ZoomInfo
These stocks were some of the biggest gainers during the previous leg of the bull market from December 2018 to February 2020. And even after the coronavirus crash, they have posted some of the strongest gains with many already exceeding their previous highs. Companies in this sector have a very high valuation, but they are also growing rapidly and have high margins. If this performance persists, then it projects to massive earnings in the future.
Company Information
ZoomInfo uses artificial intelligence to help sales teams to identify potential customers and improve with outreach. It's built on top of existing enterprise software from companies like Salesforce
In the first quarter of the year, ZoomInfo lost $5.9 million on revenue of $102 million. The company's sales grew by nearly 40% over the past year. Only time will tell whether these types of cloud-based, enterprise stocks are recession-proof, but ZoomInfo is in a good position to survive since it can help companies increase revenues which becomes more paramount in recessions. Additionally, its software subscription is relatively cheap compared to the additional revenue it can bring to a company. In its IPO roadshow, the company pointed out numerous examples of helping companies that saw its revenues plunge during the coronavirus shutdown to find new customers in adjacent industries.
For its IPO, the lead underwriters were Morgan Stanley