Mon, May 12, 9:12 PM (39 days ago)
**ZoomInfo Technologies Inc. (ZI) Q1 2025 Financial Summary** **Financial Health and Performance:** - **Revenue:** $305.7 million, a 1% decrease from Q1 2024 due to operational changes. - **Profit Margins:** Gross margin was 85%, down from 86% in Q1 2024. Operating income margin was 16%, up from 14% in Q1 2024. - **Cash Flow:** Net cash provided by operating activities was $119.2 million, up from $115.9 million in Q1 2024. - **Earnings:** Net income was $26.8 million, a 77% increase from $15.1 million in Q1 2024. **Key Metrics and Trends:** - **Customer Acquisition:** Focus on acquiring new customers and optimizing go-to-market channels. - **Platform Usage:** Net revenue retention rate was 87%, up from 85% in Q1 2024. - **Operational Changes:** Implemented a new business risk model to mitigate write-offs and invest in long-term health. **Uncertainties and Future Operations:** - **Macroeconomic Conditions:** Business may be impacted by adverse economic conditions. - **Share Repurchase:** Authorized an additional $500 million for share repurchases. - **Debt Obligations:** $650 million of 3.875% Senior Notes due in 2029 and $586.6 million in first lien term loans. **Legal and Regulatory:** - **Litigation:** Various legal proceedings and governmental inspections are ongoing. - **Tax Receivable Agreements:** $2,763.7 million liability related to projected obligations. **Outlook:** - **Revenue Growth:** Expects to continue growing revenue through customer acquisition and platform usage. - **Operating Expenses:** Anticipates increased operating expenses due to investments in sales, marketing, and research and development. - **Cash Flow:** Believes cash flows from operations and available cash will be adequate to fund operating and capital needs.