ZoomInfo surges after Q4 results 'clear low bar'

ZoomInfo Technologies

13/02/2024 09:45

** Shares of IT services and consulting firm ZoomInfo
Technologies  ZI.O  surge 24.2% to $19.90 premarket
     ** ZI's Q4 revenue of $316.4 mln and adj profit of 26
cents/shr beat expectations
      ** Co forecasts FY 2024 adj profit between 99 cents to
$1.01/shr, the midpoint of which is above analysts' estimates
    ** ZI in its earnings call noted weakness in its software
business but noted a boost from the return of a significant
number of prior customers 
    ** Atleast seven brokerages raised their PT post results
    ** "We believe the positive reaction in ZI shares
post-results largely reflects the company’s ability to clear a
low FQ4 bar," says J.P.Morgan ("overweight"; $25 PT)
    ** Brokerage says while there are near-term pressures, co is
well-positioned in the longer term due to its differentiated
platform
    ** Jefferies ("buy"; $24 PT) says co's challenges could be
nearing a bottom, given upbeat commentary on new sales in
December and returning customers
    ** Up to Monday's close, ZI has fallen 13.3% YTD after a
near 39% plunge in 2023

 (Reporting by Amruta Khandekar)
 ((Amruta.Khandekar@thomsonreuters.com))