ZoomInfo Technologies (NasdaqGS:GTM) 2025 Conference December 03, 2025 01:35 PM ET Company ParticipantsHenry Schuck - CEOGraham O’Brien - CFOTaylor McGinnis - Head of SMID-Cap Application SaaS SoftwareTaylor McGinnisOkay, hello everyone. I hope everyone's enjoying the UBS Tech Conference. My name's Taylor McGuinness. I head up the mid-cap application SaaS software space here at UBS, and in this session, we have ZoomInfo's CEO and founder, Henry, and then also CFO, Graham, so Henry and Graham, thank you guys ...

Summary of ZoomInfo Technologies FY Conference Call Company Overview - **Company**: ZoomInfo Technologies (NasdaqGS: GTM) - **Date of Conference**: November 18, 2025 - **Key Speaker**: Graham O'Brien, CFO Key Points Industry and Business Performance - **Stabilization and Improvement**: The past year has shown stabilization in the business, with Q3 marking the beginning of improvement. [4] - **Revenue Growth**: Q3 revenue reached $318 million, representing a 5% year-over-year growth. [4] - **Net Revenue Retention**: Achieved 90% for the first time in several quarters, up from 89%. [4] - **ACV Growth**: Upmarket business ACV growth accelerated from 4% to 6%, while downmarket improved by 1%. [4] Upmarket Focus - **Shift to Upmarket**: The upmarket business now constitutes 73% of total ACV, up from 68% year-over-year. [5] - **Profitability**: The upmarket segment is more profitable than the downmarket segment, with 100% retention in upmarket customers for two consecutive quarters. [5] - **Operations Business Growth**: The operations business, primarily upmarket, is growing at 20% year-over-year and now represents over 15% of total business. [5] Product Development and AI Integration - **Operations Suite**: A data suite that allows customers to access proprietary data on a subscription basis, enhancing their go-to-market strategies using AI. [8] - **Customer Demand for AI**: There is a growing demand for AI-driven go-to-market solutions across various customer segments, with both large and small companies seeking assistance. [10] - **GTM Workspace and Studio**: New products designed to streamline sales processes and enhance productivity by reducing context switching for sales professionals. [21][27] Customer Retention and Renewal - **Copilot Product**: Launched in Q2 2024, showing better renewal outcomes compared to legacy products, with mid to high single-digit percentage improvements. [18] - **Renewal Strategy**: High utilization of products like Copilot leads to better renewal conversations, with customers advocating for continued use and expansion. [52] Financial Outlook - **Free Cash Flow**: The company generates significant free cash flow and has been aggressive in share buybacks, retiring 80 million shares since the program's initiation. [65] - **Future Growth**: Plans to accelerate free cash flow per share growth through top-line growth, margin expansion, and continued buybacks. [66] Market Dynamics - **Sales Hiring Trends**: There is a shift back towards hiring outbound sales personnel, particularly among upmarket customers. [35] - **AI Impact on Sales**: The integration of AI tools is expected to enhance sales efficiency, allowing companies to either increase headcount or improve productivity without additional hires. [33] Investor Sentiment - **Positive Feedback**: Investors expressed surprise and satisfaction with the upmarket acceleration and improvements in downmarket performance. [67] - **Future Expectations**: Investors are keen on understanding the evolution of products like GTM Workspace and the growth potential of the operations business. [67] Additional Insights - **Data Advantage**: ZoomInfo's proprietary data and extensive investment in data acquisition provide a competitive edge over competitors relying on publicly available data. [15] - **AI Action Credits**: Introduction of a consumption-based model for AI actions, allowing customers to pay based on usage, which is expected to become more common in the market. [44] This summary encapsulates the key insights and developments discussed during the ZoomInfo Technologies FY Conference Call, highlighting the company's strategic focus on upmarket growth, product innovation, and financial health.

Core Insights - ZoomInfo's third quarter results exceeded Wall Street's revenue and profit expectations, driven by a transition to larger enterprise customers and the scaling of AI-powered products [1][3] - The company reported a revenue of $318 million, surpassing analyst estimates of $303.8 million, reflecting a 4.7% year-on-year growth [6] - Adjusted EPS was $0.28, beating analyst estimates of $0.26 by 9.5% [6] Financial Performance - Adjusted Operating Income reached $117.7 million, with a margin of 37%, exceeding analyst expectations of $111.7 million [6] - Annual Recurring Revenue (ARR) was reported at $1.25 billion, above estimates of $1.20 billion, marking a 4% year-on-year growth [6] - Operating Margin improved to 21.2%, up from 14.3% in the same quarter last year [6] Customer Metrics - The company has 1,887 customers paying more than $100,000 annually [6] - Billings at the quarter end were $277.6 million, reflecting a 1.7% year-on-year decline [6] Management Commentary - CEO Henry Schuck highlighted the success of proprietary data assets and products like Copilot and GTM Workspace in driving customer engagement and net revenue retention [1] - CFO Graham O'Brien attributed revenue strength to Copilot renewal uplift, large deal wins, and an upmarket shift [6] - Positive early feedback on GTM Studio was noted, particularly regarding unified data management and campaign execution capabilities [6] Guidance and Market Outlook - Revenue guidance for Q4 CY2025 is set at $308.5 million at the midpoint, above analyst estimates of $304.8 million [6] - Full-year Adjusted EPS guidance was raised to $1.05 at the midpoint, indicating a 5% increase [6] - Market Capitalization stands at $3.30 billion [6]