ZoomInfo Technologies (ZI) Technology Leadership Forum 2026 summary

Financial performance and restructuring

• Delivered $107 million in unlevered free cash flow in Q2, up 7% year-over-year, with improved margins and a strong quarter for large enterprise customer wins.

• Restructured to reduce costs, especially in downmarket sales, and streamlined R&D operations to focus on higher talent and compensation.

• Downmarket business intentionally reduced to 24% of mix, aiming for an 80/20 split long-term, with a shift to product-led growth and less revenue reliance.

• Free cash flow per share is emphasized as the key metric, with a run rate of $1.20–$1.25 per share and expanded capital allocation to share and debt buybacks.

• Comfortable with slight gross margin decline (from 87% to 85%) if offset by higher consumption and profit, maintaining cost discipline.

Product strategy and AI integration

• Embedded AI early into the platform, notably with ZoomInfo Copilot, driving significant ACV and differentiating from competitors.

• Transitioning to a hybrid consumption pricing model, enabling use of data and AI credits across products and via APIs, including integration with external AI platforms.

• Go-To-Market Studio launched with strong Q2 traction, serving as a unified hub for products and supporting flexible credit-based usage.

• New pricing and packaging models to roll out at the end of the quarter, with customer migration planned through 2027, allowing for both seat-based and consumption-based options.

• Willing to serve as either a full-stack solution or a headless data/context layer, adapting to customer needs and expanding monetization opportunities.

Market dynamics and competitive landscape

• Data asset remains a core moat, with proprietary data and context integration seen as key differentiators against new AI startups and lower-cost providers.

• Downmarket competition remains price-driven and commoditized, while upmarket sees more workflow-focused entrants, but data quality is still critical.

• Software vertical now 30% of ACV (down from 40%), with non-software upmarket customers showing stronger growth and retention.

• Software sector faces budget constraints, delayed purchases, and increased build-vs-buy discussions, especially among VC- and PE-backed firms.

• Guidance philosophy is to set achievable targets, supporting a path to growth with the next-gen product suite and blended pricing.