ZICAUTIOUS

ZI Gross Margin Analysis

83.6%

Higher than 87% of Technology sector peers

Updated 3128h ago·SEC filings & market data

Key Takeaway

ZoomInfo's gross margin of 83.6% means that for every dollar of revenue, the company retains $0.836 after deducting the direct costs of delivering its services, a strong indicator of pricing power and efficient operations.

Sector Performance

87th percentile

83.6%

Sector Median

65.7%

Sector Avg

61.2%

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Deep Analysis

This figure sits well above the sector median of 62.2% and places ZoomInfo in the 87th percentile among its Technology peers, reflecting a top-tier competitive position. Trend data is not available — the year-over-year change, quarter-over-quarter change, and trend direction over the last 8 quarters are all listed as N/A, and only a single historical value of 83.6% is provided, so no trajectory can be assessed. The combination of a very high gross margin with no trend information creates an opportunity in that the level alone suggests low cost vulnerability, but the lack of directional data introduces uncertainty about whether this performance is sustainable or eroding. This metric directly supports the overall BULLISH verdict, as a gross margin far above the sector median typically signals strong competitive advantages and healthy profitability.

Frequently Asked Questions

What does the Gross Margin tell investors about ZI?

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.

How is the Gross Margin calculated?

Gross Margin is calculated as: Gross Profit / Revenue.

How does ZI's Gross Margin compare to its sector?

ZI's Gross Margin of 83.6% compares to a Technology sector median of 65.7%, placing it in the 87th percentile.

Who are ZI's closest peers by Gross Margin?

The closest Technology peers by Gross Margin include: ASML (53.0%), AMD (52.8%), MRVL (52.1%), SMTC (52.0%), CAMT (50.1%).

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Learn More About Gross Margin

Gross Margin vs Net Margin: Why the Gap Between Them Tells You Everything

Gross margin vs net margin: learn what the spread between them reveals about operating leverage, cost structure, and early warning signs in any stock.

The Formula

Gross Profit / Revenue

Why It Matters

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.