GAAP Revenue of $241.7 million Grows 58% year-over-year
GAAP Operating Margin of 13% and Adjusted Operating Income Margin of 39%
Cash Flow from Operations of $105.0 million and Unlevered Free Cash Flow of $125.9 million
ZoomInfo, (NASDAQ: ZI) a global leader in modern go-to-market software, data, and intelligence, today announced its financial results for the first quarter ended March 31, 2022.
“ZoomInfo delivered a great start to the year as reflected in our first quarter results, which include another quarter of strong revenue growth and free cash flow,” said Henry Schuck, ZoomInfo Founder and CEO. “Customers are embracing the ZoomInfo RevOS platform, with more companies using the data, insights, automation and workflows to grow their business and efficiently go-to-market.”
First Quarter 2022 Financial and Other Recent Highlights –
Financial Highlights:
- Revenue of $241.7 million, an increase of 58% year-over-year.
- Operating income of $32.4 million and Adjusted Operating Income of $95.7 million.
- GAAP operating income margin of 13% and Adjusted Operating Income Margin of 39%.
- Cash flow from operations of $105.0 million and Unlevered Free Cash Flow of $125.9 million.
Business and Operating Highlights:
- Launched MarketingOS, an account-based marketing (ABM) platform aligning sales and marketing teams in a unified system powered by ZoomInfo’s world-class business-to-business data. MarketingOS helps demand generation and ABM teams target and convert leads into buyers through insight-driven orchestration and personalized engagement across multiple channels, including display and social advertising, email, and SMS.
- Acquired Comparably, a suite of popular software-as-a-service (SaaS) solutions for employer branding and recruitment marketing combined with an employee review platform that reaches millions of candidates each month. The acquisition closed on April 1, 2022.
- Acquired Dogpatch Advisors, a modern sales advisory consultancy that helps enterprises scale revenue operations, build sales playbooks, use data and insights to create and refine sales, and build outbound operations functions. The acquisition closed on April 1, 2022.
- Reduced the number of board seats represented by sponsors, consistent with their reduction in share ownership as outlined in the Stockholder Agreement.
- Increased the company’s international presence with the first physical office in India, the expansion of the company’s innovation and global research and development operations in Israel, and continued hiring of U.K.-based go-to-market resources in support of the company’s international growth.
- Closed the quarter with 1,623 customers with $100,000 or greater in annual contract value.
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Q1 2022 Financial Highlights (Unaudited) |
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($ in millions, except per share amounts) |
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GAAP Quarterly Results |
Increase YoY |
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Non-GAAP Quarterly Results |
Increase YoY |
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Revenue |
$241.7 |
58% |
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Operating Income |
$32.4 |
16% |
Adjusted Operating Income |
$95.7 |
45% |
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Operating Income Margin |
13% |
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Adjusted Operating Income Margin |
39% |
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Net Income Per Share (Diluted) |
$0.02 |
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Adjusted Net Income per share (Diluted) |
$0.18 |
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Cash Flow from Operating Activities |
$105.0 |
13% |
Unlevered Free Cash Flow |
$125.9 |
29% |
The Company uses a variety of operational and financial metrics, including non-GAAP financial measures, to evaluate its performance and financial condition. The accompanying financial data includes additional information regarding these metrics and a reconciliation of non-GAAP financial information for historical periods to the most directly comparable GAAP financial measure. The presentation of non-GAAP financial information should not be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP.
Business Outlook:
Based on information available as of May 2, 2022, ZoomInfo is providing guidance for the second quarter and full year 2022 as follows:
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Q2 2022 |
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Prior FY 2022 |
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FY 2022 |
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GAAP Revenue |
$253 – $255 million |
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$1.01 – $1.02 billion |
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$1.06 – $1.07 billion |
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Non-GAAP Adjusted Operating Income |
$98 – $100 million |
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$405 – $415 million |
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$418 – $424 million |
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Non-GAAP Adjusted Net Income per share |
$0.17 – $0.18 |
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$0.71 – $0.73 |
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$0.75 – $0.77 |
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Non-GAAP Unlevered Free Cash Flow |
Not Guided |
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$415 – $435 million |
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$435 – $445 million |
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Weighted Average Shares Outstanding |
410 million |
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410 million |
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411 million |
Conference Call and Webcast Information:
ZoomInfo will host a conference call today, May 2, 2022, to review its results at 4:30 p.m. Eastern Time, 1:30 p.m. Pacific Time. The call will be accessible by telephone: (833) 519-1261 (U.S.) or (914) 800-3834 (International) with the passcode: 6499165.
The call will also be webcast live on the Company’s investor relations website at https://ir.zoominfo.com/, where related presentation materials will be posted prior to the conference call. Following the conference call, an archived webcast of the call will be available for one year on ZoomInfo’s Investor Relations website.
Non-GAAP Financial Measures and Other Metrics:
To supplement our consolidated financial statements presented in accordance with GAAP, this press release contains non-GAAP financial measures, including Adjusted Operating Income, Adjusted Operating Income Margin, Adjusted Net Income, Adjusted Net Income Per Share, and Unlevered Free Cash Flow. We believe these non-GAAP measures are useful to investors in evaluating our operating performance because they eliminate certain items that affect period-over-period comparability and provide consistency with past financial performance and additional information about our underlying results and trends by excluding certain items that may not be indicative of our business, results of operations, or outlook.
Non-GAAP financial measures are not meant to be considered in isolation or as a substitute for the comparable GAAP measures, but rather as supplemental information to our business results. This information should be read only in conjunction with our consolidated financial statements prepared in accordance with GAAP. There are limitations to these non-GAAP financial measures because they are not prepared in accordance with GAAP and may not be comparable to similarly titled measures of other companies due to potential differences in methods of calculation and items or events being adjusted. In addition, other companies may use different measures to evaluate their performance, all of which could reduce the usefulness of our non-GAAP financial measures as tools for comparison. A reconciliation is provided at the end of this press release for each historical non-GAAP financial measure to the most directly comparable financial measure stated in accordance with GAAP. We do not provide a quantitative reconciliation of the forward-looking non-GAAP financial measures included in this press release to the most directly comparable GAAP measures due to the high variability and difficulty to predict certain items excluded from these non-GAAP financial measures; in particular, the effects of stock-based compensation expense, taxes and amounts under the exchange tax receivable agreement, deferred tax assets and deferred tax liabilities, and restructuring and transaction expenses. We expect the variability of these excluded items may have a significant, and potentially unpredictable, impact on our future GAAP financial results.
We define Adjusted Operating Income as income from operations plus (i) impact of fair value adjustments to acquired unearned revenue, (ii) amortization of acquired technology and other acquired intangibles, (iii) equity-based compensation expense, (iv) restructuring and transaction-related expenses, and (v) integration costs and acquisition-related compensation. We define Adjusted Operating Income Margin as Adjusted Operating Income divided by the sum of revenue and the impact of fair value adjustments to acquired unearned revenue.
We define Adjusted Net Income as Adjusted Operating Income less (i) interest expense, net (ii) other (income) expense, net, excluding TRA liability remeasurement expense (benefit) and (iii) income tax expense (benefit) including incremental tax effects of adjustments to arrive at Adjusted Operating Income and current tax benefits related to the TRA. We define Adjusted Net Income Per Share as Adjusted Net Income divided by diluted weighted average shares outstanding.
We define Unlevered Free Cash Flow as net cash provided from operating activities less (i) purchases of property and equipment and other assets, plus (ii) cash interest expense, (iii) cash payments related to restructuring and transaction-related expenses, and (iv) cash payments related to integration costs and acquisition-related compensation. Unlevered Free Cash Flow does not represent residual cash flow available for discretionary expenditures since, among other things, we have mandatory debt service requirements.
Cautionary Statement Regarding Forward-Looking Information
This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those expressed or implied by these statements. You can generally identify our forward-looking statements by the words “anticipate,” “believe,” “can,” “continue,” “could,” “estimate,” “expect,” “forecast,” “goal,” “intend,” “may,” “might,” “objective,” “outlook,” “plan,” “potential,” “predict,” “projection,” “seek,” “should,” “target,” “trend,” “will,” “would” or the negative version of these words or other comparable words. Any statements in this press release regarding future revenue, earnings, margins, financial performance, cash flow, liquidity or results of operations (including, but not limited to, the guidance provided under “Business Outlook”), and any other statements that are not historical facts are forward-looking statements. We have based our forward-looking statements on our management’s beliefs and assumptions based on information available to our management at the time the statements are made. We caution you that assumptions, beliefs, expectations, intentions and projections about future events may and often do vary materially from actual results. Therefore, actual results could differ materially from those expressed or implied by our forward-looking statements.
Factors that could cause actual results to differ from those expressed or implied by our forward-looking statements include, among other things: future economic, competitive, and regulatory conditions, the COVID-19 pandemic, the successful integration of acquired businesses, and future decisions made by us and our competitors. All of these factors are difficult or impossible to predict accurately and many of them are beyond our control. For a further list and description of these and other important risks and uncertainties that may affect our future operations, see Part I, Item 1A – Risk Factors in our most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission, which we may update in Part II, Item 1A – Risk Factors in Quarterly Reports on Form 10-Q we have filed or will file hereafter. Our forward-looking statements do not reflect the potential impact of any future acquisitions, mergers, dispositions, joint ventures, investments, or other strategic transactions we may make. Each forward-looking statement contained in this presentation speaks only as of the date of this presentation, and we undertake no obligation to update or revise any forward-looking statements whether as a result of new information, future developments or otherwise, except as required by law.
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