ZoomInfo is a cloud-based market intelligence platform for sales and marketing operations. It recently filed for a $500 million IPO. But needless to say, the filing is happening at a precarious moment of great volatility in stocks.
I looked over ZoomInfo’s website and discovered something noteworthy that’s typical for many cloud / SaaS companies. Their customer base appears to be heavily dominated by other SaaS startups.
It’s a potentially troubling indication that future revenue growth may seriously be in question. Startups have been raising millions, but losing big by spending heavily on marketing and sales to drive rapid growth.
But now, they’re more likely to pull back their spend dramatically as investors increasingly demand accountability in how their money is spent, and for founders to stop losing money and show them a viable path to profitability.