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.