ZoomInfo's Surprise Revenue Upside: Why It Could Spark a Rally or a Trap

ZoomInfo: Key Takeaways

• Revenue rose 4.7% YoY to $318 M, beating forecasts by 4.7%.
• Guidance for next‑quarter EPS and full‑year EPS tops analyst estimates.
• Enterprise customers with >$100K contracts grew to 1,887, adding three new logos.
• Shares sit at $7.35 versus an average analyst target of $11.89 – a 36% upside on paper.
• Sector peers are under pressure; ZoomInfo’s decline of 28.8% outpaces the 18.7% average dip in sales‑marketing software.

You missed ZoomInfo's latest earnings beat at your peril.

When a go‑to‑market intelligence platform delivers a surprise on both top‑line and guidance, the market’s reaction can be swift – for better or for worse. ZoomInfo (ZI) is heading into its earnings release with a revenue beat already in the books and guidance that lifts the ceiling on earnings per share. For a portfolio that already leans into SaaS, understanding why this matters now, and how it could reshape the broader sales‑software landscape, is essential.

ZoomInfo's Revenue Beat: What the Numbers Reveal

ZoomInfo posted $318 million in revenue for the quarter, a 4.7% year‑over‑year increase. Analysts had penciled in $303 million, meaning the company exceeded expectations by roughly $15 million. The margin expansion was modest, but the key story is the consistency: over the past 24 months ZoomInfo has missed revenue forecasts only once, and when it does beat, it does so by an average of 1.7%.

Why does a 4.7% lift matter? In the SaaS world, revenue growth is a proxy for net‑new customer acquisition and product‑market fit. A double‑digit YoY growth is the holy grail; while 4.7% isn’t headline‑grabbing, it signals resilience amid a sector that has been down nearly 20% over the last month. Moreover, the addition of three enterprise contracts north of $100,000 each pushes the total to 1,887 high‑value accounts – a metric investors track to gauge the “sticky” nature of recurring revenue.

How ZoomInfo's Guidance Stacks Up Against Analyst Expectations

Beyond the current quarter, ZoomInfo has nudged its EPS outlook upward. The company now expects next‑quarter adjusted earnings of $0.33 per share, versus the consensus $0.28. Full‑year EPS guidance has also been lifted to $1.28, again outpacing the street’s $1.15 estimate. In plain terms, each share is projected to earn roughly 13% more than analysts had priced in.

For valuation‑focused investors, EPS guidance is a critical lever. Higher earnings forecasts compress the price‑to‑earnings (P/E) multiple required to justify a given share price. With ZoomInfo’s current P/E hovering around 7x (based on forward EPS), an uplift in earnings could tighten the multiple to 5‑6x – a discount relative to the sector average of 12‑15x for high‑growth SaaS firms.

Peer Landscape: LiveRamp and the Sales‑Marketing Software Arena

ZoomInfo doesn’t operate in a vacuum. Its nearest competitor, LiveRamp, has already reported earnings, delivering an 8.6% YoY sales increase and meeting revenue expectations. LiveRamp’s stock rose 3.5% on the news, underscoring that the market rewards any top‑line acceleration in this niche.

Other peers – such as Salesforce’s Marketing Cloud, HubSpot, and Adobe’s Experience Cloud – are wrestling with slower growth due to broader macro uncertainty. Yet, they remain cash‑flow positive and continue to invest in AI‑driven data enrichment, a space where ZoomInfo’s proprietary database gives it a competitive edge.

Historically, when one player in the sales‑intelligence segment posts a beat, rivals often scramble to announce partnership deals or product upgrades. Expect ZoomInfo to unveil integration news with CRM giants or AI‑enabled prospecting tools in the coming weeks, a pattern observed after its 2022 earnings surprise.

Macro Headwinds: Tariffs, Tax Cuts, and Their Ripple on SaaS Valuations

The broader market narrative for 2025 has been dominated by debates over potential tariffs and corporate tax reforms. While SaaS firms are generally insulated from trade duties, the prospect of higher corporate taxes can erode net earnings, especially for high‑margin businesses.

Investors have been discounting sales‑software stocks, reflected in the sector’s 18.7% price decline over the past month. ZoomInfo’s steeper slide of 28.8% suggests it has been over‑penalized relative to peers – a potential mispricing opportunity. The key question is whether the macro environment will stabilize enough for earnings growth to translate into share price appreciation.

From a technical standpoint, ZoomInfo’s stock is trading below its 200‑day moving average, a classic “oversold” signal. The Relative Strength Index (RSI) sits near 30, flirting with the oversold threshold. Together, these indicators suggest a short‑term bounce could be on the horizon if earnings confirm the upbeat guidance.

Valuation Snapshot: Price Targets vs. Current Share Price

The consensus price target from analysts sits at $11.89, roughly 36% higher than the current $7.35 level. This gap embodies two core assumptions: (1) the earnings guidance will hold, and (2) the market will reprice the stock to reflect a higher multiple once the earnings release validates the outlook.

If ZoomInfo delivers on its EPS promises, a conservative 10% upside from the current price could be justified by a multiple expansion of just 1.5‑2x. Conversely, a miss on guidance would likely widen the discount, as the sector’s already fragile sentiment would amplify risk aversion.

Investor Playbook: Bull vs. Bear Scenarios for ZoomInfo

Bull Case: The earnings release confirms or exceeds guidance, prompting a rapid multiple expansion. Institutional investors, already holding the stock, add to positions, driving the price toward the $11.50‑$12.00 range within 6‑8 weeks. Key catalysts include new enterprise deals, AI‑driven product enhancements, and a macro backdrop of stabilized tax policy.

Bear Case: Guidance falls short, or the company flags increased churn among mid‑market customers. The stock could test the $5.50 support level, mirroring sector lows observed in early 2024. Additional headwinds such as unexpected tariff impacts on global sales teams could exacerbate the decline.

Strategically, investors might consider a phased entry: a small initial position now at $7.35, adding on any pullback to $6.50, while setting a target exit near $11.50. Protective stops around $5.80 can limit downside in the event of a bearish surprise.

In summary, ZoomInfo’s revenue beat and upgraded guidance position it as a potential catalyst in a lagging sector. The convergence of solid fundamentals, a sizable valuation discount, and favorable technical metrics creates a compelling risk‑reward profile for disciplined investors willing to navigate the macro uncertainty.