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].

NEW YORK, Nov. 4, 2024 /PRNewswire/ -- The Gross Law Firm issues the following notice to shareholders of ZoomInfo Technologies Inc. (NASDAQ: ZI).Shareholders who purchased shares of ZI during the class period listed are encouraged to contact the firm regarding possible lead plaintiff appointment. Appointment as lead plaintiff is not required to partake in any recovery.CONTACT US HERE:https://securitiesclasslaw.com/securities/zoominfo-technologies-inc-loss-submission-form/?id=110316&from=4 CLASS PERIOD: Nove ...

NEW YORK, Oct. 31, 2024 (GLOBE NEWSWIRE) -- ZoomInfo Technologies (“ZoomInfo” or the “Company”) is a Delaware company headquartered in Vancouver, Washington. ZoomInfo is a subscription-based software company that sells access to its database of information about businesspeople and companies to sales, marketing and recruiting professionals. ZOOMINFO INVESTIGATION ZoomInfo’s express and implied representations governing their “ZoomInfo Lite” (f/k/a “Community Edition”) program guarantees that ZoomInfo will no ...

NEW YORK, Oct. 23, 2024 (GLOBE NEWSWIRE) -- The Gross Law Firm issues the following notice to shareholders of ZoomInfo Technologies Inc. (NASDAQ: ZI). Shareholders who purchased shares of ZI during the class period listed are encouraged to contact the firm regarding possible lead plaintiff appointment. Appointment as lead plaintiff is not required to partake in any recovery. CONTACT US HERE: https://securitiesclasslaw.com/securities/zoominfo-technologies-inc-loss-submission-form/?id=109176&from=3  CLASS PER ...

NEW YORK, Oct. 16, 2024 (GLOBE NEWSWIRE) -- The Gross Law Firm issues the following notice to shareholders of ZoomInfo Technologies Inc. (NASDAQ: ZI). Shareholders who purchased shares of ZI during the class period listed are encouraged to contact the firm regarding possible lead plaintiff appointment. Appointment as lead plaintiff is not required to partake in any recovery. CONTACT US HERE: https://securitiesclasslaw.com/securities/zoominfo-technologies-inc-loss-submission-form/?id=108486&from=3 CLASS PERI ...

NEW YORK, Oct. 14, 2024 (GLOBE NEWSWIRE) -- Levi & Korsinsky, LLP notifies investors in ZoomInfo Technologies Inc. ("ZoomInfo Technologies Inc." or the "Company") (NASDAQ: ZI) of a class action securities lawsuit. CLASS DEFINITION: The lawsuit seeks to recover losses on behalf of ZoomInfo Technologies Inc. investors who were adversely affected by alleged securities fraud between November 10, 2020 and August 5, 2024. Follow the link below to get more information and be contacted by a member of our team: http ...