ZoomInfo Technologies (ZI) investor relations material

AI adoption and customer challenges

• Customers initially saw AI productivity gains in support functions but face greater complexity integrating AI into go-to-market and revenue operations due to fragmented data sources and the need for unified, referential B2B data.

• Many organizations are pausing AI initiatives in revenue functions to address foundational data issues, with a shift back to building robust data layers expected by the end of Q4.

• The transition to AI-driven workflows is expected to accelerate as companies realize data, not just AI tools, is the critical missing piece.

Strategic restructuring and business model evolution

• A major restructuring included closing Israel R&D operations and shifting down-market sales from a sales-led to a product-led growth (PLG) model, aiming for a leaner, more agile organization.

• Revenue guidance was revised downward, reflecting down-market restructuring, software sector softness, and a shift from seat-based to consumption-based pricing.

• The company is targeting a 50/50 split between seat-based and non-seat-based (consumption) revenue within 18 months, with non-seat-based business showing higher retention and growth.

Product-led growth and down-market strategy

• Down-market customers will transition to a self-service, lower price point, product-led model, reducing reliance on sales teams and enabling more efficient transactions.

• Disruption in top-of-funnel traffic due to AI and SEO changes has led to new content strategies and digital investments to attract and convert down-market customers.