Leveraging ML-driven techniques to drive actionable insights from vast, industry-leading data repositories, ZoomInfo falls among a cohort of SaaS assets that are able to achieve the rule of 80, growing at 40% while maintaining operating margins of 40%.
Zoom is a best-of-breed SaaS company that can touch everyone’s (or almost everyone’s) lives. In fact, Zoom is listening, watching, and collecting the most granular data from people’s lives, at work and home. The data Zoom collects provides optionality long into the future. For the short to medium term, Zoom Phone, better monetization, K-12 free users’ conversion, and expansion into telehealth, commerce, workflow, and fitness, including internationally, should provide a surprise boost to Zoom’s growth.
Customers:
– Paying customers with more than 10 employees’ number 433.7K, up 485% YoY from 74.1K and made up 62% of total revenue.
– Of all revenue, 38% came from customers with less than 10 employees, up from 36% in Q2 and from <20% in Q4'20.
- Enterprises make up 18% of revenue.
- The number of customers generating over 100K was 1,289, up 136% YoY from 546.
- Major customer wins were Peloton and Rakuten.
Valuation:
– The Forward EV/Sales are based on the premise of annualized Q4’21 revenue of $810M, or $3.24B for FY22. The number is in line with Zoom delivering about 30% revenue growth, which is not a lot to ask as Zoom’s DBNER is already at 130%.