ZoomInfo has made waves ever since setting up shop in Vancouver. One of the city’s largest employers, it has stood as a Clark County success story — a local company making a splash worldwide.
But it’s been a tough season for the Vancouver-based software company, which saw its stock price plummet Monday, the same day it released its second quarter earnings report showing a gaping net loss.
ZoomInfo reported $291.5 million in revenues in its second quarter of 2024, with a $24.4 million net loss, or 7 cents per diluted share. Both are declines from the same time frame in 2023, which saw revenue at $308.6 million and net income at $38.1 million.
The company took a $33 million hit from unpaid customer bills, executives reported, something they’ve rectified by pre-charging riskier clients.
ZoomInfo executives still have confidence in the business, which set a record high this quarter for winning back customers who had previously left ZoomInfo for competitors.
During a Monday call with investors, CEO Henry Schuck said the company will continue to repurchase ZoomInfo stock.
The executive said the company grew its data and operations business, saw sales retention stabilize and increased its business for large clients in the last quarter. It also saw success integrating its AI Copilot tool.
“That’s going to be really hard for a lot of investors to see because of this accounting charge and the way that we’re thinking about guidance for the rest of the year,” Schuck said.
With the loss, the company changed its expected earnings for the year.
“I have tremendous confidence in ZoomInfo,” Schuck said.
ZoomInfo is subleasing about 178,000 square feet of its new 366,000-square-foot Terminal 1 headquarters building — much of its seventh, eighth, ninth and 10th floors, according to real estate company Jones Lang LaSalle Brokerage Inc.
Those spaces are expected to be finished in early 2025.
ZoomInfo plans to move into the new Vancouver waterfront building in phases, according to a securities filing from earlier this year. ZoomInfo’s lease at 805 Broadway in downtown Vancouver ends in August 2025.
“Our goal for Terminal 1 is to contribute to the economic vitality being built down at the waterfront,” said Casey Bowman, spokesman for the Port of Vancouver. The port owns the Terminal 1 property, though Portland developer Lincoln Property Company and Bridge Investment Group are developing it.
Bowman said the port is excited for ZoomInfo’s building to open.
As for the sublease, Bowman said port executives “believe a number of positive scenarios are possible in that space.”
ZoomInfo signed a lease for the entirety of the office building at Terminal 1 in 2021 after considering 12 other properties around the greater Vancouver area.
But amid global economic headwinds, the company weathered layoffs in 2023.
Chief Financial Officer Cameron Hyzer told investors Monday the company was working “to rightsize its facilities.”
The company exited some leases in its second quarter and consolidated its real estate footprint. As of May, the company operated nine offices, in addition to its headquarters, around the globe.
Hyzer also told investors the company has funded its $30 million settlement for the right to publicity lawsuits after getting initial approval for the settlement in June.
“We’re looking forward to putting these lawsuits completely behind us,” Hyzer said.
The company announced Monday it’s seeking a replacement for Hyzer. Graham O’Brien, the company’s vice president of financial planning and analysis, will become interim chief financial officer as of September.
ZoomInfo also announced it added tech veteran Domenic Maida and investment veteran Owen Wurzbacher to its board of directors.
ZoomInfo trades on the Nasdaq as ZI. Its stock closed Monday at $9.80 per share, its lowest share price since the company went public in 2020.
Monday, however, marked a tough day for all of Wall Street. The S&P 500 slid 3 percent, the Dow Jones Industrial Average fell 2.6 percent and the Nasdaq composite dropped 3.4 percent.
The company’s stock hovered around $12 per share for the past few months before starting to fall at the end of July. Earlier in the year, the price was closer to $16 per share.
