Business Context and Reporting Period
ZoomInfo Technologies Inc. filed a Form 8-K dated September 29, 2023. The filing reports executive leadership changes effective October 1, 2023 and reiterates previously issued guidance for the third quarter and full year 2023.
Key Financial Metrics and Guidance
| Metric | Q3 2023 Guidance | FY 2023 Guidance |
|---|---|---|
| GAAP revenue | $309–$312 million | $1.225–$1.235 billion |
| Non-GAAP adjusted operating income | $124–$126 million | $493–$498 million |
| Non-GAAP adjusted net income per share | $0.24–$0.25 | $0.99–$1.00 |
| Non-GAAP unlevered free cash flow | Not guided | $445–$455 million |
The filing does not provide reported-period revenue, profit, cash flow, margins, debt, cash balance, or liquidity figures. It also does not provide a quantitative reconciliation of the forward-looking non-GAAP measures to GAAP measures.
Material Changes and Management Commentary
- Joseph Christopher Hays will transition from President and Chief Operating Officer to Executive Vice President, International Expansion, effective October 1, 2023. He will no longer be an executive officer, and his existing compensation arrangements remain in effect.
- Chief Revenue Officer David Justice will become Chief Growth Officer, focusing on enterprise sales, partnerships, and systems integrations.
- James Roth, previously Senior Vice President of Renewals, Growth, and Enterprise Sales, will become Chief Revenue Officer.
- Mr. Justice and Mr. Roth will report directly to the Chief Executive Officer.
- The company reiterated, rather than increased or reduced, its Q3 and FY 2023 guidance.
Outlook, Risks, and Unusual Items
Management’s forward-looking statements are subject to risks including economic, competitive, and regulatory conditions; potential uses of cash; and decisions by the company and its competitors. The filing refers investors to the risk factors in the company’s latest Form 10-K and subsequent Form 10-Q filings.
Unlevered free cash flow is not residual cash available for discretionary spending because the company has mandatory debt-service requirements. The company notes that future GAAP results may be significantly affected by stock-based compensation, taxes, exchange tax receivable agreement items, deferred tax assets and liabilities, and restructuring and transaction expenses.
The guidance metrics are non-GAAP measures and may not be comparable with similarly titled measures used by other companies. The company does not provide a quantitative forward-looking reconciliation because certain excluded items are highly variable and difficult to predict.
Important Facts to Verify
- Whether the executive realignment affects sales execution, international expansion, partnerships, or enterprise growth.
- Actual Q3 2023 results versus the reiterated revenue, adjusted operating income, adjusted EPS, and full-year guidance ranges.
- Cash flow generation and the company’s debt-service requirements, which are not quantified in this filing.
- The reconciliation between non-GAAP guidance and GAAP results when available.
- Risk-factor updates in the company’s subsequent Form 10-Q or other SEC filings.