Summary
ZoomInfo's first quarter of fiscal 2022 delivered strong revenue growth but mixed profitability on a GAAP basis. Revenue was $241.7 million, up 57.7% from the prior-year quarter. Gross profit was $197.7 million, up 57.9%. Operating income was $32.4 million, up 15.7%. Net income was $6.2 million, up 93.8%. Diluted EPS was $0.02, flat with the prior-year quarter. Gross margin was 81.8%, up 0.1 pp. Operating margin was 13.4%, down 4.9 pp. The operating margin decline reflects heavier spending on sales, research, and general costs. Operating cash flow was $105.0 million, up 12.9%. Capital expenditures were $6.6 million, up 40.4%. Deferred revenue was $406.1 million, up 55.1%. Remaining performance obligations were $917.6 million, up 55.1%. Revenue growth was driven by new customers added over the last 12 months and net expansion with existing customers. The company's revenue growth was broad, with new customers and existing customers both contributing.
The company kept expanding its platform and customer base. It launched MarketingOS, an account-based marketing platform. It acquired Comparably and Dogpatch Advisors, both closing on April 1, 2022. It reduced the number of board seats represented by sponsors. It expanded international operations with a first physical office in India, expanded research and development in Israel, and continued hiring in the U.K. ZoomInfo ended the quarter with 1,623 customers with $100,000 or greater in annual contract value. Net annual retention rate was 116% for the year ended December 31, 2021. Subscriptions generally range from one to three years, and over 35% of contracts based on annualized value are multi-year agreements. Management said customers are embracing the RevOS platform. The company's platform spans intelligence, orchestration, and engagement layers.
Non-GAAP results were also strong. Adjusted operating income was $95.7 million, and adjusted operating income margin was 39%. Unlevered free cash flow was $125.9 million. Adjusted net income per share was $0.18. Adjusted EBITDA was $99.1 million, up 44%. These figures exclude items such as equity-based compensation and acquisition-related amortization. The gap between GAAP operating income and adjusted operating income is wide. The GAAP operating margin contrasts with adjusted operating margin of 39%. Adjusted operating income margin decreased to 39% from 43% in the prior-year quarter due to incremental investment in research and development and sales and marketing capacity. The company's non-GAAP measures are not a substitute for GAAP results.
Guidance points to continued growth. For the second quarter, management guided non-GAAP adjusted operating income to $98 million to $100 million and adjusted net income per share to $0.17 to $0.18. For full year 2022, management guided non-GAAP adjusted operating income to $418 million to $424 million, adjusted net income per share to $0.75 to $0.77, and unlevered free cash flow to $435 million to $445 million. Weighted average shares outstanding are expected to be 410 million for the second quarter and 411 million for the full year. The company does not guide unlevered free cash flow for the second quarter. The company's guidance does not include a quantitative reconciliation of forward-looking non-GAAP measures to GAAP.
Risks remain. The COVID-19 pandemic continues to have unpredictable impacts on global markets, customers, and sales cycles. Integration of acquired businesses, future economic, competitive, and regulatory conditions, and future decisions by the company and competitors could cause actual results to differ. The company has substantial debt and tax receivable agreement obligations. Its total net leverage ratio to Adjusted EBITDA was 2.4x as of March 31, 2022. Its consolidated first lien net leverage ratio was 0.4x. Its total net leverage ratio to Cash EBITDA was 1.8x. The company also faces restrictive debt covenants that may limit dividends, acquisitions, and other activities. The company expects payments under tax receivable agreements to be substantial. The company's forward-looking statements speak only as of the date of the presentation. These factors temper the strong revenue and cash flow growth.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q1 FY2022 | Q4 FY2021 | QoQ | Q1 FY2021 | YoY |
|---|---|---|---|---|---|
| Revenue | $241.7M | $222.3M | +8.7% | $153.3M | +57.7% |
| Gross profit | $197.7M | $181.9M | +8.7% | $125.2M | +57.9% |
| Gross margin | 81.8% | 81.8% | -0.0 pp | 81.7% | +0.1 pp |
| Research & development | $45.6M | $40.9M | +11.5% | $20.4M | +123.5% |
| Sales & marketing | $84.1M | $77.1M | +9.1% | $48.8M | +72.3% |
| General & administrative | $27.8M | $28.3M | -1.8% | $18.8M | +47.9% |
| Total operating expenses | $165.3M | $157.7M | +4.8% | $97.2M | +70.1% |
| Operating income (loss) | $32.4M | $24.2M | +33.9% | $28.0M | +15.7% |
| Operating margin | 13.4% | 10.9% | +2.5 pp | 18.3% | -4.9 pp |
| Net income (loss) | $6.2M | $144.9M | -95.7% | $3.2M | +93.8% |
| Net margin | 2.6% | 65.2% | -62.6 pp | 2.1% | +0.5 pp |
| Diluted EPS | $0.02 | — | — | $0.02 | ±$0.00 |
| Customers | 1,623 | — | — | 950 | +70.8% |
Risks
Operating margin fell to 13.4% in FY2022 Q1 from 18.3% in FY2021 Q1, down 4.9 pp, and Adjusted Operating Income Margin decreased to 39% from 43%, which management attributes to incremental research and development investment and added sales and marketing capacity. Continued investment in these areas could keep profitability under pressure even as revenue grows.
As of March 31, 2022 the Company carried a $3,052.2 million liability for projected obligations under its two tax receivable agreements, and it paid $5.0 million under those agreements during the quarter. These payments are not conditioned on continued ownership by the exchanging holders and could be substantial and accelerated upon a change of control or breach.
Equity-based compensation expense rose to $42.5 million in FY2022 Q1 from $18.1 million in FY2021 Q1, with research and development equity-based compensation up to $15.6 million from $2.6 million. Elevated share-based awards dilute holders and weigh on GAAP profitability.
Interest expense, net increased 82% to $11.8 million in FY2022 Q1 from $6.5 million in FY2021 Q1, driven by the February and July 2021 Senior Notes issuances. The Company carries $1,250.0 million of total contractual debt maturities and a 2.4x total net leverage ratio to Adjusted EBITDA as of March 31, 2022, with variable-rate first lien debt exposed to rate changes.
The Company completed multiple acquisitions (Insent, Chorus.ai, RingLead in 2021 and Comparably and Dogpatch Advisors in April 2022) and incurred $2.5 million of restructuring and transaction-related expense in FY2022 Q1. Management expects to continue pursuing acquisitions, which may require additional debt or equity and drive further integration and retention costs.
The ongoing COVID-19 pandemic continues to have unpredictable impacts on global markets, customer sales cycles, hiring and onboarding, and the labor market, and because of the largely subscription-based model the effects may not be fully reflected in results until future periods. Most of the workforce continued to work remotely through the first quarter of 2022.
SaaS KPIs
All quarters →Adjusted Operating Income Margin
Unlevered Free Cash Flow
Adjusted Operating Income
Adjusted EBITDA
Customers > $100K ACV
Adjusted Net Income
Summary, forecast, risks and KPIs are extracted from ZoomInfo Technologies Inc.'s SEC filings for Q1 FY2022 (10-Q / 10-K and the 8-K earnings release); GAAP figures in the summary are checked against the reported XBRL data. They can contain errors; the filings are authoritative. Processed Oct 1, 2026.