ZoomInfo Technologies Inc. (GTM)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 83.54% | 83.48% | 83.84% | 84.18% | 85.05% | 85.20% | 85.08% | 84.47% | 83.59% | 82.84% | 82.37% | 81.77% | 81.74% | 81.71% | 81.51% | 81.08% | 78.15% | 77.43% | 76.75% | 76.39% |
| 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% |
| 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% |
| Net profit margin | 3.37% | 2.40% | 0.74% | 1.25% | 6.24% | 8.66% | 11.10% | 10.32% | 8.77% | 5.76% | 18.15% | 13.61% | 14.34% | 15.63% | -0.39% | 7.27% | 2.66% | 1.72% | 2.10% | -2.17% |
ZoomInfo Technologies Inc. has demonstrated a consistent improvement in its gross profit margin over the analyzed period, increasing from 76.39% as of June 30, 2020, to 85.20% by December 31, 2023. This upward trend indicates effective cost management relative to revenue, reflecting enhanced reliability in product or service pricing strategies and operational efficiencies.
The operating profit margin shows a notable growth trajectory, starting from 5.58% in June 2020 and escalating to a peak of 24.56% in September 2023. Such an increase signals that the company's core business operations have become more profitable over time, possibly due to improvements in operational efficiency, cost control, or revenue expansion.
Pre-tax margins reveal more variability but generally show a positive trend after initial losses, moving from negative figures in mid-2020 to as high as 31.37% at the end of December 2023. This suggests that the company has not only improved its operational profitability but also enhanced its ability to manage expenses and tax obligations effectively.
Net profit margins reflect the culmination of operational and pre-tax profitability, with fluctuations observed throughout the period. Starting slightly negative in mid-2020, the company's net margins improved significantly by December 2021, reaching 15.63%, before stabilizing at more moderate levels around 8-11% into 2023. Although there are declines in some periods, the overall trend demonstrates that ZoomInfo has achieved sustained profitability since late 2021, with margins mostly in the range of 2-11%, indicating relative profitability and operational effectiveness.
Overall, the profitability metrics of ZoomInfo over this period indicate a company moving towards higher efficiency and profitability, characterized by rising gross and operating margins, substantial improvement in pre-tax margins, and consistent positive net income margins in recent periods. The period reflects an upward trajectory in core profitability, supported by operational efficiency gains and effective cost management strategies.
Return on investment
| 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 return on assets (Operating ROA) | 1.63% | 1.51% | 2.15% | 2.35% | 3.51% | 3.78% | 4.25% | 4.03% | 3.76% | 3.30% | 2.10% | 1.66% | 1.70% | 1.65% | 1.80% | 4.14% | 1.76% | 1.59% | 1.30% | 1.08% |
| Return on assets (ROA) | 0.64% | 0.45% | 0.14% | 0.23% | 1.15% | 1.56% | 1.92% | 1.72% | 1.42% | 0.89% | 2.62% | 1.80% | 1.73% | 1.70% | -0.04% | 1.52% | 0.55% | 0.35% | 0.44% | -0.42% |
| Return on total capital | 1.89% | 4.17% | 17.23% | 16.86% | 19.72% | 20.48% | 10.33% | 9.50% | 8.38% | 6.48% | 8.83% | 7.10% | 7.45% | 7.24% | 6.87% | 20.53% | 7.02% | 6.92% | 3.40% | 0.93% |
| Return on equity (ROE) | 2.48% | 1.72% | 0.54% | 0.83% | 3.88% | 5.06% | 6.04% | 5.27% | 4.38% | 2.78% | 8.42% | 5.95% | 5.82% | 5.85% | -0.15% | 6.96% | 2.53% | 1.63% | 2.41% | -2.14% |
The profitability ratios of ZoomInfo Technologies Inc. reveal notable changes over the observed period, reflecting variations in operational efficiency and overall financial performance.
Operating Return on Assets (Operating ROA):
Starting from 1.08% on June 30, 2020, the metric exhibits a general upward trend, reaching a peak of approximately 4.25% on September 30, 2023. This indicates an improving ability of the company's core operations to generate profit relative to its asset base. However, post-September 2023, a decline is observed, with values decreasing to around 1.51% by December 31, 2024, and further to 1.63% in March 2025, suggesting a reduction in operational efficiency in the immediate future.
Return on Assets (ROA):
This indicator portrays a more volatile pattern, starting from a negative -0.42% on June 30, 2020, and turning positive shortly thereafter. As of September 30, 2023, ROA reaches approximately 1.92%, signaling a modest level of overall profitability. Subsequent periods show a decline, with ROA falling to 0.45% at the end of 2024 and 0.64% in March 2025, implying a weakening in overall asset profitability.
Return on Total Capital:
This ratio demonstrates substantial variability, with a significant peak of 20.48% on December 31, 2023. Historically, values fluctuate widely, reflecting periods of intensified returns possibly driven by strategic investments or operational efficiencies. After peaking at over 20%, the ratios decline sharply to 4.17% in December 2024 and further to 1.89% by March 2025, indicating a contraction in returns on capital employed.
Return on Equity (ROE):
Initially negative at -2.14% on June 30, 2020, ROE improves over time, reaching a high of 8.42% in September 2022. However, the subsequent decline from 6.04% in September 2023 to approximately 1.72% in December 2024 reflects diminishing returns to shareholders. As of March 2025, ROE modestly increases to 2.48%, suggesting some recovery but overall reduced shareholder profitability.
In summary, ZoomInfo's profitability ratios depict a trajectory characterized by initial volatility, a period of improvement culminating around late 2022 to 2023 with elevated returns, followed by a decline in profitability metrics through late 2024 and early 2025. These trends potentially indicate challenges in maintaining operational efficiency and capital returns in the recent period, warranting further analysis of underlying operational and market factors influencing these metrics.