Securities class action litigation has been filed on behalf of investors who purchased or otherwise acquired the Class A common stock of 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.

If you purchased or otherwise acquired ZoomInfo Class A common stock during the Class Period, you may move the Court for appointment as lead plaintiff by no later than November 4, 2024.

A lead plaintiff is a representative party who acts on behalf of other class members in directing the litigation. Your share of any recovery in the actions will not be affected by your decision of whether to seek appointment as lead plaintiff. You may retain Lieff Cabraser, or other attorneys, as your counsel in the action.

ZoomInfo investors who wish to learn more about the litigation and how to seek appointment as lead plaintiff should complete the form below, text or email investorinfo@lchb.com, or call Lieff Cabraser partner Sharon M. Lee at 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.

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