Shares of ZoomInfo Technologies (ZI) - Get Report spiked on Tuesday morning after the provider of sales and marketing databases reported better-than-expected fourth-quarter earnings that sparked a flurry of analyst upgrades.
Shares of the Vancouver, Wash., company rose 12.4% to $57.70 at last check on Tuesday.
For the quarter ended Dec. 31, ZoomInfo posted earnings of 14 cents a share on revenue of $139.7 million. Analysts surveyed by FactSet had expected net income of 10 cents a share on revenue of $130.6 million.
“We ended the year strong, delivering another quarter of record results, highlighted by an industry-leading combination of growth and profitability,” said company founder and CEO Henry Schuck in a statement.
“Our success is driven by the success of our customers, as we continue to help companies of all sizes, across all industries modernize their go-to-market efforts with our expanding data, insights, and automation platform," he added.
The company said it had more than 20,000 customers at the end of the year, including more than 850 customers with $100,000 or greater in annual contract values.
ZoomInfo said it expects adjusted earnings for the first quarter between 10 cents a share to 11 cents a share on revenue between $146 million and $148 million.
Analysts from Deutsche Bank, Credit Suisse, Truist Securities and Mizuho raised their price targets on the stock following the release of the report.
Deutsche Bank raised its price target on the company to $58 from $45 and said ZoomInfo's growth rate implied by its outlook looks “eminently achievable as ZoomInfo rides the secular shift towards the digitization of manual sales processes”
Analysts at Credit Suisse said the company showed broad-based strength in the quarter, and even though the outlook is strong, additional upside is possible. They raised their price target on ZoomInfo to $70 from $60.
And analysts at Mizuho raised their price target to $63 from $53, noting that “ZoomInfo is benefiting from a remote selling environment, and is increasingly being seen as an essential tool for sales and marketing teams.”