ZoomInfo Technologies (ZI) Q4 2024 earnings summary

Executive summary

• Q4 2024 revenue was $309.1M, down 2% year-over-year, with adjusted operating income of $115.9M (37% margin), both above guidance.

• FY 2024 revenue reached $1.21B, a 2% decrease year-over-year; adjusted operating income was $428.5M (35% margin), down 14% YoY.

• Growth was driven by up-market performance, Copilot AI product, and operations business, while down-market segment declined 9% in 2024.

• Net revenue retention improved to 87% in Q4, first sequential increase since Q1 2022, with 1,867 customers having >$100K ACV.

• Operational improvements led to better-than-expected profitability and free cash flow, with continued strength into 2025.

Financial highlights

• Q4 GAAP revenue: $309.1M; adjusted operating income: $115.9M (37% margin); GAAP operating income: $30.9M (10% margin).

• Q4 unlevered free cash flow: $93.6M (30% margin), down 26% YoY; full-year unlevered free cash flow: $446.9M (37% margin), down 4% YoY.

• Q4 adjusted net income per share: $0.26; GAAP net income per share: $0.04; full-year adjusted net income per share: $0.96.

• 46.8M shares repurchased in 2024 for $562.3M at $12 average, reducing share count by over 12%.

• Ended 2024 with $149M in cash and $1.24B in gross debt.

Outlook and guidance

• Q1 2025 GAAP revenue expected: $294–$297M; adjusted operating income: $96–$99M; adjusted EPS: $0.22–$0.23.

• Full-year 2025 GAAP revenue guidance: $1.185–$1.205B (down 1.6% at midpoint); adjusted operating income: $426–$436M (36% margin); adjusted EPS: $0.95–$0.97.

• Non-GAAP net income for 2025: $0.95–$0.97 per share; unlevered free cash flow: $420–$440M.

• CapEx expected at 5% of revenue; non-GAAP tax rate ~13%.