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No. of Recommendations: 21
On the balance sheet, ZI also has $300M in cash and is obviously generating cash at astronomically high levels. The debt is completely irrelevant at this point except that one could argue it might not be a bad idea to borrow even more given the returns the business generates. I have not seen anything like it before.

NRR in 2020 was 108% as Saul mentioned. Here is some additional info.

ZI used to report NRR by customer cohorts of employees greater than 1,000, between 1,000 and 100 and less than 100.

For 2018, NRR of the cohorts respectively was 125%, 105% and 78%. Total NRR was 102%.

For 2019, NRR of the cohorts was 127%, 112% and 87%. The total was 109%.

2020 was likely impacted by Covid, but the overall NRR held steady. This will be a number to watch, but it has improved from 2018 pretty significantly.

Finally, they aren’t clear on gross margins from my limited research. I have them calculated at over 88% when removing stock based compensation and amortization.

This is a very interesting opportunity based on the incredible margins they generate and potentially accelerating revenue growth. We will see on the revenue growth. Last quarter was 53% and an average beat for this coming quarter would be 51% growth.

A.J.
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