Summary
ZoomInfo closed fiscal 2021 with fourth-quarter revenue of $222.3 million, up 59.1% from the prior-year quarter. Gross profit was $181.9 million, up 60.8%, and gross margin reached 81.8%, up 0.9 percentage points. The top line grew faster than operating income. Operating income was $24.2 million, down 18.2%, and operating margin was 10.9%, down 10.3 percentage points. Net income attributable to the company was $144.9 million, up 468.2% from the prior-year quarter. The quarter included a large income tax benefit, which the filing links to the election to tax ZoomInfo Technologies LLC as a corporation. That tax item lifted net income while operating profitability declined.
Full-year results show the scale of the 2021 expansion. Revenue was $747.2 million, up 56.9%. Gross profit was $610.5 million, up 65.6%, and gross margin was 81.7%, up 4.3 percentage points. Operating income was $113.3 million, up 205.4%, and operating margin was 15.2%, up 7.4 percentage points. Net income attributable to the company was $116.8 million, a swing to a profit from the prior-year loss. Diluted EPS was $0.43, also a swing to a profit. Operating cash flow was $299.4 million, up 76.5%, while capital expenditures were $23.6 million, up 40.5%. Deferred revenue ended the year at $364.2 million, up 63.5%, and remaining performance obligations were $864.4 million, up 54.6%.
Non-GAAP results show the same growth with higher profitability. Fourth-quarter Adjusted Operating Income was $86.4 million, up 36%, and Adjusted Operating Income Margin was 39%. Full-year Adjusted Operating Income was $306.6 million, up 36%, with a 41% Adjusted Operating Income Margin. Unlevered Free Cash Flow was $84.4 million in the quarter, up 10%, and $347.0 million for the full year, up 42%. Fourth-quarter operating cash flow was $71.3 million, up 6.6%, and capital expenditures were $7.8 million, up 56.0%. The company generated more cash from operations than it spent on property and equipment, but Unlevered Free Cash Flow is a different measure that adds back cash interest and other items.
Operational metrics point to a healthy customer base. Net revenue retention was 116% for 2021, compared with 108% for 2020. ZoomInfo ended the year with 1,452 customers that had $100,000 or greater in annual contract value. The company expanded its London operations, partnered with Google Cloud, and completed the elimination of its UP-C structure. It also completed several acquisitions in 2021, including Insent for $34.0 million, Chorus.ai for $547.4 million, and RingLead for $118.0 million. ZoomInfo says it serves more than 25,000 companies worldwide. In 2021, approximately 44% and 22% of customers, as measured by ACV, operated in software and business services industries, respectively, while less than 4% operated in retail, travel, hospitality, consumer goods and services, or oil and gas industries.
Guidance points to continued growth. For the first quarter of 2022, ZoomInfo guides non-GAAP Adjusted Operating Income of $86 to $88 million and non-GAAP Adjusted Net Income per share of $0.14 to $0.15. For full-year 2022, the company guides non-GAAP Adjusted Operating Income of $405 to $415 million, non-GAAP Adjusted Net Income per share of $0.71 to $0.73, and non-GAAP Unlevered Free Cash Flow of $425 to $435 million. Unlevered Free Cash Flow is not guided for the first quarter. The guidance assumes first-quarter and full-year 2022 weighted average shares outstanding of 408 million and 410 million, respectively. Risks include the ongoing COVID-19 pandemic, the integration of acquired businesses, future economic, competitive, and regulatory conditions, and the company's debt covenants and tax receivable agreements. The company also notes that actual results may differ materially from forward-looking statements.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q4 FY2021 | Q3 FY2021 | QoQ | Q4 FY2020 | YoY |
|---|---|---|---|---|---|
| Revenue | $222.3M | $197.6M | +12.5% | $139.7M | +59.1% |
| Gross profit | $181.9M | $159.7M | +13.9% | $113.1M | +60.8% |
| Gross margin | 81.8% | 80.8% | +1.0 pp | 81.0% | +0.9 pp |
| Research & development | $40.9M | $34.4M | +18.9% | $14.5M | +182.1% |
| Sales & marketing | $77.1M | $65.3M | +18.1% | $45.2M | +70.6% |
| General & administrative | $28.3M | $23.4M | +20.9% | $17.5M | +61.7% |
| Total operating expenses | $157.7M | $139.5M | +13.0% | $83.5M | +88.9% |
| Operating income (loss) | $24.2M | $20.2M | +19.8% | $29.6M | -18.2% |
| Operating margin | 10.9% | 10.2% | +0.7 pp | 21.2% | -10.3 pp |
| Net income (loss) | $144.9M | -$40.6M | +456.9% | $25.5M | +468.2% |
| Net margin | 65.2% | -20.6% | +85.7 pp | 18.3% | +46.9 pp |
Risks
Larger and more well-funded companies such as Salesforce.com, Oracle, Google, or Microsoft/LinkedIn may shift their business model to compete in B2B sales and marketing intelligence. They would have greater resources and brand recognition, potentially reducing demand and pricing power for ZoomInfo.
Data privacy laws including GDPR, PIPL, CCPA, and CPRA impose complex compliance obligations and potential fines up to EUR 20 million or 4% of worldwide gross annual revenue under GDPR, RMB 50 million or 5% of gross annual revenue under PIPL, and $7,500 per violation under CCPA/CPRA. These laws could restrict data gathering and increase costs.
CCPA, CPRA, and other legal changes make it easier for individuals to opt out of personal data collection via an opt-out button, and third-party intermediaries may offer opt-out at scale. A slowdown in contributory network participation or an increase in opt-outs could deteriorate the depth, breadth, or accuracy of the company's data.
The platform depends on interoperability with third-party systems such as Salesforce.com, Marketo, HubSpot, Microsoft Dynamics, and Oracle Sales Cloud. If Salesforce.com were to refuse API access, the integration would not function, hampering customer experience and the likelihood of renewals or upgrades.
As of December 31, 2021, the company had a liability of $3,056.4 million related to projected obligations under Tax Receivable Agreements. Payments may be substantial and are not conditioned upon continued ownership by exchanging holders.
The ongoing COVID-19 pandemic continues to disrupt the global economy and could reduce customer spending, particularly in retail, restaurant, hotel, hospitality, consumer discretionary, airline, and oil and gas industries. Although headwinds dissipated by 2021, the company could experience similar headwinds in future periods, including longer sales cycles and heightened cancellations.
Recent acquisitions include Insent for $34.0 million, Chorus.ai for $547.4 million, and RingLead for $118.0 million. Integration may fail to achieve expected benefits, divert management, and purchase accounting for RingLead is not yet finalized.
Adjusted Operating Income Margin decreased to 41% in FY2021 from 47% in FY2020 due to increased investment in research and development and sales and marketing capacity, as well as general and administrative costs to support public company requirements.
SaaS KPIs
All quarters →Adjusted Operating Income Margin
Unlevered Free Cash Flow
Net Revenue Retention
Total customers
Customers with $100,000+ ACV
Summary, forecast, risks and KPIs are extracted from ZoomInfo Technologies Inc.'s SEC filings for Q4 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 1, 2026.