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A Deep Dive Into ZoomInfo — the Other Cool “Zoom” Company | The Motley Fool.ZoomInfo Review: Our Choice for Sales Intelligence

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We, at Imagine, use ZoomInfo for sales intelligence. This gives you continuous access to on-demand, direct-dial phone numbers, email addresses, and other background information for your prospects, which you can organize into targeted contact lists in just a few minutes. When you think about ZoomInfo, you likely picture a database full of names, emails, phone numbers, and not much else. What is the difference between the two when it comes to fuctionality and cost? ZoomInfo Chat The goal of your website is to be as interactive and engaging as possible to convert your visitors into eventual how does zoominfo get revenue data – none:. You Больше на странице Also Like.
 
 

Actionable Data: A Seamless Integration of ZoomInfo into LeanData | LeanData.

 
Sep 17,  · So, for the full year, for , this company is guiding for $ million in revenue, roughly — that’s a pretty sizable number. Management has gone . Jun 19,  · ZoomInfo – One of the hotter IPO’s of ZoomInfo (NASDAQ: ZI) went public in early June. The company’s offer price $21 and the company sold million shares. It has so far been the largest. How Does ZoomInfo Get My Information? ZoomInfo creates profiles of business people and companies, which we call “Public Profiles,” from different sources. Once we have collected business information about a person or company, we combine multiple mentions of the same person or company into a Public Profile. The resulting directory of Public.

 

How does zoominfo get revenue data – none:.A Deep Dive Into ZoomInfo — the Other Cool “Zoom” Company

 
“The first is deterministic attributes: the name of a company, its industry, its address. Then there are non-deterministic attributes, such as the revenue of a. It all depends on what one considers as accurate. ZoomInfo put an estimate of the revenue based on multiple other elements like sales volume, number of.

 
 

How does zoominfo get revenue data – none:.ZoomInfo Stock: Fast Growth, Highly Profitable, And Cheaply Priced

 
 

ZI shares are not cheap. The company’s concept and strategy appear well considered and well executed to this date. The current justification for the valuation, in addition to the company’s rapid growth, is the company’s cash generation, which is not insignificant for a company at this stage of its development. Last quarter, the company’s cash flow doubled, year over year, and most of that increase was because of the rapid increase in deferred revenue balances. The company made a substantial cash interest payment, which will not recur in the wake of the company’s IPO.

In the company’s prospectus, the company called out its record sales performance in the first month of Q2. April was a trough month for economic activity due to the pandemic, although some other IT vendors reported stronger results in April than they had anticipated.

That said, no one reading this ought to be buying the shares because ZI had strong sales performance in the month of April. I might speculate that the performance of the shares is in part a function of that part of the prospectus, but trying to base an analysis on business trends in the month of April is something I would avoid at all costs.

In my mind, that is a close run question. The value proposition of the company’s solution is substantial, and perhaps that is an understatement. The amount of time that sales teams spend tracking down information and trying to assess who they should call on is really monumental. This kind of app enhances productivity by a substantial level, and the longer term impacts of the virus on travelling for business should accelerate the need for a tool like this to help sales teams prospect and engage successfully.

And the company has turned the corner on cash generation, the most important profitability metric in my judgement. Because of the high level of profitability, and what appears to be a growth reacceleration in a quarter with some likely headwinds from the economy of the COVID pandemic, coupled with strong billings growth, I believe that the company deserves serious consideration in a high-growth portfolio. But the valuation is quite justifiable because of the scarcity of high-growth businesses with such an elevated level of operating margins.

That amount will increase after the greenshoe allocation to the underwriters. The company has about million shares outstanding giving effect to the different classes of stock that are now part of the calculation of total common shares outstanding. I agree – that is unfortunate – but nowadays it is pretty typical.

The company, as it is presently constituted came into existence through a merge between Zoom and DiscoverOrg Holdings, which were 2 businesses doing much the same thing, just in different verticals.

I am not sure the extent to which sequential growth was limited by the impact of COVID on the economy. There was no explicit discussion of the impact of the economy on Q1 results, and obviously, April results, as mentioned earlier were surprisingly strong. The company did restructure some of its workforce in April because of the pandemic.

The inference that I might draw from the commentary in the prospectus is that the company has moderated its growth target for the balance of the current year because of the impact of COVID on the economy. This would be consistent with what many other companies in the IT space have articulated.

I am not quite sure, therefore, as to how I ought to forecast growth over the next few quarters, other than it is likely to be a bit constrained compared to otherwise because of the economic impact of the pandemic.

That said, however, although ZI solutions are not specifically designed for work-from-home workflows, the concepts of its products lend themselves to a remote work paradigm. Because the increase in year over year billings growth has been at such high levels, I have prepared a forecast that is likely above what the consensus forecast will be when it is aggregated. That said, since I am not recommending the shares at this valuation, the precision of the forecast is not as important as would otherwise be the case.

Interestingly, those 3 companies also have high levels of free cash flow margins. The company uses ASC revenue recognition. Essentially all of the company’s revenue is subscription based – there are no professional services offerings. Unlike some other companies that I follow, the ASC standard for this company is such that its revenue is recognized ratably with no upfront revenues.

I believe this is a more prudent and conservative policy when compared to companies that recognize a significant level of their subscription revenue at the time it is installed at customer sites. ZoomInfo describes itself as a leading go-to market intelligence platform for sales and marketing teams. The company’s software serves users within a broad spectrum of verticals including business services, manufacturing, telecoms, financial service, insurance and many others.

The company had k paid users at 14, enterprises at the time it prepared its prospectus. Somewhat surprisingly the company, in its prospectus said it has no real competitors. My anecdotal checks confirm that most larger organizations really do not consider acquiring a lead generation platform other than that from ZI. Not all organizations believe that the cost of the platform can be justified, but if they are going to acquire a solution, ZI is their first stop in an acquisition process.

Perhaps some readers will think of LinkedIn as an alternative, but the devil is in the details. There are plenty of niche, and legacy lead generation data sources, but they simply lack the scope and the AI technology that this company uses to provide its services. The result of this company’s competitive position is that it is far more profitable than most other higher growth IT vendors.

When evaluating this company, the issue of margins and competitive positioning is a key factor. The concept behind ZoomInfo is embedded in its name. The company’s software enables users to zoom into information that Zoom has collected, curated, and analyzed in order to improve the efficiency of their sales processes. Zoom’s solution is crafted to enable marketing teams to find the appropriate decision maker at a target enterprise, to determine when decision makers are preparing to make a purchase and to determine some kind of optimization between potential targets.

There has always been a need for a comprehensive go-to market solution that goes beyond the market intelligence handbooks that have been around for decades. ZoomInfo’s particular concept is that it provides users with a degree view in a single platform. ZI commissioned a report from Forrester. I do not think that is really a surprise to readers here. ZoomInfo uses artificial intelligence and machine learning technologies in order to provide its users with contact info that is relevant and which will allow sales teams to optimize their activities.

The company’s strategy is to extend solutions outside of its core by developing additional use cases such as recruiting and to expand its international presence.

The TAM is based on the number of companies and the number of employees per company using some estimate, generated by ZI for average spend per employee cohort. I certainly have no reasonable way of validating the estimates used in creating a TAM. ZI solutions are really charting new ground, and while the company has been hugely successful as will be seen, just how far its penetration can be reasonably expected to extend is simply a matter of guesses at this point.

That said, the opportunity for ZI’s set of solutions is so large, that the precise estimate of the TAM will not matter much in terms of estimating growth for ZI over the next several years. Although the company was built on a merger of several parts, new customers are sold a single ZoomInfo platform that was released in September The company prices its product based on a per-seat basis with additional charges for specific functionality and access to specific data that users request beyond that provided in their tier of service.

At this point, the company still gets the preponderance of its revenues from the pre-existing platforms, but migration has been consistent and is a revenue growth tailwind. The key to ZI’s functionality is collecting data. The technology used to evaluate data inputs is a key differentiator for this company. For example, ZI collected 72 pieces of data about a specific professional over a 3-year span that included seven different e-mail addresses and 4 different phones.

ZI has developed a proprietary algorithm that factors in various reliability factors so that it provides users a single, most reliable point of contact. The company has technology that keeps titles of individuals up to date, reflecting promotions, moves and other relevant factors. The company sends out automated surveys in which users can – and sometimes do – respond with plans to engage new services or buy new products.

The company uses a sophisticated blend of AI and human research to identify new hires or other key data that is then published to the ZI platform. ZI focuses on data collection and one of its principal sources is what it calls its contributory network.

Its current customers can contribute data, and the company offers a free community edition whose members must contribute data. The company receives hundreds of millions of pieces of data that either confirms or disqualifies information. This is another significant component of the company’s value proposition and is a differentiator when compared to alternative solutions. The company has developed a patented and proprietary technology that allows it to parse unstructured information from web pages, news feed, blogs and other public sources and to then match that data with data it has otherwise acquired through its contributory network.

Now, let’s do some assumptions as to ZoomInfo’s next year’s free cash flow potential. And admittedly, I can see that side of the argument. But one may remark that ZoomInfo is still far from maximizing free cash flow. Finally, before we dig into its valuation, keep in mind that ZoomInfo’s management still holds 4.

As noted earlier, there are some question marks as to what ZoomInfo’s growth rates will be in What’s more, not only is ZoomInfo already highly profitable but its rule of 40 puts it amongst the best SaaS companies. The main negative aspect facing this company is that privacy concerns continue to overhang the stock.

Any changes in the rules pertaining to holding and selling personal information could have dramatic effects on the underlying profitability of the company. What’s more, any change in rulings may not be uniform across regions, but this could still leave the company operating in a non-compliant manner, which would meaningfully impact its growth profile and multiple that investors would be willing to pay for the stock.

Arguably, the biggest detraction about the stock is that it appears expensive. My Marketplace highlights a portfolio of undervalued investment opportunities – stocks with rapid growth potential, driven by top quality management, while these stocks are cheaply valued.

I follow countless companies and select for you the most attractive investments. I do all the work of picking the most attractive stocks. As an experienced professional, I highlight the best stocks to grow your savings: stocks that deliver strong gains. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it other than from Seeking Alpha.

I have no business relationship with any company whose stock is mentioned in this article. Michael Wiggins De Oliveira Marketplace. However, the most compelling aspect here is its profit margins. The Bottom Line Arguably, the biggest detraction about the stock is that it appears expensive.

Strong Investment Potential My Marketplace highlights a portfolio of undervalued investment opportunities – stocks with rapid growth potential, driven by top quality management, while these stocks are cheaply valued. Investing Made EASY As an experienced professional, I highlight the best stocks to grow your savings: stocks that deliver strong gains. Honest and reliable service. Source of investing ideas. Very simply explained stock picks.

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