Month: January 2023

ZoomInfo: a SaaS Company that Actually Makes Money

This post is translated from Chinese to English using ChatGPT 3.0 as an experiment without my editing. Does it pass the Turing Test?

1.0 One Paragraph Thesis: 

A data SaaS company with a long growth runway, high revenue growth, high gross margin, high profitability, and cash flow production capability. The more data assets accumulate, the more valuable they are, with short sales and delivery cycles, perceived quick-time-to-money, high user stickiness, and operating leverage. The company has further established data-driven marketing tools through R&D and acquisitions to increase the value and usage habits of terminal users. The market mistakenly categorizes ZI with other high-growth but unprofitable SaaS companies and YTD stock price has fallen with the Federal Reserve’s interest rate hikes and the SaaS sector. As macro pressures ease, the company’s large concentration in software client vertical, longer sales cycles, and insufficient sales team bandwidth may improve. In the medium to long term, operating margins and ROIC will continue to improve as revenue scale and growth reach a steady state. Annual returns of over 20% are expected.

Continue reading “ZoomInfo: a SaaS Company that Actually Makes Money”