Summary
ZoomInfo Technologies reported second quarter 2021 revenue of $174.0 million, up 56.9% year over year. Gross profit reached $143.7 million, up 86.4%. The company swung to an operating profit of $40.9 million, up 231.1% from an operating loss in the prior-year quarter. Net income attributable to the company was $9.3 million, up 127.0% and also a swing to profit. Diluted earnings per share were $0.05, up 116.7% and a swing to profit. Gross margin expanded to 82.6%, up 13.1 percentage points. Operating margin was 23.5%, up 51.6 percentage points. For the first six months of 2021, revenue was $327.3 million, up 53.6%. Year-to-date operating income was $68.9 million, up 732.1% and swung to a profit. Year-to-date net income was $12.5 million, up 136.3% and swung to a profit. Year-to-date diluted EPS was $0.07, up 123.3% and swung to a profit.
Cash generation was strong. Operating cash flow was $88.6 million in the quarter, up 250.2%. Capital expenditures were $6.3 million, up 53.7%. Unlevered free cash flow, a non-GAAP measure, was $91.8 million, up 76%. Adjusted operating income, also non-GAAP, was $75.8 million, up 38%. Adjusted operating income margin was 43%. Adjusted net income per share was $0.14. Deferred revenue ended the quarter at $276.0 million, up 60.4%. Remaining performance obligations were $648.1 million, up 56.7%. For the six months, operating cash flow was $181.6 million, up 238.8%, and capital expenditures were $11.0 million, up 34.1%. The company ended the quarter with more than 1,100 customers with $100,000 or greater in annual contract value. Net annual retention rate for the year ended December 31, 2020 was 108%. Products acquired within the last 12 months contributed to revenue growth. The revenue increase was driven by new customers added over the past 12 months and net expansion with existing customers. Operating expenses excluding equity-based compensation rose on additional headcount, commissions, and public company costs. Interest expense fell after debt repayments and a February 2021 repricing.
ZoomInfo stayed active on acquisitions and product expansion. In June 2021, it acquired Insent, Inc. for total purchase consideration of $34.1 million, consisting of $33.0 million in cash and $1.1 million in estimated deferred consideration. In July 2021, it acquired Chorus.ai for approximately $575.0 million in cash, inclusive of $132.0 million relating to certain tax liabilities. The company funded the Chorus.ai deal with $225.0 million of revolving credit borrowings and cash on hand. Also in July 2021, it issued $300.0 million of 3.875% add-on senior notes due 2029 and $200.0 million of add-on Term Loan B at L+300 with a maturity of February 2026. On the product side, it launched the Business Contract Preference Registry, joined the Snowflake Data Marketplace, and appeared on 43 G2 Grid Reports with a record 27 No. 1 rankings in the Summer 2021 Grid Reports.
Management provided guidance for the third quarter and full year 2021. For the third quarter, revenue is expected between $182 million and $184 million. For the full year, revenue guidance is $703 million to $707 million, compared with a prior full-year range of $670 million to $676 million. Third quarter adjusted operating income is guided to $72 million to $74 million, and full year adjusted operating income is guided to $291 million to $295 million. Third quarter adjusted net income per share is guided to $0.11 to $0.12, and full year adjusted net income per share is guided to $0.50 to $0.51. Full year unlevered free cash flow is guided to $300 million to $305 million. Weighted average shares outstanding are expected to be 405 million. The company faces risks from the COVID-19 pandemic, data privacy laws and public perception, competition from larger well-funded companies, reliance on third-party systems, integration of acquisitions, and substantial indebtedness. It is also a controlled company within the meaning of Nasdaq rules, which qualifies it for exemptions from certain corporate governance requirements. The company had $250.0 million available under its undrawn first lien revolving credit facility. Its total net leverage ratio was 1.3x, and trailing twelve months Adjusted EBITDA was $274.0 million.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q2 FY2021 | Q1 FY2021 | QoQ | Q2 FY2020 | YoY |
|---|---|---|---|---|---|
| Revenue | $174.0M | $153.3M | +13.5% | $110.9M | +56.9% |
| Gross profit | $143.7M | $125.2M | +14.8% | $77.1M | +86.4% |
| Gross margin | 82.6% | 81.7% | +0.9 pp | 69.5% | +13.1 pp |
| Research & development | $24.0M | $20.4M | +17.6% | $16.4M | +46.3% |
| Sales & marketing | $49.9M | $48.8M | +2.3% | $59.5M | -16.1% |
| General & administrative | $21.9M | $18.8M | +16.5% | $18.2M | +20.3% |
| Total operating expenses | $102.8M | $97.2M | +5.8% | $108.3M | -5.1% |
| Operating income (loss) | $40.9M | $28.0M | +46.1% | -$31.2M | +231.1% |
| Operating margin | 23.5% | 18.3% | +5.3 pp | -28.1% | +51.6 pp |
| Net income (loss) | $9.3M | $3.2M | +190.6% | -$20.4M | +145.6% |
| Net margin | 5.3% | 2.1% | +3.3 pp | -18.4% | +23.7 pp |
| Diluted EPS | $0.05 | $0.02 | +$0.03 | -$0.22 | +$0.27 |
| Customers | 1,100 | 950 | +15.8% | 650 | +69.2% |
Risks
The company acquired Insent in June 2021 for $34.1 million and Chorus.ai in July 2021 for approximately $575.0 million, funded partly by $225.0 million of revolving credit borrowings, and expects to continue pursuing acquisitions, which may require additional debt or equity and create integration risks.
MD&A states interest expense will increase in the future driven by the July 2021 incremental debt raise, and the credit agreement contains restrictive covenants that, if not complied with, could result in an event of default and acceleration of substantially all debt.
As of June 30, 2021, the company had a $551.4 million liability related to projected obligations under Tax Receivable Agreements, and MD&A expects payments under these agreements will be substantial, which could affect liquidity.
MD&A notes COVID-19 caused headwinds in early 2020, including longer sales cycles and heightened cancellations from customers in heavily impacted industries representing less than 4% of ACV, though these dissipated by end of 2020; future impact remains uncertain.
SaaS KPIs
All quarters →Adjusted Operating Income Margin
Unlevered Free Cash Flow
Adjusted Operating Income
Adjusted EBITDA
Adjusted Net Income
Summary, forecast, risks and KPIs are extracted from ZoomInfo Technologies Inc.'s SEC filings for Q2 FY2021 (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 2, 2026.