ZI - Earnings call transcript Q3 2020 | ZoomInfo Technologies Inc.

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Operator

Ladies and gentlemen, thank you for standing by, and welcome to the ZoomInfo Third Quarter 2020 Financial Results Conference Call. At this time all participants lines are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised that today’s conference is being recorded. [Operator Instructions] I would now like to hand the conference over to your speaker today, Jerry Sisitsky. you. Thank sir. ahead, go Please

Jerry Sisitsky

call, forward-looking and Gigi. remind we Welcome our With conference highlighting a pursuant Litigation I'd Officer. and Schuck, provisions financial on Act Hyzer, facts statements. session. reflect identify and which our future any question-and-answer made and of Chief including, participants open to limitation, the expectations than of for are other the the that ZoomInfo's of similar Financial during intended something CEO Henry results are XXXX. to harbor are their the safe performance without outlook, expressions call results of statements third this to Expressions ZoomInfo; future and business the Private Cameron all remarks, call Reform conference forward-looking goals, After today Thanks, to historical will Founder using will quarter believe me to expressions financial like items of call may, for the Securities including XXXX. terminology

statements. obligation a Factors update order number Risk except including company forward-looking discussed materially uncertainties conference those required of may the reflect any and to no or that statements Actual call, risks as the differ from forward-looking involve after events law. filings undertakes this results of in SEC. to our section arise revise statements with in The any Forward-looking may by

to I'll Investor that press call Henry A the release statement to are turn we Investor in our Relations call metrics financial cautionary website. reconciliation For can otherwise have on Relations in or All the ir.zoominfo.com. results slides we that, be unless more at discussed have non-GAAP information, the refer please found to the noted. Schuck. website CEO, over included that With the posted slides our our to posted this in

Henry Schuck

everyone. Great, and thank you, welcome Jerry,

our we cash quarter. of team than the achieved our up data more full growth the organic insights we're has our seeing including new $XXX,XXX Because to ever customers sales, that operating quarter record over QX, year-to-date year. over all ever areas the of guidance unlevered from strength adjusted with free modernized margin, are ZoomInfo's flow. delivered and have in million adopting last raising stepped spending and Out go-to-market last delivered across high and new platform. XX% motions operating quarter we by adjusted In XX% record us, we for a up customers levels year, income This in most business, their the for watermark $XXX of the a year quarterly a financial engagement XX%

in a to adoption types including continued a to XX% engage saw transform offerings The in XX% increase that increase record years motion adoption rates, we've to data experienced and started of multi-channel channel increase levels. single and In record we product, digital platform selling. few product. we of high all adoption and in of of engagement business InboxAI As customers from a analog our move our FormComplete the insights capabilities, to product business continues at quarter, our our last with intent our the in enhance XX%

on buying contact platform, directly prospects monitor executing By outlier get them. drive end The – and marketers using performances able the a cycle with ZoomInfo and of their with platform in to unpredictable their thousands information are prospects, more sellers approach our heroic closed a leading to real-time, companies, best to seamlessly data-driven loop powers vision data predictable on from ZoomInfo and reliant teams our on on focused orchestration. organization. scalable day-to-day signals less delivers decision of identify direct go-to-market Our target insights engage ranked market and are activities One where consistently go-to-market and that's platform dependent data their action. for target

We market. $XX a long-term with total total to growth to a as more rare we profitability. of what than flight see the combination now drive increased both see And innings opportunity opportunity very that market continue durable meaningful early addressable corporate a billion we are in initiatives in of and

of to During provider packaging on a companies distributor and we the a molded who transportation in solution. recycling Green the and does risk fiber to services grow from platform XX% leader and QX best ACV and management and of software signed of any the Be land residential use business Echo Packaging, benefits also services. side. Group, Restore, industries. was our industries Horton outside companies size quarter, a In can new ZoomInfo industry of advisory of plastics to the deals an a diverse quarter quarter, the and waste Recycling, RoadRunner do commercial our any business. to was Global publicly Logistics, their with the set traded in From ServiceMaster and BXB from restoration expand services, employee insurance, generated Plastics, service, firm Total and

within our that on control on enterprise, capitalize M&A the strength increases designed speed, and transparency, a fortifies momentum our our to in and to $XXX,XXX sales than added those customers. within to in investing features more executing Our in provide more host data existing ACV security, us. To with and ACV now. I'll of our or and on all our than administrative reach our by new To we greater released core more team moat enterprise has our than customers customers our robust by customers within our XXX organization. new attract with and ever greater history we $XXX,XXX marketing reinforce expand of than areas platform, assets customers, cohort now competitive touch continue spending scalability, our

business directly we those changes. of to initiatives, part users As track These enhance platform. allow our our by embedding layer greatly into analytics intelligence dashboards real-time

the of a and platform new ROI or views ZoomInfo. Marketing and helps communicate clear engagement. detailed APIs analytics making ongoing that Automation in are value give to solutions platforms by provide CRM provided This capability Our administrators enrichment customer's to clearly analytics usage and

have the learning ensure machine the On and products and we and our continue customers accurate access phones sales QX, investments quarter, validated by fill we've to XX% increased over enjoy launched data talked extremely of their we professional sales busy. differentiate XX%, through in while end on profiles at by about From data. sales side, by of XXXX dialer, we more customers. next Over dataset offering industry's direct maximize simultaneously comprehensive that year built-in designed million quality. and since to email Those AI data we and using addresses perspective, workflows. and QX. all last XX% at a teams been with to prospects In to an how platform data most have for grown productivity activating sales also technologies a invest XXX the users automated automation beginning email than step the of engagement engaging data clear Engage, our help end Engage a increasing to the from have have rates million and the period, to our XXX manage

this help in estimated and beyond, $X be and our TAM XXXX Although we associated we total to with increase around by drive is material XXXX, to leading in do it revenue don't XXXX expect at it will portion believe an of growth our the market incremental addressable billion in a market.

more designed also easier to new and company of enterprises. use, hundreds the to Quick our it's improvements experience with, of alerts features needs Search, the of make our to of QX released redesigns but improvements In significantly largest in This design our platform to to addition a data to started we more able and and homepage. profile scalable and meet to Engage, launching the limited not mobile our process contact

experience We prospects a and types content and a users of making customers. retention our the product their in core that rates delivers value, from stickier providing better greater target a pay customers. added to real-time give consume dividends upsells We to believe to and also proprietary on and our investments our intelligence feed by higher offerings actionable leading place these customer

Today first released of with activated the users customers to sales bi-directional from solve integration unify a platform to systems all third-party integration force common for force data our new data also their than the go-to-market sources. systems. sales form of go-to-market challenge have big need with teams, help search. We we more that, tackle To ZoomInfo's allowing unify capability, some ZoomInfo and their CRM XX%

and Crowd and All consumed verification, platform drive efforts, to In five data grids today for account of number placing QX, its are to best-in-class over of a appearing fall one from that platform for three GX testament These where XX platform last on on our is have the have and the the market gone expand innovate, support customers. to to grids released migration identification grids new GX helped on the email ability on In grids. the more ZoomInfo visitor was listed have work XX sales products years, has platform on knocked that legacy our assistance, lead mining XX% we rapidly in them. platform. ACV appearing unnoticed. of time our enhancements our and management, value our we where release first to This AI

a from We have renewal the cycles, early tremendous still like half migrating But initial consistently coverage seen we've the with customers our cohort of depth customers historically. functionality of space. and first the adding see platform customers customers like functionality to a additional once activity white indications users. of are seen new the when better more and basis. new platform accounts, very features are And expansion on embrace improved for the the our on platform, that migrating new Within than new a on what modest while even we uplift in than

to into customers we in data incremental upsell that enterprise billion far doubled indicates spend, represented than existing annual our that almost even into our by that grow so cohort taking $X this opportunity more year. have an account Our

In the on progress the eclipsed the continue notifying data mark. by and we of mailable on every to year, database recently XX% make end our terms of privacy, professional

we and that Certification announced recently demonstrating expectations TRUSTe Seal to privacy the data our needs to and have growing commitment also security We the Enterprise our customers. of received Privacy

we acquisition execute our on us a product perspective, QX. in Finally, close enabling the acquisitions early QX, EverString of from strategy, in Clickagy to to and continue

discuss successful and to acquisition, I'll M&A plan speaking to each acquisitions. Given M&A of these our our track approach record our to and briefly philosophy continue to before pursue

to market. efficient organization adjacencies customers go-to-market scaled LTV-to-CAC prospects, with solutions team go-to-market proven, well our highly tens of drive value have we above leverage across thousands significant a and high record a to target we leading a of engine bringing XXx an First, touching we go-to-market With growth. can of where track

and like boxes empty are their without solutions that filled Nearly all ZoomInfo the has ecosystem insights solutions effectiveness. sale these data automation CRM the marketing of them flurry that with. predecessors go-to-market marketing drive Second, a much of and and

our data a differentiated cannot insights that with match integrate look competition that we and to narrow So to customers for automation products with value proposition create alone.

real Third, stay we become operating to market. current facto to assets are go-to-market to for our adjacent a expanding the We teams. that finally, adjusted addressable for our We but long-term home, that do from look opportunity near accretive system what a look total to all close for we look the near perspective, transactions value believe de while our provide technologies for And our that and that customers, income immediate we within term. there's operating and are to to financial offering.

that providing decision. for the know and of services. sales companies we buying those research doing is what allows intent and and offering BXB unlocks professionals data offerings by and messages, who should intent to our win engaging marketing increase This poised to buyers ZoomInfo be improve make With for to around the core decisions intent in being products streaming tailor with make first streaming The target they companies rates. purchasing does What Clickagy a help market, is offers, sellers. resources their that and acquisition, the companies the teams when

it intent EverString more And has information provides data of motion. enterprise We over count customers a offerings market. central that tracking a XX do million and three companies become their next year an machine tail are years, and service and to legacy the thankful much are will engine, EverString's in and potential proprietary of the that million I SMB at confident go learning they forward-leaning after to allowing the professional subscribed than continue great intent and sourcing and ZoomInfo's of hard XXX EverString's degree into to the and the to mastered we've BXB go-to-market we our customers put million the notoriously just records them professional take million long company XX of detect week, And have that ingredient number target that will AI to of for a on be the accuracy, And drive share incredibly with records scale integrated segment data from profiles the together for seen team be announced company firmographic XXX last last to data profiles. to and maintain. data high providers. five our market. companies and how larger impressed opportunity triple.

We each quarter, a new hundreds of in our connects way and employees doing continue onboard that culture. to to virtually truly we're them it

commitment place Our one employees. workplaces to of to XX a top in comparable recently us country the recognized providing for great was work the naming with happiest

we that company the meaningfully and continue and Chief made hand over and the ZoomInfo it regularly have We at progress to Hyzer. commitment sharing Cameron months diversity Officer, company increased a With Financial here. level. discussing the to last percentage over also proud XX across our Board that, diverse inclusion, progress have the I'll We're employee to our of expect that it our

Cameron Hyzer

Henry. Thanks

are subscription acceleration We high-growth QX, on XXXX, customers. adjusted an organic and a XX%, XX% in what in we of customer with achieved of business driven up and growth million, to XX% operate did GAAP Organic And of to QX growth. so by allocated $XXX compared operating based new relative XX%. driving to margin QX year-over-year. we to was additions profitably, expansions receipts reinvest leverage combined revenue long-term strength in existing allows QX. posted was operating which durable In we drive us scale, growth we at

last While comparative expansion XXXX. to fair Both allocated have the to and net in the growth the receipts relative sales rates GAAP acquired XXXX, existing is figure improved of difference new revenue and combined in unearned revenue; and adjustments due client impact converged QX activity value in of year. the

of this quarter, drive the in for in sequential continued increased and each the relative days win momentum and to XX% of and combination revenue build sales We rates strength new throughout growth helped activity expansion quarter. adjusted

enterprise. Our which to the our underpin ever. strongest or about land quarterly and Customers motion XX expand increased than more spending in to ACV XXX, in $XXX,XXX is increase continues particularly our by success, greater

Adjusted yielding gross profit was XX% in of and sales move gross margin million million quarter marketing adjusted line As delivered we of XXXX. revenue, expenses, year-ago. in to the QX was adjusted expense or with $XX an the a XX% $XXX we from margin in XX% up

to is continue sustainable million above year drive QX, X% up well revenue reflecting and to drive in XXx, to quarter. go-to-market expanding And We R&D LTV-to-CAC efficiency that in of X% growth. this ago. our an from $X expense success invest we a will Adjusted was capacity continue or

million was revenue advantage market ago. G&A year and coverage new as as as or and to competitive in invest for to continue a pipeline to XX% innovation data our Adjusted R&D the extend our to $XX as compared in deliver revenue create further future. accuracy a well We our customers X% and expense as sources value addressable well expand and of

capacity outstanding. the being public was shares on as and was services. Adjusted our public a QX weighted and in was company operate million incurred $XX in or for added $X.XX compares margin, XXXX. which consistent yielding average a quarter XX% QX income professional share margins our first including to insurance costs, in million Operating XX% wooded higher full net of company increased million have $XXX a which we guidance, $XX corporate to operating with Adjusted public were company company. million traded As quarter per QX a margin income costs to as called $XX publicly based for

the $XXX million we of the XX what of future which to you much mix In $XXX the that experience quarter too approximately at million quarter are end paid $XXX obligations million flows from with million after cash free quarter of be $XX an $XXX EverString in contracts calculated the third $XXX used cash below Turning and of this million relative cash quarter. the months. which improvement activity, quarter, QX, calculation. to In we $XX I approximate generated to and in With the expected for restricted acquisitions we million, some flow; remaining to balance were caution of and QX, payments. still $XX on cash Clickagy performance fund of unearned included experienced next that $XX weight know cash at did respect operating year-to-date. annually would we the and million look and obligations, performance interest close liabilities million, delivered were with flow revenue and but of million but Unlevered we was to ended in XXXX. I the quarter in the billing sheet of to and placing analysts in the the

terms of billing respect and of evidenced calculated to lack two contract mix comparing and caused quarters. level seasonality expirations dynamic of the as of Our consistent with billings significant last a by RPO unearned revenue, variability

our the nature the accurately and for sequential business, more signal the As fully such revenue, of focus adjusted on we the given through noise. assess subscription days quarter to in the growth

As want statements. we recorded this on afternoon and to regard is debt, structure IPO upstate to plan net continued times. also to carry related benefits September gross we our with a financial QX LTM tax I made This the million to and of restatement speak of QX the in to our restate transactions. XXth, is down in we to leverage $XXX basis QX disclosure that ratio X.X an to our

basis certain by figures tax assets calculations on regarding of of as impact not which transactions. team the structure, of an and is loss preparation IPO our non-current owned previously GAAP QX This from held financial by been and and reducing by the QX in presentation long-dated which release, and interest QX should results. it release reported our change, by this impacted derived the our in our is principally identified basis detailed and be stock financials $XX performance filing tax operating impacts that reflect significant determined of within tax Year-to-date entities, have delivers difference million, accounting net QX results, increases between and to driven sheet structure corporations were press assets press adjusted properly sponsor tax adjusted for and part amended balance deferred expense, XX-Q in metrics did the the shareholders, our key prior the revenue, Up-C review carryover deferred restructuring cash Our internal difference but of income. impact it value $XX million. net partnership not GAAP technical of recorded. specialized estimates flow basis We'll including; from by The requires The of or compensation adjustment our our and any extremely knowledge. income, materials

these expanded complexities team have months effectively to our We forward. over confident the moving our in are manage three last and ability

we we Before to turned have we that the to have consistently receipts have allocated confusion and converged guidance, GAAP guided simplify in and combined revenue GAAP comparisons avoid noted and revenue. XXXX,

the supplemental a combined allocated this metric. provide receipts will as such, As last we quarter where be

to performance a helpful financial As addition, sides forward pertains in incremental transparency investors RPO provide we XXXX as historical balances it please the trends note in included for remaining QX obligations. that have to for

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the adjusted we million $X year, between midpoint. $XX operating up GAAP million now to be to full up million, the $XXX $XXX million For $XXX million, our to at income prior midpoint, million and $XXX relative the of guidance, expect at revenue and

up quarter year Our anticipate XX% flow summarize, to at free per the strong $X.XX million, And upwardly revised organic delivered XX% $X.XX to at million and the guidance another be To the $XXX growth growth, and unlevered for is revenue the net at of free up implies margin for $X.XX to the we we midpoint. midpoint share midpoint. the flow. income where Non-GAAP cash range year now $X per $XXX that. be profitability, cash expected revenue to full million QX share, was

future to the We developing marketing Increasing and customers continue growth. teams, building our value capacity we our differentiating from ourselves sales further competitors acquiring to technology. provide and expanding and drive

enables to this confidently of plan. our execute All us against

to let me for the over it operator Now questions. turn

Operator

[Operator from of first line question Instructions] comes Zelnick from Brad Our the Suisse. Credit

open. now is line Your

Brad Zelnick

and so Thank what Excellent. today. a congrats you said on listened very Henry, much you I of some to carefully great quarter.

something platforms? said the lines I this understand becoming your is go-to-market about system was market were versus what and your about think heading. ZoomInfo to that contemplate vision and that ZoomInfo around and facto talked teams, just between should opportunity. market I'm where you core CRM blurring expands asking this appreciate we how of You the trying de for And totally operating for Engage customers this as

Henry Schuck

for Thanks the Brad. question. Hi, Yes.

with They find actually saw we method system where first with the closed customers and of to think opportunity have their live prospects, as data to have and engage well, have can I an a then an opportunity Engaged, those ZoomInfo. customers on loop to prospects. inside a

lot of data having customers from insights So but the activating we've incredibly and struggle for was that was heard powerful, it a a them.

their think allows to insights is sales with it and to are and and companies only the theme, see that engage platform TOPO, best-in-class data activate acquisition, of insight to Clickagy who have – access customers it. but same insights, idea access that and way our data our of to and having invest is to having theme of intent to how able the to actually and they I against activating and in also data, arm part data a actually that And core access but talks the to the our where into Engage have building Gardner don't so the And marketing actually that insight not activate and customers be prospects. we about activating it continuing

bringing so the ZoomInfo umbrella data, creating going to ways that And be underneath a ours focus going automated of that then think core I against activate is of forward. to customers and for

Brad Zelnick

And if one I Excellent, any update at making. but clearly could follow-up, just you international ask that thanks. the there right here Thanks. U.S., on is in investments tremendous for here opportunity you're home

Henry Schuck

Yes, Brad. absolutely,

data data over those across Ireland where in we're in We focused was XXX% local the make So increasing coverage revenue spent the UK companies did million QX lot we million we And increased on European includes in our well UK very international of acquisition company contacts the X Europe. short-term. shift support year-to-date, segment – direct contact us rework dial strategy is significantly year-over-year in customer internationally in aligning our And – also across XX% our on companies was that customers. We in a companies international. open and to sales spent coverage this was alignment And set coverage adjusted on internationally. Europe time pandemic the internationally. of over Ireland expands coverage of that quarter against offices we XX% segment in international for that EverString and and numbers we our hours It and contact working by XX% then The some across asset then coast us. our management countries. very our a increased We and strong XX team focus. quarter, beginning current actually time East quarter. of to Europe And grew the on account the

company a So multinational be source information for of to contact position for any in stronger than like feel and enterprise. we single we're the truth ever

Brad Zelnick

Thanks, Henry, and team. awesome. entire the congrats That's to

Cameron Hyzer

Brad. Thanks,

Operator

Thank you.

from of Barclays. Lenschow the comes Our next question Raimo from line

open Your line is now

Raimo Lenschow

it's to well. just two of AI Henry public and me is kind from just just one kind on coherent then datasets on as how that clean not like and of like clean combine just you one what kind you're actually a and how it, these does from theory. it, like in quite together have of set kind lot mean it customer congrats changing it it – but your Hi, EverString, and difficult BXB get just long, a because of on it like how integrated already they you've bring it like touched seems

Henry Schuck

combined we through Hi, question. of Yes. the in for we with we same of a ZoomInfo, Ranking, XXXX, of is acquisition have Thanks Raimo. our iProfile processes we datasets, the of systems with combined this, lot good and news the experience starting The where where where datasets went that our motion; then and acquisition acquisition and together.

So we've times. seen the movie few a

and up the planning to in acquisition, that going run those is to process to where going those datasets and to And merging to the diligence exactly identifying the to announcing – teams we're of through go where long-term. medium bear. a the how bringing experiences the our during in and happen from rigorous in that We it's have short-term, we're integration learnings evolves pretty the how happen, run-up

where integrating data we're that continue that that already refine a today. deliver over of data And already We're so we a customers in time. we'll place to to superset can

Raimo Lenschow

you. Okay, perfect. Congrats. Thank

Henry Schuck

Thanks very much.

Operator

Thank you.

of line Jennifer the from from UBS. comes question Lowe next Our

Your line is now open.

Jennifer Lowe

up you. Brad's Great. on just following And a question Thank bit. maybe

customers of at adoption understand like intent data. are how a advantage they of this contact and And taking of maybe a in the out those really more action and the earlier are that at the data to bit data figuring You've that on things how still level challenges just level and intent that customers on higher, curve insights of take maybe point. your kind really point who are AI your focused had mentioned asking some this versus have customers even the many the of

Henry Schuck

Yes. Thanks, Jen. This question. is super interesting

and Our small a and data our – and to to of using market. from a as our There going for when different today customers you who to it who drive comes customers And places large clients and sophistication territory of are as up come variety sophistication just drive tool. insights use thousands who sellers. find models we to the our buy mapping curve, use sophistication platform complicated propensity data move prospecting some to

I've realize that customer us thing drive found customer solutions record they their a seeing the us today. Literally how that just from hub. efforts. we're systems seen having companies conversation seeing CRM maturity regardless a that had a system asking in is of on interesting call then get our adopt of acquisition every is – value single is quick out on their provide with we their value no they I've getting that customer an of think we can our in And where CRM or turn real They're I curve, this thing customer that own, this because their And they're insights. value users just to of as insights. those not it, system from every system quarter,

And they're to them us help that so, looking make transformation. to

early they again, companies maturity sophisticated really those go-to-market. about in way And their to companies are go-to-market so are that really the

Jennifer Lowe

great. you. Thank Okay,

Operator

you. Thank

of Canaccord. next question from Our Hynes comes David line from the

line Your open. now is

David Hynes

on data, about expansion quantify there's made better you that's I the platform any interesting cohort remarks prepared talk think early you way Hi, and it. realized dynamics thanks and an guys. even the Henry, maybe to case that new comment much your it's in you very if could but why are

Henry Schuck

couple a things, it's think of I DJ. Yes,

broader. is coverage the First,

neighborhood they are of somewhere XXx amount who ZoomInfo from platform new in customers find data DiscoverOrg our of were the migrating our what legacy the in to to. accustomed than So

They're And so, seeing our coverage. more into they're coming significantly platform.

coverage. have our get with on R&D our platform of in they spent seats year And value so, last half, because platform. enough then couldn't of a And didn't we additional the their new all and they're who out year, adding the the legacy efforts sellers,

we functionality, So features like new built new to things to intent products. InboxAI FormComplete advanced from

And didn't customers and up and stepping see of inside they before well. that the adding as features have platform so new new you functionality

Cameron Hyzer

higher signed of they core with are customers fact But to the new kind but it is early up noting new still a our expanding excited have at rate are expanding we customers platform really also the worth that platform based about not historically, it's DJ, than analysis, And that new a at than that our only rate those on customers days the cohorts. migrated. new migrated higher on when over

David Hynes

while okay. quick have And I for very you, Yes, you. follow-up then one Cameron,

thanks for that indicator disclosure the growth? RPO slides. there comp? of year-over-year anything pretty there Is that is is the leading up current in good in a there year-over-year XX%, So that muddies Or

Cameron Hyzer

careful creates Thanks less I consistency the and do A which cycle, in does metrics that you the to land with. careful that would is, need motion, a with seasonality depend of we think and And do when for of factors our that investors that. expand I to with. part I including to a part off done be of of have our are contracts those It the that are lot of big respect bit a advise know, as little RPO we our number expire. me on of upsells metric. noise appreciate on be questions.

revenue those sequential out billings. with could and the on and bookings careful focused and continuing much somewhat be do very very that annualize growth, show I which obviously So, to well does we're you

David Hynes

guys. good. okay, Thanks very Yes,

Operator

you. Thank

Our comes from Murphy of next the J.P. question line Morgan. from Mark

is Your line now open.

Mark Murphy

Yes, a performance. on strong very thank you. Congrats

for also you. So a had I question Cameron,

coincidentally of you the the And of ZoomInfo's the came after? a the you imprint pandemic right of just kind headwind next see news ability year year you're pandemic think reopenings we to terms vaccine it's that now, QX, to forward we in the on it's and As the kind going for would Pfizer of say neutral, the if the XX%-ish from become that's recession tried benefit that say day out, say given for and ZoomInfo net would a tailwind? you of trajectory through the you do now, net effects how overlay and reporting would

Cameron Hyzer

Yes, I resulting economic the we've tailwinds said for both us. so, that the think pandemic present headwinds uncertainty and and always

change. a customers also pandemic headwind least patterns obviously we I and think perspective, impacted to continue partially are have at from just by that buying the

of the – became the environment. customers over acclimated to larger and year more think customers as I course particularly the

but benefits of and seen respect efficiency marketing as are, the well activities. people to trend started I have looking to achieve improve sales that we time. the and more go-to-market long that this, uncertainty before And we win. will post-pandemic better expect their help we us people important, improve for pandemic activities it's economic to as period a secular become to trend very actually of trend where of effectiveness think have their seen looking that Overall, kind are will and continue continues we with

Henry Schuck

can't models you example And is they medical sectors found getting in-person go where to I BXB that from like came where by products. in out that add to to traditionally buyers you analog have even return There of would that back. once say shift pharma in digital, dominated quarter a XX% sales sales make of field some, only hope and think McKinsey an and they're Mark. that study the I a

Mark Murphy

Yes, very good relate think point we that's all to. a can I

And had so Henry, other for I one question you.

their for Do you beginning to think If rapidly? trend trending and that's try you teams go if base of some and for been drive indication I feel in and expansion. teams, weeks? more maybe couple look your you for retention think customer kind sales how a marketing for just you through and headcount seat customer, their for re-engage back you can sales that's own any is to typical years, have seen you through Or that it of expand any at with their lever kind have starts a that that's to dollar recent their teams of your

Cameron Hyzer

I'll see has maybe Mark, color, in then that improved upsell our Yes. Henry capabilities. enterprise expansion and certainly in and but terms within our cohort of add we can net jump

wall we so And just at of for incremental to looked have the that to been billion real from underpenetrated of headcount, least our base where enterprise were to them the grow. we while some overall and have very volatility a has customers we we've the – revenue wall do in customer still there's continue majority vast our we While or through underpenetrated as in the lot within believe of materially some $X cohort, us customers customers of provide today. we benefits wall, to are opportunity we terms to have wall there operate

Mark Murphy

much. Thank Excellent. you very

Cameron Hyzer

you, Mark. Thank

Operator

Thank you.

Michael Securities. line Wells Fargo Our next comes from of Turrin from question the

is Your now open. line

Michael Turrin

the Hi, going can of the and the maybe those laid points went back following Cameron, into on a QX seasonal towards guidance? given And you up just is assumptions just the there. as for to on – is a perspective time impacts, some second to Thanks public head aware else end of there and out company some your from macro potential this as you good your be we afternoon. the us mix year? of spend quarter there just of that anything

Cameron Hyzer

on great very great that this year of economic of it's That's Sure. said, trends being a and impacting execution. look the things don't the a end lot potential at We the we're don't positive we question. we us day, know to been uncertainty, fallout. where see happened secular whether has and our At there's for continue really have a business know. election still That what are

get perspective, From that's So prudent I a and kind realistic. guidance approach achievable make we've our completely think that as we've seasonal taken sure how guidance of a – to set we've a providing we're on the is to where number as and the has the similar revenue based QX. revenue recognition a QX days get and subscription-based only seasonality that you in obviously you company, obviously a quarter expenses, really

have process, on as sequential growth into well. move that will have QX, days could has thought as in impact that an but a our margins which We and we you also see fewer adjust small impact for

seasonal I overall, our results. those the so, to looking think reported at we tend of focus aspects when on that are kind And

Michael Turrin

for it. results. the question. on Nice Got Thanks taking job the

Cameron Hyzer

Thanks.

Operator

you. Thank

RBC next line comes question Alex Capital the Markets. from Zukin Our from of

is open. now line Your

Alex Zukin

stage expectations pipelines, agent during I taking Hi, serving they follow-up cycles question so look look your at sales change a rates, your maybe do basis? does to got maybe and close today a the of for are guys. to how pandemic this around quick as for Mark's the at the we compared this earlier you When stage early Where pipelines, function and pandemic a for you? go-forward the Thanks first look Cameron. or Henry on year that question, how you. your forcing to And for late kind

Henry Schuck

Yes.

out coming every of think, coming opportunities, all sales everything of metrics kind month I against close it's you rates, at before. this improved month March rates And month come the and every cycles, – seen if we've of of March. conversion look those out improvement has demos,

getting very close our pre-COVID we're so, to And time period.

Alex Zukin

to Are keep the whether one also adjustment numbers, different your to at, but year-over-year kind acceleration growth, if in it's that particularly current on RPO sequentially adjustments much metrics in I away – I acceleration. whether number, that revenue those hand growth, sticks then, at us pay we across RPO about mind to, why guess, you all any that billings not it's it's billings of talked you're attention from out on in good in And a current there number the even should three Cameron, very or some is narrative? is that take look that it. and the a there number it's look whether board of Got of the on bookings any or would pretty basis seeing across billings you

Cameron Hyzer

tend particularly billings variability once of those in lot and again that bookings numbers to And, them. I do think a have

look was a in QX billings XX% you at So, that's growth, to It's and at growth. go that a XX% forth. billings you going back in so look QX

that middle be you continue I always or think periods when are seasonality of likely adjustments it'd those Overall, and terms so our the numbers. kind many it you of look adjustments payment forward is year, And, of of it when pause because back wouldn't in at expect that just grow whether I it's look you there that of to last of. could it's when terms be the what to consider. will variability sold why – in we've QX there – that reasons are realistically careful variability. by there's

Alex Zukin

Got it.

guys. you Thank perfect. Okay,

Operator

you. Thank

from Terry Truist of comes Tillman Securities. question next the from line Our

Your line is now open.

Unidentified Analyst

taking Terry. Hi, is Nick on my Thanks guys. for for This question.

intent just about I a data wanted bit. to So little talk

a So, data seems in product. adoption solutions intent your in XX% again, of the a seeing it nice certainly And adoption. like intent uptick increase that's are terms of

a this Thanks. increasing And streaming overall of customers led could wins platform. if customer you data recently lands. to follow, of Just about importance when intend know intent with introduced And just the the the are enterprise has resonated how's so number wanted larger selling potentially to talk far? as solution guys for an

Henry Schuck

the Nick. at catch What did you last part, say didn't I end? the

Unidentified Analyst

customers resonated Just solution intent has know the follow-up I as a with how far. streaming so wanted to

Sorry about that.

Henry Schuck

– buyers BXC no in that time No, a we products being And and to companies perspective it. with digital customers their Got their And companies they're is that And BXB and the the things. advertising front marketing that two behind world provide interested they're far has BXB go-to-market system. done world of that. a these sell. at Yes, have biggest had when the the in well, the it and their engage look of think far, want thinking buyers job One has they incredible so, problem. fact services. and BXB to from the I potential for think an products way then reason that take through that believe around data and been services about we – offline not sophistication intent activate their the

intent. of And things any to they system. market the the be want We on then engagement seamless One, different moments so that were so number can for market. their take to we or it crossing advantage we in our products. customers products have predict are immediately, when customers, important solution on intent after to to activate things to to two of that go-to-market able when are are them topics their to deliver want we data customers And across of best there prospects thresholds real-time data want want services. make think for that or We two and to buy kind – about there in certain

I happens buying efforts. and are And companies in of BXB their go-to-market sophisticated signal, the think the as that them intent be BXC truly without that companies activation simultaneously the that gives to bringing so together opportunity giving as

Unidentified Analyst

helpful. That's Thanks it. Got guys.

Operator

you. Thank

the Our next Bracelin line from question Piper Sandler. comes of from Brent

open. now is line Your

Brent Bracelin

the in Thank But you, and and growth year-over-year metrics. follow-up I drill the growth accelerated. years, appreciate sequential in here down given afternoon. the volatility. good to for quick I Henry. reading wanted just three caution at RPO like Cameron. if XX% look billing a Cameron, metrics the growth, for had highest to was one I I

color you the years. more in as in base? enterprise? in sequential think Was reported a why broad all well? it the benefit drove three it there highest the a As you Just just help on one-time rate momentum. Was there little give us revenue was about what growth And us of quarter kind

Cameron Hyzer

a with was Board. enterprises Thanks. business really strong great Yes. We That's SMB that's new question, saw sales Brent. mid-market It and across broad-based the and customers. and

all one are think to selling that, to to our thing is other think I make customers of about businesses. sure

So, agile by succeed, And forward world. of in COVID at the many end to the that impacted restaurant more of the headwinds to ways or finding day some the be happen say leaning which of might they other go-to-market then the were folks. teams you probably many them pivoting see and less of are and

one our year. that continued our So really think people accelerate the month-over-month, or perform. that see throughout customers we think was continue And, I to I expansion of things among to that system continue to throughout the the helped tension to

of So you all sales customers. retention segments different broad-based new the both know, and across again, and on of

Brent Bracelin

to Just SMB, more strengthen your just and it Is And a adds product I you're there contact trying or it EverString. the we with of play? swath is follow-up really gain, in opportunity you mid-market hear. seeing in capability this then and a SMB; of SNB broad game quick or to it storing a and the share, understand the logic is a of a Good up should for the Great. product know data. this Henry, recovery extension? and to about acquisition? EverString SMB more mid-market mid-market think how of Does cheer

Cameron Hyzer

Yes.

customers. So small for businesses need key information first we that EverString a expands up being ends provide enterprise the firmographic on our

– especially insights provide in It every of an complex Snowflake and sophisticated mid-market EverString sell and data go-to-market that from on delivered the to space But largely type across we're to simple the everything go-to-market us allows of us with and that like they SMB enterprise exist focused predictive their a and other we're maturity enterprise. Our that activities one the analytics we of and seeing that success prospecting own. lead FedEx are to accelerate delivered type is insights solve, this clients that places some helps for customers challenges that and about SMBs. organization and to that insights used in clients And call the on scoring. the data excited market and iHeartMedia curve data this talked who are somewhere and client our from it,

us about the enterprise, our sophisticated solve value excited to we're infesting enterprise clients has because also to helps it, so across mid-market our we SMB. SMB stop but think and problems other And clients complex the it

Brent Bracelin

Helpful color, thanks.

Cameron Hyzer

Brent. Thanks,

Operator

you. Thank

of from Our the line Stanley. Stan next question comes from Zlotsky Morgan

is line open. Your now

Stan Zlotsky

thank that QX? very are maybe what you guys saw versus these And CRPO my QX. board you really momentum a on that one the for simply quarter. like survive strongly through That's ZoomInfo of of And Perfect. in current they on much RPO, did know, controls a the From then you. qualitatively, and some us for activities? metrics, for on Cameron the months Thank customer maybe strong acquisition, in just you. for very Thank are their you right? you seeing coming the to for giving very, frankly taking of inflected help you guys. billing adopting the how a guys. obviously, the, the on it Who seven RPO. my were And for who that current end, Congratulations so on, me? pandemic? now of as questions. follow-up also it issues we our as good Henry first quick function seems customers Thank you quarter Obviously very thank much, strong Was new customer term very, go-to-market And acquisition

Henry Schuck

thanks, and plastics business across the everything and on I what seeing we're a Stan. industries strength across in and cohorts residential I'll customer side think Services distributor the from Well, Company restoration commercial new on start. Look, really is quarter. came to

companies ways Think go-to-market. we continued strength for is so And looking where what, see to you what, across really digital industries. are see

walking coming of they customer's is we And that's How walking doing And companies up productive them give deployments drive sort I of through their instances of Cameron. they're that office? go salesforce. transition changes forced the and What make getting can to us to provide And and unique them, motion? they're do into. we into insights had because companies making in who go warning a and I saying, we're sales – to data of that to them our decision they to going that don't that saying, making coming necessary of into a and going to the inside we driven coming they just salesforce. they're to of so them. to team be insights because set that and And lot productive then know them, because get would a them; accelerating makers tends companies enter that the that a so transitions of to are some see are and And when insights their otherwise It and tool floors because to have to to salesforce gone be of tool. hear to they've to tool companies of that have sort for field have that you the they're we I'll motion they're feel making been of data often digitally saying. see market help They us the you of don't insight home? they way, pandemic. piece historically and transform. do they're logging love adopt expensive insights by field that hear what into, often, a as those system from salesforce transform from sales want sellers look a in tends obligated from us be with be they're and again, excited Can not it pass shaking a hands the like use deployments, into to how sellers continue a Some

Cameron Hyzer

also of expansion in in question, did inflection certainly execute out, the One, were And then in against quarter RPO driven current years RPO we new as the terms calculated we've different certainly do Brent quarter; well. point best we drive terms question, we drove calculated by too much with that net growth. on would able into of angles. just that plays And I again, people Yes. and that and answers different both well. looking at existing the revenue customers fillings sales because putting times was than certainly in seen at to have probably that around an And sequential other that billings the have the those variables that growth. pointed sequential caution as But and as just metrics, weight bookings bookings from will

Stan Zlotsky

Got it. Thank you.

Operator

Thank you.

line next of Our Roderick Stifel. comes question from the from Tom

Your line open. is now

Tom Roderick

to from Thank taking you. everybody. my hear for Hi, questions. you Yes. Great

your remarks opportunity potentially there's So full Henry, you noted or $X in just opportunity. one billion of that

number ability overall XXX,XXX and this customers meaningfully XXX,XXX think the you jumped spend just that at over over look quarter, I that their of I and still install up have with base. that but to pretty expand that the in footprint. the customers against

percentage. So pretty low

you metrics could question, perhaps the jump I some of financial it's So two-part guess with kind of in and Cameron, it. a behind

how second the customers Nice that installed to or me? are level? more this The another And customers Thank that your changing you. way to of the seeing that attract what make with for back in of XX are enterprise part was is, In doing these functional motion you go-to-market more are new first that you hiring part base, when that then it landed other words the this come to you sales quarter, jump? customers? getting that the new XXX, of you job. go-to-market either that predominantly at reps is, That's

Henry Schuck

Yes. Got it.

land a sophisticated run expand pretty we and motion. first, So

we in customer think to sell you're subscriptions way coming are bloke of points from we driving much again, larger the and XXX,XXX in motion. sort And sort so low into the And of us. of with the entry enterprise. because customer the expansion I cohort that a seeing sort we And the large really, enterprise is growth of cohort from existing most can customers go

and company. a to other invest continue that motion that well. And and We the go-to-market that sellers $XX,XXX contract or divisions sell do sellers showing to, at small from set investing to by to division So and that, against running by enterprise in group small then there of approach as we're expanding the up there a of into. refine is there the value grow in

is Gather that Executives companies that ZoomInfo now users product feedback. capability specific to accounts. period the we've our of across a quarter up free we increase deployed to Senior in that seats in at of that auto-provisioning time. access to XXXX give of things One allows enterprise feedback free customer for the trials us then those of take to And our more released than them and within target base,

well. expect to continue to Rex to incremental as enterprise. that to, growth And drive the We hire enterprise continued within we've and the space

that continue And to hired Enterprise our we that salesforce. in behind sales Vice of Who's hires of team? running enterprise that from we investments make President sales so as quarter team. the key One put the

Tom Roderick

so detail. you Thank Excellent. the for it. Appreciate much

Cameron Hyzer

just guess, our fast. of of super XXX,XXX. most I quarters to ever customers but right And QX best expansions, Henry one is on are the new terms Tom, was that of numbers over customers follow-up in the landing

in So traction begin at higher coming we are starting to good in with. customers see some slightly to levels

Tom Roderick

it, Excellent. follow-up. Henry. Appreciate Thanks Thanks for Cameron. the

Cameron Hyzer

Thanks, Tom.

Operator

Thank you.

Panigrahi the of from comes Mizuho. from next Siti Our question line

Your line open. is now

Siti Panigrahi

And you terms or sets have is around in on platform customers Clickagy a a EverString. and quickly and any are much commentary of that? do Siti wanted integration? on customer guess quarter. to for Panigrahi. longer feedback, Berg how feature this your I And of great where Michael Congrats had existing I you And go? some follow-up domain the early color new from their it's any Thank you and customers to using using you. existing whether have from Hey,

Henry Schuck

customer we've closed had third-day, hour so of we XX-ish EverString, hours work conversations. on –

And what, continue in what comes we'll I us. the to across down provide customers a now. then data, and conversations. ability our releasing asset thousands to seeing enterprise acquisition Streaming is our as which comes value signed for Now that And more broad data are the our of up customers use from we're And and go across go-to-market tell Intent from able lot perspective traction in way product do to this Lots as Clickagy who soon to set directly on enriching room we enrich and more to as on data want ability enterprise already for customers enterprise excited data well. our our of within and fill focus that that had organization. data. as more that machine enterprise Intent already enrich will to with get a monetize already and intent level data the we demand need The a broadest set to organizations out. solutions, We're ready of and access those to little the pipe the a of we've of solution be that them. and data the learning enhance has to these a data with the what our to We into We're it enrichment of already month, the the match they're having across in around excitement build exists and are where customer were asset, enrichment that. will needs that already grade their records and product between to the bit ability involved conversation and Streaming really to science side, their we environment going a you looking don't there's been big instantly as an them integration those position create enterprises enterprise in for us EverString enterprise from where into an allow to EverString enrich done us solve data data records to go-to-market our today

working outcomes for we're now. right so And those

Siti Panigrahi

Perfect. Thank you. And a quick follow-up.

of impact correct? $X about that notice you As is that to QX, million

Cameron Hyzer

revenue combined. from our the two That's expected Yes. acquisitions

Siti Panigrahi

correct is write-offs. about you So if math yourself, it's about, my rate include million $XX if run

Cameron Hyzer

next to Yes. the going to will Certainly math. as year that and it's be well, financials be our not material

Siti Panigrahi

you. Thank Okay.

Operator

Thank you.

from for Raymond the of next comes Our Peterson Brian line question James.

now is open. line Your

Unidentified Analyst

for Kevin here on Thanks [ph] Brian. Okay. guys.

You've be IPO. mentioned of verticals ACV surrounding leads how point indicating brand before you'd penetration sustained. or an and anything is XX% do curious in to that that you I'm new that that your may seeing with if awareness across rates? And some impacting specific pipeline generation uptick mix the lower there's think And

Henry Schuck

most well our Yes. staff to reach best the I track marketing And marketing think there I primarily and that those marketing from are is tracked number over record, XXXX; and thing the XX% QX of teams of MQL. in so a we at higher close as conversion that leads closely rate leads closely that's generates Those at than qualified mean, and, was leads. the website. look to one they and the time what what look all overall as an very MQL, metric is it really opportunities. ACV both as QX drives

and momentum website so And that a to great perspective. see continue we really marketing across from metric

Unidentified Analyst

Thank good a That's you. color.

Operator

you. Thank

from Our JMP. next Walravens the question Pat from comes of line

line now Your is open.

Pat Walravens

Great. Thank my you. And let me congratulations. add

dividing me white guys it where I'm, to up is this So most kind more see space wondering, data terms intent wrong, of seems and but, I'm areas. development we organic the do acquisitions? of you me, your in have Henry, let if product just And more but or know, big technographic for you firmographic

Henry Schuck

a That's Yes. question. great

could as account is element think and you than I like contact And and professional it's then data like more from intent firmographic. or firmographic graphic of Pat, an a technographic put data data. data

process it And date. graphic blanks. those are adoption like and to dead enterprise keep data enterprise of it's But them using fill the we the from to a often think maintain data broken some And that up perspective, I professional type inside data of unique data. an solution is that the find they gather need. and to knows that all a in every around pretty been from kind BPO in places of a longest has

to professional leveraging ideal data stage buyers think in a early profile actually companies engage right the really still I at the right time. of for we're buyer

largely I on used seen they value because pretty, sale. think evangelistic the And understand it early customers data BXC world. like pretty then the we're And still you're side, it's a there. seeing that's like the totally in a, of a intent

But familiar they're from stages for why BXB perspective context would them so a this into probably as earliest in well. work of that in -to-market. with data the we're And a go

great. Thank helpful. That's you. Okay, you. really Thank

Operator

I'm to At back the showing would to call over further you. like I for remarks. time, no Henry closing Schuck turn questions. Thank this

Henry Schuck

and you. against be the Thank increasing executing focused engagement long-term to expand investing team company. growth value, world-class prospects further building delivering extremely We're a competitive platform, on with Look, customers, opportunities. to near creating a and M and to our out Great. our we continue the our value for in excited about technology moat,

the As starting us. for is I said line last this quarter,

where have you We invite events Good I calendar a reach afternoon, please today. very in conferences you. quarter, at us active I of in join relations for to us website. the fourth participating good one you that appreciate Thank visit we'll when out we'll evening, on and joining the for be investor information many or all more be our or or

Operator

Ladies conference for you and participating. concludes gentlemen, call. this Thank today's

You may now disconnect.

ZoomInfo (ZI) 10 Nov 202020 Q3 Earnings call transcript