ZoomInfo Technologies Inc. (ZI) shares skyrocketed 23.45% in intraday trading on Wednesday, fueled by the company's impressive fourth-quarter 2024 results and an optimistic outlook for fiscal 2025. The stock surge was driven by ZoomInfo's strong performance, strategic shift towards AI-powered solutions, and promising growth prospects in the upmarket segment.
In Q4 2024, ZoomInfo reported record revenue of $309.1 million, beating analyst estimates, and adjusted earnings per share of $0.26, surpassing expectations. The robust performance was underpinned by robust demand for the company's AI-driven data and insights solutions, particularly its AI-powered sales assistant, Copilot, which exceeded $150 million in Annual Contract Value (ACV).
ZoomInfo's upmarket-focused Operations business, which provides data and AI solutions for enterprise systems, emerged as the fastest-growing segment, with a 27% year-over-year increase in Q4. Additionally, the company's net revenue retention improved to 87%, indicating better customer retention and expansion.
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