ZoomInfo Technologies shares plunged 10% in premarket trading despite fourth-quarter results that exceeded analyst expectations. The company reported $319.1 million in revenue, beating the $309.3 million consensus, with non-GAAP EPS of $0.32 versus the $0.28 estimate.

Citizens Investment Research downgraded the stock to Market Underperform from Market Perform, setting a $6 price target. Analysts pointed to calculated billings of $277.6 million, falling 2% year on year and below consensus, as a concern despite strong operating margins of 38.4%.

The downgrade reflects growing competition from vendors like Clay, Gong and Salesforce, alongside concerns about ZoomInfo's persistent 90% net retention rate. Investors also question the company's $1 billion share repurchase authorization given its $1.3 billion debt position and just $180 million in cash reserves.