ZoomInfo Technologies Inc. (GTM)

Net profit margin

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Net income	US$ in thousands	29,100	107,300	63,200	116,800	-36,400
Revenue	US$ in thousands	1,214,300	1,239,500	1,098,000	747,200	476,200
Net profit margin		2.40%	8.66%	5.76%	15.63%	-7.64%

December 31, 2024 calculation

Net profit margin = Net income ÷ Revenue
= $29,100K ÷ $1,214,300K
= 2.40%

The net profit margin of ZoomInfo Technologies Inc. has exhibited notable fluctuations over the period from December 31, 2020, to December 31, 2024. In 2020, the company experienced a negative net profit margin of -7.64%, indicating that it was incurring losses relative to its revenue during that year. This negative margin suggests that the company's expenses exceeded its income, possibly due to initial investment costs, operational inefficiencies, or market challenges.

By the end of 2021, the net profit margin turned positive, reaching 15.63%. This significant improvement signifies a transition to profitability, reflective of enhanced operational efficiency, cost management, or increased revenue streams. The robust margin in 2021 indicates a period of strong financial performance following the loss in the previous year.

In 2022, the net profit margin decreased to 5.76%. Although still positive, this decline suggests some pressure on profitability, which could stem from increased expenses, competitive dynamics, or macroeconomic factors impacting revenue growth or cost containment.

In 2023, the margin increased again to 8.66%, demonstrating a recovery and a favorable shift in profitability compared to the previous year. Nonetheless, this figure remains lower than the peak margin seen in 2021, indicating ongoing challenges in maintaining high profitability levels.

However, in 2024, the net profit margin declined markedly to 2.40%. This reduction indicates a contraction in profitability, which may be attributed to rising costs, pricing pressures, investments, or possibly diminishing revenue growth momentum.

Overall, the trend from 2020 to 2024 reflects an initial move from loss to profitability, followed by relative volatility with periods of margin expansion and contraction. The fluctuations highlight the dynamic nature of the company's financial performance, emphasizing the importance of strategic management to sustain and improve profitability levels.