ZoomInfo is a SaaS company down 95% from ATH in 2021 and down 74% since September.
Over the past 4 years, revenue has remained roughly flat (~1.2B) with Free Cash Flow around $300M-$400M
Market cap is currently <$1B, meaning a P/E of 8.5, Forward P/E of 3.1, and P/FCF of 2.7
The risk is that this company will be replaced by AI. They sell sales intelligence/prospecting data (think Org charts and contact info) to sales teams for tens of thousands while AI-native companies like Apollo may be able create similar tools for a lot less.
ZoomInfo is trying to rebrand as an AI-powered go-to-market platform but of course there’s a lot of unknowns there.
To me it seems GTM is priced for an almost certain collapse, and if they can successfully pivot it’ll be a multi-bagger.
Thoughts?