Financial Performance - GAAP revenue for Q4 2024 was $309.1 million, a decrease of 2% year-over-year[5] - GAAP operating income for Q4 2024 was $30.9 million, representing a 56% decline year-over-year[7] - Full-year 2024 GAAP revenue totaled $1,214.3 million, also a decrease of 2% year-over-year[9] - Adjusted operating income for FY 2024 was $428.5 million, a decrease of 14% year-over-year[9] - Total revenue for Q4 2024 was $309.1 million, a decrease of 2.1% from $316.4 million in Q4 2023[30] - Income from operations (GAAP) for Q4 2024 was $30.9 million, down from $70.5 million in Q4 2023, with a total for the year of $97.4 million compared to $259.5 million in 2023[43] - Adjusted Operating Income (Non-GAAP) for Q4 2024 was $115.9 million, a decrease from $126.5 million in Q4 2023, with a total for the year of $428.5 million compared to $498.6 million in 2023[43] - Revenue (GAAP) for Q4 2024 was $309.1 million, slightly down from $316.4 million in Q4 2023, with total revenue for the year at $1,214.3 million compared to $1,239.5 million in 2023[43] - Adjusted Net Income (Non-GAAP) for Q4 2024 was $93.6 million, down from $102.1 million in Q4 2023, with a total for the year of $363.8 million compared to $413.1 million in 2023[48] - Net income (GAAP) for Q4 2024 was $14.6 million, recovering from a loss of $5.5 million in Q4 2023, with total net income for the year at $29.1 million compared to $107.3 million in 2023[48] Customer Metrics - The company reported a net revenue retention rate of 87% as of December 31, 2024[5] - The company closed Q4 2024 with 1,867 customers with annual contract values of $100,000 or greater, an increase of 58 from the prior quarter[5] - Sales teams using ZoomInfo reported a 91% improvement in connect rates and booked 55% more meetings per month[5] Guidance and Expectations - For Q1 2025, the company expects revenue between $294 million and $297 million[11] - Full-year 2025 revenue guidance is set between $1.185 billion and $1.205 billion[11] Operating Expenses and Profitability - Operating expenses increased to $225.0 million in Q4 2024, compared to $201.3 million in Q4 2023, marking an increase of 11.8%[30] - Operating Income Margin (GAAP) for Q4 2024 was 10%, down from 22% in Q4 2023, with a total margin for the year at 8% compared to 21% in 2023[43] - Adjusted Operating Income Margin (Non-GAAP) for Q4 2024 was 37%, down from 40% in Q4 2023, with a total margin for the year at 35% compared to 40% in 2023[43] Cash Flow and Assets - Cash and cash equivalents decreased to $139.9 million at the end of 2024, down from $447.1 million at the end of 2023, representing a decline of 68.8%[32] - Total assets decreased to $6,467.6 million in 2024, down from $6,868.3 million in 2023, a reduction of 5.8%[28] - Total liabilities increased slightly to $4,774.1 million in 2024, compared to $4,749.0 million in 2023, an increase of 0.5%[28] - Unlevered Free Cash Flow for the twelve months ended December 31, 2024, was $446.9 million, a decrease of 3.6% from $463.5 million in 2023[38] - The company reported a net cash provided by operating activities of $369.4 million for the twelve months ended December 31, 2024, down from $434.9 million in 2023, a decrease of 15%[32] Equity and Compensation - ZoomInfo repurchased 46,801,742 shares of common stock, accounting for 12% of total shares outstanding, at an average price of $12.01, totaling $562.3 million[5] - Equity-based compensation expense totaled $138.0 million for the twelve months ended December 31, 2024, compared to $167.0 million in 2023, a decrease of 17.4%[30] - Equity-based compensation expense for Q4 2024 was $33.8 million, down from $40.7 million in Q4 2023, with total expenses for the year at $138.0 million compared to $167.6 million in 2023[48] Restructuring and Expenses - Restructuring and transaction-related expenses for Q4 2024 were $34.6 million, significantly higher than $0.4 million in Q4 2023, with total expenses for the year at $101.6 million compared to $10.3 million in 2023[48]

Core Viewpoint - Bragar Eagel & Squire, P.C. is investigating potential claims against ZoomInfo Technologies Inc. due to a class action lawsuit alleging breaches of fiduciary duties by the board of directors during a specified class period [1] Company Overview - ZoomInfo is a software and data company that provides customer contact and business information to its clients [2] Class Action Allegations - The class action lawsuit claims that ZoomInfo made false or misleading statements and failed to disclose critical information, including: - Financial results were temporarily inflated due to COVID-19, leading to pulled-forward demand [3] - Significant portions of the customer base were reducing or abandoning the use of ZoomInfo's products [3] - Use of manipulative auto-renew policies and threats of litigation to retain customers against their will [3] - Coercive retention tactics damaged customer relationships and created a hidden demand cliff for future renewals [3] - Reported revenues and customer metrics were materially overstated as a result of these practices [3] Financial Performance and Stock Impact - On November 1, 2022, ZoomInfo reported increased customer scrutiny during contract renewals, leading to a decline in Remaining Performance Obligations (RPOs) to $979 million from $985 million, causing a stock price drop of over 29% [4] - On November 16, 2022, continued scrutiny negatively impacted revenue growth for fiscal year 2023, resulting in a stock price decline of approximately 17% [5] - On July 31, 2023, ZoomInfo reported a decline in customers with annual contract values over $100,000 and reduced annual revenue guidance by $50 million, leading to a stock price drop of about 28% [6] - On May 7, 2024, a decline in Net Revenue Retention (NRR) to 85% from 87% was reported, along with a revenue guidance reduction, causing a stock price fall of more than 24% [7] - On August 5, 2024, ZoomInfo announced a $33 million charge due to non-payments and a new risk model requiring upfront payments, further reducing revenue guidance by $65 million, resulting in an 18% stock price drop [8]

Core Insights - ZoomInfo partners with Telmai to enhance data quality monitoring across its data ecosystem, utilizing machine learning for proactive management and integration with open table formats [2][3][4] Group 1: Partnership and Technology - Telmai is an AI-powered data observability platform that will help ZoomInfo manage data integrity and quality at scale [2][7] - The integration aims to improve customer experience through full-volume data quality monitoring, automated anomaly detection, and streamlined remediation workflows [4][6] Group 2: Data Management and Operations - ZoomInfo processes over 1.5 billion data points daily for over 35,000 businesses, necessitating high accuracy and timely delivery to maintain customer trust [3] - The company’s data is distributed across various platforms, including Snowflake, BigQuery, S3, and GCS, which require effective monitoring solutions [4] Group 3: Implementation and Efficiency - Telmai's user-friendly interface allows for quick adoption by ZoomInfo's teams, reducing setup time from weeks or months to just minutes [5] - During the pilot phase, Telmai's anomaly detection identified issues among billions of data points, enabling rapid response and resolution [6]

Group 1 - Michael Wiggins De Oliveira is an inflection investor, focusing on buying undervalued companies at pivotal moments when their profitability is expected to improve significantly over the next year [1] - The investment strategy emphasizes technology and the Great Energy Transition, including uranium, with a concentrated portfolio of approximately 15 to 20 stocks and an average holding period of 18 months [1] Group 2 - Michael has over 10 years of experience analyzing companies in the tech and energy sectors, and has built a following of over 40,000 on Seeking Alpha [2] - He leads the investing group Deep Value Returns, which offers insights through a concentrated portfolio of value stocks, timely updates, weekly webinars for live advice, and support for both new and experienced investors [2]

Core Viewpoint - The stock market is currently near all-time highs, and individual stock selection is becoming increasingly important, with expectations of a 10-15% correction in the S&P 500 [1] Group 1: Market Analysis - The S&P 500 is anticipated to experience a correction of 10-15%, indicating potential volatility ahead [1] - The importance of individual stock selection is emphasized as the market fluctuates [1] Group 2: Analyst Background - Gary Alexander has extensive experience in covering technology companies and has worked in Silicon Valley, providing insights into current industry themes [1] - He has been a contributor to Seeking Alpha since 2017 and has been featured in various web publications, indicating a strong presence in the investment community [1]

Financial Data and Key Metrics Changes - GAAP revenue for Q3 2024 was $304 million, and adjusted operating income was $112 million, both exceeding the high end of previous guidance [8][18] - Unlevered free cash flow for the quarter was $111 million, up 17% year-over-year, with a margin of 36% [8][24] - Net revenue retention (NRR) stabilized at 85% for the third consecutive quarter [7][19] Business Line Data and Key Metrics Changes - The $100,000 customer cohort grew by 12, marking the second consecutive quarter of sequential growth, now representing 44% of annual contract value (ACV) [9] - The enterprise ACV, which constitutes approximately 41% of the business, grew 1% sequentially [20] - Copilot surpassed $60 million in ACV during the quarter, exceeding expectations [22] Market Data and Key Metrics Changes - The operations business increased by 22% year-over-year, indicating strong momentum in helping companies leverage AI [22] - The advanced functionality of products increased to 38% of the overall business in Q3, up from 35% in Q2 [22] Company Strategy and Development Direction - The company is focused on enterprise growth and driving customer outcomes with Copilot, aiming for long-term value creation through growing levered free cash flow per share [16] - A conservative approach to guidance is expected as the company navigates the transition in the SMB segment [17][26] - The company plans to disqualify more high-risk small business transactions to improve revenue quality and reduce write-offs over time [18][37] Management's Comments on Operating Environment and Future Outlook - Management noted stabilization in various business areas and early signs of growth, particularly in the enterprise segment [19] - The company is optimistic about the trajectory of NRR, especially in mid-market and enterprise segments, while being cautious about SMB [69][71] - Management emphasized the importance of high-quality data for building effective AI solutions, positioning the company favorably in the market [76][81] Other Important Information - The company retired 24 million shares, approximately 7% of total shares outstanding, as part of a share repurchase program [8][23] - Operating cash flow was $18 million in Q3, with a significant restructuring of real estate agreements expected to save over $100 million going forward [24] Q&A Session Summary Question: Demand environment and retention trends - Management indicated strong demand in the upmarket, particularly for Copilot, while the SMB segment remains challenged [29][30] Question: Free cash flow growth and revenue recovery - Management stated that top-line growth is prioritized for free cash flow growth, with margin expansion as a secondary lever [32] Question: SMB dynamics and charge-offs - Management clarified that charge-offs from Q2 did not persist into Q3, and disqualification of high-risk SMB transactions is expected to create a growth headwind [36][37] Question: Operational margin improvements - Management noted that operational margin is expected to improve, with a focus on levered free cash flow per share growth [40] Question: Copilot adoption and deal sizes - Management reported double-digit growth in average deal sizes for customers migrating to Copilot [41] Question: Data as a service momentum - Management confirmed strong momentum in the data as a service business, growing 22% year-over-year [47] Question: Exit growth rate and positive drivers for 2025 - Management highlighted growth in the enterprise business and improving retention in mid-market as key positive drivers [50][51] Question: Copilot's competitive advantage - Management expressed confidence in Copilot's foundation built on high-quality data, which is essential for effective go-to-market AI solutions [76][81]

Summary of Key Points Core Viewpoint - ZoomInfo reported quarterly earnings of $0.28 per share, exceeding the Zacks Consensus Estimate of $0.22 per share, and showing an increase from $0.26 per share a year ago, representing a 27.27% earnings surprise [1] Financial Performance - The company achieved revenues of $303.6 million for the quarter ended September 2024, surpassing the Zacks Consensus Estimate by 1.39%, although this is a decrease from $313.8 million in the same quarter last year [2] - Over the last four quarters, ZoomInfo has exceeded consensus EPS estimates three times and topped consensus revenue estimates three times as well [2] Stock Performance and Outlook - ZoomInfo shares have declined approximately 31.6% since the beginning of the year, contrasting with the S&P 500's gain of 25.8% [3] - The company's future stock performance will largely depend on management's commentary during the earnings call and the revisions of earnings estimates [3][4] Earnings Estimates - The current consensus EPS estimate for the upcoming quarter is $0.23 on revenues of $297.3 million, and for the current fiscal year, it is $0.88 on revenues of $1.2 billion [7] - The estimate revisions trend for ZoomInfo is mixed, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market [6] Industry Context - The Computer - Integrated Systems industry, to which ZoomInfo belongs, is currently ranked in the bottom 43% of over 250 Zacks industries, suggesting potential challenges ahead [8] - The performance of stocks in this industry can be significantly influenced by the overall industry outlook [8]

| --- | --- | |------------------------------------------------|-------| | | | | | | | | | | Investor Overview Q3 2024 Financial Results | | | November 12, 2024 DATE | | Q3 2024 EARNINGS CALL > SAFE HARBOR STATEMENT Forward-Looking Statements This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. Forward-looking statement ...

Revenue and Customer Metrics - ZoomInfo's net revenue retention rate was 85% as of September 30, 2024, indicating a focus on expanding customer relationships [221]. - As of September 30, 2024, ZoomInfo had 1,809 customers with over $100,000 in annual contract value (ACV) [221]. - Revenue for the three months ended September 30, 2024, was $303.6 million, a decrease of $10.2 million, or 3%, compared to $313.8 million for the same period in 2023 [254]. - Revenue for the nine months ended September 30, 2024, was $905.2 million, a decrease of $17.9 million, or 2%, compared to $923.1 million for the same period in 2023 [269]. - The company reported unearned revenue of $419.2 million as of September 30, 2024, with $417.0 million expected to be recognized as revenue in the next 12 months [307]. Financial Performance - Gross profit for the three months ended September 30, 2024, was $256.3 million, representing a gross margin of 84%, down from $269.0 million and 86% in the same period of 2023 [256]. - Net income for the three months ended September 30, 2024, was $23.8 million, a decrease of $6.4 million, or 21%, compared to $30.2 million for the same period in 2023 [268]. - Gross profit for the nine months ended September 30, 2024, was $768.6 million, a decrease of $20.6 million or 3% compared to $789.2 million for the same period in 2023, maintaining a gross margin of 85% [271]. - Net income for the nine months ended September 30, 2024, was $14.5 million, a decrease of $98.3 million or 87% from $112.8 million in 2023 [284]. - Adjusted Operating Income for the three months ended September 30, 2024, was $111.7 million, representing a decrease of $14.5 million or 11% from $126.2 million in 2023, with an Adjusted Operating Income Margin of 37% [294]. - Adjusted Net Income for the three months ended September 30, 2024, was $103.7 million, representing a decrease of $1.3 million, or 1%, from $105.0 million in the same period of 2023 [298]. Expenses and Costs - Operating expenses for the three months ended September 30, 2024, were $212.8 million, an increase of $6.9 million, or 3%, compared to $205.9 million for the same period in 2023 [257]. - Cost of service for the nine months ended September 30, 2024, was $136.6 million, an increase of $2.7 million, or 2%, compared to $133.9 million for the same period in 2023 [270]. - Sales and marketing expenses for the three months ended September 30, 2024, were $99.1 million, a decrease of $3.3 million, or 3%, compared to $102.4 million for the same period in 2023 [258]. - General and administrative expenses for the three months ended September 30, 2024, were $60.6 million, an increase of $10.1 million, or 20%, compared to $50.5 million for the same period in 2023 [260]. - Research and development expenses for the three months ended September 30, 2024, were $47.7 million, an increase of $0.1 million, or less than 1%, compared to $47.6 million for the same period in 2023 [259]. Cash Flow and Financing - Net cash provided by operating activities for the nine months ended September 30, 2024, was $260.4 million, down from $306.1 million in the same period in 2023 [309]. - The company experienced a net cash decrease of $299.6 million for the nine months ended September 30, 2024, compared to an increase of $28.4 million in the same period in 2023 [309]. - Net cash used in financing activities for the nine months ended September 30, 2024, was $596.8 million, mainly due to common stock repurchases of $542.6 million [318]. - As of September 30, 2024, the company had $147.7 million in cash and cash equivalents and $250.0 million available under its first lien revolving credit facility [305]. Strategic Initiatives - The company plans to continue investing in research and development to enhance its platform and develop new software products [238]. - The company aims to grow its customer base while optimizing the profile of those customers and the go-to-market channels used to attract them [219]. - The company expects to continue pursuing acquisitions, although the magnitude and frequency of such acquisitions cannot be predicted [315]. Debt and Leverage - As of September 30, 2024, the total contractual maturity of outstanding indebtedness was $1,239.6 million, with a net contractual maturity of $1,083.0 million after accounting for cash and cash equivalents [326]. - The total net leverage ratio to Adjusted EBITDA as of September 30, 2024, was 2.3x, with Adjusted EBITDA for the trailing twelve months at $461.6 million [325]. Risk Management - The company has implemented a hedging strategy to mitigate interest rate risk through derivative instruments [342]. - The company initiated a foreign currency hedging program in the second quarter of 2024 to mitigate potential adverse effects from significant currency movements [345]. - The company manages credit risk by concentrating cash deposits with multiple high-quality financial institutions [348].

Exhibit 99.1 ZoomInfo Announces Third Quarter 2024 Financial Results Vancouver, WA, November 12, 2024 - ZoomInfo, (NASDAQ: ZI) the go-to-market platform to find, acquire, and grow customers, today announced its financial results for the third quarter ended September 30, 2024. "We continued our move up-market, fueled by ZoomInfo Copilot and Operations growth, and we delivered strong financial results while improving the quality of new customers that we are bringing in. The entire company is more focused than ...