3x SaaS company Q3 reports 🪙🪙🪙

And also: 2x acquisitions 💰, and AI innovation at Freshworks 🤖

This is the Cloudly Update. Helping you stay above the Clouds.

Today we bring you:

ZoomInfo Q3 Earnings Snapshot

Freshworks reports 37% increase in Q3 2022

Paycom Third Quarter 2022 Results

WorkWave acquires TaskEasy - a leading property management marketplace

AI powered product innovations of Freshworks

Cinven to acquire TaxAct

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ZoomInfo recorded a 46% year-on-year increase in revenue of $287.6 million. EPS was at $0.24 (excluding non-recurring items), which is $0.04 better than the S&P Capital IQ Consensus of $0.20.

Operating income was $51.8 million, and Adjusted Operating Income was $118.4 million. GAAP operating income margin was 18%, and the Adjusted Operating Income Margin was 41%.

Cash flow from operations was recorded at $85.7 million, and Unlevered Free Cash Flow was $99.8 million.

ZoomInfo's global contact database has grown by 60 million in 2022 to more than 235 million B2B professional profiles. It includes more than 145 million contacts outside the USA.

Zoominfo successfully renewed the TRUSTe Enterprise Privacy Seal for the third consecutive year and joined the global software security sharing non-profit SAFECode.

Zoominfo sees EPS of $0.21-0.22, excluding non-recurring items and revenue of $298-300 million in Q4.

The company issued upside guidance for FY22 and sees EPS of $0.83-0.84, excluding non-recurring items, and sees revenues of $1.094-1.096 billion vs. their prior guidance of $1.08-1.09 billion.

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Freshworks reported strong growth of 33% year-over-year and recorded total revenue of $128.8 million.

GAAP (loss) from operations was $(58.3) million vs $(140.3) million and non-GAAP (loss) from operations was $(3.1) million vs $(1.5) million Y-o-Y. Freshworks reported a loss of $0.01 per share, excluding non-recurring items, which is $0.04 better than the S&P Capital IQ Consensus of ($0.05).

Cash, cash equivalents, and marketable securities were at $1.2 billion.

The net dollar retention rate was 107% and 113%, adjusting for constant currency, compared to 111% in Q2 2022 and 117% in Q3 2021.

The number of customers contributing more than $5,000 in ARR was 16,713, an increase of 19% year-over-year.

Freshworks raises guidance for the full year 2022 and sees non-GAAP operating loss between ($30.0) - ($28.0) million and sees EPS of ($0.13) -($0.11).

For Q4, Freshworks sees revenue between $129.2 - $131.2 million and growth in the range of 22% - 24% Y-o-Y. Non-GAAP loss from operations is estimated between ($10.5) million - ($8.5) million, and EPS in the range of ($0.05) - ($0.03).

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Paycom reported a 30.4% increase in total revenues of $334.2 vs. $256.2 million year-on-year. Their recurring revenues grew by 30.6% and were recorded at $328.2 million, 98.2% of total revenues.

GAAP Net Income was $52.2 million, or $0.90 per diluted share, compared to GAAP net income of $30.4 million, or $0.52 per diluted share, Y-o-Y.

Non-GAAP Net Income was $73.4 million, or $1.27 per diluted share, compared to $53.6 million, or $0.92 per diluted share, Y-o-Y.

Adjusted EBITDA was $126.0 million, compared to $89.7 million, Y-o-Y.

Cash and Cash Equivalents recorded at $317.2 million.

Total Net Debt was $29.0 million as of September 30, 2022, compared to $29.2 million as of December 31, 2021.

Paycom sees Total Revenues between $366 million to $368 million and Adjusted EBITDA in the range of $144 million to $146 million in Q4.

Paycom issued guidance for FY2022 and expects Total Revenues in the range of $1.371 billion to $1.373 billion. They see an Adjusted EBITDA of $560 million to $562 million

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WorkWave, a cloud-based SaaS provider, announced the acquisition of TaskEasy, a service provider for rental property owners. The purchase gives WorkWave field service customers access to local service jobs.

TaskEasy offers API and digital tools to residential and commercial property portfolio owners and operates in more than 12,000 cities in the U.S.

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Freshworks announced an infusion of AI across their customer experience solutions, including - Freshchat™, Freshdesk™, Freshsales™, and Freshmarketer™.

Freshworks will host a virtual event on November 9 to demo a variety of new product innovations during its Fall '22 Launch.

It will have several updates on CRM, Intelligent omnichannel conversations, and AI-Driven customer support.

Through AI-driven solutions, agents will improve response times, and sales and marketers will increase productivity.

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International private equity firm Cinven announced an agreement to acquire TaxAct for approximately $720 million. Cinven will bring the business together with the existing portfolio company, Drake Software.

The transaction is expected to close before the end of 2022.

TaxAct provides do-it-yourself ("DIY") tax filing assistance software and services and has more than 85 million individual filers. TaxAct was the first online software provider to offer free tax filing services.

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