ZoomInfo Technologies Inc. (GTM)
Pretax 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) (ttm) | US$ in thousands | 41,400 | 31,300 | 246,500 | 270,800 | 350,100 | 388,800 | 281,100 | 271,900 | 243,600 | 194,600 | 145,500 | 100,100 | 104,400 | 101,000 | 82,300 | 90,200 | -9,600 | -31,700 | -69,200 | -95,100 |
| 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 |
| Pretax margin | 3.42% | 2.58% | 20.18% | 21.98% | 28.03% | 31.37% | 22.95% | 22.68% | 21.05% | 17.72% | 14.28% | 10.78% | 12.49% | 13.52% | 12.38% | 15.28% | -1.82% | -6.66% | -16.18% | -24.81% |
March 31, 2025 calculation
Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $41,400K ÷ $1,209,900K
= 3.42%
The pretax margin of ZoomInfo Technologies Inc. exhibits significant fluctuations over the analyzed period, reflecting a noteworthy progression from consistent losses to increasingly healthy profitability. During the fiscal year ending June 30, 2020, the company experienced substantial negative pretax margins, reaching -24.81%, indicative of considerable operating challenges or investments not yet yielding positive returns. This negative trend persisted through September 30, 2020, narrowing somewhat to -16.18%, and continued into December 31, 2020, at -6.66%, suggesting continual improvement but still enduring losses.
A marked turning point occurs in March 31, 2021, when the pretax margin approaches break-even at -1.82%. The subsequent quarters reveal a rapid progression towards profitability, with the margin turning positive by June 30, 2021, at 15.28%, and maintaining positive territory through the rest of 2021. The margins stabilizing within a range of approximately 12% to 17% between September 2021 and December 2022 suggest consistent operational profitability. The upward trend continues into 2023, with margins reaching 21.05% on March 31, 2023, and further increasing to 22.95% by September 30, 2023, and peaking at 31.37% at the end of 2023.
In 2024, the pretax margin initially remains robust, although a decline is observed, with the March 31, 2024, margin decreasing to 28.03%. This downward trend persists into June and September 2024, with margins falling to 21.98% and 20.18%, respectively. Notably, at the end of December 2024, the pretax margin drops sharply to 2.58%, indicating a significant reduction in profitability or potentially increased expenses or non-operating losses. The first quarter of 2025 shows a minimal recovery with a margin of 3.42%, but this remains well below the historical high points observed at the end of 2023.
Overall, the trend in ZoomInfo’s pretax margin demonstrates a substantial positive shift from losses in early 2020 to consistent profitability in 2021 through early 2024, followed by a sharp decline toward near breakeven levels at the end of 2024, with a slight uptick in the subsequent quarter. This evolution may reflect varying operational efficiencies, cost management strategies, or external factors influencing profitability over the period.
Peer comparison
Mar 31, 2025