ZI - Earnings call transcript Q4 2020 | ZoomInfo Technologies Inc.

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Operator

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

Jerry Sisitsky

call I Chief highlighting Welcome fourth our year we'll and call on the Josh. and the Schuck, results of open Officer. Founder quarter ZoomInfo's After conference full ZoomInfo; the me With call, results Hyzer, XXXX. Q&A. are appreciate Thanks, Henry to CEO our it. Cameron financial and today Financial Great. to for remarks, the their

financial Private safe statements. future believe, any including using call, and items, intended made statements than without Litigation and the reflect harbor XXXX. which limitation, are provisions of something forward-looking the other performance, expressions similar for and business expressions goals, historical the will forward-looking this During pursuant terminology, Expressions of are identify may, facts Securities expectations including future to Act Reform to of outlook,

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

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

Henry Schuck

everyone. welcome, and Jerry, you, Thank

of presented XXXX As for a set many ZoomInfo. unique dip operating in circumstances a companies,

find and and our and strongest and possibles tailwinds, quarter new the fourth moved managed through and the to stay-at-home fast team mandates in company's strongest orders Our up history. all, deliver stepped we it to adapted, work past virtual headwinds year

level platform the broad-based added, robust customers industries data year a sales, building suite efforts CAC public efficiency strength all market. modern in the growth of truly that ZoomInfo, the the customers go-to-market go-to-market delivered that the purpose-built set LTV over workflow foundational across we of is ACV, records in we leading, first interface from fuels all powers saw starting new layer and quarter, to market for with metrics company all sizes up, the of the such next-generation we our in over across accurate software. This world. areas During to new end as $XXX,XXX At impressive and for companies a are all a business,

to fully vision momentum to business million, growth from up digitize XX% before of new quarter end-user GAAP In and today Our every the delivered we XX%. new to revenue and of more resonating in in customer year-over-year and aspect ever of see go-to-market adoption. engagement QX, is product acquisition reflected sequential we retention our than customer is $XXX

adjusted sequential operating $X XX%. Clickagy million that strong revenue of an growth revenue We EverString the organic organic delivered growth income contributed acquisitions implying quarter, of Our and in with quarter margin XX%. to

$XXX GAAP the year, million. $XXX million, revenue achieved we of and of For income operating XX% full adjusted up

to the for do to execution. customers California to and and marketing, industry, pharmaceutical industries sales from We customers, a adding QX the construction the goal And now new from was We logistics new QX. shipping logo into and from year-over-year contribution XX% dollars Fortune on doubled paying side, the enterprise have and performance XXXX. over greater XX% best-in-class XXX of Zealand now of customers the representing over manufacturing, business Paris, a science, the XX% leadership. and us perspective. where Chino, closed and opportunity data a both the more in the year in and Fortune France. build executive versus work than focus tools and our the to grew with And on We growth growth We customers of Our XX,XXX Auckland, our the our side, revenue excellence not with there enterprise. strong, analytics both globe, that cohort. with new from cohort continued operational $XXX,XXX best operations, in acquisition from industry so New sequentially. on but where record and than contribution ACV data side, imaginable, the customers. business the across only on Maine talent Contribution from users over on growth more And driving suite than the $XXX,XXX, to number reflects largest expand the sales from of Lewiston, go-to-market added financial focus delivered to was is to much record XX% XXX and that with adoption

platform. a core our $X expansion seed see we accounts, opportunity enterprise existing our billion-plus within Just on

Our and growth pipeline enterprise the strategic expect organization strong incredibly also vectors. growth itself out this The continue demonstrated see be to as will additional our across nimble to strong, that prove has I we segment. remains across we

we into entrance with our products Asia-Pacific. in and and see Europe in strong year-over-year growth international strong continues regions XX% Our sequential growth the start markets in demand XX% its quarter English-speaking as for

XX% renewals, also Our on sales attachment while sequential engage, XX%, accelerating posting and the automation XX% growth ACV respectively. growing transactions quarter is business new platform, and

customers many rates. that the While This in meaningfully fourth one the have activity was engage see record higher of leverage saw factors renewal to retention we contributing quarter. we early, the

independent in feedback product. from momentum broad-based see our as rating firms to invest we continue positive and customers We and

go-to-market in of spectrum pain one account only GX's released that number read data highest shows XX our enterprise XX a ever, products XXXX also grid while number capture. category that and points. the example, receiving ZoomInfo are grids, report number we in This span for management including December, not in appeared placements, new For winter building on ranking wide

We with are doing products. best-in-class it

across Blink industries Blink Stanley from of Decker Pitney SAP range a our to seeing and Jazz new We Marathon are to adoption & Pharmaceuticals from Honeywell, to from also to Black Toyota and broad increasing Oil Science. Bowes, of platform testing help passport Lamar from COVID used to diagnostic creator innovative system. be every the and in part quick the tools a test They're Science can medical organization pandemic. an low-cost by of stop doing Blink's instant their world. is

they remain So making early world universe narrow right market them. stages care the device successfully to the right solution that person for approved. their opportunity. deployment they ZoomInfo rapid of at with target the shipping and needed health to companies health to the at engage with right distributors, Today, find when personas engaging largest in organization, care contact are very ensure this in is of EUA the We organizations the and it ideal

represents find, been a way the and From approach an and digits opportunity applications. see we investment a in that market around with still a market a platform This of addressable Our over businesses early finding fundamental in prospects are and an great market in our right prioritize will and adopter approach customers. we assessing evolution and penetrated. And approach in opportunities, manual poorly the of front future. low increase for an that go-to-market timed, that engagement. drives our with how the engaging, the prospects to single stage in to change engage century customer us, data approach has automated inefficient, companies is this the driving drives gut-driven a a intelligence-driven With opportunity in to large shift efficient to increased

she market Officer, exclusively capture first so product of now our the us. is will announcing in serve doing ahead Our as Chief opportunity step that driving on that can to Product innovation and Amir Hill focus enhancements

Second, now for and we've including entire efforts. takes Officer, on revenue responsibility to of the Chris go-to-market our Chris unifying organization, who role marketing a elevated is Chief leader longtime Hayes marketing. the Operating sales

We Shane this and Marketing a joined platform, Murphy also that senior confident today announced Francisco-based Marketing. Chief team up VP conversational he joins Intercom, growth relationship from new sets into our us Reuter for Officer, San of as Shane us success. continued Chris. where was I'm reporting that us has

continuously on We continuous We get Our this and We driven done a and ourselves possibles. diversity define winning. collaborate, things and to do all with improve. culture by focus new inclusion. is push improvement

collaboration, to testament organization. we've since to been to than work foster with XXX roughly able a It have of that culture onboard entire drive representing recruit employees worldwide of to employees as great the taken XXXX, is our our we March half grow remotely. and continue actions culture more our engagement We beginning proactively and those

in for CRM, guiding and instantly are continuing insights taking around In a signal to our marketing added mapping demonstrates fully spending that a just API. just Our our NextSuite automation processes spike automated employees customers are facing through where their X That principle usage those integrations cross metric quarter, fourth company our shared not for platform in nearly increasingly how of by Across is into platform the In volume their profiles to of event, of we of their customer XXX funding ZoomInfo additional companies usage And the we daily jumping say, also customer customers. human then are more high advanced activating functionality users in relevant that throughout record rates cases quarter, works measured functionality a new turn increasing our prospect compared audience. able delivering important profile, a to consumed, with customers core experienced XXXX, over adoption into their by than for and This a more also with us culminating XX% signal advantage intent ago. or integrating ever the saw we on more high to X of prospecting, or not a in internal active seeing and topic. significant score is to as that than features, points. take are unprecedented targeting, application. increases action. against signals a but QX. with and customers a ideal customers rates our sophisticate business to applications, QX as current or an stack, and using ideal real-time vision calls of more with monthly roughly times being our is advanced referenced X We're campaign saw record as and the year engagement active the user technology a billion that with of platform to it our in Regardless NPS initiative who well And leverage January. insight opportunity users we and targeting use the January who use

fully sales with which Our the is vision fully marketing motion than action. a this our available automation to integrate capability automation. This platforms. automated more the that Today, reimagined turns interface and workflows with natural suite, automation or includes true now marketing statements platform automation, is throughout workflows workflow is automation enable elite broad CRM, and package that added range It We've advertising every automation within create go-to-market is workflow to go-to-market available language user contextual is of with a a also signal from the suite. go-to-market and our capability. into sales to access ability ZoomInfo

side, build enterprise we data anywhere. deliver insights and the to On continue real-time in to ways our

the newly our data and by shares, flows, our and are this insights team. our customers for and applications new and our intelligence, to through consume databases. list analytics arena, on cloud us data including our into innovative revenue data allow data about we Our to Snowflake excited deliver instances their In launched especially to push data new directly Allowing consumption APIs custom business marketplace. Snowflake ZoomInfo warehouses, operations custom customers' to and data agreement ways, insights

charts isn't them of accurate top target work such can looking with Recruiting for engage new history, in even timely newest role. offerings experience. actively teams data identify, is a when help talent, as recruiting departmental functional used our better and technical managerial, organizational market suite, recruiting One help understand and teams to talent and and technologies our that uncover designed to

continuing customers is the to We throughout are deliver case broadening a course we and the efforts that marketing feedback one. more recruiter, of more are recruiting invest functionality features with We who fill expect our and powerful human to in already gathering product. believe market here, the And year. the use using from actively

and at top As midpoint XXXX year of line will about strong we the XX%. growth of profitability of XX% to and ZoomInfo, continue In adjusted initiate detail, expect delivering closing, for margins as XXXX we revenue was our operating excited Cameron on ahead. that a growth calls guidance the year with for great industry-leading combination we're

We continue delivering invest our success customers. to in to

for our that, We to team. to Officer, continue combination improving and an continue behind revenue to the even data, of in Cameron for and Financial platform, the usability, growth it of I'll These a invest hand both functionality set profitability. the better Hyzer. With quality stage us invest investments and to Chief our and deliver durable we XXXX over

Cameron Hyzer

Henry. Thanks,

the with financial of in pleased and growth demand, which very strong our strategy continue our both performance cash revenue for are market back our the our full for to exceeded We revenue, delivering business, execution combination flow. in reinvest of Based guidance QX year, well and profits strong and profitability expect to continuing a we on XXXX. and

Our full and growth year innovation XX% calls of and sales marketing investment for growth going continued guidance forward. and capacity sustained to revenue drive in

drive revenue adjusted high to unlevered year-over-year in million, the We in were advantage our of with XX% to margins XXs. modestly range of compared of the to GAAP quarter flow. to expansion. in sequential quarter, operating deliver this yield the QX, and this higher leadership our XX%. up we delivered free our yielding position margin the The QX, $XX target and impact a $XXX longer-term adjusted TAM cash margins long-term was excluding mid- Margins $XXX in the of XX% a With million quarter performance, acquisitions expect our the we was long-term QX within by reflect investment completed XX% $XXX expect In and the XX%. million, to of in up of -- operating fourth income growth million and acquisitions in to take organic operating XXXX. growth impacted R&D market In

revenue we up of operating margin. year, XX% $XXX million, income XX%, delivered million, GAAP of a full adjusted the and For $XXX

year, we through of a half and year, upsell pandemic be impacting the global to new move toward particularly economic as and opportunities. activity second retention additions upsell deals in the As XXXX, the fourth the the large accelerated acclimated expansion a quarter. virtual customers the the in caught digitization related the seat half uncertainty proved We record more to customer we headwind of first for tailwind trend economic and environment environment. strong the to sellers of new longer-term saw and In

more growth impact the representing to As $XXX,XXX than with XX% growth. with X,XXX of than retention early rates more XXXX XXX XXXX, we XX,XXX COVID-related XX% and more to December representing customers had ACV, we customers, In relative have than year. XX, -- greater greater than for negatively expected or headwinds in

less with were and year, annual activity to move we at retention the most the As from going confidence what headwinds half to points XXX better basis the than XXXX, of improving even and of related in QX experienced through than we into realized net able dollar ended year we the retention experienced compared down of better COVID XXX%, year which XXXX We expected. the in QX was of XXXX the of first momentum overcome XXXX. and we than us gives activity

to we European by growth grew In relative focus QX. was growth year-over-year teams spot we seeing sequential great quarter Our opportunities, by XX% in as particular, dedicating specific than where more have international to driven by revenue a particular on international we're invested traction. the XX% in bright revenue Europe,

in plan to go-to-market and large international success continued support make also customers capabilities. progress in investing the to our platform. migrating opportunities, We've Given new continue we to our

expansion divided we to legacy total days current in revenue prior quarter. by on activity the on in those As new of still we and continue platform. platforms. see activity on have than than And renewing quarter in-period the on the compared better the in today, growth net platform is which customers early the of the growth, is it the to of while new trajectory evaluate we our To focus XX% the sequential cycles, renewal more ACV among business, revenue

While respect this very QX. our and QX year strongest to are to we an each growth is in-period quarter, sequential with pleased with activity, our quarter XX% results typically past relative delivering acceleration

As $X still to Clickagy other matter. selling less billings exhibits compared patterns a or to extraneous The revenue while reminder, the of like growth. volatility and also sequential factors growth seasonal from sequential increased metrics in EverString acquisitions from growth, RPO contributed million calculated

relative those third annual and to fourth flow both in the For the QX of line quarter. the impacting of billings, with XXXX, mix cash billings be improved looking quarter calculated billing positively to with customers at back in

to ramp R&D increased as market. to we position to in strong as driven incurred the on decreased in by to increased a roughly sales. QX to income, percentage higher investments we in move XXX relative operating expenses expenses adjusted we margin of and advantage marketing continue expanded revenue by basis points our as of As related capacity and commissions take operating marketing and and and adjusted QX, Sales sales R&D. investments increased leadership

upon We in $XX advantage build and have XXXX to million and our in to expect plans data invest incremental to XXXX to relative levels. an significant platform continue R&D

opportunity Given the expand customers. core expanded deliver incremental strength this our target a of meaningful addressable our and and platform, investment creates our market to to new functionality

expect truck also QX We the and us continued to internal G&A from to growth our this sustain in Relative solutions greater available public further future. today more we to and incurred company in investments due opportunities expenses infrastructure XXXX, growth. other to costs drive distance

the approximately our million the and Turning for million for $XX EverString. cash acquisitions balance equivalents of and free to generated year. million Operating included $XXX cash, of offset investments. which fourth with quarter were flow we full In payments $XX the Clickagy flows short-term of cash quarter million was million, cash cash flow the Unlevered cash fourth in $XXX interest also the and quarter. operating sheet $XX ended by we flow, quarter, the in and

of and terms booked and we the business, During the of drive flow for saw strong income, the all terms record mix outperformed combined to operating quarter, had in quarter in year. strong of payment amount which cash a collections, of improvement

in a operating RPO, $XXX revenue as flow 'XXs future quarter to unlevered model approximately Remaining or we next at obligations, are million, of continue X% be XX end rates unearned million. months. of Looking RPO. obligations, to million combined respect of to percentage EverString $XXX were conversion cash liabilities The performance and Clickagy the to was contributed income. With expected of free and acquisitions delivered forward, in performance which adjusted the $XXX the total the

repaid term carried X.X senior new we a issuing X.X ratio or EBITDA in part XX, gross debt the credit in with December remainder of we net In at our of unsecured EBITDA. of As bond. leverage million times repriced adjusted January, XXXX agreement XXXX a conjunction times loan and $XXX

expense to million XXXX as expect We reduce our respect refinancing a cash interest and increase $X with approximately by future capital of in result potential flexibility needs. this to

Additionally, first our revolver incremental full $XXX quarter will XXXX. the upsized our providing year $XXX With liquidity million, outlook from business. million our for that, for I to we provide and

implies to For $XXX $XX the in million million. the net adjusted $XX of in QX, GAAP income to range the and expect of $X.XX to adjusted of million we be XX%. per Non-GAAP share, adjusted is operating sequential X% an to expected million as of income at $XXX margin growth revenue for in in range midpoint, the and $X.XX income the quarter and rate each our at days operating a range guidance

million, million. anticipate flow million. full cash year diluted million be of weighted per expected with to year share Non-GAAP for be to income we revenue to operating on income initiating and or $XXX million million to $XXX XXX unlevered the are based outstanding, -- to GAAP and We of is shares free $XXX XXX to $XXX million $X.XX $X.XX $XXX $XXX net XXXX adjusted guidance

the full of XX% an midpoint adjusted income XX% growth Our operating margin range. guidance of the at year and revenue implies

the in your you keep please models, As adjust mind following.

top marketing every and through to increased expect excess investments growth of our maintain quarter Given capacity year-over-year R&D, in XXXX. line we in sales XX% and in

the and adjusted recognition the operating QX to operating margins lowest before quarter days quarter seasonal with margins of fewer be expense to of expect increases, due We through to off leveling the year steadily in -- ramping QX. third revenue

compensation triggered to which compared stock-based roughly for charges. IPO, the expense of stock-based anniversary of XX% the reduction a compensation year XXXX expect increased we as We

year-over-year XX% revenue of increase to growth. We intangibles increase capital amortization, line approximately with and depreciation expenditures expect and excluding to amortization acquired in

of cash XX% a also for publicly company. year our expect first and as tax a year. a a rate XX% traded We was QX finish of the non-GAAP rate tax strong to

as continue of We confident are a that we very combination we revenue to deliver XXXX growth leading can profitability. and enter

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

Operator

from Raimo comes question first Lenschow. Our Instructions] [Operator

may proceed question. with your You

Raimo Lenschow

sales exciting. to like a That great Congrats. year That small you to of a do it. HR obviously I very this is to or follow-up. fraction very outlook. you opportunity. the like LinkedIn, wanted what about the you that seems think big it I Like a trying would in talk doing is that is then a just on was just like But see of side? If strong how have like recruiting size? frame was of Like like see terms end already, think about Henry, framing and the I that about opportunity. And some who like sounds one very, I how very,

Henry Schuck

Yes.

obviously look, opportunity a first, launch a do us. I of for just launch, early really that launch very for well recruiting as think, but us. soft into and a gone We're beta out we really product the has coming opportunity view stages big

what largely acquisition technology found bespoke professionals candidates tools bring software, HR talent process. we're and who incredibly think there to manual opportunity the to and have through about is most workflow I excited an real

candidates ATF robust identify really an -- then e-mail then technology the tools so workflow those back their that system. call professionals asset And integrate of town this data company build their allow and and product to universe with contact activities automated ward of recruiter set to communications and to our and acquisitions, them

space. acquisition lot in of we to so a technology HR feel scale enterprise and ways, the we're bringing like And talent real

incredibly as view hiring that ramps pandemic. of especially opportunity, as we as up the out come And so large we an

Raimo Lenschow

of you investment we of need I that bridge you of Is how upfront kind this really Cameron, year Or think Okay. like that for Yes, Like gap? to especially see? makes Europe about like expansion, sounds lot how you cadence do have sense. do that international will investment And kind the then one that about a interesting. think here? if that

Cameron Hyzer

don't of Thanks Sure. a the for investment. question. We ton upfront see

our I our particular, teams, we're that support at look on incremental the make as to also in teams continuing we think making. but short-term sales returns marketing and investments

outbound out not offices. take we've that in Coast travel leaves So our prospect specifically, East particular, Europe, an in to And teams in specific inbound and forth, segmented restrictions or so on due sit into to payback. we'll invest that's momentum, And months continue basis Europe. a to those. It's behind strong that generated tends shown long-term really and But momentum quarters. be and within

Operator

Our Stanley. from with Stan next comes question Zlotsky Morgan

You may proceed with your question.

Stan Zlotsky

strong Congratulations A questions on couple a from very end. of my quarter.

First follow-up. very was Where XXXX? to And one, number the which have that on then -- international quick you in growth actually I impressive. are focus geographies really a looking

Henry Schuck

Yes, after I incredibly capture vision see for market. saw are We opportunity regulatory struggling cohesive of lack we in U.K. to There's strong go New to solve navigate. problem same there. products a the invest we're continue companies seeing a sales we There's strong our U.S. Europe. great. But obviously, that in and growth being going first, And strong Hey, Europe, with. there's a and how environment Germany, there. to that's go-to-market and good go-to-market to international an demand that saw this demand nascent digitally dedicated particularly Stan, to of across Australia biggest resources a strengths presented think, confusing lack We're English-speaking opportunity, and Zealand. to

continue for revenue invest to navigate go-to-market increase international there. continue to vision going regulatory to believe internationally. digital we as as evangelistic that we a the And We is So customers percentage environment. we of help this bring

Stan Zlotsky

the look for up enterprise, this That's through strong of given Perfect. year? underneath right? everything covers, a very And SMB, those obviously, revenue great. you in do the do quick been how mid-market, the overall cohorts XXXX? Cameron. If to year. those were that you results, The versus retention we've where did finished follow-up then at at how through net And finish XXX%, But

Cameron Hyzer

Yes. Thanks, Stan.

largely upsell really saw headwinds So within seed and look, opportunities second XXXX the saw half, half, opportunities. halves. Naturally, more concentrated our those in impacted are In first customers. headwinds of larger improvements expansion was two the those and tale board. And a across we we the

we the year, you we in and more it got to pressure of $XXX enterprise what bit the than a break But routes, across better XXXX the XXXX. million, of midsize down in the retention net momentum So all saw saw markets. in had similar end we little of to if with in very as the is those we terms

Operator

next with from Mizuho. Panigrahi Siti Our question comes

may You question. your proceed with

Siti Panigrahi

impressive Very about development want think versus you couple a I quarter, Any internal congratulations. investment the you And you decision. to of about that? forward, going when ask on the did, update then acquisition acquisitions.

you areas expand acquisitions? the are potentially what kind So could this through of tuck-in

Henry Schuck

much Great. Siti, At of thank completed at about the point, well, and we're heavy -- really this there. you. from of Look, both good integration talk the I'll two Clickagy feel we've acquisitions, EverString, I think lifting about where them. an perspective. We

on. intent technographic to we opening us share there. to intense asset already side, into interesting The I'll Xx. streaming signals in-market and larger where starting focus couple opportunities of were substantially anecdote with our Clickagy's company, launched enterprise, really that companies acquisition already we a and Clickagy an contact area offering. our it's we're platform, fully once attached EverString One, with to our just On positioned intent intent we of win, make the to saw integrated our increased doors the combination is uniquely the incredibly assets in

motion we especially So their then of total things of about signals our significantly with our customers EverString our to their across on one the teams. go-to-market side, data was a and EverString sales much our the opportunity asset customers and the by take acquisition into the leveraging larger enterprise management are were addressable on now excited targets the account market. And swath seeing more of intense

And post entity. of in of acquisition, $XXX,XXX that more opportunities we've the can significantly for a than that. So stand-alone customer, as to within was our compared too, first the ever quadrupled grown string you just that a part been we've see month the number driver EverString space and

of are So performing really well. acquisitions those both

in the capacity in the execute about recruiting by the bandwidth opportunities will software to can be every or assets something along, position sell we for really that we acquisition professionals you comfortable talent can leveraging data I look or and data to assets if are it. the one, numbers. their and we're term. that platforms think the and to that number go-to-market we'd that came that that philosophically, the think software But in in if And be deal value-creating the play marketing a accretive have for team enhanced that future, meaningfully be be across looking go-to-market hit right where and spaces, are feel our day we against sales our that in short

to you be So not us expect but we're M&A acquisitive, M&A to for stake. do going should

We to and you us to have a philosophy expect M&A, framework that. and adhere this should around

Operator

Our comes Crédit Brad with next Suisse. from question Zelnick

with may question. proceed You your

Unidentified Analyst

It's opportunity. One for Cameron. year. to of about. you go-to-market Henry, on a of terms Congratulations to to are expanded priority. opportunity proper talked place product end dive Henry pipeline Brad. a having an insights and that strong since this made Where terms capture that you can further more you for on strategy into and give the expansion meaningfully just Any for the in that's $X the billion wanted and Bob impressive in in enterprise one of you how

Henry Schuck

Yes.

lot a out of product as to get making So were a spent be both thanks perspective as could. talent really we right sure that able We question. enterprise from perspective the for making and much opportunity a the XXXX, of to we investments, our the

our people and base the put The we make the puts really to of we've or team. product about so enterprise on that into hands together the we've harden made good resegmenting the of ready. team really accounts customer the our the APIs solutions right that changes feel our right And

go a really very in we so feel And that way. positioned opportunity well to like after we're big

Unidentified Analyst

And then can Cameron, guidance, insight the assumptions of just in into the making and you potential for macro reopening? terms any you're regarding

Cameron Hyzer

mean, is more being COVID trends digitization. our less or guidance a around secular headwind I about the about Sure. and tailwind really a

year, the in of some but So we really headwinds second in dissipate the the those half we've first the did year. headwinds seeing see half of

case and still solutions. XXX% accounts base And is their what their of provider range outcomes. an to focus trend continues see to first data, is in economic of think We market middle month. which increase for company much leading guidance the that our we the And see marketing solutions. a consistent a today. pandemic, by when their are called this towards services, in they in needed of were intent leads with that focused workplace secular with by able to is were safety qualified more relatively And highlighted solutions on that digitization and they a we our environment training the on of potential Henry safety broad what leveraging

go-to-market So that change forward value our and with sort us continue motion. time to quickly to a enables really also to to push us to of environment changing allows

Operator

you. Thank

with question comes Mark JPMorgan. Murphy next from Our

You may question. proceed with your

Mark Murphy

curve I'm you I'll add into sophistication the the as this move of robust sophisticated to are with very deeper sort where year. helping forward that's kind you'd better grow and platform on customers who curve. forward-looking that lower say believe up year my a ZoomInfo, finish of could Congrats Henry, them most and interested doing on leap today see in the get a most what they and your customers your leads are generate faster

Henry Schuck

you. Yes. thank Mark,

So that most ways. of a our think or using are that of we workflow some If often couple our architecting solution a sophisticated about mimics they customers, different motion functionality.

a executive their That technology, a a might mean all launch partnership that signals, is a funding a they're product it set that's addition identifying It new opening of And a new new that's business. or to a or be location announced. doing key be might they're board. or of might be on something new the of our moments be round. for what different customers. might that's So It come

of they're articulating Salesforce from. prospects into they're our set loading a signals product two together, using they're those the those ideal or the see identify they ZoomInfo companies then and building sync marry that those signals Once they want to So to at companies. target then

integrations customers, signal a a to engineer then capture companies, And these fully it. our For cybersecurity architect. at a it or it's And Officer system ad from and see you to an calling be to behind professionals motion when CIO automation be marketing of Financial says, this to is campaign the SDR this part then these run a display campaign, But in a that they're everything specific architecting that could everything a from automated. go-to-market this key campaign go-to-market Chief can motion.

customers. from is our workflow most that automated So sophisticated action to being signal by

And so they're have that don't best go-to-market they third-party our mirroring accounts customers, data, the that first-party automate that their data, already ZoomInfo with data from to motion.

sophisticated of our taking way. advantage customers platform most are So that

using side target can the you least see the by or On them sophisticated the on a identifying platform sophisticated audience. side, lower

sophisticated over to campaign run the reps, that's "Hey, lot the level in these increase with level team be screening a metro we in to areas, -- we to across of want would I employees sophistication X of a customer and strong side it's investments that VPs our really base so of really on lesser in, giving platform. technology." customer sales that made their XXXX with more our want saying, have because a base. every of look, doing of of success the the the XXX And against So company And information that customer access the customers based we've

Mark Murphy

sales as fascinating. seeing for a thinking. and the XXXX Pretty really we plans as they guidance their what were think noticeable other into curious, if you, customers? above just reinvest is was in to the teams consensus wanted for marketing recovery. words, you seat Okay. I thinking any ask improvement you're materially and In I'm the expansion own Cameron, follow-up, your

logos with that's to and expansions more So and it the the come driver words, feel other yet the in new or is you do the enterprise logos. is upside more traction really like here

Honeywell is of Toyota sort think extent what not Henry industries To driven? think that and mentioned of being we had first. I might

Cameron Hyzer

on as of quarter this both So and $XXX,XXX that from look new both point. customers, currently, terms coming at you are above largest real we're addition our customers new customer in on seeing well had if existing strength at a opportunity the we as from logos customers And record base. of our within sides, expansion the

Our guidance of is more those focused on continuing to reinvest in the platform both and move. areas seeing

that seed But that not some the have this point. us upsides of of yet. particularly XXXX kind at in expansion seen opens creates certainly, We for economy as outside opportunity

Operator

comes Wells next Fargo. Michael with Our Turrin from question

Henry Schuck

Michael, you might be on mute.

Jerry Sisitsky

we next question. ahead the and don't take why go Josh,

Operator

comes question next Lowe from with Our Jennifer UBS.

with You question. your may proceed

Jennifer Lowe

just I arguably to to inclined looking time based to circumstances. to on doing you the also over but look who point like-for-like at call or Henry, on right call to a the person opportunities sort be on time given being side, it Maybe to the of all find start, just of what gone the similar the side, time right evolution the valuable to around right not opportunities. of dynamic recruiting just reason, you're intent see on how from what you're intent I'm on it's see sales an and Do set the in offer capabilities whatever if curious recruiting for and in having you a maybe intent might in to opportunity the to additional hire, of just recruiting other you've figuring person like more at call out more there's side. that piece, pursue sales observed these way if

Henry Schuck

absolutely. Yes,

to likely how to is incorporate better leave. about identifying thinking someone are when algorithms for We most

building that engaged have today. in data We team out a science who's

pretty is confident an thing I automation. other we're that think about workflow this is for that is industry hungry the that

tightly so the And key for our engaged into recruiters. but purpose-built solution the that not engage just to of X the building a And have asset way that elements solution. platform to in available, data have purpose also was integrated of data asset

and recruiters And at professionals then asset that That's their can at the but activity and fingertips don't data with that into that so ATS data also now my automate candidates. not potential asset data I back contact have my I way engage have fingertips, today. acquisition something feed do I And just that company system. only talent

excited sort not algorithms layer we marrying we're of on that with so assets. and data, but workflow just that data then raw those And that top around building of insight-driven bringing about and automation

Jennifer Lowe

quick a the how million modest out a just modestly know are. revenue on And called and that for a give impact you Is might QX I'm what the in be assuming any a you color high margins, sort that's impact? negative of terms $X the margin impact from one Cameron. margins 'XX acquisition on impact given there guidance acquisitions us margins. your and there of calendar the or assumptions on in can I the

Cameron Hyzer

that the Sure. continue a of the in to be be quarter pretty to Do they'll impact are overall. on QX, Thanks, neutral certainly in Realistically, expect this first that the year kind of a about small. drag. yes, Jen. by modestly two, you our end or negative were But margins. to talked we And two spectrum acquisitions margins modest the

Operator

question from comes next Our Sandler. Brent with Piper Bracelin

proceed You question. may your with

Brent Bracelin

bullish think customer of I'll happening. The new Henry, quick guess, then I one all Cameron. start and for it the of guess customer follow-up inflection from nearly looks And exceeded question least And a here, in, in some QX, adds sort the the my for XXXX. you, all I number outside new here XXXX, customer perspective, in momentum is of adds with in at here QX like of it the outlook there is from I

number but just in on a strong was QX, get driving broad-based it a much Or from process number now? to understand strong strong all the more it was enterprise, but platform customers new prior little across the catch-up momentum your It the verticals, looks year? just you're feels sounds big coming it was seeing like view across of to the right SMB. us change, was a help It of just bit now? customer a in the what's of why like understand how to So some adds trying like love

Henry Schuck

Brent. Thanks,

the and the what you're that out sales building and acquisition February and seeing dove getting of headlong marketing two made into next-generation from think of for in we two really made of post marketers. we momentum teams XXXX. We is I acquisition, investments platform salesforces, ZoomInfo all us combining a

platform that in released was so And just XXXX. October of

how getting we the so under what itself in is broadness organization its of around opportunity seeing that platform the really you're to And sell around have the marketplace. feet

California, into sell medical And what you our product can go-to-market a so you're seeing a better we I It and needs. think a that one, the of our making efforts their are. customers selling what that must two, off. coming IT for investments serve of or sorts the industries us, their we solution is if doesn't really realization, director, up your see matter from to can of an of kind see in is years in sales now go-to-market really serve teams, solution decision-maker last the if efficiencies and teams of you're you're company have all regardless you or the companies, all selling you France over in you And the paying two digitization go-to-market made and

or don't the based short all that's industries to saw across so we world momentum a or across here And broad stay. the sizes. something that is blip a momentum, we lived think from that And again, term, think that's we short

Cameron Hyzer

out And think see The that customers. net pointing Brent, numbers are I superfast. you

retention activity. we did throughout not on. only new the and in sales also a coming have But improvement logos new terms of an So saw strong we year

than the where QX saw might than we canceled. earlier also in issues customers facing we less they So year financial in did have

Brent Bracelin

set percentage you revenue Cameron, of Can Got there helpful. countries the it. remind Totally couple us number quarters. makes the international? from little then reps And of just talk obviously, level of where internationally, through you is Just inside And out have of you've what sales maybe would today? just be last called coverage sense. a

Cameron Hyzer

Sure.

of At point, turn from then way. international or call sales Europe. they it focused are feel year other else, up that in set kind our it, the of markets. somewhere be routed get parts that's U.S. We this normal be XX%. Overall, of And right revenue different going or them that's to on whether markets they Asia now. largely Australia into our including focus is team for our the do So to reps on all out,

Brent Bracelin

it. Got

sounds it early, far. good still so So momentum but pretty

Operator

comes next question from Our with Tom Stifel. Roderick

question. may proceed You your with

Tom Roderick

along strategy of I'd on sort path year hear year, gotten you've pretty customers well and getting front. crazy Congratulations on a was so questions that. moving your love thinking Henry, the faster. to a of done a were remarkable to this a that new marking what and number finish on on fantastic of regarding kind finish that of relative a to wasn't additions people just number to what customer a little

people would that on more in that like have. XX% now. ACV you're than strategy additional like moving path than about sooner have? perhaps curve the this upgrade maybe and modules seems putting might platform place, you I more it of new on along tools might and more you yet, a And talk a think mentioned that Can and move new is they people perhaps quickly they previously bit your little historically little -- more have

Cameron Hyzer

Yes, Tom. absolutely. Thanks,

mechanism expansion, year, first, the sales product of think, to think of never enrichment last more more the as a evolutions perspective one can more drive really product product about viewed I functionality. us drive upgrade really we a purchases for do the from I further you've the in seen us. And seed how is think

we built, then a and button that impact scan automation or one insights CRM marketing data on our interesting have immediately can see the a and customers what is really instances. in help click our where enriched their can existing So platform

can them, a you inside And so we in an instant, they tell bad of have look, CRM. your click information much this button,

them making that having they're solutions. an about last over year to sizes use already that wrong also made their customers. a their automated employee capable to the customer when an of in build them, are level. provisioning in customer your enterprise users an our the of into our teams ZoomInfo momentum all We the still success larger of them. enterprise for automated as selling we sure point and that at accounts access still larger customers management or team group across account These calling users significant user to on And in have the are about campaigns another they're that's are to at entry a those sellers and itself. way industry. discussion an of conversation opportunity make We've presents of conversations then and and enterprise have enrichment trials your the take All have wrong marketers limited our people get of thousands sure customer these left and But our positions investments to front a think

investment team upsell a we teams and best-in-class and our motion really fell company. our so behind And and are that management sales with drive within the expand sales on the customers. that our having as do and And ensuring that big growth account management account conversations the they're of motion success rely to consultative teams enablement when customer

making see there investments so And well. continue you'll us to as

Tom Roderick

follow-on of go quick sort market. one Henry, relative question to to And

taking yet to today, nicely ranks this sales gets this and role wear promotions specific other hat Any as out CRO So are worth the Chris' responsibilities? that to COO. or any deserved that executive on Chris your changes pointing backfill organization Or another here? just to need to is across

Henry Schuck

organize material. of all about team I Chris. the everything a opportunity having you see from to of excited the excited different couple momentum we ways the couple marry both underneath organizational of management alignment we're We were that to think by sales nothing and a Chris, Really, the marketing underneath and we'll sorts did under leader. In optimizing about think one synergies We make sure alignment. get things. of we're and but sort structure that there

Operator

question Colby comes from with Deutsche next Patrick Our Bank.

proceed question. may your You with

Unidentified Analyst

about customers, And platform? the when kind kind customers. kind where I of maxing reach you on out maturity X-figure that. talk assumptions your sometimes and thought opportunity existing of I'd the they be This kind of was having if pretty Patrick curious it Colville. Cielo on I you kind that customers. could disclosure interesting about for is you in $X talk a about into just you see of guess, I'm upsell reaching guys made And Dan curious And of billion

Henry Schuck

Yes.

the that we So Was the within and analysis enterprise available our at customers went billion-plus $X where looking into today. opportunity. seats that are total

In earlier see like year, on to It's to bounds. largest the point. think And terms in of million. we And we grow. largest customer continue at our push customers where up the to $X our this out, X.X continues maxed I it's it

sophisticated integrating that go-to-market where to really customers fortunes. drive are with get more So well opportunities the there that are today we largest above fully are think significant of capabilities ultimately to our we some

Operator

from with comes JMP Securities. Walravens question Pat next Our

your proceed may You quesiton. with

Unidentified Analyst

adoption in on I just the wanted on and to how pay you're dig is seeing Pat. This engaged Joan XXXX. Marintek to in maybe for see that out

Henry Schuck

Yes.

in engage that early our is the And perspective sales I solution. most solution, So especially engagement about data the still we're continues what often our on solution excited value from space there space. we really believe a it's ton in asset And we're white a be but to the engage makes evangelizing we're to customers. of the difference think

who And are higher we're using for so product, really seeing, early, seeing I the but good we're renewal traction engage mentioned, the of and product. also rates as meaningfully customers

it add for ways number a value different So the company. we think of will in

Operator

question next Hynes Our from comes Cannacord. David of

proceed may question. with your You

Unidentified Analyst

DJ. is Luke for on This

expanding So a which but scope call, audiences, of gotten seems and you it guys forward launched terms into step recently love in much the hasn't targeted like marketing on platform strong the the of advertising.

Or the sales ratio your leverage budgets it in longer words, how I that, or to of marketing between that? incremental orgs solutions marketing one thinking could to today? is long and teams spend imagine teams and platform one extent Now could the that guess, other that fair advertising term, with could what Is about and think term? to it we like be same are teams sales

Henry Schuck

data the in and for Luke, make the has a about difference product. thank advertising the audiences very you we marketers our question. We've contact a ability business targeted known for the while for to are Look, space. excited that

target can to brought not to And points data business now professionals were market. ZoomInfo available this so product, we product that using use that with marketers before

form data are change We've think asset marketers market. I intent look a either an complete contact for Those sellers that product a incredibly product. are think we expanding that our or we perspective. marketers. areas or and and from we case, it's or our internally those much that opportunity the by like within time energy that all can advertising, are to all product, spent use of the M&A opportunities leveraged provide website solution lot leverage differentiated our of product, whether big where the our solutions all think And significantly We data have recruiters. company solutions, other for to the enriched or asset game to marketing on an to about

advertiser think and speaking share do together do. more wedge base evolve, wallet with see customers a at well. And as an that way are marketer's new within are language, within I us marketer what to that is tied we of into our and customer better what products get looking you'll build a really our as

a And more into for marketing use so growth us. we as getting the meaningful see case opportunity entrenched

Operator

question with Simmons Capital next Tillman RBC from Robert -- Markets Our Truist. comes Terry with

with question. your proceed You may

Unidentified Analyst

This in for quarter. time. Terry is And taking Congrats Tilman. a for great on David thank filling you

So just for a big picture you guys. question

true more Your a these the would has sales revenue, been about testament. folks for go to they than demand customer product. and To power growth actual for out there, sell products your have insights

seeing lately. any So entrants it I'm just new market coming curious the if for you're That's me. into

Henry Schuck

for question. you the largely is environment Thank competitive The Great. unchanged.

the use And take. flat less and mentioned and all time. versus that still, account software customer across managers sellers I'm than mentions are recording calls competitor QX. competitors of competitor down on of And mentions call X% were QX have average, we our we actually mentions We sorry, are the

market from are the pulling marketplace, there away alternatives in that extent we are the to So everybody.

Operator

Our with Brian James. Peterson next Raymond from question comes

You may proceed your question. with

Kevin Ruth

Brian. for Kevin here on

Just smaller have if your and as seen mix a me. or next that maybe curious you've thoughts how you some could look years. Can the of generation, pipeline over quick some verticals for the for few ACV I'm any of out trend about new you specific you talk to one on trends

Cameron Hyzer

broader selling and manufacturing, we what's are provide another using we're logistics, any high-quality these motions. big really go-to-market to the from a early But software innovators. from Bottom industry. seeing our can is insurance, we're the wins from stages like you early all majority to across of set ours the business a services. growth business But business services and Henry of software us. initial portion real the in and heard finance, big TAM were when a now should verticals of pharmaceuticals, estate, drive that comes business just business real value think about So continued verticals, of about our transportation, in that their line to addressing and adopters talk whole But data important early

Operator

question Wells Our from with Fargo. comes next Michael Turrin

question. your with proceed may You

Michael Turrin

retention those the And customer initial around then and what's commentary you Is the useful tailwinds on switch Some to to too, you back anything on and year? environment there looks you're can year. of next bit Is a is given assumed it you seeing can things provide persist? from adds maybe that the opportunity a touch, there demand any seeing. similar those which just to like somewhat fair around helpful. of headwinds you're Is more you're additional saw margin walk trends towards the that add maybe course like providing throughout given the front growth you're you? levels context sense in a Or just for certainly expecting of makes the characterization, outlook now

Henry Schuck

year had. coming and business. quarter we're seeing the Sure. across the I ever guess positive we there's one strongest the of takeaway off are from areas this call a all is strongest we've And that momentum

is guidance XXXX guidance of plan consensus. us account broad initial methodology Our anything, we've is range is past. in of the is our to we range consistent expectation while these for that than wide certainly, is need done And macroeconomic a with It that take higher what outcomes. levels potential that to potential outcomes. And the

In R&D. moat for upon advantage build heavily that build and competitive us feel invest that opportunity in the terms a to continuing here into have. of We're we and margins, market real there's we do our to the

put markets drive with we can additional the to that. significantly that advantage think to our capacity those take As of some to growth additional to well successes had continuing as products behind we're like that the competitive marketing we've about advantage you investments future. continue engage, and and of sales so those And if attack wood and continue in

Operator

And I'm to at like not call the to questions this for further any Henry turn showing remarks. I any now would over further Schuck time. back

Henry Schuck

plan. successfully excited we're again, Great. really out Thanks against everyone. continue our to the by and there, execute remain opportunity to excited We

for So call. very you the you thank much. Thank joining

Operator

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

now Goodbye. You may disconnect.

ZoomInfo (ZI) 23 Feb 212020 Q4 Earnings call transcript