ZoomInfo Technologies Inc. (GTM)
Operating profit margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 97,400 | 259,500 | 246,300 | 176,300 | 66,300 |
| Revenue | US$ in thousands | 1,214,300 | 1,239,500 | 1,098,000 | 747,200 | 476,200 |
| Operating profit margin | 8.02% | 20.94% | 22.43% | 23.59% | 13.92% |
December 31, 2024 calculation
Operating profit margin = Operating income ÷ Revenue
= $97,400K ÷ $1,214,300K
= 8.02%
The operating profit margin of ZoomInfo Technologies Inc. has demonstrated notable fluctuations over the analyzed period from December 31, 2020, to December 31, 2024. At the end of 2020, the operating profit margin was 13.92%, indicating a relatively modest level of profitability from core operations. This margin increased significantly in 2021, reaching 23.59%, reflecting improved operational efficiency and possibly favorable revenue growth relative to operating expenses.
However, in 2022, the operating profit margin saw a slight decline to 22.43%, suggesting either a marginal increase in operating costs or a plateau in revenue growth. Moving into 2023, the margin contracted further to 20.94%, which may indicate continued pressures on margins, possibly due to increased competition, higher operating expenses, or other strategic factors impacting profitability.
A substantial decline is recorded in 2024, with the operating profit margin dropping sharply to 8.02%. This significant reduction could be attributed to several factors, such as increased operating costs, expanded investment expenditure, revenue challenges, or a combination of these elements impacting overall profitability. The sharp decline in 2024 underscores a period of considerable operational margin compression, warranting further investigation into underlying causes such as changes in revenue streams, expense management, or macroeconomic influences affecting the company's operating environment.
Peer comparison
Dec 31, 2024