Will ZoomInfo Stock Recover?

ZoomInfo Technologies Inc. (NASDAQ: ZI) might have won over legendary investor Stan Druckenmiller but the market hasn’t been so kind, punishing the stock to the tune of 37% year-to-date.

When management unveiled earnings last quarter, $303.6 million in top line sales failed to ignite enthusiasm given that it represented a 3.3% year-over-year decline.

Net income was just $23.8 million while free cash flows came in at a pretty miserable $0.6 million leaving investors with very little to get excited about.

What Is Management Doing To Turn The Ship Around?

The top brass are looking to combine data enrichment and machine learning, placing ZoomInfo in a better spot to deliver more nuanced sales guidance than traditional static databases can provide.

Where many sales platforms drive leads and prospects alone, ZoomInfo is looking specifically to engage prospects at the right time and with the right message.

When customers spot the value in these adaptive insights, especially as large enterprises go through longer deal cycles, ZoomInfo is going be able to make a bigger splash with customers and improve its own revenue predictability.

Much depends on whether the company’s ongoing enhancements are a hit with budget-conscious clients on the hunt for quantifiable returns on their investments in sales enablement tools.

What Did Stan See That The Market Is Missing?

What Druckenmiller might have spotted that so far the market has missed is the massive upside potential in ZoomInfo. While analysts generally see upside only to $11.68 per share, our analysis suggests much greater upside to $15 per share and change, which would result in $15.54 per share price target and 38.9% upside.

The company has a plethora of tailwinds to support higher prices, including a management buyback that should minimize per share figures and lift earnings per share, as well as high shareholder yield of 17.9% and really impressive gross margins of 87.6%.

ZoomInfo Is Undergoing a Metamorphosis

ZoomInfo’s transformation from a contact database into a multifaceted intelligence provider has come through calculated investments.

By layering predictive analytics on top of its proprietary datasets, management is targeting improvements in lead scoring, pipeline visibility, and outreach personalization.

ZoomInfo has some optionality, particularly as it relates to AI-driven recommendations that are showing good signs of customer traction. It seems that deal quality is on the rise too if management is to be believed, which is a step forward versus simply targeting a high volume of deals.

ZoomInfo’s curated datasets remain a differentiator and so the firm’s platform-centric model could align well with eventual market recovery.

Over time, as enterprise buyers’ confidence grows, those vendors capable of delivering measurable, data-backed improvements in sales efficiency may emerge with stronger competitive moats. This dynamic is likely to influence not just near-term bookings but the long-term perception of the company’s brand.

Data Accuracy & Analytics are Crucial Now

Shifts in the B2B landscape have established data accuracy, integrated analytics, and predictive modeling as essential—not optional—components of modern sales strategies.

When we look to user reviews ZoomInfo’s data quality stands out as well as its conversation intelligence tools.

The likelihood is that Insent.ai’s conversational marketing will produce higher on-site conversion metrics and in turn result in higher cross-sells and upsell rates. Similarly, RingLead’s data normalization solutions that maintain strong data hygiene should lead to a cumulatively positive tailwind.

In parallel, market data suggests that as enterprises add complexity to their go-to-market frameworks, reliance on high-fidelity intelligence increases. Companies able to unify fragmented data sources stand a better chance of guiding decision-makers through intricate buyer journeys.

In this setting, ZoomInfo’s evolving toolkit that is anchored by AI and enriched is likely to sustain net retention rates and pave the way for customers to adopt more modules. The result may very well be a stronger correlation between product depth and customer lifetime value, reinforcing the platform’s central role in shaping sales outcomes.

What Do AI & Copilot Mean For Investors?

Like so many other tech firms, ZoomInfo has jumped on the AI bandwagon with Copilot that draws upon billions of B2B data points and is refined through generative AI models.

Early adopters of Copilot seem to report improvements in pipeline forecasting accuracy and higher rep productivity.

Better still, internal metrics suggest that businesses leveraging Copilot’s recommendations see fewer wasted outreach attempts, increasing their odds of securing meaningful engagements with decision-makers.

Over time, as these algorithms refine their recommendations based on user feedback loops, Copilot has the real potential to become a must-have tool in a world where “just-in-time” sales guidance might separate winners from losers.

Will ZoomInfo Stock Recover?

ZoomInfo cash flows suggest that the stock has the potential to recover by as much as 38% to $15.54 per share. The big question is what will drive that recovery?

To that we look to the product side of the business, such as Chorus.ai’s conversation intelligence software processing thousands of hours of recorded sales calls, helping users identify behavioral cues correlated with deal success. Insent.ai’s chat functionalities can also boost site conversion rates by personalizing real-time buyer interactions, while RingLead’s data normalization technologies ensure that customers can trust the accuracy and hygiene of their data.

When you put these together with extremely high gross margins, a very high shareholder yield, a management buyback and a very attractive discounted cash flow forecast analysis, there is lots to suggest that Stan Druckenmiller is right.

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The author has no position in any of the stocks mentioned. Financhill has a disclosure policy. This post may contain affiliate links or links from our sponsors.