ZoomInfo Technologies Inc. (NASDAQ: ZI) Investor Alert: Deadline in Lawsuit on November 4, 2024

A deadline is coming up on November 4, 2024 in the lawsuit filed for certain investors of ZoomInfo Technologies Inc. (NASDAQ: ZI) over alleged securities laws violations by ZoomInfo Technologies Inc. (NASDAQ: ZI).

Investors who purchased shares of ZoomInfo Technologies Inc. (NASDAQ: ZI) have certain options and there are strict and short deadlines running. Deadline: November 4, 2024. ZoomInfo Technologies Inc. (NASDAQ: ZI) stockholders should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554.

Vancouver, WA based ZoomInfo Technologies Inc., together with its subsidiaries, provides go-to-market intelligence and engagement platform for sales and marketing teams in the United States and internationally.

On November 1, 2022, ZoomInfo Technologies Inc. announced financial results for the third fiscal quarter of 2022, revealing that it had experienced increased "scrutiny" by customers during the contract renewal process, which negatively impacted ZoomInfo's financial results in the quarter and would cause ZoomInfo to "retrace" Net Revenue Retention ("NRR") gains achieved in 2021. Further reflecting this loss of business, ZoomInfo Technologies Inc. further revealed that its total Remaining Performance Obligations ("RPOs") fell to $979 million, compared to $985 million the prior quarter, and that current RPOs fell to $757 million, compared to $764 million the prior quarter.

Then, on November 16, 2022, ZoomInfo Technologies Inc. revealed that intense customer scrutiny during the contract renewal process had continued into the fourth quarter, which would negatively impact ZoomInfo's ability to grow its revenues in fiscal year 2023.

Thereafter, on July 31, 2023, ZoomInfo Technologies Inc. announced financial results for the second fiscal quarter of 2023, revealing that ZoomInfo's customers with annual contract values of $100,000 or greater had declined to 1,893 from 1,905 such clients in the prior quarter. ZoomInfo further reduced its annual revenue guidance from a range of $1.275 billion to $1.285 billion to a range of $1.225 billion to $1.235 billion, representing a reduction of $50 million at the mid-point.

Subsequently, on May 7, 2024, ZoomInfo Technologies Inc.announced financial results for the first fiscal quarter of 2024, disclosing that it had a large pool of small business customers that exhibited "weakness" during renewals in the period, which had caused NRR to decline sequentially to 85% from the 87% reported in the fourth quarter. ZoomInfo further reduced its annual revenue guidance from range of $1.26 billion to $1.28 billion to a range of $1.255 billion to $1.27 billion.

Finally, on August 5, 2024, ZoomInfo Technologies Inc. announced financial results for the second fiscal quarter of 2024, disclosing that ZoomInfo was incurring a $33 million charge due to non-payments from customers and had been forced to implement a "new business risk model" to reduce write-offs. In connection with its new risk model, ZoomInfo stated it was altering its operational procedures to require up-front payments from small business customers, indicating that many of ZoomInfo's previous customers had been unable to afford ZoomInfo's products and services. As a result, ZoomInfo further reduced its annual revenue guidance by $65 million at the midpoint, from a range of $1.255 billion to $1.27 billion to a range of $1.19 billion to $1.205 billion.

According to the complaint filed in the U.S. District Court for the Western District of Washington the plaintiff alleges on behalf of purchasers of ZoomInfo Technologies Inc. (NASDAQ: ZI) common shares between November 10, 2020 and August 5, 2024, that the defendants violated Federal Securities Laws. More specifically, the plaintiff claims that between November 10, 2020 and August 5, 2024, the defendants made false and/or misleading statements and/or failed to disclose that ZoomInfo's financial and operational results between November 10, 2020 and August 5, 2024had been temporarily inflated by the ephemeral effects of the COVID-19 pandemic, which had pulled-forward demand for ZoomInfo's database of digital contact information, that material portions of ZoomInfo's existing customer base were attempting to either substantially reduce their use of ZoomInfo's product or abandon it altogether, that ZoomInfo had used manipulative and coercive auto-renew policies and threats of litigation to force customers into remaining with ZoomInfo for an additional contractual term even though such customers did not want to, that ZoomInfo's coercive customer retention tactics had materially damaged ZoomInfo's customer relationships, client franchise, and competitive advantages, and created a hidden demand cliff for customer contract renewals in future periods, and that as a result of all of the above, ZoomInfo's reported revenues, operating income, and customer and retention metrics were materially overstated.

Those who purchased shares of ZoomInfo Technologies Inc. (NASDAQ: ZI) have certain options and should contact the Shareholders Foundation.

Contact:
Michael Daniels
Shareholders Foundation, Inc.
3111 Camino Del Rio North
Suite 423
San Diego, CA 92108
Tel: +1-(858)-779-1554
E-Mail: mail@shareholdersfoundation.com

About Shareholders Foundation, Inc.
The Shareholders Foundation, Inc. is a professional portfolio monitoring and settlement claim filing service, and an investor advocacy group, which does research related to shareholder issues and informs investors of securities lawsuits, settlements, judgments, and other legal related news to the stock/financial market. Shareholders Foundation, Inc. is in contact with a large number of shareholders and offers help, support, and assistance for every shareholder. The Shareholders Foundation, Inc. is not a law firm. Referenced cases, investigations, and/or settlements are not filed/initiated/reached and/or are not related to Shareholders Foundation. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.

This release was published on openPR.