Results: ZoomInfo Technologies Inc. Exceeded Expectations And The Consensus Has Updated Its Estimates

It's been a sad week for ZoomInfo Technologies Inc. (NASDAQ:ZI), who've watched their investment drop 10% to US$10.58 in the week since the company reported its third-quarter result. It looks like a credible result overall - although revenues of US$304m were what the analysts expected, ZoomInfo Technologies surprised by delivering a (statutory) profit of US$0.07 per share, an impressive 49% above what was forecast. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

Check out our latest analysis for ZoomInfo Technologies

After the latest results, the consensus from ZoomInfo Technologies' 23 analysts is for revenues of US$1.19b in 2025, which would reflect a discernible 2.3% decline in revenue compared to the last year of performance. Per-share earnings are expected to soar 1,307% to US$0.37. In the lead-up to this report, the analysts had been modelling revenues of US$1.21b and earnings per share (EPS) of US$0.38 in 2025. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a small dip in their earnings per share forecasts.

The consensus price target held steady at US$11.74, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic ZoomInfo Technologies analyst has a price target of US$17.24 per share, while the most pessimistic values it at US$7.00. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that revenue is expected to reverse, with a forecast 1.8% annualised decline to the end of 2025. That is a notable change from historical growth of 29% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 11% per year. It's pretty clear that ZoomInfo Technologies' revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have forecasts for ZoomInfo Technologies going out to 2026, and you can see them free on our platform here.

It is also worth noting that we have found 3 warning signs for ZoomInfo Technologies that you need to take into consideration.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.