Why ZoomInfo Stock Fell 19% This Week
Shares of ZoomInfo (NASDAQ: ZI) were down nearly 19% this week as of Thursday's close, according to data provided by S&P Global Market Intelligence, after the cloud-based go-to-market platform company announced strong quarterly results, but followed with cautious forward guidance. To be sure, ZoomInfo fell more than 17% on Tuesday alone after its quarterly update hit the wires.
ZoomInfo's third-quarter 2023 revenue grew 9% year over year to $313.8 million, translating to non-GAAP (adjusted) net income of $105 million or $0.26 per share. Analysts, on average, were expecting earnings of $0.25 per share on revenue closer to $310 million. Both the top and bottom lines were also above ZoomInfo's previous guidance -- which, to be fair, underwhelmed the market and similarly sent shares tumbling in August.
ZoomInfo Founder and CEO Henry Schuck noted the company executed well despite a "more challenging operating environment," adding that they've continued to drive profitable growth while returning capital to shareholders. Indeed, ZoomInfo also repurchased 8.8 million shares of common stock for $160.1 million during the quarter, or an average price of $18.19 per share.
Source Fool.com
