ZoomInfo Technologies Inc.

Good day, and thank you for standing by. Welcome to Zoom Info Third Quarter 2023 Financial Results Conference Call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 1-1 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 1-1 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Jerry Sositsky, Investor Relations. Please go ahead.

Thank you, Amy. Welcome, everyone, to Zoom Info's Financial Results Conference Call for the third quarter 2023. With me on the call today are Henry Shuck, founder and CEO of Zoom Info, Cameron Heiser, our CFO, and James Roth, our Chief Revenue Officer. After their remarks, we open the call to Q&A. During this call, any forward-looking statements are made pursuant to the safe harbor provisions of U.S. securities laws. Expressions of future goals, including business outlook, expectations for future financial performance, and similar items, including without limitation, expressions using the terminology may, will, expect, anticipate, and believe, and expressions which reflect something other than historical facts are intended to identify forward-looking statements. Forward-looking statements involve a number of risks and uncertainties, including those discussed in the risk factor sections of our SEC filings. Actual results may differ materially from any forward-looking statements. The company undertakes no obligation to revise or update any forward-looking statements in order to reflect events that may arise after this conference call, except as required by law. For more information, please refer to the cautionary statement in the slides posted to our investor relations website at ir.zoominfo.com. All metrics on this call are non-GAAP unless otherwise noted. A reconciliation can be found in the financial results press release or in the slides posted to our IR website. With that, I'll turn the call over to Henry.

Great. Thank you, Jerry, and welcome, everyone. While the operating environment remains challenging, we delivered results that exceeded our Q3 guidance. Revenue for the quarter was $314 million, and adjusted operating income was $126 million, a margin of 40%. During the quarter, we repurchased approximately 9 million shares of ZoomInfo stock for $160 million, representing an average purchase price of $18 per share. We are uniquely positioned to capitalize on a tremendous long-term market opportunity, which gives us confidence that buying ZoomInfo stock at these levels will drive a meaningful economic return for our shareholders. Since early last year, we have highlighted the challenges of this operating environment, which include fewer upsells, more seat downsells, and elevated churn levels. As a platform that helps customers grow and one that serves some early cycle industries, we have seen net revenue retention and our overall growth rates come down, as customers have had to rebalance growth and profitability. This is a market phenomenon impacting companies across the spectrum of front office applications and not unique to ZoomInfo. When the cycle ends and we are in a more normalized operating environment, companies will be looking to drive growth and we will continue to be uniquely positioned to help them do just that. In this operating environment, we're committed to controlling the controllable and delivering industry-leading levels of profitability while we invest in our customer success and improve the company for the long term. To that end, we are doubling down on product excellence and customer success, investing in improved ease of use and driving quicker time to value for our customers. These investments have driven a 20% increase in product engagement since the beginning of the year. Customers are using more of the platform more often. We're doing this while prioritizing investments in AI data as a service and marketing OS and building our industry leading data coverage and accuracy across the globe. We've rolled out new pricing and packaging at the low end of the market, enabling us to capture more of the market efficiently while simultaneously growing our contributors. And we announced the number of leadership changes that have flattened the organization and given me the opportunity to get closer to our customers. and how we win them, serve them, and grow them. As part of the leadership changes, James Roth, our Senior Vice President of Sales leading our enterprise customer base, has been promoted to Chief Revenue Officer. Chris Hayes, our Chief Operating Officer, transitioned into the new role of EVP of International Expansion. And Dave Justice transitioned into the new role of Chief Growth Officer. I'm excited that James is here with us on the call today and wanted to give him the opportunity to share a few words. James?