ZoomInfo Technologies (NasdaqGS:GTM) FY Conference Transcript

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.