ZoomInfo Technologies Inc. Discusses Growth Strategy and Product Innovations at Bank of America Global Technology Conference 2025

Key Takeaways

TL;DR: ZoomInfo (now trading under GTM) is rebranding to emphasize its full-scale Go-To-Market intelligence platform while strategically shifting resources to grow its high-retention upmarket biz, drive significant growth via AI-powered Copilot and DaaS, and expand FCF through margin expansion and buybacks.

• TICKER & BRANDING
  • Ticker Change: Rebranded from ZI to GTM ~2.5 weeks ago to reflect the co’s evolution from a contact data provider to a comprehensive Go-To-Market intelligence platform.
  • Message: The change serves as an efficient marketing campaign to shift market perception toward advanced sales, marketing, talent, and ops solutions.
  • GROWTH ALGORITHM & RETENTION
  • Net Dollar Retention (NRR): Currently at 87% in Q1, up slightly from Q4 and prior 85% levels. Mgmt aims to push NRR into the 90s, critical for achieving low-to-mid SD annual growth.
• Upmarket vs. Downmarket:
  • Upmarket: Defined as cos w/ 100+ employees, accounting for 71% of biz now w/ targeted growth to 75%-80% over the next 2–5 years. These customers boast higher renewals (mid-90s to 100–105%) and better long-term value.
  • Downmarket: Customers w/ ≤99 employees; deliberate resizing is underway w/ a focus on efficient, product-led acquisition to support the broader data network.
• DaaS (DATA AS A SERVICE)
  • Model & Growth:
    • Operates on a data cube pricing model, where subscription fees depend on the volume of data records managed.
    • The DaaS offering is one of the fastest-growing products, +20% YoY and now represents over 10% of the biz compared to a year ago.
  • Expansion Oppt'y:
    • Emphasizes a land and expand strategy—driving value expansion within existing clients and cross-selling to non-DaaS ZoomInfo customers.
    • Increasing demand for third-party data integration to support internal AI initiatives.
• COPILOT & AI INTEGRATION
  • Adoption & Use Case:
    • Copilot adoption has been described as a “rocket ship” driven by solving pain points like scattered data and cumbersome workflows.
    • It shifts from a pull to an intelligent push model, providing daily “best next actions” for sales and account mgmt by blending third-party and first-party data.
  • Competitive Differentiation:
    • Agentic AI: Offers a unique, integrated platform distinct from standard CRM agents by supporting outbound, full-cycle sales and account mgmt applications.
    • Internal Adoption: ZoomInfo’s own teams are heavy users, w/ significant increases in account mgmt efficiency—highlighting its potential as an efficiency tool for clients.
• SALES & PIPELINE STRATEGY
  • Sales Compartmentalization:
    • New segmentation: enterprise account execs focus exclusively on upmarket deals, while downmarket teams handle high-volume, high-velocity customers.
    • Reallocation of sales capacity supports longer, deeper sales cycles in the upmarket, reinforcing improved retention and overall growth.
  • Pipeline Trends:
    • Seasonality: Pipeline peaks in Q2 and Q4, driven by structured go-to-market initiatives and aligned w/ major conference seasons (e.g., Oct–Nov).
• FREE CASH FLOW & MARGIN EXPANSION
  • FCF Guidance:
    • Co guided to generate ~$430M in unlevered FCF in 2025, w/ ~$325M–$350M available after financing (approx. 45% cash interest).
  • Growth Levers:
    • Strategies: Top-line growth, expansion of OP margins (targeting mid- to high-30s%), and aggressive share buybacks to enhance levered FCF per share.
• COMPETITION & MARKET POSITION
  • Competitive Landscape:
    • In the downmarket, competition exists from lower-cost, lower-quality providers, but head-to-head comparisons are less relevant in the upmarket where customers prioritize data quality, AI integration, and data privacy.
  • Key Differentiators:
    • The tech and compliance investments set ZoomInfo apart, esp. among large enterprise customers less sensitive to pricing but demanding robust, integrated solutions.
• OTHER NOTES
  • TRAs (Tax Receivable Agreements):
    • Explained as a liability arising from the deferred tax asset following the C Corp conversion; details are available in the latest 10-Q.

Overall, the discussion emphasized a strategic realignment of resources toward higher-quality, upmarket clients supported by innovative AI and data solutions, reinforcing a path to improved growth, profitability, and sustained FCF generation.

Call Q&A

• Koji Ikeda: What does ZoomInfo do and what opportunities are you looking at?
  • Michael O'Brien: ZoomInfo is a go-to-market intelligence platform that combines best-in-class data and AI-powered tech to help businesses find the right buyer at the right time, accelerating customer acquisition and expansion.
• Koji Ikeda: Why did you change your ticker from ZI to GTM?
  • Michael O'Brien: We changed the ticker to GTM to reflect our identity as a Go-To-Market intelligence platform and to efficiently market our expanded capabilities beyond just being a contact data provider.
• Koji Ikeda: How do you think about the growth algorithm and long-term growth rate for ZoomInfo?
  • Michael O'Brien: We aim to improve NRR to the 90s, achieve low to mid-SD annual growth, and maintain stable OP margins in the mid- to high 30s, aiming for a Rule of 40 co.