ZoomInfo Technologies Inc. (GTM)

Pretax margin

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Earnings before tax but after interest (EBT)	US$ in thousands	31,300	388,800	194,600	101,000	-31,700
Revenue	US$ in thousands	1,214,300	1,239,500	1,098,000	747,200	476,200
Pretax margin		2.58%	31.37%	17.72%	13.52%	-6.66%

December 31, 2024 calculation

Pretax margin = EBT ÷ Revenue
= $31,300K ÷ $1,214,300K
= 2.58%

The pretax margin of ZoomInfo Technologies Inc. has exhibited notable fluctuations over the specified period. As of December 31, 2020, the company reported a negative pretax margin of -6.66%, indicating that pre-tax expenses exceeded pre-tax revenues during that year. This negative figure suggests that the company faced challenges in achieving profitability at the pretax level in 2020.

In the subsequent year, December 31, 2021, there was a significant turnaround, with the pretax margin rising to 13.52%. This positive margin reflects improved operational performance and possibly better cost management or increased revenues, enabling the company to generate pre-tax income.

The upward trend continued into December 31, 2022, with the pretax margin further increasing to 17.72%, signaling continued profitability growth and operational efficiency gains. The year ending 2023 saw a substantial increase in the pretax margin, reaching 31.37%, which indicates a strong financial performance and a considerable improvement in the company's ability to retain earnings before taxes.

However, this positive momentum was not sustained into December 31, 2024. The pretax margin dropped sharply to 2.58%, suggesting a significant decline in profitability at the pre-tax level. This decrease could be attributed to higher operating costs, diminished revenues, increased expenses, or a combination of these factors during that period.

Overall, the pretax margin trend demonstrates periods of rapid improvement coupled with a recent decline, reflecting variability in the company's profitability performance over these years. The significant increase in margins leading up to 2023 suggests periods of operational strength, whereas the decline in 2024 indicates potential headwinds or restructuring challenges impacting profitability.