ZoomInfo Technologies Inc. (GTM)

Operating profit margin

Mar 31, 2025 Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020
Operating income (ttm) US$ in thousands 104,700 97,600 137,600 157,200 236,800 259,900 300,800 289,500 269,400 235,500 147,900 116,300 117,700 113,300 118,700 116,900 44,800 37,100 26,700 21,400
Revenue (ttm) US$ in thousands 1,209,900 1,214,300 1,221,600 1,231,800 1,248,900 1,239,500 1,224,800 1,198,600 1,157,100 1,098,100 1,018,700 928,700 835,600 747,200 664,600 590,400 527,300 476,200 427,600 383,300
Operating profit margin 8.65% 8.04% 11.26% 12.76% 18.96% 20.97% 24.56% 24.15% 23.28% 21.45% 14.52% 12.52% 14.09% 15.16% 17.86% 19.80% 8.50% 7.79% 6.24% 5.58%

March 31, 2025 calculation

Operating profit margin = Operating income (ttm) ÷ Revenue (ttm)
= $104,700K ÷ $1,209,900K
= 8.65%

The operating profit margin of ZoomInfo Technologies Inc. has demonstrated a notable upward trajectory from mid-2020 through early 2023. Beginning at 5.58% on June 30, 2020, it experienced a steady increase, reaching a peak of 24.56% on September 30, 2023. This progressive improvement suggests an enhancement in operational efficiency and profitability over this period. The margin's growth indicates effective cost management, improved pricing strategies, or a combination of both, contributing to increased profitability relative to revenue.

Subsequently, there is evidence of a decline in the operating profit margin, falling to 20.97% by December 31, 2023, and further decreasing to 18.96% on March 31, 2024. This downward trend continues in 2024, with margins dropping to 12.76% on June 30, 2024, and further to 11.26% by September 30, 2024. The decline in operating profit margin during this period may reflect increased operating expenses, competitive pressures, or other operational challenges affecting profitability. By the end of the observed period, on December 31, 2024, the margin stood at 8.04%, and it marginally increased to 8.65% as of March 31, 2025.

Overall, the operating profit margin exhibits a pattern of significant growth during the initial years, reaching a peak in late 2023, followed by a noticeable contraction in late 2024. Despite the recent decline, the margin remains above the levels observed during the early part of the analyzed timeline, indicating that the company generally maintained a profitable operational structure over this period, with recent challenges impacting its profitability sustainability.