ZI - Earnings call transcript Q1 2021 | ZoomInfo Technologies Inc.

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Operator

Good day, and thank you for standing by. Welcome to the ZoomInfo First Quarter Year 2021 Financial Results Conference Call. At this time, all participants are in a listen-only mode. After the speakers’ presentation there will be a question-and-answer session [Operator Instructions]. I would now like to hand the conference over to your speaker today, Jerry Sisitsky, Investor Relations. ahead. go Please

Jerry Sisitsky

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

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

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

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

forward that Henry event, XX, coming Eastern at will conference course of to Monday, that our week. inaugural user look hosting including plan virtual hosting investor conferences over weeks. Investor at available we're over and the information with event Lastly, Analyst through which Time. the call beginning and June be save With in are over our to turn that, coincides on a registration the Schuck. Relations number CEO, I'll of More pm, quarter, we website our format be X We date. This also the we detail your Investor Day ever a the participation. our Please first to events

Henry Schuck

Great, thank welcome, Jerry, and everyone. you,

strong execution Adjusted income an representing The We $XX business from lines. accelerating days results representing growth operating GAAP operating and entire new company, to These XX% quarter. business product XX%. across marked in of to our by dependable million, margin $XXX all retention. revenue across was first growth delivered the was were driven of number XX% the adjusted when million, of quarter of year-over-year the by development for sequentially,

Our focus top continuous for near-term financial that build long-term growth. the on on cultural results we setting of core improvement us a us to deliver execution allowed durable and while has up our value consistently as

QX strong all added business customer best QX have We to doubled customers new the quarter I want of new that and We results business, results to specifically and the areas call achieved quarter number XXXX. out on our ever of dimensions; across this activity. new compared three retention additions this we

motion. our had looking companies upsells accelerate as drive also ACV beginning and saw digital We to we a renewals a for to with products for first record data-driven of continue percentage our as demand go-to-market quarter

could provider and solve founded contact we we had that with ZoomInfo, it needed of our While makes a bigger better were that of help than When first and what data confident that I'm we raising and continue to financial sellers full having envisioned. view promise a And our our desperately deliver conversations class business, opportunity their customers is guidance that is potential marketers on quarterly we even prospects the them and the customers. of guidance, this company near-term exceeding long-term problem. year me world

that that how need powers critical to to mission and the a and platform and today, is management, material renewals. of foundation of that new leveraging we from drive still to asset. the hundreds digitization AI Since sells way behind of millions funnel, improvements for and then, the use the From to our account as of go-to-market. upsells data normalize, dollars data machine we've invested and to fully And companies the gather, to Continuing funnel of cross innovated learning. the scalable businesses. and of that the marketing from top was sales cleanse with the in sales of data Our match bottom

signals, next helps critical starts businesses integrated platform best targeted in This delivers Our workflow and our layer, data of our insights all activation actions and and accurate and automates layer, of software repeatable data tightly sizes Engage. software activate all efficient, integrated opportunities industries sales an generation way. across market with and with highly suite leading and our scalable

across in expanding around coverage data As that asset and workflows, of we continue the wider company. we our building a stack, automating application wider leveraging platforms invest to we're data and publish, and moat the quality the

As appears clean like VariDesk almost be expansion and plans diverse motion you and of our and a energy we little spectrum At the with a so are view that a Panthers. granular also we platform direct-to-consumer Even The the not growing broad market. look our new quarter, we recruiters We data company Carolina and not and Uber, teams. this Vinci help an Today, always further, to sales like our only across consumer Day target also and where companies detailed and impact. globe. making marketers, included market more only this solutions the technology does serve but the customers companies to industries. across operations Da our work to around a we growing a United into a quarter you'll if data midsize enterprise BXB Analyst group but and help only, at Keurig, transactions Energy, grows, from providing find firms there. later small large addressable people of anticipate States, companies From and

lucky and brew provider a able of Experion, that brought we're all great in a in new companies the unknown We're from of Hireworks with and sizes middle leverage work and sold from hand story on IDC, our sanitizers provide markets to Chemical, are to businesses competitors. but all and solutions Modern drive shifted industries, proud to from comes which distributor the especially our customer successful directly of pandemic. growth to with firms also to a to to growing data, We insights technology cold and entrenched

leveled field Our companies are playing customers. how these platform to the their for acquire able

the our with more is imperative large opportunity than with from strategy to strategic This looking opportunity, from is enterprise to focus continue within larger insights. our growing also large across a than enterprise driving more driven platform opened greater a billion of on to of identified we've execute imperative enterprise, CRM -- engagements. more and and for the us the seed their customers. We also $X from transform the transformational the a organizations successfully system for to existing becoming on door focus driving meaningful leading and a has of system to our Increasingly, C-Suite, while record conversations expansion

the we ever quarter, deal, multiyear ACV This also to cohort greater largest figure a the than closed our additions transactions, one more $XXX,XXX year-over-year. while we than doubled of eight

quarter. more of ACV, in $XXX,XXX than As more than last had up XX, XXX XXX from March we customers or more with

This is using sites we data full trying of manually functionality our allowing FTP enhance positioned opportunity and in generation are a to released target API the and deliver new and opportunity others to method. more the following that more allows webhooks, our our While to response FTP target us to of to stream enrichment, insights, drop acquisition technology EverString. value integration customers still a enterprises, material better to and the request our receive data-as-a-service enterprise to a and continuous and we're new uniquely files, ahead win improvement that programmatically of modern

added to de our Additionally, our name us capitalize on March quarter, Helsinki Vienna, Berlin where we and strongest Janeiro, Rio few. more segment, during month international the resources international opportunity, customers increasing join was saw growing in a win basis, continue ever adjusted Dubai, a Sydney, and drive to demand we UK, traction their Zealand with in International and new we to from and Australia, customers in Canada. accelerating to and quarter data see international rates day's efficiencies the revenue marketing processes. New on sales XX% the embrace across sequential as Europe Ireland, grew

party product side, adoption Salesforce increasing to accounts from bi-directional We more saw into eight integration the with and of our number our sync. first opportunity account fold in capability. the data enabled This to On investment data sync data. Salesforce with that now data our off contact users deepen filters, have ZoomInfo and increase lead than this of directly marry is to rapidly Salesforce capability allows new paying

platform ACV we're engagement ZoomInfo increase compared the QX, ZoomInfo customers and sales and a platform seeing to use core doubled combine Our to the accelerate. continues and also user of in automation Engage when XX% XXXX Engage. adoption of Engage

offering. retention adoption ZoomInfo and is product about Engage built behind benefits. material Engage materially both has retention ZoomInfo. across We ZoomInfo customers international renewal multi benefits have our Customers the that also recruiter Engage, and It benefits of which of the of where those one area our and most and investment platform. than are renewal are the users numbers, This who within things of who increases has rates Engage adoption dual a exciting Engage see where And higher only this buy in packages and customers. is

integrating in into and users managerial configure points we additional receive tools after and to out and within contacts than We're ZoomInfo Salesforce market search building our and to customers the More contacts Salesforce integrations the sync into and while recommended platform, target Engage feed enhanced to pursue. platform. administrative have from quarter, buyer of between just marketing of enhancing one like the Salesforce Engage, HubSpot, This in XX% release. these expanded allowing controls personas automated CRM automatically our and synchronize and month data users features also import enabling capability we're to significantly used active to an Engage integration ZoomInfo ability adding

Intent broad them around products, ACV data-driven relevant automated BXB also These market to services. [ph] their with closer customers Including products end to which motions Intent year-over-year. spectrum adopt of Our across topics doubling solutions. our by our have data, continue workflows increase a gets spikes building intent market and to significant fueled a of our buyers leading intense

the perspective, automates adoption, activity reaction adoption scale Our to usage also Inbox The sequential support, in QX creation positive. a our was BXB Forrester and their overall ZoomInfo user and security increasing lead enrichment XX engagement platform integrations, from Since while demonstrating highest be of named scores year-over-year. the Wave and and platform. and and call privacy, to a of for active into XXXX receiving continues Research and solution market platform to ability providers, data earnings applications, daily possible increases And data and our an CRM, and data XX% the tripled last monthly seller's sales product inbox by pricing leader from data directly roadmap which API's users saw product in and acquisition including packaging we vision. incredibly contact AI our our marketing processing, in categories, Forrester

solution best placements that, complementary top-rated number software for ZoomInfo from stated sales we year. Forrester earned is for award organizations and On one of top TrustRadius shared applications the the fit array XX for fourth we an with on received data for consecutive of that intelligence foundation. looking data a a built a GX expanding also comprehensive

long Practices Validations earn of process and deep the data privacy forward CCPA to GDPR TrustArc. practices both from being on Finally, month and trust to our achieve reinforces privacy and of included audits our this leadership The privacy focus we our customers. validation our attained

grew we team XX%. nearly our months, XX last the by Over

new getting employees to have has of we the promotions from our as average. personal focus every responsibilities master functional skills. into at the the both define Officer our to and are that again, our our improving returning new the return world mobility to the growth. over hand Chief time office, I'm work far continued first spent forward on possibles begin team a ever, to encourage to looking many to together opportunities hybrid themselves an and X% collaborating to incredible internal Financial From confident We new year While Hyzer. in in-person for With this day in-person employees model. with to to learning last cross drive for home, professional office around working ourselves career colleagues are and amounts offices moves, advancement their challenged every outpace as preparing team embrace ZoomInfo to the And achieve team of again. continue that, excited industry member we're all July and to we accommodate when I'll in-person. gather to Cameron will our I'm innovating, our meeting mates be to the able to We it plan

Cameron Hyzer

great results the quarter strength QX business. strong Thanks, guidance. retention Henry. new based results activity. And and a across broad customer for our indicated, financial best with ever business, Henry saw new our as QX was that We we exceeded additions achieved

growing enterprise and international quarter This was our products strong by successful sales highlighted customers, newer our growth. expansion also with of

to million. $XXX represents XX% million As up the sequential a a of our million adjusted raising revenue XX% time. was income growth a million. the the result, income range $XX up quarter $XXX and XXXX, expect and year also million margin growth midpoint. growth range to guidance we the adjusted GAAP in prior QX, guidance first range $XX represents guidance prior we of for deliver our from We're our to exceeded adjusted at of outlook of are to This in of for also $XXX million $XXX guidance and as operating In exceeded revenue quarter. to and in revenue In million our million, of now from $XX million, fourth guiding XX% the XX% to $XXX our million. operating year-over-year $XXX days delivered This $XXX

quarter, and additions first activity. customer continued to During see we the respect momentum strong with and to new positive upsell retention

hitting $XXX,XXX to renewals its had We our ago the compared motion successfully added and quarter number than upsell the greater really the large customers of execute as strong to year In also is ACV continued enterprise doubled enterprise stride. growing opportunity. enterprise against we We period. and the

with XXX as up more in a or customers more than XXX than of As result, quarter. ACV, we March more XX, had last $XXX,XXX for

continue finance, manufacturing beyond particular business strength software verticals. services and in to We real expand and estate with insurance, also

of resources Additionally, revenue to markets. the of XX% international than revenue during the on quarter faster growing we more opportunity, international capitalize coming XX%. which revenue sequential the now international quarter, over international in growth our adjusted we resulted added growing from days business, overall With have

As remains additional adjusted levels growth absolute focus growth operating in on income. durable we our revenue of and invest delivering factors,

that drive as elevated levels potential may As impacted. a we growth, be of result, there's the margins

the As be past, have of calculated billings in-period of we metrics and in can noise signal outlined RPO securing imprecise activity. the with

in our on growth which to by focus we compared sequential in prior result, We of adjusted performance revenue growth remainder in the revenue sequential and divided the first days days a As delivered quarter, growth, the to quarter. strong the quarter XXXX. the results days for in great the is adjusted year. This total for our revenue XX% guidance provides confidence relative expectations ability raise the to further momentum our

of extend the expenses, As planned, we capabilities data and increase our activation in as expand our platform. to investing quarter to we investment in and development our advantage further on research workflow move and the

opportunity. and after expanding market to also marketing We large continue capacity sales go to increase and the

in of in margins we result delivered a XX% guidance. with line QX As operating adjusted

in flows million, flow, the and we with cash first quarter Turning we payments $XXX the in quarter. which $X quarter investments. $XX interest balance million million short-term ended of and the of equivalents In cash, to sheet included operating generated the cash approximately cash

contributing financing to As first bond a million on the repaid activities. last our the use unsecured remainder in part I term senior in loan quarter, indicated we issuing cash and new our while the repriced of $XX for call

adjusted cash were We almost as expect both in in the operating cash Unlevered billings by quarter $XX those was and approximately for million collections transactions the flow strong quarter. interest free million income $X will XXXX. reduce our expense XXX%

were unearned million which revenue at expected be of the liabilities the to and obligations, a free next million $XXX months. rates are XXs high cash annual the remaining or unlevered end an the of delivered RPO performance was quarter or on anticipate the as performance in respect operating $XXX of XX income future percentage obligations flow With XXX basis. and we forward, million to $XXX adjusted conversion Looking in

March XX million agreement trailing months times X.X we $XXX EBITDA, XX net a carried credit adjusted in X.X months times debt As XX, leverage ratio EBITDA. gross trailing or of of at

Lastly, in as our get He second before joining and the welcome outlook the before of for joining would turn the updated year-end the subscription to I'll outlook that, engagements we us March. has provide since was with to We XXXX. helped team. company and led some clients then, his quarter Accounting and Officer companies world, the and Chief in With software the largest he's full I through year like Adobe Prasadh the Cadambi for Salesforce. including Prasadh at October, in to announced guidance, who KPMG

expect we net be million range Non-GAAP operating of is QX, and share. the GAAP $X.XX $XX revenue $XXX $X.XX range of in million. $XXX of adjusted $XX the range expected to income to For the to in to million in per million income

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

$X.XX updating $XXX our to guidance outstanding. million diluted weighted million, million million. range follows. increase year to expected be prior We from per flow Both per as $XXX an increase of the $X.XX prior guidance range $XXX an million to our to free based share to share. of million, unlevered the of of prior is in $X.XX anticipate million. $XXX million we XXX guidance from average on our operating be of in $XXX million. GAAP $X.XX And amounts Non-GAAP year income million our from $XXX shares an of $XXX to full million XXXX cash revenue the adjusted $XXX prior million, from increase income to $XXX And an of to now increase guidance expect for We to $XXX $XXX million guidance net are $XXX to our

me for open the the questions. revenue year growth. it turn operator implies With up over XX% full call to that, let guidance Our to

Operator

from Please first is [Operator Instructions] Thank question Panigrahi with Our Siti go you. ahead. Mizuho.

Siti Panigrahi

I'm my now Henry, for Thanks of customer, platform. you and the you what upsell completed Engage customer adoption of cross in last also, the taking best you using the could sort talked are talk about question. Clickagy EverString, your mainly saw enterprise quarter and said [ph]? wondering selling What about strong renewal. integration? percentage And or you

Henry Schuck

great. Yeah,

I very Engage still new. is very think very, a first --

using a the renewal customers it's investment who so today the about Engage also seeing from good on getting And is so retention it there. of go And enhance we're and at are our rates recruiter percentage it. both but built goes using ZoomInfo and the base and customer Engage tiny, from Engage. we are I our great Like just higher to really packages. and feel opportunity customers mentioned, that's offerings internationally who upside feedback doesn't then We're enhance offering those into Engage every dollar to Engage where our tiny

we we And really about package. On our built the so product investments that good really growing app with is there, innings that what that. we built it first did base. into elite the and but feel streaming And also tremendously our it's Clickagy product. still temp EverString, the and into that is across Clickagy It's for early industry's

the so that asset years here get versions streaming driving version Intent elite and from we're advanced will is our is be where which perspective one into within platform. And Intent, And data they professional offerings years a that more offering that come. platform feeding prospects our the and think intent of our and platform from customers for we our to of of

doing prospective gives of in their in and customers customers when front they're what and researching Intent be services, prospects their market and visibility Our and into their prospective customers online. products are them for want to

and that leveraged. feel Clickagy so about asset good really And being we offering has the

Siti Panigrahi

you. Thank

Henry Schuck

sorry EverString, the Siti. On

very deal data customer of through talked I And within the being data the asset a a in ZoomInfo we remarks, as side, service also the the of enterprise combination -- and the our assets. prepared that's large into enrichment the that fully key offering. taking that's in integrated is offering our about larger in And On data EverString customers. that EverString EverString advantage the stepped

Siti Panigrahi

thanks Henry, the color. for

Operator

Our next JP Morgan. Murphy with question comes Mark from

Mark Murphy

Cameron, wanted revenue ask upside thank to about start -- higher, there's the a the to Yes, of is by I guidance you fiscal moving you. the but $X I $XX million in million. on year. think Congrats I year mathematically terrific think QX,

other you through? offerings strength in and are rest is seeing the different that's it of is starting in In Or pipeline year? back recruiter the confidence driving you something So in, half? the international Engage words, maybe flowing the to more, in see this greater feather that

Cameron Hyzer

QX yeah, think, of So, than ACV certainly kind the recognized. initial first that more and the model in I off, above $X was that revenue our million generated is guidance was

see year. to on the internationally continue contributes, So execution revenue that opportunities other with standpoint, both kind an products. I to in that the we that have of of and And firing cylinders the respect certainly we're we'll do that all think with throughout Engage from new expansion that many

it a to provide baseline us does with up our bring So healthy assumptions. growth

Mark Murphy

in sneak quick very than faster that internationally? a could flare more domestic? I still just second If then just of happening Just explain a have domestically, economic we COVID Okay. one. ups growing international you rebound is the stronger why can given, are Henry, there's

Henry Schuck

Yeah, things. couple Mark, of think I a

lower internationally, there's thing. than domestically, I First, think penetration the there first is is there obviously

the the and second the an thing that can't internationally -- can data coverage think we together is, way for we go-to-market can. way team, really that there technology offering bring isn't I that

customers when the excited going but oftentimes, there, go-to-market about the use effort. so are the their for time it's evangelistic, first we're really opportunity to data, And largely impact to

type before. haven't we internationally, solution this can packaged And way for market that so of is a solution the ready it seen the they bring

so the the show actually when they way truly to able them they response positive. we're how go-to-market, overwhelmingly digitize And has been can

Mark Murphy

much. Excellent. Thank you very

Operator

Alex Our Wolfe next question comes with Research. from Zukin

Alex Zukin

on and question my the Thanks congrats guys. Hey, quarter. taking for

one and deal. out you standout customers Henry. the and figure XX% obviously, Couple, maybe eight numbers an first a with growth the call plus just So for $XXX,XXX

environment really the brand shortening year for the So as coming pull comment can push driving and even post demand your some of the pipeline actually rest about the well? IPO sales maybe the of together talk equity, on given the from you, for the from is you cycles pandemic

Henry Schuck

Alex. -- actually think I Yeah, thanks,

I is seats legacy think were really it years this the platform. one on actually over XXXX, was company to that one figure add about a with eight that migrated time. And how just of XXX things then to deployment in to us And they together. of ago think They they continue combined what users, had our come came four our to platform.

So And they the platform many the were they tools customers we assets our is like there, of the in an possible had data to on. new really what much started acceleration platform. software what that was of really got once other new and of technology other with and built all

new was this as then so And didn't a much the adding that platform because the seats, customer legacy data started coverage, have new platform.

adding upgraded enrichment. were then started the offering. they system. And to were elite the And edition And they us users into and they CRM able And baked to and data. to and audit where get then they Intent So -- they AI the to platform. to their able they inbox then Intent and their lead account then scoring routing added where they workflows get -- to new

to that offer but been so for open they functionality features with of data a is platform a they got over new customer there, can really other we these were us all And and the sets this customer years, to them. migrated that onto once and and able

broaden them. and When us an enhanced which we're provide the there realization, into for we're enriching to we're and that us up customers acquisition back but enterprise, come clients, ZoomInfo and within is able of entity enterprise also that able of And EverString, often so ever for the CRM, same all to start And were. more coverage offerings on in the we seeing sort more means base, across we're taking we in our data resolving to tailwind data of other significantly more the provide the records the them. really we're enterprise, to than for customer more contact plug

to continue system so being within enhanced really we a being that the the And as perspective that in and we go-to-market of that of that enterprise, opportunity record to we've we're we that insight. enhance invested so CRM year in comes of we we and And can we product can across to from in articulating then transformation the CRM make talent in that brought, the seeing a perspective also the the really the segmentation enterprise where for where sure system leaders we're that go-to-market headcount the enterprise new And offer from a the but from accounts an last well. reorganize finish value offerings brought enterprise, enterprise motion provide the really behind organization.

now. that seeing of so And lot come a you're fruition to

Alex Zukin

walk And Got the if calculated maybe billings RPO, you versus look you. it. love if calculated QX just But of made look these patterns that billings same there proven about QX. That's depressed super the dollar that delta But be sequential helpful. calc of us kind -- QX? I around just of RPO, then at a versus there on amount Cameron, anything terms basis one the I any current current CRPO in to for in walk RPO in billings I calc it's versus the change sequential added from So roughly different questions. help you the QX know, was at appreciated. or through seeing bigger the in for would current in you're trends can

Cameron Hyzer

RPO, et that well imprecise occurs well. of expiration within timing billings, contracts, as And cetera. as the billings, of you just kind I'll as the of with as So of based you based start from metric, duration get metrics of noise as on RPO through amount billings an think

quarter in of period activity is One our perspective. the things to from strongest consider QX, that an just seasonally is

in to tends little. get, you're bookings think But So, the that's a you of about the of be of if contracts in to the I you that if QX. warp tends in you at improvement. you And expiration again, And for relative comparison number period think that -- as you the queen forward growth acquisitions QX was amount symmetric pull activity, look or in QX, of revenue terms to always is and of QX RPO kind largest once sequential that, at sequential how to there's the and be actually modest [ph], to growth days. and what a best going gauge now as that, -- looking adjust the

Alex Zukin

guys. you, Thank Understood.

Operator

Thank you.

next Our question Turrin Wells is from Fargo with Michael Securities.

Michael Turrin

out Good certainly there. well. Cameron, Thanks. unlevered free flow the number Hi, afternoon. as stands cash

I is certainly think margin than XX% impressive. more

a in than the pronounced mindful is some model commentary. was year, prepared line as to us there just modeling? and course from perspective of the But through we Thank more I the mentioned profile think anything that you. of we related be for out You collections billings upside, remarks, else given were seasonal the

Cameron Hyzer

Yes, QX, cash based from unlevered QX. just sure. the of in flow Well strong Great an sales normal always question. is on activity perspective, seasonal strength free

on continued we collected about it SaaS have in implement day really a in think as And sales what yielded to strong QX if we outstanding. about So quarter operational was that think have you day's improvements plus results. billings to around great as outstanding opposed collections business, was a I

then that to billings drive to If really as flow cash had our great in a a helped sales better we been, you billing that's cash in levels and quarter than take to perspective did which actually certainly days QX QX also from drive helped as even well outstanding, incremental level and flow. we've a pre-pandemic improved have

expect and overall cash improving to prepared a free hundreds operating of as mentioned as or improved percentage I will operational adjusted in we in XXXX. that expect our And as can that, my do improvements for result be be high-XXs, income year. a of remarks We the in So, the growth. version that the flow

Michael Turrin

start Nice Thanks. you. to Helpful.

Cameron Hyzer

Thanks.

Operator

Our Zlotsky next from Stanley. question with Morgan is Stan

Stan Zlotsky

of that some opportunity. you to to year? the for go about year so to What the The thinking new much, wanted the How business. part international remainder as to the the you're in new as initiatives you forward? impressive of are implement guys. back Perfect. Thank the that go I very certainly question it we start we of are hoping

Cameron Hyzer

the behind in I'll we're from can to wants investments effort. the if wood and Sure. expect made Henry put in momentum about color, really and excited early to. more international markets. that jump But we he success add And we've

have opens COVID. that as similar visitors teams open we the internationally, been office there. that think and for international and forth, regions. we're so had things we've travel the One the from perspective, If to if our offices landing that seeing effectiveness I the often see further the really scalability of to open to seen to a up in it that part weren't of efficiency in probably world restrictions those hardest foreign exciting is experienced. the an strength our yes, And plan do to and we've pursue would already, and But that the has U.S. is We teams in Australia Europe, and so team

Stan Zlotsky

So just Cameron. on piggyback to that

other opening the So think also back year, to about potentially as locations the offices domestically, returning greater the you are of we international of half figuring and amount between, T&E in up?

Cameron Hyzer

offices, local over heavy visits. modest rely sales doesn't our with hires be yes, motion there on experience some are ingrained some There and realistically, would and culture ramp It'll start at in a folks be amount that to the our follow. will, success of best, but and in-person then training, expectation that will deeply is that

Stan Zlotsky

it. guys. Got Thanks,

Henry Schuck

Thanks Stan.

Operator

Thank you.

question next Tillman from Truist. Terry Our with is

Terry Tillman

Cameron, feed. ISD. congrats directional Salesforce whether Henry, innovation or you my of kind for What as and well. revenue actually do of a And in Maybe The question Yes, that? Henry, hi, Jerry. from thanks it's get is and bi the data terms And Salesforce taking sync? other

notice. would this are figure is starting to you're get eight and of the second I part is, think seven people going to transactions figure The take

on So side? you're seeing I'm ecosystem curious what the you. development now Thank

Henry Schuck

Terry. Thanks,

we've capability in that up saying and the Salesforce, on elite think packages. our I opened that advanced

will then is because an valuable take so to Starter with our your views elite couple accounts advanced marry We capability. is are, of where longer a it incredibly see it clicks what obviously allows And to which and with, get firms. platform. Edition, and Professional engaging And to tighter and believe you of to are this Salesforce that need your sync be and inside better take the advantage you the kind from party to the Salesforce which data opportunities feature, customers Edition, contacts migrate filters of data, ZoomInfo first leaves you to on of their ZoomInfo at can no should

more migrate, packages. solution really and a solutions the we're it -- using as lever people so advanced migrate technology to And powerful to

perspective. marketplace. Last we quarter, from Snowflake and an I data their think announced a partnership ecosystem with

our platforms marketing a a whether announce really engaging with customers We Sales embedded only be that automation. us see couple inside can to we you'll of they're solutions that with quarter, should or different that's our but and our do of be that systems CRM going should partnerships Next in platform not ZoomInfo embedding on Automation, new go-to-market or number of and application, platform market our also data customers be the where systems. with those believe

has that always expanding the And And see so goal do next the to a been of continue you'll that ours. us really next quarters. ecosystem over

Terry Tillman

Thank you.

Operator

Lenschow Raimo is go ahead. Our Barclays. next Please question with from

Raimo Lenschow

evolution ability bit can the of what are upsell, of there? Henry, So terms of side? terms the about your on where engineering, you to cetera? recruiting in on seeing are you Thank sales, And in little you. et momentum a you like talk cross-sell,

Henry Schuck

What and upper to start candidate the candidate customers, with we're to recruiter you thank really enterprise of mid-market. particularly launch I building early what that this is expect ultimately, motion question. platform, for launch paid platform, from to the on the a And existing a in -- with in larger really we to interview. we of the quarter the would are we And throughout we're with engagement, year, throughout do users Raimo, do in and we rest the June. Hi, is the tell much sourcing, expect have focus market, still you digital

them that ability data, feed then activity the recruiters suite and give a that to not systems. interaction just and but that their interact ATF with that into tools and And so of let data, technology

ATF integrations we're package. new so of a for on the And recruiter working number

a to We recruiter accelerate this dedicated go-to-market And on quarter. emotion then the to expect well. of the we the expect product as year half back have in that

Raimo Lenschow

then And for follow-up one Cameron. Okay.

benefit a going next you next steps step, Can remind you thought like us the Thank forward? from maybe you. dead what's I just get refinance. including that and the So

Cameron Hyzer

couple a of are is There really a rate Sure. advantage benefits of One in we that take that. strong February. we didn't get environment from

lowered across term we both new board the loan the our So between the bond. rates and

forward. going Additionally, flexibility us it added gives

the acquisitions So whatever needed or enables also again, more loan on fewer we term us find take to of good growth bond else potential has we for going also to and to debt million, if covenants initiatives. $XXX it opportunities And give unsecured then us obviously other the our forward size increase we investment. finally, forward revolver more that going continued for that flexibility

Raimo Lenschow

Thank you. Perfect. Congratulations.

Henry Schuck

Raimo. Thanks

Cameron Hyzer

Thanks.

Operator

you. Thank

Brent question Sandler. from Piper with is Bracelin Our next

Brent Bracelin

wanted common on here. asked that's to a thread Good afternoon. I Henry, follow-up being

than a over consensus to not straight last growth business change accelerating pandemic. and the around nine checked just I two debate highest years. with marks of XX% where time conversation the Just nine in where ago, would your XX% XX% still what amazing whether rate months or is the from global the to on months a recall the around the strength a improve now My it, XX.X% I could to sustain us question six here, expected QX changed third what's business. XXXX. in of more you quarter of investor this vividly last material that an we're heated had growth we

know. of than of it's the be certainly here power ago? lot like magnitude months things much, give pace much to platform the small the resonating. nine growth But Maybe additional a because seem rate you anyone's seems change us just any can don't working. just the So of stronger it that's thinking the of I feels colors in

Henry Schuck

you thank the for question. Brent,

like could think was bullet really tell one I silver I wish here. you you There there isn't. a I

execution, area nine they the better thing them, months And cultural business every months, in that last just advanced even see ago. long-term. growth talent execution. to you business. talent We've brought X% push of looked sophisticated that's I a think to be in And And department in of business every I We the look back over every the come building like that every a consistently nine they a on the the focused business of area business. area area see our We're don't We've going you're every that of We've through. year. every in goes that seeing this the in that every to focus what on best-in-class like improve is employees best-in-class getting executes new day in business. this and for stronger is the durable business.

Brent Bracelin

logo where in kind maybe non-tech strong offset those slowdown of Thanks. you helping really manufacturing. called and strength, tech, for on of really out just strong? as the vertical, areas, those you're adoption as kind the helping quickly Are you traditional finance, Cameron and incremental market a top seeing in tech just Something of the a new insurance, on you're here or sure. estate real drive the

Cameron Hyzer

that for pose base, within really of is coming I off than small and they're we early the those a have Yes, traditionally services software relatively and but adopters and even our incremental business. business segments

really those really We the strong in growth, businesses a yeah, parts growing XXs, strong in still as of continue to are see quarter enterprise percent. this our And growth.

of adoption. to those from in terms slower newer really up continue they some little And So then growth traditionally a of incremental do picking verticals we're well. that been, have

Brent Bracelin

impressive. Well, Great. you. Thank

Operator

Tom Roderick with question next Stifel. from is Our

Tom Roderick

how to lift on seven, this figure deal the up. as of eight thank sorts think get gentlemen, you in all and of Hi in to Can those in about the a the finding It for of support changing a we've seems the talk the your and and to bit you're this even certainly function. call many a to your support the ready you and relationships the much you supporting on XXXk adding know, market taking those plus pull questions competitive deals? functions to landscape scale? secondarily, they're larger certainly deals, need put to go figure bigger about, Henry, in and own what as Great. to nurturing eight bigger lot intent when And customers business things into talked place continues what deals? they be ultimately there's big investing on in deals. people sale as on little my trigger you how I you And more like you of is way then in continue

Henry Schuck

question. Tom, the for thanks

today, way look in you that is go-to-market to at way the have you We And two if go our we especially organized. compare -- market, you years what think, the ago. really organization the I with enterprise. sophisticated

acquisition motion that with cycles, when that bring in CEO the a team team sophisticated solutions we're close, engagements, former a full When ZoomInfo. selling our led we This really on that into integrated so upside shrink, a for sophisticated today, solution robust strong we we able to incredibly And to into. see they're have EverString It's deals into the sale an sales motion, math, engineering the comes team, EverString sales by we running sales We team. material able more of deals, here is now more we're that and our us motion. at very in. is for we're of being strong of team the bring inherited that's size

just the solution engineering, here I salesperson, we're two not who's situations. we executive of and business. focused So they again, from years an just executive things on get really enterprise, of an selling you just to into weren't manager, aspect that ago. sales the or on those then And account and those in all account that able outlined, it's the an consultative deal, And when have that a account account manager, data do someone

resources that pay And so us of engage then our to right successful, not the part the want that customers me been consultative question? that we're in ways. that how make the And enterprise but enterprise where about really we excited enterprise. them the you we've seeing with only off thoughtful with hire, we second make support to sellers, across remind And

Tom Roderick

competitive landscape follow-up deal just the these Yes, get as is then the opportunities larger? just changing,

Henry Schuck

the deals competitive job is larger, as really, the pretty unchanged. as landscape Not still get

Tom Roderick

are a critical components the the making and of you've with that follow-on question of it had some of a you But string that success becoming answered example. bit sort to this is then, product ever of nice And sort it. very offering. tuck-in really acquisitions Got little

your larger? I that as As team larger great do the on go-to-market, effectively? these and give us development to Is here supporting making how going Are question are you asked the you make forward getting against well? corporate prepared deals sense forward? about acquisitions Just as going that function that

Henry Schuck

we strong our sell a can we us. with continue all We Particularly that M&A of solution think, across for we to that driver going foundation a our remarkably data asset to go-to-market Yes. can as shared better find growth is where gets teams. that believe a be

And business. so differentiator do strategic we view a our for as M&A

are we to to So grow going that continue corporate team. development

on do you look will tend think -- us we think I to the XXXX, see M&A don't size. and is deals throughout deals continue fixated I way we get to at

Can I think sellers what that parts excited our an we we of all this can line that to be Can to we because short-term, on the that those agnostic can we quota and get, enable strategically so differentiated And be are we to really do to can up, be acquisitions, become and M&A things them. in we're going of be carrying quota core we're are the solutions? size we're creative Can them those data? what going transactions of we extent -- representatives? to sell? is to that they our to it And see going stay those focused is, out asset to our our they become sell can offering? can we if

Tom Roderick

the on Congratulations Wonderful. you. results. Thank

Operator

Thank you.

next with Cannacord. Our question Hynes is from David

David Hynes

Hi, guys. Congrats the on results.

go of ask out you just was about I'll Tom as So quality ads, asking market. the the quantity. about

I guess, that strength improving attribute at rates? would you're customers to record wind it. to had more top it you And new characterize, follow-up of I'll the you of guess funnel have If number adding. to while or I'm I

happens So reason deal top what's I'm with on the site? lost if that occasion, a you typically sure which win, don't

Cameron Hyzer

first the seen at are top more talk Henry why then leads I'll So funnel, we we and about I'll more the ever of don't than the win. let and hit seeing, leads But we've qualified question, potentially before.

we sharp -- do rates continue also win We are in our as over time, see well. to

we're layers you board. a day. X% seeing focused when that apply really really itself is, I that we the think across on have lot every funnel for better I a you compound again, know, that multiple what within think just that on success to being strong… And across that's starts is And So, are of real QX

Henry Schuck

we think I David, competitor solution, all losing and or in most to lose, decision. really not cases, -- different to look a we're we're And when a almost losing no

doing that that make purchase. engaged when the enablement an so is focused decision-makers we're company, a all what And with right on with from engaged internally we're we're can ensure to perspective, a who

our lack But around of just losing that to we're articulate data losing all certain that the the table, we entire we're anything, decision. we're we're solution of we're no marketing coverage, seeing product not brings and or when the So feature specific today able a to what organization. a to get to or people the best value right

David Hynes

sense. Makes guys. Yes. Thanks,

Operator

you. Thank

is Rangan Sachs. Our Kash next Goldman with question from

Kash Rangan

CRM is go of whitespace leads, et That you in-person? as well. selling very can Engage amount out digital Henry. Congratulations two established you cetera. much. talk and getting you're as there so And more at hopefully bit get I before will thank you a and much client's for to for activity much. we I in One takes look possibility if that as probably you is people past contemplating engagement questions Prasadh the you is, in-person phase, as congrats and open up. secondly, actually shift we the meetings, other you, source a the have vaccination bump about in backseat how to a on there therefore quarter that space? Is into hiring that Engage, categories Thank meet fair of of

Henry Schuck

Yes, thanks, Kash.

do of that and go-to-market really a going not durable really a to go That's look, as think, is change. door, I digitization one the motion way believe we first, back.

don't view there across at tailwind, work secular anything were that reallocation at this before or really temporary secular too. for we're strong a sizes And pandemic all are of the strong T&E of as tailwind so hit. work that like spend there that like we companies or conference And are us

part feel like the we want ability play to in is customers go-to-market critical their that more from with driven to sizes so the way. that their small the of in to and a and really, and feel And hands market we more businesses, growing, efficient data people this a raising an all we largest in scalable And way. happening tailwind, that's to are enterprises, that go-to-market

I to that's impact But on go-to-market not don't believe prospects think there transformation whitespace. that travel this going from growth position back to lots from going the will really We a be of half to be digital Engage perspective. their more year. that's and in perspective. change our hopefully our desire of customers And a begin

I category. think we're early super that in

in systems sales the of lot getting will most bumping CRM. across really, automation, view We a and really of around and run that daily in sellers no out into or don't market and to CRM, I tasks their whitespace and penetration bumping see customer a So integrating record. their early real that white big product we’re of see out of there signs into CRM your of systems our and that really base. their as And back a that's automating start space that

Kash Rangan

Thank much. you very

Operator

Thank you.

of Bank America. with Koji Ikeda Our next question from is

Koji Ikeda

that operating for built question outperformance for the pipeline picture you. here. quarter, still nice with Henry the from Big quarter really and mindset are organizations Cameron. guess really or are guys, versus how much It's coming post-pandemic with QX the bookings organizations Hi, Thank pandemic wrapping question deals? during especially world? a of up I now the that bigger the

Cameron Hyzer

sort Yes, -- we a the anymore. We pandemic behind us. I organizations, correcting for of pretty see don't -- we world that's think largely it's think I think think I

drive in CRM And automation and They're sales bring especially their ROI so as teams with out of through system. to life trying those the systems. their what marketing those and partner automation us high organizations sellers their strategic and real systems fill those be and And to a engagement to their frontline we're they systems. engagement seeing mostly get to systems, from enterprise, the really insights, is view able systems, marketing trying to adoption

anyone -- focused pandemic mindset, And don't their think on focused so digitizing on is is everybody really motion. I I today really don't the

Koji Ikeda

congrats you. Thank it. and questions for a Got you quarter. Thank great taking on my

Cameron Hyzer

you. Thank

Operator

Our next Robert from RBC Simmons is Capital Markets. with question

Robert Simmons

could industries? Henry, question. from seeing about taking talk the for you're what impacted more thanks our you Hi,

Henry Schuck

Sure.

So smaller business. kind of of more are impacted those portion industries historically, our

was only to that they're a come So that in pre-pandemic, seeing that, it more are But strongly. certain starting areas we little back X%.

New So quarter. signed as industries, there to retail on. see a and hotel if number sports Panthers starting signed the hotels, you some are coming customers also think we an and Even Carolina are the And of about that Giants retail, well. like in in York we're larger we uptick, chains

to this not but back, point. And, starting part very the business. a those we're of driver think I growth So, see come at to it's a again, yes, small material

Robert Simmons

Got Thank you it. very Great. much.

Operator

Raymond Our is James. next question with Peterson from Brian

Unidentified Analyst

them thanks. calling for in during platform the up verticals and just value for Great, that of the cash Koji’s this your for customers, you time one you. to time Henry, clearly wanted obviously faster But models I there's changes is and the the go-to-market Thank actually if last curious you answer and value about I'm This in pandemic. with the ROI? questions. have are your the has getting if certain Alex changed year Brian. follows to ask

Henry Schuck

one boarded the really of you always Friday. quick a a on can think day to really and value on be on that been This a I seeing of proud really we've is Yes, buy value ZoomInfo our time Monday solution Solution. beyond a

period are a to of sales If team different short really on this territory a in implementations want prioritization teams implementation, with that data having building motion. happens there for your getting models really of value time. and return that planning sales types we deeper that complicated science investment and exercise that's hands and do account seeing team in Now, potentially a

sales feel we're eight might on deployment day seeing and that take of we're product, end we six a that ramped process, weeks, and mostly but like they're that weeks, six by teams the adding value weeks. there, those we're even Your right getting also to away. getting up But in across full to eight the value

our time quick So with solution to across all of value companies really sizes.

Unidentified Analyst

you. Thank Great.

Operator

question last our Walravens And with from will Pat you. be JMP. Thank

Pat Walravens

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

able to can would to us something in that it you So today? be do you give platform that do Henry, of your can't like example an future the

Henry Schuck

Sure.

in them those use number future, think opportunity. -- sales serve a have that today, and of the tying that our and cases, I areas I and is the huge both lot think And space you've of last we heard in the sales marketing people. sales something marketing of platform the of one in a for aligning marketers the is the which together. decade, tech opportunity together solutions And concept area and we have where future aligning an of in is

are of action our into think an a ZoomInfo you If based SDR these it helping automatically the conversion, our the websites form setup drives that call one assigns are the to SDR. to top The marketer an complete view feed is and that the the Having that click or then notification the tools the marketers a They're fully ZoomInfo, top to motions. emotion from analytics SDR view that And about to where flow. outbound funnel and if provided the so so funnel aligned on in that of tool, top the funnel And conversions. of an tool, lead next funnel. automated inside comes leads best platform in, to see e-mail automated drive of inside that, underneath marketer they that, or a sellers workflow are are an are of bottom of assigned drive them.

big platform. a and were best because alignment positioned within marketers I have really that the sellers eyes our think that's to, we of already

of pieces that. house, big in today, aligning together. the tie for lot the And is we the really them have need we a two opportunity of so future. to think sides to us all a those Where And I do

Pat Walravens

cool. That's

the problem versus marketing sales the of So get rid lead? lead of that qualified qualified this

Henry Schuck

for sure. stakeholders one two would Yes. align umbrella certainly I under those

Pat Walravens

Yes. Thank That would be cool. you.

Henry Schuck

you you. on hope it to Analyst really ever on Day hope Thank And June hosting growth you'll model. We you, that join event. Thank we all everybody. our deeper do profitability June us as and and to durability excited fun the will that We're a XXth. a business of see our confident the first be be XX. engaging there and dive I'm

Operator

call. participation may now your disconnect. And and for this conference you you. Thank concludes you today's Thank

ZoomInfo (ZI) 4 May 212021 Q1 Earnings call transcript