ZoomInfo Technologies (NasdaqGS:GTM) 2025 Conference Transcript

Summary of ZoomInfo Technologies Conference Call Company Overview - Company: ZoomInfo Technologies (NasdaqGS: GTM) - Event: 2025 Conference on December 03, 2025 Key Industry Insights - Growth Trajectory: ZoomInfo has rebounded to a 5% year-over-year growth over the last two quarters, with Net Revenue Retention (NRR) improving to 90%, up from the mid-80s% [5][6] - Market Positioning: The company is focusing on moving upmarket, which has shown to retain customers at higher rates and grow faster, contributing to a more durable customer base [6][7] Core Business Strategies - Upmarket Focus: ZoomInfo has shifted 10 percentage points of revenue upmarket, with a 6% growth in the upmarket segment last quarter, up from 4% previously [6][7] - AI Integration: The introduction of the Copilot product in May 2024 has led to higher retention rates, with customers using AI functionalities seeing mid to high single-digit improvements in retention compared to legacy products [7][12] - Operations Business Growth: The operations segment is growing at 20% year-over-year and now constitutes 15% of Annual Contract Value (ACV) [9][10] Product Development and Customer Engagement - Copilot Migration: Approximately $250 million of ACV is now attributed to Copilot, with a three-year migration plan from legacy SalesOS to Copilot [12][15] - GTM Studio and Workspace: These products are designed to create a go-to-market AI platform, allowing for better audience targeting and personalized messaging [19][20][21] - Verticalized Data Sets: ZoomInfo is focusing on creating specialized data sets for various industries, enhancing customer engagement and targeting capabilities [46][48] Financial Performance and Projections - Upmarket Growth: Upmarket retention rates have been above 100% for the past two quarters, with a goal to reach 105% to drive overall growth [34][39] - Downmarket Challenges: The downmarket segment has been declining in the low teens, with efforts to make it a smaller, healthier part of the business [36][37] - Revenue Growth vs. Profitability: The company aims to balance revenue growth with improved profitability, leveraging AI products while managing operating expenses effectively [54][55] Customer Trends and Market Dynamics - Demand Shifts: Customers are increasingly hiring outbound Sales Development Representatives (SDRs) to compensate for demand gaps caused by AI and LLMs affecting website traffic [29][31] - Win-back Opportunities: Former customers are returning due to the realization of the importance of data quality, particularly for AI applications [31][32] Conclusion - ZoomInfo is strategically positioning itself for future growth through a focus on upmarket customers, AI integration, and specialized data offerings. The company is optimistic about its ability to enhance revenue growth while maintaining profitability, despite challenges in the downmarket segment.