Financial Data and Key Metrics Changes - In Q1 2025, GAAP revenue was $306 million and adjusted operating income was $101 million, representing a margin of 33%, both exceeding the high end of guidance [8][18] - Annualized sequential revenue growth for the quarter was 1.1% and net revenue retention improved to 87% for the second consecutive quarter [18][9] - The company ended the quarter with $143 million in cash and cash equivalents, and carried $1.24 billion in gross debt, with a net leverage ratio of 2.5 times trailing twelve months adjusted EBITDA [24] Business Line Data and Key Metrics Changes - The upmarket segment grew 3% year over year, now representing 71% of the business, while the downmarket segment declined 10% year over year [9][19] - The million-dollar cohort saw sequential and year-over-year growth in total ACV and average ACV per customer [9] - The operations business grew double digits year over year, with data as a service solutions showing strong traction, new logos up 24% year over year, and average ACV per customer up approximately 10% year over year [21] Market Data and Key Metrics Changes - The company reported that 80% of its marketing revenue now comes from upmarket clients, indicating a strategic shift towards higher-value customers [15] - The company is seeing improved retention in the software vertical, with a focus on understanding potential impacts from tariffs and the evolving economic environment [22] Company Strategy and Development Direction - The company is committed to building a go-to-market intelligence platform, changing its trading symbol from ZI to GTM to reflect this focus [7][15] - The launch of Go-To-Market Studio aims to unify go-to-market data and enhance operational efficiency for revenue teams [12][13] - The strategy includes reallocating resources upmarket, which has shown better growth and profitability outcomes compared to the downmarket business [16][20] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the business trajectory, noting no significant impact on customer behavior from the current economic environment, but added caution in guidance due to uncertainty [18][41] - The company anticipates continued growth in the upmarket segment while managing the downmarket business to a smaller, healthier version [19][48] - Management highlighted the importance of leveraging AI and data to drive efficiency and effectiveness in sales teams [30][50] Other Important Information - The company repurchased 8.6 million shares at an average price of $11.05, with an additional $500 million share repurchase authorization approved [22][23] - Operating cash flow was $119 million in Q1, with unlevered free cash flow of $125 million, representing a margin of 41% [23] Q&A Session Summary Question: Why now on the change around the name, the ticker, category? - Management indicated that the platform has expanded to serve a broader range of roles beyond just sales, necessitating the change to reflect the comprehensive solutions offered [27][28] Question: Can you bifurcate NRR by upmarket versus downmarket? - Upmarket retention continues to improve, while downmarket remains impaired but not significantly worse [31][32] Question: What is the growth trajectory for CoPilot? - CoPilot is growing at an expected rate, with significant upmarket deals being closed [35][36] Question: How do you see the downmarket business contracting? - The downmarket business is expected to contract in 2025, with a focus on achieving a healthier mix between upmarket and downmarket [83][84] Question: What is the appetite for M&A versus share buybacks? - The company will be opportunistic with M&A, particularly tuck-in acquisitions, while aggressively reducing share count due to perceived undervaluation [86]

Financial Data and Key Metrics Changes - In Q1 2025, GAAP revenue was $306 million and adjusted operating income was $101 million, representing a margin of 33%, both exceeding the high end of guidance [7][17] - Annualized sequential revenue growth for the quarter was 1.1% and net revenue retention improved to 87% for the second consecutive quarter [17][18] - The company ended the quarter with $143 million in cash and cash equivalents, and carried $1.24 billion in gross debt, with a net leverage ratio of 2.5 times trailing twelve months adjusted EBITDA [24] Business Line Data and Key Metrics Changes - The upmarket segment grew 3% year over year, now representing 71% of the business, while the downmarket segment declined 10% year over year [18][19] - The million-dollar cohort saw sequential and year-over-year growth in total ACV and average ACV per customer [8] - The operations business grew double digits year over year, with data as a service solutions showing strong traction, with new logos up 24% year over year [20] Market Data and Key Metrics Changes - The company reported that 80% of its marketing revenue now comes from upmarket clients, indicating a strategic shift towards larger enterprises [14] - The downmarket business is expected to contract further, with guidance indicating a decline in the high negative teens for 2025 [81] Company Strategy and Development Direction - The company is focused on building a go-to-market intelligence platform, changing its trading symbol from ZI to GTM to reflect this commitment [6][14] - The launch of Go-To-Market Studio aims to unify go-to-market data and enhance operational efficiency across sales and marketing teams [12][29] - The strategy includes reallocating resources from downmarket to upmarket, which is expected to yield better growth and profitability outcomes [15][19] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the trajectory of the business, noting no significant impact from the current economic environment on customer behavior [17][41] - There is a cautious approach in guidance due to broader economic uncertainties, but confidence remains in the upmarket growth potential [24][94] - The company is seeing improved retention rates in the upmarket segment, which is expected to drive future growth [89][110] Other Important Information - The company repurchased 8.6 million shares at an average price of $11.05, with an additional $500 million share repurchase authorization approved [21][22] - Operating cash flow for Q1 was $119 million, with unlevered free cash flow at $125 million, a margin of 41% [22] Q&A Session Summary Question: Why now on the change around the name and ticker? - Management indicated that the platform has expanded to serve a broader range of roles beyond just sales, necessitating a change in branding to reflect this evolution [27][28] Question: Can you bifurcate net revenue retention by upmarket versus downmarket? - Upmarket retention continues to improve, while downmarket remains impaired but stable [31][32] Question: What is the current status of CoPilot's ACV? - CoPilot is growing at an expected rate, with significant upsell opportunities [35] Question: How is the company managing the downmarket business? - The downmarket business is expected to contract further, but management is comfortable with the current trajectory [81][82] Question: What is the appetite for M&A versus share buybacks? - The company will be opportunistic with M&A but is currently focused on share buybacks due to undervaluation [84] Question: How is the company addressing the evolving go-to-market landscape? - The company is leveraging AI and third-party data to enhance its offerings and improve customer engagement [50][105]

Financial Position - The total principal balance outstanding of the First Lien Term Loan was $586.6 million as of March 31, 2025[287]. - The company has a substantial amount of debt, which could adversely affect its financial position and ability to raise additional capital[10]. Interest Rate Risk - A hypothetical increase or decrease in the effective interest rate by 100 basis points would have caused an immaterial corresponding change over the next 12 months[287]. Foreign Operations and Currency Risk - The company has foreign entities in Israel, Canada, the United Kingdom, and India, with sales contracts primarily denominated in U.S. dollars[289]. - The company may use foreign exchange forward contracts to manage foreign currency exchange rate risk[290]. Credit Risk Management - The company manages credit risk by concentrating cash deposits with multiple high-quality financial institutions[292]. Operating Expenses and Profitability - The company anticipates increasing operating expenses in the future, which may affect profitability[10]. Competition and Customer Retention - The company faces competition from other companies and technologies in the B2B sales and marketing intelligence space[10]. - The company may be unable to attract new customers or renew existing subscriptions, which could harm revenue growth[10]. Geopolitical and Macroeconomic Risks - The company is exposed to risks from geopolitical and macroeconomic factors, including global economic uncertainty[18].

Financial Performance - Q1 2025 revenue was $3057 million, a decrease of 1% year-over-year[63] - Q1 2025 adjusted operating income was $1009 million, with a margin of 33%[63] - Q1 2025 unlevered free cash flow was $125 million[10] - The company expects 2025 revenue in the range of $1195 - $1205 billion and Adjusted Operating Income in the range of $426 - $436 million[59] - The company expects Unlevered Free Cash Flow in the range of $420 - $440 million for the full year 2025[59] Customer Metrics - The company has more than 35000 paying customers[37] - The company has 1868 customers with greater than $100K in ACV[10] - Q1 2025 net revenue retention was 87%[10] Strategic Initiatives - ZoomInfo will update its trading symbol on the NASDAQ from 'ZI' to 'GTM' effective May 13, 2025[7] - The board of directors authorized an additional $5000 million share repurchase authorization in February 2025[77] - As of March 31, 2025 there remained $5425 million available and authorized for repurchases[77]

Exhibit 99.1 ZoomInfo Announces First Quarter 2025 Financial Results Vancouver, WA, May 12, 2025 - ZoomInfo, (NASDAQ: ZI) the go-to-market platform to find, acquire, and grow customers, today announced its financial results for the first quarter ended March 31, 2025. "We delivered another quarter of better-than-expected financial results and Upmarket momentum," said Henry Schuck, ZoomInfo Founder and CEO. "We continue to prioritize AI-first solutions, along with our best-in-class signals, data, and insights ...

Core Insights - The previous investment stance on ZoomInfo Technologies (ZI) was a hold rating due to concerns about short-term growth prospects, but recent progress has been noted [1] Group 1: Investment Approach - The investment strategy focuses on long-term investments while also considering short-term opportunities to uncover alpha [1] - The analysis is based on a bottom-up approach, examining the fundamental strengths and weaknesses of individual companies [1] - The investment horizon is medium to long-term, aiming to identify companies with solid fundamentals, sustainable competitive advantages, and growth potential [1]

Core Insights - PathFactory has launched a strategic integration with ZoomInfo to enhance B2B marketers' understanding and engagement with website visitors [2][4] - The integration utilizes ZoomInfo's Reverse IP Lookup technology to provide detailed visitor intelligence, allowing for personalized content experiences [3][7] Company Overview - PathFactory is a content intelligence and personalization platform that helps B2B marketers create tailored content experiences for individual buyers and accounts [6] - ZoomInfo is a Go-To-Market Intelligence Platform that provides businesses with AI-ready insights and trusted data, serving over 35,000 companies globally [8] Integration Benefits - Instant Visitor Enrichment: The integration allows for automatic retrieval of detailed business intelligence on website visitors, identifying engagement opportunities without manual effort [7] - Dynamic Content Personalization: Real-time enriched data enables PathFactory to adjust content experiences instantly, ensuring relevance to each visitor's company profile and interests [7] - Advanced Analytics: Marketers gain insights into content engagement segmented by visitor industry, company size, and geography [7] - Seamless Implementation: The integration requires minimal setup, allowing teams to leverage enhanced visitor intelligence immediately [7]

Group 1 - The technology sector is characterized by constant change, with new trends emerging that can elevate certain startups while causing legacy providers to decline [1] - Gary Alexander has extensive experience in the technology industry, having worked on Wall Street and in Silicon Valley, and has been an adviser to seed-round startups [2] Group 2 - Alexander has been a contributor to Seeking Alpha since 2017 and his insights are widely disseminated across various trading platforms [2]

Core Viewpoint - ZoomInfo Technologies' stock surged 24% following the release of its Q4 2024 financial results, despite a year-over-year revenue decline of 2% [1][2]. Financial Performance - Q4 2024 revenue was reported at $309 million, down 2% from the previous year [2]. - The company added 58 new customers in Q4, each spending $100,000 annually, bringing the total customer count to 1,867 [2]. - For 2025, ZoomInfo anticipates revenue to remain flat at approximately $1.2 billion, consistent with 2024 figures [4]. - Management projects unlevered free cash flow between $420 million and $440 million for 2025, slightly down from $447 million in 2024 [4]. Market Reaction - Analysts upgraded their outlook for ZoomInfo stock due to better-than-expected results, despite guidance indicating flat growth for the upcoming year [3]. - The stock is currently trading at just under 10 times its unlevered free cash flow, suggesting a valuation that reflects prior concerns about continued declines [5]. Investment Considerations - While the stock appears reasonably valued, the ongoing revenue decline and flat growth raise concerns about the company's ability to attract new customers [6]. - The current business model relies heavily on customer acquisition, which poses challenges for ZoomInfo at this time [6].

Wall Street analysts rerated ZoomInfo Technologies Inc ZI after the company reported its fourth-quarter results Tuesday.Needham analyst Joshua Reilly reiterated ZoomInfo with a Buy and a $15 price target.Citizens Capital Markets analyst Patrick Walravens maintained ZoomInfo from Market Perform to Market Perform.Piper Sandler analyst Brent Bracelin upgraded ZoomInfo from Underweight to Neutral and raised the price target from $10 to $11.Also Read: Intuit Sees AI-Driven Growth With TurboTax, Credit Karma: Ana ...