ZoomInfo Technologies Inc (ZI)

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	122,900	700
Revenue	US$ in thousands	1,213,600	1,190,000	1,050,400	695,600	392,000
Pretax margin		2.58%	32.67%	18.53%	17.67%	0.18%

December 31, 2024 calculation

Pretax margin = EBT ÷ Revenue
= $31,300K ÷ $1,213,600K
= 2.58%

ZoomInfo Technologies Inc's pretax margin has shown significant fluctuations over the past five years. In December 2020, the pretax margin was a mere 0.18%, indicating a very low level of profitability before taking into account taxes. However, the company experienced a notable improvement in its financial performance in the subsequent years. By December 2021, the pretax margin had surged to 17.67%, signifying a significant increase in profitability.

The positive trend continued into 2022, with the pretax margin further increasing to 18.53%, demonstrating the company's ability to generate higher profits relative to its revenue before tax obligations. ZoomInfo's financial performance peaked in December 2023, with an impressive pretax margin of 32.67%, indicating robust profitability and efficient cost management during that period.

However, the company faced challenges in maintaining its profitability, as evidenced by a decline in the pretax margin to 2.58% by December 2024. This decline suggests a potential dip in profitability levels, which could be attributed to various factors such as changes in expenses, revenue fluctuations, or shifts in the market environment.

Overall, ZoomInfo Technologies Inc's pretax margin analysis reveals both strengths and vulnerabilities in its financial performance over the years, highlighting the importance of consistently monitoring profitability metrics to ensure sustainable growth and financial health.