Why ZoomInfo (ZI) shares are soaring after hours

ZoomInfo Technologies Inc. ZI reported second-quarter revenue rose 54% year-on-year to $267.1 million, beating consensus of $252.75 million.

Adjusted EPS was $0.21, beating the consensus of $0.17.

Gross margin contracted by 18 basis points to 82.4%. Operating income fell 3.4% to $39.5 million and margin fell 872 basis points to 14.8%.

The adjusted operating margin contracted by 354 basis points to 40%.

ZoomInfo generated operating cash flow of $211.2 million year-to-date, compared to $181.6 million a year ago. Unleveraged cash flow was $234.2 million.

3Q22 outlook: ZoomInfo forecasts revenue of $277 million to $279 million vs. consensus of $270.21 million, adjusted operating income of $111 million to $113 million and adjusted ESP of $0.19 at $0.20 against a consensus of $0.19.

Outlook for FY22: The company raised its revenue forecast to $1.08 billion-$1.09 billion from $1.06 billion-$1.07 billion, versus consensus of $1.06 billion.

It forecast adjusted operating profit of $433 million to $437 million (from $418 to $424 million), adjusted EPS of $0.78 to $0.80 (from $0.75 to $0.77 ) vs consensus of $0.76 and unleveraged free cash flow of $438-446 million. .

Price Action: ZI shares are trading up 12.75% at $42.55 in Monday’s aftermarket session.

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