Summary
ZoomInfo closed fiscal 2024 with a fourth quarter that showed the strain of a business resetting its customer mix. Revenue fell 2.3% year over year to $309.1 million in the quarter ended December 31, 2024. Gross profit dropped 5.8% to $255.9 million, and gross margin slipped to 82.8% from 85.9%. Operating income fell 56.2% to $30.9 million, cutting the operating margin to 10.0% from 22.3%. Net income was $14.6 million, up from the prior-year quarter, when the company posted a loss. The bottom line benefited from a tax benefit, while the operating line absorbed restructuring and litigation costs. The quarter's operating profit was squeezed by higher sales and marketing and research and development spending.
The full year told a harder story. Revenue for fiscal 2024 was $1.21 billion, down 2.0% from the prior year. Gross profit fell 3.4% to $1.02 billion. Operating income dropped 62.5% to $97.4 million, and net income fell 72.9% to $29.1 million. Diluted earnings per share were $0.08, down from $0.27. Operating cash flow for the year was $369.4 million, down 15.1%, while capital expenditures rose 144.9% to $64.9 million. Management attributed the revenue decline to elevated write-off levels after operational changes in the second quarter of 2024.
Management leaned on non-GAAP measures to frame the quarter. Adjusted operating income was $115.9 million in the fourth quarter, down 8%, and $428.5 million for the full year, down 14%. Adjusted operating income margin was 37% for the quarter and 35% for the year. Unlevered free cash flow, a non-GAAP measure, was $93.6 million in the quarter and $446.9 million for the year. GAAP cash flow from operations was $109.0 million in the quarter, down 15.4%. The gap between GAAP and adjusted results reflects equity-based compensation, amortization, restructuring charges, and litigation settlements.
Customer metrics were mixed. ZoomInfo ended the quarter with 1,867 customers spending $100,000 or more in annual contract value, up 58 from the prior quarter and up 47 year over year. Net revenue retention was 87% as of December 31, 2024. Deferred revenue rose 8.1% to $477.9 million. Remaining performance obligations were $1.16 billion, essentially flat year over year. The company repurchased 46,801,742 shares during 2024, about 12% of total shares outstanding, at an average price of $12.01 for $562.3 million. It had $137.6 million left under existing authorizations and added a $500.0 million authorization in February 2025. The company serves more than 35,000 companies worldwide.
Management issued guidance for the first quarter of 2025 of $294 million to $297 million, with non-GAAP adjusted operating income of $96 million to $99 million and non-GAAP adjusted net income per share of $0.22 to $0.23. For the full year 2025, guidance is $1.185 billion to $1.205 billion, non-GAAP adjusted operating income of $426 million to $436 million, non-GAAP adjusted net income per share of $0.95 to $0.97, and non-GAAP unlevered free cash flow of $420 million to $440 million. Weighted average shares outstanding are expected to be 357 million in the first quarter and 362 million for the year. The company does not provide a quantitative reconciliation of the forward-looking non-GAAP measures to the most directly comparable GAAP measures.
The outlook rests on operational changes taking hold. Management tied the 2024 revenue decline to elevated write-off levels after a new business risk model deployed in the second quarter of 2024 that requires upfront prepayment from prospects at the greatest risk of non-payment. Other pressures include lease restructuring costs, a $28.3 million loss tied to the Waltham lease amendments in November 2024, Class Action settlement charges, and a tax receivable agreement liability of $2,762.5 million. The company also flagged rising AI consumption costs and customer onboarding expenses as gross margin headwinds. Restructuring and transaction-related expenses will be influenced by future acquisition activity and the commencement of new leases. Cash and cash equivalents stood at $139.9 million at year end, with $250.0 million available under the first lien revolving credit facility.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q4 FY2024 | Q3 FY2024 | QoQ | Q4 FY2023 | YoY |
|---|---|---|---|---|---|
| Revenue | $309.1M | $303.6M | +1.8% | $316.4M | -2.3% |
| Gross profit | $255.9M | $256.3M | -0.2% | $271.8M | -5.8% |
| Gross margin | 82.8% | 84.4% | -1.6 pp | 85.9% | -3.1 pp |
| Research & development | $56.4M | $47.7M | +18.2% | $48.2M | +17.0% |
| Sales & marketing | $114.9M | $99.1M | +15.9% | $98.3M | +16.9% |
| General & administrative | $48.3M | $60.6M | -20.3% | $49.0M | -1.4% |
| Total operating expenses | $225.0M | $212.8M | +5.7% | $201.3M | +11.8% |
| Operating income (loss) | $30.9M | $43.5M | -29.0% | $70.5M | -56.2% |
| Operating margin | 10.0% | 14.3% | -4.3 pp | 22.3% | -12.3 pp |
| Net income (loss) | $14.6M | $23.8M | -38.7% | -$5.5M | +365.5% |
| Net margin | 4.7% | 7.8% | -3.1 pp | -1.7% | +6.5 pp |
| Diluted EPS | $0.04 | $0.07 | -$0.03 | — | — |
Risks
Weak economic and geopolitical conditions may reduce customer spending on sales, marketing, and recruiting technology, elongate sales cycles, and increase attrition. MD&A reports revenue for FY2024 year to date was $1,214.3 million, down 2.0% versus prior year, and cites adverse macroeconomic conditions and elevated write-offs.
ZoomInfo must attract new customers, renew and expand subscriptions, and collect revenue, while enterprise expansion brings longer and more complex sales cycles. MD&A reports net annual retention rate was 87% as of December 31, 2024 and 2023, and customers with over $100,000 in ACV were 1,867 as of December 31, 2024.
During Q2 2024, ZoomInfo deployed a new business risk model requiring upfront pre-payment from prospects at greatest risk of non-payment. This could limit total addressable market by excluding potential customers, and if inaccurate may harm financial performance. MD&A says the change contributed to elevated write-off levels and an incremental charge impacting revenue and G&A.
Larger, better-funded companies such as Salesforce, Oracle, Google, or Microsoft/LinkedIn may enter B2B sales and marketing intelligence, and competitors may respond faster to AI and ML changes. This could reduce demand and pricing for ZoomInfo subscriptions.
Increasing reliance on AI and ML, including Copilot, involves complex technical challenges and substantial infrastructure investments. MD&A expects cost of service as a percentage of revenue to remain consistent or modestly increase, driven by rising AI consumption costs and customer onboarding as existing customers migrate to Copilot.
Success depends on accurate, comprehensive data, and standard contracts include quality guarantees allowing termination and reimbursement if accuracy falls below a threshold. Contributory network participation may decline, and state opt-out laws and third-party opt-out services could reduce data collection.
Complex and evolving privacy laws, including GDPR, CCPA/CPRA, nineteen state comprehensive privacy laws, and AI regulations such as the EU AI Act, impose compliance costs and may restrict data gathering or transfers. The EU-US DPF faces challenges from NOYB, and ZoomInfo still uses Standard Contractual Clauses due to uncertain future.
MD&A highlights lease impairment and abandonment charges and lease restructuring activities, including the Waltham Lease Restructuring with a $59.1 million payment and a $28.3 million loss in November 2024. Restructuring and transaction-related expenses were $101.6 million for FY2024 versus $10.3 million for FY2023, contributing to operating income down 62.5% year to date.
ZoomInfo had a $2,762.5 million liability as of December 31, 2024 related to projected obligations under the Tax Receivable Agreements. Payments are substantial, may be accelerated on a change of control, and could exceed actual cash tax benefits, potentially requiring additional indebtedness and affecting liquidity.
ZoomInfo incurred $31.7 million in litigation settlement charges for FY2024 primarily related to Class Actions, and risk factors note litigation can be costly, divert management, and harm reputation. General and administrative expenses for FY2024 increased 64% versus prior year, partly due to Class Actions charges.
The first lien credit agreement contains restrictive covenants limiting dividends, stock repurchases, debt prepayment, acquisitions, and asset sales. Total net leverage ratio to Adjusted EBITDA was 2.4x as of December 31, 2024, and failure to comply could accelerate substantially all debt.
Platform integrations with third-party systems such as Salesforce, Marketo, HubSpot, Microsoft Dynamics, and Oracle Sales Cloud are critical. If operators cease permitting access, integrations may not function and customer experience could be harmed.
Success depends on executive officers and key employees, including CEO and co-founder Henry Schuck. Competition for technical and sales talent is intense, and increased emphasis on in-office work may reduce talent pools and make hiring harder.
ZoomInfo relies heavily on internet search engines such as Google for website traffic. Search engine algorithm changes or competitive dynamics could negatively affect paid and unpaid rankings, harming business and financial performance.
SaaS KPIs
All quarters →Adjusted Operating Income Margin
Unlevered Free Cash Flow
Adjusted Operating Income
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 FY2024 (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.