# ZoomInfo Q22021 BLOWOUT! **URL:** \ **Category:** Saul’s Investing Discussions\ **Created:** [August 2, 2021, 11:36pm UTC](https://discussion.fool.com/t/zoominfo-q22021-blowout/55908 "2021-08-02T23:36:39Z")\ **Posts on this page:** 1\ **Page:** 1
**Author:** ![cfee2000](https://g.foolcdn.com/misc-assets/discourse-member-avatar_120px_blue600.png) [@cfee2000](https://discussion.fool.com/u/cfee2000)\ **Post date:** [August 2, 2021, 11:36pm UTC](https://discussion.fool.com/t/zoominfo-q22021-blowout/55908/1 "2021-08-02T23:36:39Z")
Sorry for the barrage of posts on ZoomInfo, but I’ve had a hard time containing my excitement from this quarter, which I see as their best yet and worthy of this board’s attention. I got so motivated that I felt compelled to go back through their S-1 from 2020 and re-chart their past in my typical number keeping format for other companies I invest in. I’ll do my best to summarize the relevant info here. One caveat is that I don’t have a hold of the conference call notes and didn’t have a chance to listen to the call. This quarter was a **significant re-acceleration in their revenue growth from 49.31% YoY last quarter to 56.21% YoY this quarter** , and its not some kind of seasonal spike. In fact, in Q220 the growth of 60.68% was a (minor) sequential deceleration. I looked at ZoomInfo’s top line guidance vs. their actuals in the 5 quarters they’ve been public. They’ve been pretty consistent with their beats, with an **average beat of 5.74%**. Not only was this a great quarter a huge revenue beat, but if you take the average beat against their top line guide of $184M for Q3, you get an **estimated continued acceleration of revenue growth from 56.21% to 57.09% next quarter!!** Also, note that in each quarter they’ve been public, their **adjusted EPS has ticked up every quarter**. ```auto Q220 Q320 Q420 Q121 Q221 **Q321(ESTIMATE)** Rev (in millions) $110.90 $123.40 $139.70 $153.30 $174.00 **$194.56** Rev Growth (YoY)(Organic) 60.68% 54.95% 52.53% 49.31% 56.21% **57.09%** Rev Growth (QoQ)(Organic) 8% 11% 13% 9% 13% **12%** EPS (GAAP) -0.22 0.02 0.14 0.02 0.05 EPS (Adjusted) 0.07 0.11 0.12 0.13 0.14 ``` On the income statement, their adjusted Operating Margins have moderated, but its only gone from the mid 50’s to mid 40’s over the past 3 years, at staying steady QoQ at a 43% Adj. Operating Margin. The **Gross Profit Margins are pretty insane**. They are consistently around **89%!!** on an adjusted basis, and as their business has matured on a GAAP basis they have pulled that margin up significantly since going public. They’ve been able to pull down their Cost of Revenue and their expenses on a GAAP basis for each of their first 5 quarters as a public company. ```auto Q220 Q320 Q420 Q121 Q122 Gross Margin (GAAP) 70% 78% 81% 82% 83% Gross Margin (non-GAAP) 89% 88% 88% 89% 89% ``` I mentioned the uFCF in a previous post and forgot to link to the Investor Presentation where these numbers are, so here’s that link (see Slide 21 - [https://ir.zoominfo.com/static-files/6b2b565e-3049-4cc8-83a6…](https://ir.zoominfo.com/static-files/6b2b565e-3049-4cc8-83a6-c8382252fc45)). ```auto Q220 Q320 Q420 Q121 Q221 uFCF (in millions) $52.20 $59.80 $76.60 $97.50 $91.80 uFCF (YoY) 35% 28% 84% 77% 76% ``` I also mentioned the $100k+ Customer count in a previous post, and since digging through the S-1 I was able to find a bit more numbers for this metric, and it shows **on a YoY basis they’ve grown their $100k+ customers by 47%, 51%, and now 69% this quarter!!** ```auto Q419 Q120 Q220 Q320 Q420 Q121 Q221 $100,000+ Customers 580 630 650 720 850 950 1,100 $100,000+ Customers Growth (YoY) 47% 51% 69% $100,000+ Customers Growth (QoQ) 9% 3% 11% 18% 12% 16% ``` If you strictly follow the numbers, then it’s hard to find a reason not to put this company up with the best companies we invest in on this board. I know there’s been many ancillary discussions around whether this is a morally good business and whether or not they’ve got too much competition in the space, but when I see these numbers and the execution, I’m thinking my 9% position might still be too low. -Chris Long ZI 9% (for now…)