In its latest earnings report, Vancouver tech company ZoomInfo saw increasing revenues, but executives continued to point to challenges in the market.
The company reported its revenue increased in its first quarter, up to $310.1 million from $300.7 million in the first quarter of 2023.
“We continue to navigate through a difficult operating environment, one that has not improved over the last few months,” Henry Schuck, president and CEO of ZoomInfo, said during an investor call Tuesday afternoon. The company expected its first quarter to be challenging, he said.
“But we’re starting to see signs of stabilization as it relates to net revenue risk retention,” Schuck said.
ZoomInfo is a software company that integrates its proprietary business data set into its sales, marketing and operations systems. Its net income was $15.1 million, or four cents per share, down from $44.5 million, or 11 cents per share, in the first quarter of 2023.
The company closed its first quarter with fewer customers with $100,000 contracts than it did in the fourth quarter of 2023. Schuck said companies are wanting to do more with less.
“There’s just a fundamental shift in the way people are thinking about the unit economics of their businesses,” Schuck said.
Schuck said that one big customer who left in December for a ZoomInfo competitor has already returned.
“Our focus remains on maximizing operational efficiency and driving profitable growth in the evolving market,” Shuck said.
ZoomInfo trades on the Nasdaq as ZI. Its stock closed Tuesday at $16.02 per share, down from its Monday closing price of $16.62 per share.
