The downward revision in growth expectations comes as the company faces a challenging environment for enterprise software sales. While the midpoint of the revenue guidance aligns with analyst estimates of $1.26 billion, the prospect of a potential contraction has intensified pressure on a stock that has already declined 27% over the past twelve months. For the first quarter, the company projects sales of $306 million to $309 million, largely in line with Wall Street's expectations.

Strategic Shift Toward AI Integration

Chief Executive Henry Schuck emphasized that ZoomInfo is prioritizing the deployment of its artificial-intelligence platform at scale this year. The company aims to leverage AI to enhance its data offerings and stabilize its market position amid the broader cooling of the software-as-a-service (SaaS) sector. According to the report, adjusted earnings for the year are expected to land between $1.10 and $1.12 per share.

Despite the tepid outlook, ZoomInfo’s most recent quarterly results surpassed expectations. The company reported a profit of $34.7 million, or 11 cents a share, more than doubling the $14.6 million recorded in the same period last year. Revenue for the quarter rose 3% to $319.1 million, beating the $309.3 million consensus estimate.

• Annual revenue target: $1.25 billion to $1.27 billion.
• Adjusted earnings per share: $1.10 to $1.12.
• First-quarter adjusted EPS: 25 cents to 27 cents.