SAN FRANCISCO--(BUSINESS WIRE)--National plaintiffs law firm Lieff Cabraser Heimann & Bernstein, LLP encourages investors in ZoomInfo Technologies Inc. (“ZoomInfo” or the “Company”) (NASDAQ: ZI) who suffered losses from purchasing ZoomInfo Class A common stock between November 10, 2020 and August 5, 2024, inclusive (the “Class Period”), to contact us immediately regarding a pending securities class action against ZoomInfo. The deadline to apply to be lead plaintiff is November 4, 2024.
Class Period: November 10, 2020 to August 5, 2024
Lead Plaintiff Motion Deadline: November 4, 2024
Case information: lieffcabraser.com/securities/zoominfo
Contact us: Email or text investorinfo@lchb.com or call 1-800-541-7358
ZoomInfo, headquartered in Vancouver, Washington, is a software and data company that provides customer analytics and intelligence to sales and marketing teams. Its principal product is a data platform that provides customer contact and business information to clients that purportedly allows them to target their marketing efforts with optimal messaging and timing.
The action alleges that during the Class Period, defendants failed to disclose that (i) ZoomInfo’s financial results were inflated by the effects of the COVID-19 pandemic, which pulled forward demand for the Company’s database of digital contact information; (ii) a significant number of ZoomInfo customers attempted to either substantially reduce or cease altogether their use of ZoomInfo’s product; (iii) ZoomInfo used coercive auto-renew policies and threatened litigation to force customers to continue their subscriptions with the Company; (iv) ZoomInfo’s coercive customer retention tactics materially damaged the Company’s customer relationships and business prospects and created a significant risk of non-renewals of customer contracts; and (v) as a result of the above, ZoomInfo’s reported financial results and customer and retention metrics were materially overstated.
On November 1, 2022, ZoomInfo announced its financial results for the third fiscal quarter of 2022, revealing that it had experienced increased “scrutiny” by customers during the contract renewal process and that negatively impacted ZoomInfo’s quarterly financial results and would cause the Company to “retrace” Net Revenue Retention (“NRR”) gains achieved in 2021. ZoomInfo also reported that its total Remaining Performance Obligations (“RPOs”) fell $6 million from $985 million the prior quarter, and that current RPOs fell $7 million from $764 million the prior quarter. On this news, the price of ZoomInfo stock fell more than 29%.
On November 16, 2022, ZoomInfo revealed that it continued to experience intense customer scrutiny, which would negatively impact ZoomInfo’s revenue growth in fiscal year 2023. On this news, the price of ZoomInfo stock fell approximately 17% over two trading days.
On July 31, 2023, ZoomInfo reported its financial results for the second fiscal quarter of 2023, revealing that customers with annual contract values of $100,000 or greater had declined to 1,893 from 1,905 the prior quarter. ZoomInfo also lowered its revenue guidance from $1.275 billion – $1.285 billion to $1.225 billion –$1.235 billion. On this news, the price of ZoomInfo stock fell approximately 28% over two trading days.
On May 7, 2024, ZoomInfo reported its financial results for the first fiscal quarter of 2024, disclosing that a large number of small business customers exhibited “weakness” in contract renewals, causing NRR to decline sequentially to 85% from 87% the prior quarter. Additionally, ZoomInfo lowered its annual revenue guidance. On this news, the price of ZoomInfo stock fell more than 24%.
Finally, on August 5, 2024, ZoomInfo disclosed that it was incurring a $33 million charge due to non-payments from customers and that the Company was forced to adapt a “new business risk model” to reduce write-offs. ZoomInfo explained the new model requires up-front payments from small business customers.
About Lieff Cabraser
Lieff Cabraser Heimann & Bernstein, LLP, with over 125 attorneys in offices in San Francisco, New York, Nashville, and Munich, Germany, is an internationally recognized law firm committed to advancing the rights of investors and promoting corporate responsibility. Repeatedly recognized as a “Plaintiffs’ Powerhouse” by Law360, Lieff Cabraser has litigated some of the most important civil cases in the United States, and has assisted clients in recovering over $129 billion in verdicts and settlements. For over 50 years, Lieff Cabraser has remained committed to ensuring access to justice for all.
