ZoomInfo tumbles on weak outlook, 'uncertainty' due to CFO transition

ZoomInfo Technologies

06/08/2024 10:10

** Shares of IT services and consulting firm ZoomInfo
Technologies  ZI.O  fall 15.2% to $8.3 in premarket trade
    ** Co on Monday lowered its annual rev guidance to $1.19
bln-$1.21 bln from $1.26 bln-$1.27 bln; analysts expect annual
revenue of $1.26 bln - LSEG data
    ** Sees Q3 rev in range of $298 mln-$301 mln vs est of
$317.2 mln; adj. EPS between 21 cents to 22 cents vs est of 25
cents
    ** Piper Sandler notes macro challenges continued to
pressure ZI in June, marked by noteworthy increase in bad debt
write-offs for smaller customers
    ** Adds announcement of CFO transition, with Graham O'Brien
to serving as interim, could add further uncertainty; recovery
may not materialize until well into 2025 
    ** D.A. Davidson downgrades stock to "neutral" from "buy"
citing longer than expected timeline to fix operational issues;
cuts PT to $9.5 from $20
    ** Avg rating of 24 brokerages is a 'buy;' their median PT
is $15 - LSEG
    ** As of Monday's close, ZI down ~47% this year

 (Reporting by Roshan Abraham)
 ((Roshan.Abraham@thomsonreuters.com))