ZoomInfo Technologies Inc.

Good day, and thank you for standing by. Welcome to the Zoom Info First Quarter 2025 Financial Results Conference Call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there'll be a question and answer session. To ask a question during the session, you'll need to press star 11 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 11 again. Please be advised that today's conference is being recorded. I would now like to turn the conference over to Jerry Szczeski, Vice President of Investor Relations. Please go ahead.

Great. Thanks, Lisa. Welcome to ZoomInfo's financial results conference call for the first quarter 2025. With me on the call today as we announce our financial results live from the NASDAQ market site in Times Square, are Henry Schutt, founder and CEO of ZoomInfo, and Graham O'Brien, our interim CFO. Earlier today, we rang the closing bell at the NASDAQ, and we announced that tomorrow morning, ZoomInfo will begin trading under the symbol GTM. During this call, any forward-looking statements are made pursuant to the safe harbor provisions of US 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 forward-looking statements in the slides posted to the Investor Relations website at ir.zoominfo.com. All metrics on this call are non-YAP unless otherwise noted, or reconciliation can be found in the financial results press release or in the slides posted to our IR website. And with that, I'll turn the call over to Henry.

Thank you, Jerry, and welcome, everyone. We delivered another consecutive quarter of better-than-expected financial results, continued momentum upmarket, and improved net retention. We dramatically expanded the capabilities of our go-to-market intelligence platform to empower our customers to accelerate revenue growth. ZoomInfo now includes even more sophisticated AI-powered applications and agents with the technology, integrations, and intelligence for go-to-market teams. As we continue to drive innovation in the ways businesses market and sell, today we announced at the NASDAQ that we are changing our trading symbol from ZI to GTM to reflect our commitment to building the core software platform for go-to-market. Much like Workday is synonymous with enterprise HR and ServiceNow for enterprise IT, ZoomInfo will be synonymous with enterprise go-to-market. In Q1 2025, GAAP revenue was $306 million and adjusted operating income was $101 million, a margin of 33%, both above the high end of our guidance. Our shift up market continued on the right path during the quarter. We now have 1,868 customers with more than $100,000 in ACV, a sequential increase of one customer and a year-over-year increase of 108 customers. This is after a period of declines and marks our fourth straight quarter of sequential improvement. In our million-dollar cohort, we drove sequential and year-over-year growth in the total ACV as well as the average ACV per customer. This quarter, we again drove better-than-expected performance upmarket, which grew 3% year-over-year and now represents 71% of our business. With more than 70% of our business growing and accelerating growth, we are increasingly confident in our longer-term growth aspirations. Net revenue retention also improved in the quarter while rounding to 87% for the second consecutive quarter. During the quarter, we closed enterprise opportunities with Lionbridge, Wipro, Integrity Express Logistics, RSM, Sprinklr, Wiz, and Dice Career Solutions. Stripe is now deploying Zoom Info Copilot across more than 300 sellers to increase conversion, win rates, and deal size by leveraging real-time insights. Copilot will deliver better account prioritization, create more opportunities for upsell and cross-sell, and help to close more deals at higher price points. One of the largest food delivery vendors is activating our full go-to-market intelligence platform to support their expansion efforts and extend their reach into international markets. They have deployed thousands of ZoomInfo seats to drive account prioritization and more efficient prospecting, while our strategic account insights improve win rates. And we expanded our relationship with Intuit to become a more strategic partner on their outbound sales motion. We're helping them build durable and repeatable sales plays to mid-market accounts and helping them leverage intent data, implement advanced data tracking, integrate APIs for real-time data management, and build sophisticated audience segments for programmatic advertising. Our traction is powered by the increasing pace of innovation across data, intelligence, and go-to-market AI. Our Copilot product is successfully rolling out into our customer base and accelerating our expansion beyond SDR prospecting into AE and AM use cases. This persona represents a 3X opportunity in our customer base, and Copilot has converted AM and AE users on the platform to be as active as our SDR prospecting user. Earlier today, we launched GoToMarket Studio, to enable revenue leaders and operators to architect their go-to-market with intelligence and AI. The single biggest ask from our customers is to unify all go-to-market data so teams can target, prioritize, and execute in one place. Traditional CRM alone is no longer sufficient to run go-to-market. Critical signals like product usage, marketing engagement, and voice of customer insights sit fragmented across enterprise systems. Revenue teams need this data to effectively target, prioritize, and execute revenue campaigns. There are only two ways to solve this problem in modern GTM, either by building a complete in-house solution with a massive engineering investment, which is inaccessible to nearly all organizations, or by deploying ZoomInfo's best-in-class data platform, which was trained on billions of messy data problems and applying it to solve a customer's internal go-to-market environment. To launch GTM Studio, we expanded our data asset into core enterprise operations use cases running on our technology platform. Built through the successful integration of our acquisitions of Ringlead for data management, Chorus, Conversation Intelligence for unstructured go-to-market data, and SetSale for CRM attribution. This positions us as the only vendor with natively integrated data, orchestration, AI, and frontline execution. GTM Studio is the revenue leader and operator solution to run go-to-market. And then Copilot is the frontline activation that turns campaigns into revenue execution. Over the last two years, we have been fixated on making every sales rep more productive, every campaign more targeted, and every workflow more intelligent. This has resulted in record levels of NPS scores these last two quarters, with enterprise NPS up more than six points year over year in Q1. In our pursuit of this vision, ZoomInfo has become so much more to our customers than just a provider of company and contact lookup information. Our go to market intelligence platform supercharges CRM, giving our customers a living, breathing view of who's in market and where sales resources should be allocated across the entire total addressable market. Beyond sales, we continue expanding across the entire revenue cycle, increasing the number of and types of go to market professionals that use our platform every day. Zoom Info Marketing now generates 80% of its revenue upmarket and plays a key role in bringing sales and marketing into tighter, more strategic alignment on the go-to-market intelligence platform. With expanded workflow management, we're embedding our intelligence deeper into our customers' ecosystems, making their operations more connected, more creative, and more powerful. Our innovation is giving revenue teams the advantage they need to move faster, sell smarter, and win bigger. Our trading symbol change reflects our creation of a new category, go-to-market intelligence. This isn't just a name change. It's a commitment to building the best go-to-market engine for all companies. We're very pleased with our execution and how that has translated into strong financial results. We continue to reallocate resources upmarket where we are accelerating the transition as we successfully drive better growth and profitability outcomes. Today, 71% of our business is growing and accelerating growth with demonstrably better profitability than our downmarket business. We are being very intentional with the downmarket portion of our business as we continue to move our business upmarket and develop solutions that are defining the future of go-to-market. ZoomInfo now does what no other software company does. We unify first and third-party data, insights, and automation and execution to serve the entire go-to-market organization, not just sales, not just marketing, not just RevOps. That's what GTM means. It's not a department. It's the entire revenue engine. And go-to-market intelligence aligns and activates the whole engine in real time. Over the last two years, this is a vision we've been relentlessly focused on, and it's the future of go-to-market. With that, I'll turn over the call to Graham.