Investment Rating - The investment rating for ZoomInfo Technologies Inc is Equal-weight [5]. Core Insights - ZoomInfo announced a ~6% reduction in its global workforce to align resources with its strategy to focus on upmarket customers, expecting to achieve $28 million in annualized savings [1][2]. - The restructuring is anticipated to enhance margin expansion opportunities in FY26, with a potential operating margin of 37.5%-38% [2][3]. - The company expects down-market revenue to decline further, but the overall downside risk to FY25 revenue is viewed as less concerning [2][3]. Summary by Sections Workforce Reduction and Strategy - The workforce reduction is primarily focused on sales representatives servicing down-market customers, allowing for a more efficient growth model targeting larger deal sizes with upmarket clients [1]. - The company plans to flow through the majority of the savings from the workforce reduction, which was included in the guidance provided alongside Q1 earnings [1][2]. Financial Outlook - For FY25, revenue is expected to decline by approximately 1% year-over-year, with down-market revenue projected to deteriorate towards mid to high-teens declines [2]. - The guidance for FY25 margin is set at 35.9%, with expectations for minimal expansion, while FY26 forecasts suggest a margin of 36.6% [2][3]. Valuation and Market Position - The current market capitalization of ZoomInfo is approximately $3.588 billion, with a price target set at $12.00 [5]. - The company operates within the software industry, which is viewed as attractive, indicating a positive outlook for the sector [5].