We Have Never Liked ZoomInfo (ZI)
We told you that ZoomInfo (ticker: ZI) shares were overvalued in August (HERE) despite the 25% haircut the day we published.
Today’s 15% haircut gets ZI shares in a more rational valuation space. However, I have always questioned how ZI calculates “organic” revenue growth, particularly when it was regularly rolling in acquisitions. Now that it is more difficult to get M&A deals done, combined with the fact that customer organizations have rationalized their Sales & Marketing teams, it is easier to get a sense for what ZoomInfo’s true, steady-state, organic revenue growth is (mid-to-high single digits is my sense).
Related articles: HERE and HERE.