their price targets on the stock after management's commentary around worsening macro environment, with CEO Henry Schuck stating that "we began to see increased macro pressure on deals, causing the level of deal review to increase and sales cycles to elongate further."
CFO Cameron Hyzer warned that the company is not immune to the macroeconomic environment in the short term.
Mizuho analysts cut ZoomInfo's ( ZI ) price target from $65 to $50 explaining that, "While ZoomInfo is not immune to the macro, and we expect revenue growth to decelerate to 29% in 2023 (from 47% in 2022), we believe ZoomInfo continues to offer a best-in-class SaaS financial profile with strong cash flow generation, and expect management to prioritize margin improvement in the current market conditions."
In Q3, ZoomInfo ( ZI ) generated adjusted earnings of $0.24 per share on revenue of $287.6M that grew 45.5% Y/Y. The company also raised its full year targets, now expecting revenue of $1.094B-$1.096B vs. consensus estimate of $1.10B (prior outlook: $1.08B-$1.09B) and adj EPS of $0.83-$0.84 vs. $0.84 consensus (prior: $0.78-$0.80).
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ZoomInfo slides 25% as management warns of challenging operating environment