After a year of growth, Vancouver-based ZoomInfo reported a $5 million net loss in its fourth financial quarter of 2023.
ZoomInfo has struggled as technology companies around the country have undergone layoffs. About 260,000 employees were laid off in 2023 at 1,192 tech companies, according to Layoffs.fyi, which tracks tech layoffs. So far this year, 141 tech companies have laid off 34,250 employees, according to Layoffs.fyi.
This has disproportionately impacted ZoomInfo. As a software company, ZoomInfo integrates its proprietary business data set into its sales, marketing and operations systems.
“Since early 2022, we have been managing through the challenges of a weaker macro (economic) environment, which has particularly impacted the software industry, our largest vertical,” CEO Henry Schuck said during an investor call Monday.
Schuck said in Monday’s call that industry layoffs are now less panic-driven and are more surgical than they were last year.
The company ended the year on a positive note, Schuck said, with demand and sales for new businesses being the best ever. The executive also reported about 550 customers returned after trying other products.
ZoomInfo announced a new artificial intelligence research and communication tool, Copilot, earlier this month.
Yearly revenue up
ZoomInfo reported a net loss of 1 cent per share in its fourth quarter of 2023, as well as $316 million in revenue, up 5 percent over the fourth quarter of 2022.
The company reported $1.24 billion in revenue for the fiscal year 2023, up 13 percent compared with 2022.
Net income for the fiscal year was $107 million, or 27 cents per share.
ZoomInfo’s stock saw a bump Tuesday, closing at $18.32 per share, up from $16.08 at Monday’s close.
ZoomInfo trades on the Nasdaq as ZI.
