What To Look For From GTM

Go-to-market intelligence provider ZoomInfo (NASDAQ:GTM) will be announcing earnings results this Monday after the bell. Here’s what to look for.

ZoomInfo beat analysts’ revenue expectations by 3.5% last quarter, reporting revenues of $306.7 million, up 5.2% year on year. It was a satisfactory quarter for the company, with accelerating growth in large customers but EPS guidance for next quarter missing analysts’ expectations. It added 16 enterprise customers paying more than $100,000 annually to reach a total of 1,884.

Is ZoomInfo a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.

This quarter, analysts are expecting ZoomInfo’s revenue to be flat year on year at $303.8 million, improving from the 3.3% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.26 per share.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. ZoomInfo has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 1.3% on average.

Looking at ZoomInfo’s peers in the sales and marketing software segment, some have already reported their Q3 results, giving us a hint as to what we can expect. GoDaddy delivered year-on-year revenue growth of 10.3%, beating analysts’ expectations by 2.7%, and VeriSign reported revenues up 7.3%, topping estimates by 0.5%. GoDaddy traded up 5.1% following the results while VeriSign was down 1.3%.

Read our full analysis of GoDaddy’s results here and VeriSign’s results here.

Investors in the sales and marketing software segment have had steady hands going into earnings, with share prices flat over the last month. ZoomInfo is up 7.6% during the same time and is heading into earnings with an average analyst price target of $11.71 (compared to the current share price of $11.22).

Today’s young investors likely haven’t read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next.

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