ZoomInfo Q4 and Full year results

Investment Analysis Clubs Saul’s Investing Discussions
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ZoomInfo Announces Fourth Quarter and Full-Year 2021 Financial Results
Feb 15, 2022

Fourth Quarter GAAP Revenue of $222.3 million Grows 59% year-over-year

Fourth Quarter GAAP Operating Income Margin of 11% and Adjusted Operating Income Margin of 39%

Fourth Quarter Cash Flow from Operations of $71.3 million and Unlevered Free Cash Flow of $84.4 million

“In 2021 we delivered a leading combination of growth and profitability, significantly expanded our platform, added more new customers than ever before, and drove record customer retention,” said Henry Schuck, ZoomInfo Founder and CEO. “2021 was a transformative year for ZoomInfo, and we continue to execute our vision to deliver a comprehensive revenue operating system that reimagines how businesses go-to-market.”

******* The Non-GAAP EPS of $0.18 beats expectations by $0.05, along with a revenue of $222.3M beating expectations by $14.6M.

Full-Year 2021 Financial Highlights:

Revenue of $747.2 million, an increase of 57% year-over-year.
Operating income of $113.3 million and Adjusted Operating Income of $306.6 million.
GAAP operating income margin of 15% and Adjusted Operating Income Margin of 41%.
Cash flow from operations of $299.4 million, and Unlevered Free Cash Flow of $347.0 million.

Business Outlook:

Based on information available as of February 15, 2022, ZoomInfo is issuing guidance for the first quarter as follows:

GAAP Revenue $226 - $228 million
Non-GAAP Adjusted Operating Income $86 - $88 million
Non-GAAP Adjusted Net Income per share $0.14 - $0.15

https://ir.zoominfo.com/news-releases/news-release-details/z…

ZoomInfo Fourth Quarter and Full Year 2021 Financial Results Conference Call
Webcast
FEB 15, 2022 AT 4:30 PM EST
https://edge.media-server.com/mmc/p/7jevv4uf

Fool ommmm , kevin c
long of ZI
please click my screen name for disclosed holdings

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This Q4 quarter ZI has 1452 customer over $100,000 or greater in annual contract value.
In Q3 1250 customers over $100,000
In Q2 1100 customers over $100,000
In Q1 2021 they had 950 customers over $100,000

Listening to the conference call…

Here is a link to very handy tables charts, graphs for the conference call:
Investor Overview February 15, 2022 and Financial Results
https://ir.zoominfo.com/static-files/55dcfb16-1fc2-491e-96ec…

Best, kevin c

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FY22 guidance is $1.01bn. With FY21 wrapping at had a $747.2m, that’s a 35% guidance. Heavy deceleration from the 59% in Q4 and 57% for the whole 2021. I don’t have the data for their historical beats, but that would be a potential cause for the weakness after hours (-9% as I posted this).
I’m listening to the UPST call, but if anyone hears details about the guidance, please share.

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their average beat over the last 4 quarters was 6.5%. if you apply the same beat to the 2022 guidance you get 45%. still significant deceleration from 57% to 45%. given that their net retention rate was 116% in 2021 to 108% I find this guidance surprising (for the worst)

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During Q4 2020 last year, they provided full-year revenue guidance of $650 million at the midpoint for this year, which is 36.5% yoy growth. They came in at $747.2 million this year, or 56.9% yoy growth. Granted, this does include some small acquisitions which were likely not included in the initial guidance.

So their current guidance of 35.8% full year revenue growth at the midpoint for next year is pretty comparable to what they provided in Q4 2020. However, it does imply a bit of a slowdown, especially when considering acquisitions.

Their guidance for 2.1% qoq revenue growth at the midpoint for next quarter also concerns me. For comparison’s sake, in Q4 2020, they guided for 3.8% qoq revenue growth for Q1 2021. Q1 was seasonally weaker for them this year, so this may be an effect of seasonality, but their qoq guidance is significantly worse than last year.

My current conclusion is that they may expecting their revenue growth to slightly slow down next year. This wouldn’t necessarily be a huge issue on its own, but combined with the fact that it’s my slowest growing company (52% yoy organic revenue growth this quarter) and has a lower net retention rate than my other companies (116%), it’s a bit concerning.

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Wrong!

Guidance for the year 2021 during the CC for Q4 2020 was:

$655 Mio
$747 Mio they achieved. It’s a beat of 14%.

If we take the same beat for 2022 they will achieve $1,162 Mio.

Growth of 55.5%

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@nirgo: I don’t think it is the case. Last year, they guided 655M for Y2021 or 36.8% YoY and ended up at 747M or 56.6%YoY. This guidance made me expect it to get at least 52-53% YoY in 2022.

Anyway, many of us thought ZI is accelerating but it seems not the case here I guess.

I haven’t done anything yet but will consider trimming down.
Long ZI at 9%

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@zerohedge12

During the CC for Q4 2020, their full year revenue guidance for 2021 was $645-$655 million. So you used the high point of the guidance, while I used the midpoint ($650 million). Neither of us is wrong, we just used different aspects of the guidance.

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35% guidance does sound weak, but it looks like they have a history of sandbagging. 2020 revenues were $476M and they guided to $645-655M, just under 38% at the high end. Instead, revenues for 2021 were $747M, up 57%. I reached deep into my pockets and added a few shares in the afterhours at $53.50.

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Let’s not forget that in addition to revenue growth, customer count is a very important metric and seems solid to me. At 1452 customers over 100k, that is an increase of 16% QoQ, or an annual run rate of 81%. If they increase 100k customers at that rate, their revenue will follow. Remember, Saul doesn’t pay much attention to guidance because he realizes that these companies are sandbagging. If the price drops severely tomorrow, I think I may pick up some shares at a nice discount.

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I look at it a little bit differently. In Q4’20 they reported 472.2M for the year and guided for FY’21 revenue of 655M at the high end, or 38.7% YoY. From the report today, FY’21 revenue was 747.2M indicating actual growth of 58% and a 14% beat on their guidance from Q4’20.

If we assume a similar 14% beat on the FY’22 guidance of 1020M we get 1163.6M. That would give us 55.7% YoY, a slight slowdown from the YoY comparing FY’20 and FY’21 of 56.9%.

Overall, I would say the guidance isn’t amazing, however other metrics in their business suggest acceleration could be a possibility further into the year such as NRR improving from 108% in 2020, to 116% in 2021. For now I’m holding, however further deceleration will be monitored closely.

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Am I the only one who thinks this was a blowout quarter!?

A handsome beat on revenue, back to sequential QoQ growth in the 30s. Fully automated loans back to 70% aka fraud concerns from Q321 are alleviated.

2022 guidance exceeded expectations with 65% YoY growth as well as auto opportunity substantiated.

They also clarified some of the concerns market had about what kind of a company they are, and also their ambition/potential to remain a high growth company for years to come…

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my reaction yesterday was to sell half zoominfo and use proceeds to buy upstart. today i have sold remaining zoominfo for upstart.

zoominfo underwhelmed us and I would wait until they are able to reaccelerate. no reason to hold on to zoominfo with this kind of report.

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yes implied deacceleration is too big. why didn’t they have confidence to maintain the mid 50s growth rate on next quarter and next year.