ZoomInfo Technologies (ZI) Canaccord Genuity 44th Annual Growth Conference & Private Company Showcase 2024 summary

Operational performance and strategic initiatives

• Achieved best net new ARR quarter in a year and increased $100,000 customer cohort for the first time since Q4 2022.

• Saw record performance in enterprise and mid-market segments, with largest new business deal at $1.4 million annually over three years.

• Launched Copilot AI platform, exceeding expectations in both new and existing customer sales, with 75% of Copilot upsells in mid-market and enterprise.

• Stabilized software net retention for the first time since Q4 2021, with improved customer usage and engagement metrics.

• Data as a Service business grew 23% year-over-year, supporting centralized data management and AI initiatives for customers.

Financial controls and risk management

• Escalated write-offs in Q2 due to higher-than-expected non-payment risk in lower-end SMB contracts, fully reserved for in guidance.

• Implemented new risk model in April requiring upfront payment from riskier SMB customers, processing $11 million through this model in the quarter.

• Anticipates continued elevated write-offs in SMB through year-end, with benefits from new controls expected in Q4 and Q1 next year.

• Guidance for Q4 set to flat or slightly negative sequential growth, aiming to rebuild investor trust and set achievable expectations for 2025.

Product innovation and customer impact

• Copilot leverages CRM and proprietary data to identify high-potential accounts and generate tailored outreach messaging using AI.

• Double-digit per-seat price uplift realized from Copilot, with plans to migrate entire customer base over three years.

• Expansion of Copilot to additional customer cohorts as product functionality grows, maintaining value across segments.

• Data as a Service offering addresses data quality issues in customer CRMs and supports efficiency and AI-driven go-to-market strategies.