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Shares of ZoomInfo were down 18% in late trading on Monday.
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ZoomInfo shares are falling sharply in late trading Monday, after the provider of database information for corporate sales and marketing teams reduced its full-year financial guidance. The company’s press release provided no explanation for the more modest forecast.
In late trading, ZoomInfo down 18%, to $21.
For the second quarter, ZoomInfo (ticker: ZI) posted revenue of $308.6 million, up 16% from a year ago, but slightly below the Wall Street consensus of $310.9 million. Adjusted profits were 26 cents a share, above consensus of 23 cents. Under generally accepted accounting principles, the company earned nine cents a share.
“We delivered another quarter of revenue growth, increased profitability, and free cash flow generation,” CEO Henry Schuck said in a statement.
For the September quarter, ZoomInfo is projecting revenue of $309 million to $312 million, with adjusted profits of 24 to 25 cents a share; the analyst consensus had called for revenue of $325.8 million and 25 cents.
ZoomInfo also reduced its guidance for the full year. The new revenue guidance range is $1.225 billion to $1.235 billion, down from a previous forecast of $1.275 billion to $1.285 billion.
ZoomInfo said it now sees non-GAAP free cash flow of $445 million to $455 million, down from a previous forecast of $507 million to $517 million. The company’s new non-GAAP EPS forecast is 99 cents to $1 a share, narrowing the range from a previous forecast of 99 cents to $1.01 a share.
The company also announced a $500 million expansion of its stock repurchase program.
Write to Eric J. Savitz at eric.savitz@barrons.com
