Analyst Tyler Radke of Citi maintained a Sell rating on ZoomInfo Technologies (ZI – Research Report), with a price target of $13.00.
Tyler Radke has given his Sell rating due to a combination of factors related to ZoomInfo Technologies’ performance and outlook. The Q4 results showed a decent revenue beat, but this was overshadowed by ongoing slow growth trends. The report highlights that despite revenue slightly exceeding expectations, key leading indicators did not show significant improvement, with muted customer retention and a notable decline in high-spend customers. Furthermore, the forward guidance for both Q1 and the full year 2024 suggests only modest revenue growth with potential margin challenges, which likely dampened investor sentiment.
On the financial performance side, Radke observed that ZoomInfo’s Q4 revenue surpassed guidance and consensus, and adjusted operating margins were also slightly better. However, the report emphasizes that these short-term achievements are not indicative of a robust growth trajectory. The Sell rating is underpinned by the expectation that leading indicators are not signaling a turnaround, and the forecast for 2024 points to constrained growth with margin pressures. This outlook, combined with high-risk factors, leads to the anticipation of a negative share price response, guiding Radke’s recommendation towards a Sell position for ZoomInfo Technologies.
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ZoomInfo Technologies (ZI) Company Description:
ZoomInfo Technologies Inc provides a cloud-based platform for sales and marketing teams. It provides information on the organizations and professionals of the target company. The services provided are contact & company search, buyer intent, social selling, web research, website visitor tracking, lead enrichment, database management, campaign optimization, webform optimizations, and others. Geographically, the company has its presence across the United States.
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