ZoomInfo stock tanks as company beats on earnings but cuts free-cash-flow forecast

ZoomInfo Technologies Inc. shares were off 20% in after-hours trading Tuesday after the company topped expectations with its latest earnings and revenue figures but cut its free-cash flow outlook for the full year. The company logged third-quarter net income of $17.9 million, or 4 cents a share, whereas it posted a net loss of $40.6 million, or 15 cents a share, in the year-earlier period. On an adjusted basis, ZoomInfo earned 24 cents a share, compared with 13 cents a share in the year-before quarter, while the FactSet consensus was for 20 cents a share. Revenue rose to $287.6 million from $197.6 million, while the FactSet consensus was for $278 million. For the fourth quarter, ZoomInfo executives anticipate $298 million to $300 million in revenue and 21 cents to 22 cents in adjusted earnings per share. Analysts had been modeling $298 million in revenue and 21 cents in adjusted earnings per share. Executives also lowered their forecast for adjusted unlevered free-cash flow for the full year. They now model $430 million to $435 million on the metric, whereas their prior outlook was for $438 million to $446 million. The stock is up 15% over a three-month span as the S&P 500 has declined 6%.

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