Core Insights - ZoomInfo has a strong history of exceeding earnings estimates and is well-positioned for continued success in upcoming reports [1][5] - The company has achieved an average surprise of 6.62% over the past two quarters, indicating consistent performance [1][5] Earnings Performance - In the most recent quarter, ZoomInfo reported earnings of $0.25 per share, surpassing the expected $0.23 per share, resulting in a surprise of 8.70% [2] - For the previous quarter, the company reported $0.23 per share against an expectation of $0.22 per share, yielding a surprise of 4.55% [2] Earnings Estimates and Predictions - Recent estimates for ZoomInfo have been revised upward, with a positive Earnings ESP of +2.46%, suggesting increased analyst confidence in the company's near-term earnings potential [5][8] - The combination of a positive Earnings ESP and a Zacks Rank of 3 (Hold) indicates a high likelihood of another earnings beat [5][8] Statistical Insights - Research indicates that stocks with a positive Earnings ESP and a Zacks Rank of 3 or better have a nearly 70% chance of producing a positive surprise [6] - The Earnings ESP metric compares the Most Accurate Estimate to the Zacks Consensus Estimate, reflecting the latest analyst revisions [7]

Core Insights - ZoomInfo announced a strategic partnership with Markaaz to create an AI-powered B2B data solution that integrates sales intelligence with credit and risk data, marking the launch of the industry's first comprehensive end-to-end master data platform for enterprise organizations [1] Company Summary - The partnership aims to transform how companies identify and manage business relationships by providing a unified platform that combines various data sources [1]

Core Insights - ZoomInfo has launched the Copilot Workspace, an AI-powered execution engine designed to enhance how revenue teams implement Go-To-Market (GTM) strategies, shifting from reactive to proactive selling [1][4] - The complexity of execution in sales is a significant issue, with companies wasting an estimated $2 trillion due to ineffective GTM strategies, prompting a need for intelligent outbound sales approaches [2][3] - The Copilot Workspace integrates various GTM tools into a single platform, providing sales teams with comprehensive visibility and insights, thereby improving their effectiveness in managing accounts and advancing deals [3][4] Company Overview - ZoomInfo is recognized as a leader in Go-To-Market Intelligence, providing AI-ready insights and advanced automation to over 35,000 companies globally, including Fortune 500 firms [6] - The company emphasizes data privacy and compliance, holding industry-leading certifications for GDPR and CCPA [6] Industry Context - The sales landscape is evolving, with a predicted 25% drop in inbound search traffic by 2026 due to AI-driven customer acquisition strategies, necessitating a shift in demand generation [2] - The average enterprise utilizes 23 different GTM technologies, highlighting the fragmentation in the current sales tool ecosystem [3]

Core Insights - OpenAI, valued at $500 billion, is significantly influencing the stock market despite being privately held, with its announcements affecting various sectors, particularly e-commerce and software [3][6][12] - The company recently partnered with Advanced Micro Devices Inc. (AMD), leading to a 28% surge in AMD's shares, while negatively impacting competitors like Nvidia and Intel [2][3] - OpenAI's upcoming developer conference is anticipated to provide insights into its future plans, which could further affect stock movements in related industries [4][6] E-commerce Impact - OpenAI's introduction of an instant buy option in ChatGPT has positively impacted e-commerce stocks such as Shopify and Etsy [1] - The market's reaction indicates a strong correlation between OpenAI's innovations and the performance of e-commerce companies [1][3] Software Sector Reaction - Software stocks, including Atlassian and DocuSign, experienced declines of over 9% following OpenAI's internal feature announcements, reflecting investor concerns about AI disruption [9][11] - A Goldman Sachs index of software-as-a-service stocks saw a 3.3% drop, marking its worst week in two months [9] Future Developments - Analysts expect OpenAI to diversify its offerings beyond ChatGPT, potentially introducing new consumer AI agents and tools [4][5] - The company is exploring ways to monetize its large user base of over 700 million, as it reported $4.3 billion in revenue but incurred a loss of $2.5 billion in the first half of 2025 [7] Market Sentiment - There is a mixed sentiment regarding the threat posed by OpenAI, with some analysts suggesting that the negative stock reactions may not align with the underlying fundamentals of affected companies [10][11] - OpenAI's influence is expected to grow, with industry experts noting its agility and creativity as factors contributing to its market impact [12][13]

Core Insights - OpenAI, valued at $500 billion, is significantly influencing the stock market despite being privately held, with its announcements affecting e-commerce and software stocks [2][11] - The company is expected to diversify its offerings beyond ChatGPT subscriptions, with potential new consumer AI agents and tools being unveiled at its upcoming developer conference [3][4] Company Developments - OpenAI's recent introduction of an instant buy option in ChatGPT positively impacted shares of Shopify and Etsy [1] - The company reported $4.3 billion in revenue for the first half of 2025 but incurred a loss of $2.5 billion, highlighting the challenges of monetizing its user base of over 700 million [6] Market Reactions - Software stocks, including Atlassian and DocuSign, experienced significant declines, with some falling over 9% following OpenAI's announcements [8] - Despite fears of disruption from AI, some analysts believe the negative stock reactions may not align with the underlying fundamentals of the companies affected [10] Analyst Perspectives - Analysts are closely monitoring OpenAI's developments, with expectations that the company will reveal insights into its future plans at its third annual DevDay [3][5] - There is a consensus that OpenAI's influence will continue to grow, potentially making it one of the most impactful companies in the AI sector [11][12]

Core Insights - There is a significant change in traffic patterns for product-led growth and direct sales companies due to shifts in search engine optimization (SEO) and artificial intelligence (AI) engine optimization [1] Group 1 - Investors are increasingly inquiring about the impact of changing search patterns on companies' go-to-market strategies [1] - The decline in traditional SEO effectiveness is prompting companies to adapt their marketing approaches [2]

Core Insights - The conference has seen increased registration statistics, with a rise of 4% to 5%, exceeding 3,000 registrations, indicating strong interest in AI themes [1] Group 1 - The conference is action-packed and has received a record number of meeting requests, reflecting high client activity and enthusiasm [1] - The participation of various companies in the conference contributes significantly to its content and success [1]

Group 1 - The article emphasizes the importance of caution for investors in the current market, particularly with the S&P 500 reaching record valuation multiples [1] - Stocks retained in investment portfolios should demonstrate high-quality fundamentals to ensure sound investment decisions [1] - The author, Gary Alexander, has extensive experience in technology companies and has been a contributor to Seeking Alpha since 2017, indicating a strong background in industry analysis [1]

Company Performance - ZoomInfo reported quarterly earnings of $0.25 per share, exceeding the Zacks Consensus Estimate of $0.23 per share, and up from $0.17 per share a year ago, representing an earnings surprise of +8.70% [1] - The company posted revenues of $306.7 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 3.37%, compared to year-ago revenues of $291.5 million [2] - Over the last four quarters, ZoomInfo has consistently surpassed consensus EPS and revenue estimates [2] Stock Outlook - The immediate price movement of ZoomInfo's stock will largely depend on management's commentary during the earnings call, as the stock has underperformed the market with a loss of about 2.9% since the beginning of the year [3][4] - The current consensus EPS estimate for the upcoming quarter is $0.25 on revenues of $297.86 million, and for the current fiscal year, it is $0.97 on revenues of $1.2 billion [7] Industry Context - The Internet - Software industry, to which ZoomInfo belongs, is currently ranked in the top 32% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact stock performance [5]

Cautionary Statement Regarding Forward-Looking Statements This statement advises readers about forward-looking information, highlighting inherent risks and uncertainties that could cause actual results to differ materially from projections PART I - FINANCIAL INFORMATION This section provides unaudited consolidated financial statements, management's discussion and analysis, and disclosures on market risk and internal controls [Item 1. Financial Statements (Unaudited)](index=6&type=section&id=Item%201.%20Financial%20Statements%20%28Unaudited%29) This section presents ZoomInfo's unaudited consolidated financial statements for Q2 2025, covering balance sheets, operations, comprehensive income, equity, cash flows, and notes [Consolidated Balance Sheets](index=7&type=section&id=Consolidated%20Balance%20Sheets) This section presents the company's consolidated balance sheets as of June 30, 2025, and December 31, 2024 | Metric | June 30, 2025 (in millions) | December 31, 2024 (in millions) | Change (2025 vs 2024) | | :-------------------------------- | :----------------------------- | :------------------------------- | :-------------------- | | Total Assets | $6,452.8 | $6,467.6 | -$14.8 | | Total Liabilities | $4,900.8 | $4,774.1 | +$126.7 | | Total Stockholders' Equity | $1,552.0 | $1,693.5 | -$141.5 | | Cash and Cash Equivalents | $171.0 | $139.9 | +$31.1 | | Accounts Receivable, net | $192.0 | $246.1 | -$54.1 | | Long-term Debt, net | $1,320.0 | $1,221.8 | +$98.2 | | Common Stock Outstanding | 320,561,651 shares | 342,027,974 shares | -21,466,323 shares | [Consolidated Statements of Operations](index=9&type=section&id=Consolidated%20Statements%20of%20Operations) This section presents the company's consolidated statements of operations for the three and six months ended June 30, 2025 and 2024 | Metric (in millions) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------------- | :------------------------------- | :------------------------------- | :------------------------------- | :------------------------------- | | Revenue | $306.7 | $291.5 | $612.4 | $601.6 | | Gross Profit | $257.2 | $245.6 | $515.6 | $512.3 | | Income (Loss) from Operations | $53.7 | $(20.0) | $104.0 | $23.0 | | Net Income (Loss) | $24.0 | $(24.4) | $50.8 | $(9.3) | | Basic EPS | $0.07 | $(0.07) | $0.15 | $(0.02) | | Diluted EPS | $0.07 | $(0.07) | $0.15 | $(0.02) | - Total equity-based compensation expense decreased by **18%** for the three months ended June 30, 2025 (**$29.7 million**) compared to the same period in 2024 (**$36.4 million**), and by **12%** for the six months ended June 30, 2025 (**$59.3 million**) compared to 2024 (**$67.6 million**)[26](index=26&type=chunk) [Consolidated Statements of Comprehensive Income (Loss)](index=10&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income%20%28Loss%29) This section presents the company's consolidated statements of comprehensive income (loss) for the three and six months ended June 30, 2025 and 2024 | Metric (in millions) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------------- | :------------------------------- | :------------------------------- | :------------------------------- | :------------------------------- | | Net income (loss) | $24.0 | $(24.4) | $50.8 | $(9.3) | | Other comprehensive loss, net of tax | $(1.4) | $(3.0) | $(5.0) | $(2.8) | | Comprehensive income (loss) | $22.6 | $(27.4) | $45.8 | $(12.1) | [Consolidated Statements of Changes in Stockholders' Equity](index=11&type=section&id=Consolidated%20Statements%20of%20Changes%20in%20Stockholders%27%20Equity) This section presents the company's consolidated statements of changes in stockholders' equity for the periods presented | Metric (in millions) | June 30, 2025 | December 31, 2024 | June 30, 2024 | December 31, 2023 | | :-------------------------------- | :------------------------------- | :------------------------------- | :------------------------------- | :------------------------------- | | Total Stockholders' Equity | $1,552.0 | $1,693.5 | $1,862.9 | $2,119.3 | | Common Stock Shares Outstanding (end of period) | 320,561,651 | 342,027,974 | 366,772,027 | 384,830,529 | | Repurchase of Common Stock (6 months) | $(244.3) | N/A | $(299.2) | N/A | | Net Income (6 months) | $50.8 | N/A | $(9.3) | N/A | - The company repurchased **24,474,847 shares** for **$241.3 million** during the six months ended June 30, 2025, compared to **20,423,046 shares** for **$300.5 million** in the same period of 2024[91](index=91&type=chunk) [Consolidated Statements of Cash Flows](index=13&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) This section presents the company's consolidated statements of cash flows for the six months ended June 30, 2025 and 2024 | Metric (in millions) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------------- | :------------------------------- | :------------------------------- | | Net cash provided by operating activities | $228.1 | $242.2 | | Net cash provided by (used in) investing activities | $(43.3) | $44.6 | | Net cash used in financing activities | $(153.3) | $(348.2) | | Net increase (decrease) in cash, cash equivalents, and restricted cash | $31.5 | $(61.4) | | Cash, cash equivalents, and restricted cash at end of period | $180.5 | $394.8 | - Operating cash flow decreased by **$14.1 million (5.8%) YoY**, primarily due to changes in operating assets and liabilities, despite an increase in net income[35](index=35&type=chunk)[281](index=281&type=chunk)[282](index=282&type=chunk) - Investing activities shifted from a net cash inflow of **$44.6 million** in H1 2024 to a net cash outflow of **$43.3 million** in H1 2025, mainly due to increased purchases of property and equipment and new investments[35](index=35&type=chunk)[285](index=285&type=chunk)[286](index=286&type=chunk) - Financing cash outflow significantly decreased from **$348.2 million** in H1 2024 to **$153.3 million** in H1 2025, driven by lower common stock repurchases and proceeds from revolving credit loans[35](index=35&type=chunk)[287](index=287&type=chunk)[289](index=289&type=chunk) [Notes to the Consolidated Financial Statements](index=15&type=section&id=Notes%20to%20the%20Consolidated%20Financial%20Statements) This section provides detailed explanations of accounting policies, financial line items, and other disclosures supporting the consolidated financial statements [Note 1 Business, Basis of Presentation, and Summary of Significant Accounting Policies](index=16&type=section&id=Note%201%20Business%2C%20Basis%20of%20Presentation%2C%20and%20Summary%20of%20Significant%20Accounting%20Policies) This note describes ZoomInfo's business as a go-to-market intelligence and engagement platform, outlines the basis of financial statement presentation, significant accounting policies including revenue recognition, cash and investments, fair value measurements, credit risk, property and equipment, deferred commissions, R&D, business combinations, goodwill, intangible assets, impairment, leases, derivatives, unearned revenue, debt issuance costs, tax receivable agreements, income taxes, equity-based compensation, share repurchase program, and recent restructuring activities - ZoomInfo provides a cloud-based go-to-market intelligence and engagement platform for sales, marketing, operations, and recruiting professionals, offering workflow tools with integrated, accurate, and comprehensive information[40](index=40&type=chunk) - The company primarily derives revenue from subscription services, typically one to three years in length, billed annually, semi-annually, or quarterly in advance, and recognized ratably over the contract term[47](index=47&type=chunk)[48](index=48&type=chunk) - In June 2025, the Company initiated a restructuring plan, reducing employees by approximately **6%** in Q2 2025,