ZoomInfo Technologies (ZI) Piper Sandler 5th Annual Growth Frontiers Conference summary

Product innovation and strategy

• Rapid product innovation continues, with new offerings like Go-to-Market Studio, GTM.AI, and ZoomInfo Copilot expanding the platform's capabilities and flexibility for customers both within and outside the ecosystem.

• A unified application experience is set to roll out later this year, aiming to streamline campaign orchestration and execution for go-to-market professionals.

• Early customer feedback on GTM Studio shows significant traction and month-over-month growth, especially in Q2.

• The company is shifting from a per-seat pricing model to a hybrid consumption model, allowing customers to pre-buy credits for flexible usage across products.

• Credit consumption trends are closely monitored and are showing promising sequential growth, particularly in new and headless product spaces.

Market dynamics and customer segments

• The business is deliberately shifting upmarket, with over 10 points ACV mix moved upmarket in recent years and a record quarter for $100,000+ logo acquisitions in Q2.

• Downmarket business is being made smaller and healthier, now at 24% of mix, with a goal to reach an 80/20 upmarket/downmarket split.

• Operations (DaaS) business represents about 20% of total revenue and is growing at a similar rate, influencing the broader shift away from seat-based models.

• Non-software verticals are performing well, with improved growth retention and healthy upmarket expansion outside the distressed software sector.

Financial performance and capital allocation

• Q2 delivered upside relative to Q1 guidance, despite ongoing weakness in the software vertical and longer sales cycles.

• The company is in the early stages of rolling out the hybrid consumption pricing model, aiming for a 50/50 split between seat and non-seat revenue over time.

• Focus remains on simplicity and reducing barriers for customers adopting the new pricing model.

• Margins continue to improve, with a 37% adjusted operating income margin and an expanded capital allocation approach including share and bond buybacks.

• Strong cash generation provides flexibility for future investments and capital deployment.