ZoomInfo Technologies (ZI)
ZI is a Bert recommendation. Saul bought a 4.7% in May: https://discussion.fool.com/my-portfolio-at-the-end-of-may-2021-… “So to conclude: This is a company that is a first mover, making its own market with a cloud-based new technology that is changing an old way of doing things, attacking S&M expense, the largest expense item for many B2B companies, a company that is already very profitable, is using its data to move into a second market (recruiting), has very impressive clients (Zoom, Shopify, Docusign, Forbes, etc) and last quarter had 50% revenue growth and 63% free cash flow margins. But the market doesn’t seem to love it. I think it’s partly because its goal is to help marketing, and we all have developed negative feelings about advertising and marketing, thinking of obtrusive calls or ads on websites, etc so we automatically feel negaitve about it. We’ll have to see what happens.”
In June, Saul sold ZI to add Upstart (UPST):”To pay for the added Upstart I sold some of my smallest position, ZoomInfo, which, despite all the good press and great customers, I just couldn’t see growing forever as I can with most of my other companies. (I may be wrong, of course). I also trimmed some other positions to raise the cash.”
I also cringe when I think about “obtrusive calls or website ads.” But I like the numbers, especially the profits, so I held my position.
ZI reports August 2. From Zack’s: “This company is expected to post quarterly earnings of $0.12 per share in its upcoming report, which represents a year-over-year change of +71.4%. Revenues are expected to be $162.38 million, up 46.4% from the year-ago quarter.”
For those interested in a deep dive, FoolishJeff started a thread here: https://discussion.fool.com/mf-deep-dive-into-zoominfo-34810679…
Long ZI and UPST