ZoomInfo Technologies (ZI) Morgan Stanley Technology, Media & Telecom Conference summary

Business performance and strategic shifts

• Q4 showed stabilization and improvement, driven by foundational go-to-market changes and innovation with Copilot, as well as strong growth in OperationsOS and SaaS segments, which grew 27% year over year.

• Up-market business now represents 70% of revenue, with a focus on building a healthier, higher-retention customer base and reducing risk in the SMB segment through upfront payment requirements and risk scoring.

• Go-to-market restructuring segmented sales teams by enterprise, mid-market, and SMB, resulting in a higher proportion of up-market deals and improved renewal prospects.

• Operational changes in Q2 2023 and risk-based disqualification of low-quality SMB leads created a $2M/month headwind but improved customer quality and future renewal outlook.

• New business team reoriented in 2024 to focus on up-market, resulting in high 40s% year-over-year growth in up-market new business ACV in Q4.

Product innovation and AI integration

• Copilot, an AI-driven platform, has expanded usage beyond SDRs to account managers, with similar engagement rates, enabling broader persona expansion and seat growth.

• Copilot shifts from a pull to a push platform, integrating CRM and third-party data to deliver prioritized, actionable insights and automate account research, driving efficiency.

• Customers receive real-time, ranked prospect lists and dynamic account briefs, reducing CRM reliance and manual research.

• Copilot adoption has grown ACV from $18M in Q2 to $150M in Q4, with over 90% of new business sales on the Copilot SKU and strong double-digit per seat pricing uplift.

• Persona expansion opportunity is significant, as the account executive and manager universe is three times larger than the SDR base.

Data services and ecosystem integration

• Data as a Service (DaaS) growth is driven by up-market customers seeking centralized, high-quality data for AI initiatives, with improved retention due to dedicated data solutions teams.

• Customers increasingly require enriched, accurate data to power AI agents for go-to-market, leveraging both first- and third-party signals.

• Focus remains on best-in-class point solutions and deep integrations with platforms like SalesLoft, Gong, Outreach, and Clary, rather than full tech stack consolidation.

• Differentiation from OpenAI and similar entrants is based on proprietary data breadth, privacy, and regulatory compliance, especially valued by large enterprises.