ZoomInfo shares fell 10% in after-hours trading Tuesday after the company reported second-quarter earnings that missed analysts’ expectations and gave weaker-than-expected guidance.
The product launch services company also announced a leadership change in its finance department.
ZoomInfo reported adjusted earnings per share of $0.17 for the second quarter, missing analysts’ expectations of $0.24. Revenue fell 6% year over year to $291.5 million, missing expectations of $307.68 million.
Despite the challenges, ZoomInfo reported growth in its high-value customer segment, adding 37 customers with annual contract values of $100K or more during the quarter.
“In Q2, we implemented a number of initiatives to position the company for long-term success,” said Henry Shook, ZoomInfo founder and CEO. “Following the successful launch of ZoomInfo Copilot, our AI-powered marketing platform, we are accelerating our move into the high-end market.”
Looking ahead, ZoomInfo forecast third-quarter adjusted earnings per share of $0.21 to $0.22, below the consensus of $0.25. Third-quarter revenue of $298 million to $301 million also fell short of analysts’ expectations of $317 million.
For the full fiscal year 2024, the company forecast adjusted earnings per share of $0.86 to $0.88 on revenue of $1.19 billion to $1.205 billion, both below consensus estimates.
The company also announced that Graham O’Brien, vice president of financial planning and analysis, will become interim CFO on September 6, 2024, with current CFO Cameron Heiser moving to an advisory role.