ZoomInfo Stock Soars After Q4 Results Top Expectations—Key Price Level to Watch
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Key Takeaways
ZoomInfo shares rose sharply on Tuesday after the company delivered better-than-expected fourth-quarter results and highlighted its recently launched generative AI-powered solution, ZoomInfo Copilot.
The company said it ended the quarter with 1,820 customers that generated at least $100,000 in annual contract value.
ZoomInfo shares may turn bullish if the price breaks above a multi-month downtrend line, currently sitting near $21.50.
ZoomInfo Technologies Inc.
Source: TradingView.com.
Shares in ZoomInfo Technologies (
ZI
) moved sharply higher ahead of Tuesday’s opening bell after the marketing intelligence software maker posted quarterly results that came in ahead of Wall Street estimates amid a growing cash pile.
ZoomInfo reported fourth-quarter
adjusted earnings
of 26 cents per share, a penny above the 25 cent-a-share figure analysts had expected. Revenue in the period of $316.4 million grew 5% from a year earlier and handily topped the $310.6 million Street forecast. Moreover, the company’s
unlevered free cashflow
increased 3% year-over-year to $126 million. The
marketing software
solutions provider also said it ended the quarter with 1,820 customers that had at least $100,000 in annual contract value.
Looking ahead, ZoomInfo expects first-quarter adjusted earnings of between 23 and 24 cents per share on revenue of $307 million to $310 million. For the full year, the company sees sales ranging between $1.26 billion and $1.28 billion, versus consensus modeling of $1.275 billion. Meanwhile, ZoomInfo’s 2024 bottom-line
guidance
of 99 cents to $1.01 per share matches analysts’ projections.
ZoomInfo Chief Executive Officer Henry Schuck also used the earnings announcement to highlight the recent launch of ZoomInfo Copilot—an AI-powered tool that unifies a company’s go-to-market data and applies
generative AI
to identify customized insights.
ZI shares appear to be carving out an
inverse head and shoulder bottom
, with the pattern possibly confirming today upon a close above its neckline around $19. If the stock has an extended post-earnings rally, monitor how the price responds to a multi-month
downtrend
line, which currently sits near $21.50. A
volume
-backed breakout above this closely watched chart level could potentially shift longer-term sentiment back in favor of the bulls.
ZoomInfo shares were up 18% at $18.90 about an hour before the opening bell.
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As of the date this article was written, the author does not own any of the above securities.
