ZoomInfo ( NASDAQ: ZI ) shares plunged more than 30% Wednesday to an all-time low even as the software company beat Wall Street estimates with its third quarter results and raised full-year 2022 outlook.
ZI fell as much as 30.7% to 30.14 late in Wednesday's session, reaching its lowest level since the company went public in June 2020. The stock originally priced at $21 a share back in 2020, but popped 62% to end its first session at $34.
However, analysts cut their price targets Wednesday after management issued commentary around worsening macro environment. CEO Henry Schuck stated 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 30%+ to record low as management warns of challenges (update)