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ZoomInfo Shares Plunge 18% After Q2 Earnings Miss and Weak Guidance

ZoomInfo Technologies Inc. (NASDAQ:ZI) shares plummeted 18% intra-day today after the company reported disappointing second-quarter earnings and issued weaker-than-expected guidance for the future.

For the second quarter, ZoomInfo posted adjusted earnings per share (EPS) of $0.17, falling short of the Street estimate of $0.24. Revenue for the quarter was $291.5 million, representing a 6% year-over-year decline and missing the expected $307.68 million.

Despite these challenges, ZoomInfo saw growth in its high-value customer segment, adding 37 customers with annual contract values of $100,000 or more during the quarter.

Looking forward, ZoomInfo provided third-quarter guidance with adjusted EPS projected to be between $0.21 and $0.22, below the Street estimate of $0.25. Revenue for the third quarter is expected to be between $298 million and $301 million, also missing the Street estimate of $317 million.

For the full year 2024, the company forecasted adjusted EPS in the range of $0.86 to $0.88 and revenue between $1.19 billion and $1.205 billion, both falling short of analyst expectations.