When covid hit, concerts were cancelled and TentCraft suddenly had no customers.

The problem ZoomInfo solves is that there are many companies with a great product but no connection with people who might want to buy it.Ī practical example of this is TentCraft, a company that makes large tent-like structures for outdoor events like concerts. ZoomInfo offers a software-as-a-service subscription used by sales and marketing teams to generate and analyze sales leads. Despite strong quantitative metrics, I have questions about ZoomInfo's long-term value proposition. The company is currently larger than its competition, which gives it a chance to be a category defining go-to-market platform in the business intelligence space.

Price Action: ZI shares traded higher by 6.55% at $38.62 on the last check Tuesday.ZoomInfo (NASDAQ: NASDAQ: ZI) looks like one of the highest quality SaaS companies available based on the Rule of 40, and it looks reasonably valued relative to peers of similar quality.

Turrin reiterated an OverWeight with a price target of $70 on ZI.

All the above should help shore up confidence in ZI's ability to execute on a multi-year journey of 30+% rev growth and 40+% uFCF margin.

He continues to view the company's end market opportunity as favorable.

With clarity on ZI's legal positioning, he became more optimistic about ZI.

Turrin also became much more comfortable with their compliance and regulatory strategy moving forward under the leadership of recently appointed Chief Compliance Officer Simon McDougall, whom his discussions suggest is highly regarded in the space.

Notably, WFC's legal experts believe ZI complied with all laws and regulations and that the recent accusations lack merit from a legal standpoint.

In light of recent lawsuits and short reports, which have placed ZoomInfo Technologies Inc's ZI data collection practices under greater scrutiny, Wells Fargo analyst Michael Turrin spoke with several data privacy and legal experts to gain a better perspective.

Zoom info privacy