ZoomInfo Technologies Inc. (GTM)
UndervaluedFundamental
66
Price
$3.79
Market Cap
$1.14B
Part 1 · What the company is worth
Overview
ZoomInfo sells access to a database of business contacts, company information and buying-intent signals that sales, marketing and recruiting teams use to find and reach the right prospects. Rather than helping a company sell to consumers, its customers are the sales and marketing departments of other businesses looking for leads. It operates as one reportable segment: everything is variations on the same core product, from basic contact lookups to AI-assisted outreach and account-based marketing tools sold as add-on modules.
How it makes money
Customers pay annual or multi-year subscription fees for seats and modules — Sales, Marketing, Operations, Talent — with the price scaling by number of users and which data and automation features are included. Growth comes less from finding brand-new customers and more from expanding what existing accounts already pay for: adding seats, upgrading modules, or moving from smaller downmarket contracts to larger upmarket ones. When customers shrink their teams or cut software budgets, seat counts and renewal size fall with them.
Competitive moat
Network effects · NarrowZoomInfo's database gets more useful as more customers and integrations feed data back into it, and switching a sales team's workflow to a new provider means re-training and re-verifying contact data from scratch. But the underlying business-contact data itself is not exclusive — LinkedIn, data brokers and large language models can all be assembled into a competing product, so the advantage is real but not unassailable.
What drives demand
CyclicalZoomInfo sells to sales, marketing and recruiting teams, and spending on those functions is one of the first things companies cut when they pull back on growth — fewer sales reps means fewer seats needed. Net revenue retention below 100% in recent periods shows existing customers are already spending less on average, not just failing to grow.
Key risks
- Customer growth and retention — The company depends on attracting new customers, renewing subscriptions and expanding usage at existing accounts; weaker economic conditions can cut spending on sales and marketing tools first.
- Competition from data providers and AI platforms — Growing competition from other data vendors and large-language-model platforms could offer similar contact and intent data, eroding ZoomInfo's pricing power or market share.
- Data privacy and AI regulation — Evolving privacy and AI-related laws could restrict how the company gathers, processes and sells contact and company data, a core part of its product.
- Sensitivity to customer headcount — Because pricing scales with seats, when customers reduce sales, marketing or recruiting headcount, ZoomInfo's revenue from that account shrinks even if the customer relationship itself continues.
The case for
Buyers argue that a database built from years of aggregated contributions and integrations is hard for a new entrant to match quickly, and that AI-driven sales tools give ZoomInfo a chance to sell more modules into the same customer base rather than needing constant new logos.
The case against
Sellers fear that falling net revenue retention shows existing customers are already spending less, that large language models could let competitors assemble comparable contact data more cheaply, and that revenue tied to sales and marketing headcount is exposed whenever customers tighten budgets.
Written by the editors, published on August 18, 2026
Direct competitors
Who this company fights with for the same customers
Generated on September 18, 2026 with claude-haiku-4-5 — shared with all users
LinkedIn Sales Navigator, named by ZoomInfo in its own 10-K, sells prospect identification and buyer research to the same sales organisations, backed by the professional profiles ZoomInfo has to assemble from outside sources.
Apollo.io sells the same thing ZoomInfo sells — a B2B contact and company database with built-in prospecting and outreach — and wins many of the same small and mid-market sales teams on price.
D&B Hoovers, also named in ZoomInfo's 10-K, sells company and contact data plus sales-trigger intelligence to the same enterprise sales and marketing budgets; Dun & Bradstreet has been privately held by Clearlake Capital since August 2025.
Informa TechTarget's Priority Engine sells purchase-intent data on technology buyers to the same B2B tech vendors that buy ZoomInfo's intent signals to decide which accounts to call first.
Cognism is the closest like-for-like rival on European contact data, selling verified phone numbers and emails with GDPR compliance to the same sales teams ZoomInfo courts outside the United States.
6sense competes for the same account-based marketing and revenue-operations budget, selling intent signals and buyer-stage predictions that overlap directly with ZoomInfo's intent and Copilot products.
Balance Sheet & Liquidity
Revenue
$1.26B
Trailing 12 months (through 6/30/2026)
Net Income
$-541M
Trailing 12 months (through 6/30/2026)
Free Cash Flow
$389M
Total Equity
$1.51B
Total Liabilities
$4.93B
Current Ratio
0.65
Interest Coverage
8.80
Debt/EBITDA
4.49
Earnings Per Share
Revenue & Net Income
Free Cash Flow
Income Breakdown
Historical statement
Margins over time
Debt over time
How heavy the debt is
Growth grid
Growth — Revenue
Fair Value Estimation
Fair Value
$16.03
Current Price
$3.79
Margin of Safety
+76.4%
Fair Value Range
$10.42 - $21.64
Spread across the valuation methods used, not a statistically calibrated confidence interval.
Estimation Methods
Valuation Metrics
P/E Ratio
10.32
ROE
8.2%
P/B Ratio
1.33
P/FCF
3.08
Gross Margin
83.5%
ROIC
-6.9%
Profitability Radar
Value Creation (Economic Moat)
ROIC
-6.9%
WACC
5.1%
ROIC − WACC
-12.0 pp
ROIC is below the cost of capital — the company is destroying value for every dollar invested.
Fundamental Analysis Criteria
Passed (16)
- EPS shows upward trend
- Gross Margin 83.5%
- P/FCF 3.08
- P/B Ratio 1.33
- Debt/Equity ratio
- Positive Free Cash Flow
- CapEx intensity
- Interest Coverage
- Debt/EBITDA
- Price below Graham Number
- DCF valuation (Undervalued)
- ROE 8.0%
- Revenue Growth 5Y 21.3%
- Earnings Surprise avg 8.1%
- Share Dilution -10.1%
- Piotroski F-Score 7/9
Failed (8)
- Price CAGR -34.25%
- ROIC -6.9%
- Operating Margin -35.2%
- Current Ratio
- Return on Tangible Assets
- Low reliance on intangibles
- Analyst Consensus 7% Buy
- Net Margin Trend -43.0% vs 7.3%
Unavailable (3)
- Dividend Payout NaN%
- PEG Ratio (need PE > 0 and growth > 0)
- Earnings Quality (OCF/Net Income)
Piotroski F-Score
Strong financial health
Earnings Quality
Low quality: investigate accounting
Share Dilution
Buying back shares. Shareholder friendly
Institutional Holdings
Governance
Executive Team
| Name | Title | Age |
|---|---|---|
| Mr. Henry L. Schuck J.D. | Co-Founder, Chairman of the Board & CEO | 41 |
| Mr. Michael Graham O'Brien | CFO & Interim PFO | 38 |
| Ms. Ashley McGrane | Executive VP, Corporate Secretary & General Counsel | 41 |
| Mr. James Roth | Chief Revenue Officer | 38 |
| Mr. Filip Popovic | Chief Technology Officer | - |
| Jeremiah Sisitsky | Vice President of Investor Relations | - |
| Mr. Dennis Sevilla | Chief Marketing Officer | - |
| Mr. Chad Herring | Chief Human Resource Officer | - |
| Mr. Andrew Riesenfeld | Senior Vice President of Business Development | - |
| Mr. Dominik Facher | Chief Product Officer | - |
Audit Risk
1
Board Risk
7
Compensation Risk
10
Shareholder Rights Risk
8
Part 2 · The price and when to enter
This part won't tell you whether the company is worth owning: it helps you choose when to buy it, once the fundamentals have convinced you. Inside: technical analysis, potential, historical drawdowns, gamma exposure.
Documents
- View document
Annual Report (10-K)
A yearly overview of the business, its financial results, and the risks it faces.
Filed on 2026-02-12
- View document
Quarterly Report (10-Q)
A snapshot of financial performance for the most recent three-month period.
Filed on 2026-08-05
- View document
Current Report (8-K)
An announcement of a major event, such as a leadership change or big news.
Filed on 2026-08-05
via SEC EDGAR
Income History
via SEC EDGAR
Latest News
Recent headlines for GTM, sourced from Markets Gazette.