ZI - Earnings call transcript Q2 2021 | ZoomInfo Technologies Inc.

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Operator

Good day and thank you for standing by. Welcome to the ZoomInfo Second Quarter 2021 Financial Results Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session and instructions will follow at that time. [Operator Instructions]. turn over to Mr. your like would the to conference host, I Sisitsky. Jerry Please go ahead.

Jerry Sisitsky

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

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

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

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

Henry Schuck

accelerating and QX And quarter record operating performance. revenue Jerry. welcome, margin was another you, Thank growth improved everyone. with

additions strong our overall ever continued We continue a for We customer who showing and across and XX%, days product, of revenue than our the year highest adjusted growth, second also quarter, This in with international engineering we a was digital year, XX% number enterprise largest sequentially In levels customer go-to-market quarter we than data both by revenue representing spend the million, trends seeing and accelerating pay positive engagements. behind ever with focused entire in in with best XX% from in opportunity, saw representing the recorded our quarter. by the organizations for investment the our year-over-year the delivered second and and XX% our environment international transformation ending international made reps more with XX% customers to business. in $XXX,XXX across demand for traction growing investments X,XXX, motion. we teams. the sales, the drove We're we've new growth driven GAAP With our of for more the year-over-year greater than investments retention activity when marketing, year-over-year our accelerating of business, now more see us quarter of on growth QX off. $XXX up XX% meaningful number customers,

new future well defining award. career for Millennials best high resonating and current bar recently Best our with setting leadership employees. growth possibles improvement, of Our best for companies and for a we and that continuous culture teams, Awards Comparably announced as Workplaces Fortune a won We is as

more recruiting strong talent employees and employees hiring a drove XXX near X,XXX culture, this year with Our in than as of acquisition, combined the worldwide. we growing investment

adding to use grown a how invest out single-digits. from with that processes, instead today, engineering from our to has motion. our is product penetrated accelerate. data planning, that this and billion expect modernizing ago to and $XX secular customers, one-off and estimate continue year new meet operational workflows the shift single continuing level to in We've of is market consistent deeply indicated to early growth organizations believe we This We an and over in new opportunity invested rigor, a sales selling into intuition they launches. team we of processes They're a sales the sales based between sales conversations still strengthen we've selling, and find and that discipline, XXXX, worldwide marketing companies intuition To teams, the only applications, product, estimate of data insights today. merging data-driven best-in-class we stages we XX% will a billion in are capitalize on rates, of by will market product And senior their instead just across predictability the the we the automated Gartner talent BXB go-to-market. transition and of analytics and trajectory, that experience building total growing development see implemented go-to-market $XX As In prioritization in practice. engineering drive to addressable has board. alignment that, sales sales software

product quarter company's any market our Our features history. engineering delivered and another in products than teams we and to and meaningful brought over more

last early In for our acquisition reiterate some customers. Chorus.ai, the this transformational a want the leader of of from and we case addition is the rapid students a to in us why conversation feedback I acquisition to of month, organic development, intelligence. announced share

high buyer. solutions market First, rated Chorus the consistently same solution value, our teams. with don't target a go-to-market is Chorus significantly for and retention net ZoomInfo that the high accessible of one expands top

sales business be top integration at data to us The and every single know valuable the to a of prospecting workflows, thousands the to reps vision fully our go-to-market is the find the team automated more improve has and with and things. Universally, bringing to ZoomInfo helped platform. hundreds their and professionals of of new quickly doing existing funnel. bring creates onboarding find marketing more intelligence minimum, two, new sellers coaching doing to They closer might are, and two they one, Our solution of new a easily our but conversation and already asset performance. prospects. of business, XX,XXX more, and sales our sales than modern power tight at customers

a now addition curating of similar the we leadership faster, scoring buyers and new reps, their marketing our coach connect leveraging top servicing teams Chorus metrics of words improvement. simplified increase phone, our sales new move highlighting continuous topics, and layer, also contact We world way. modern when sales value automatically as that in training via integrate intent of meetings video teams. reps can automated accelerates customers calls more or our and on where company, we go-to-market email, a and such productivity our efficient the help and This process the new and best benchmarking in listen library are With intelligence data. recommending allows to sales up-level by calls, drive and to increased chat talk sales with onboarding application similar Chorus, ratios, and platform, onboard, to find Chorus onboard objections. plays, know engagement into our class into

competitive customers of integrate see intelligence the a acquisition, In software feedback and For and our usage due Chorus accurate using number the BXB intelligence closed meaningful less generation in conversation the on retention performing ZoomInfo We've Engage, to hit example, lead closing similar improvements anticipate was as ensuring into One rates, overall Chorus customers the have their and account best and the we resonating. reps to adhering questions. proposition we since from acquisition better transactions. are products. the of firm, their value customer, solutions of signals really a and is trajectory talk than the shows transcription. received Chorus three sales up-level more to asking we a through weeks the when use They're evaluating right and We methodology, Chorus skills platform. engagement of executives the drive great process tracks to

chose a the And new nearly ramp integrations. that to accurate after we reduce signals employees was segment time, drive that Chorus winning solution account to workforce their Chorus platform powers success and intelligence, services a competitive in their messaging providing concept. customer robust to very an with team, driving XX,XXX and calls. artificial replicate using Chorus for their hire opportunity call They're Another methodology and superior a sales chose there, cloud-based selected identify team due for organization unlock out their large SDR on-demand their adherence. of on strong proof division. executives across as one of substantial and was more executives Chorus sales and we determining rolled expansion. They consistent a coaching most it account behaviors for professional following drive to And Chorus additional

and launched an natural to quality. enables data I more to enhancements marketing of we insight-driven user have new These our up and customers scoops and package go-to-market set product coverage also QX, workflows continuing easily engagement platform functionality streaming continue to the to also funding. data while workflow are We investments use how workflows improvements out-of-the-box language about functionality. new enablement. spoke we and and teams In our plays within to In percentage advanced drive in leveraging increasing drive platform, automate and that trigger all double workflow elite QX, deliver websites, behind who added suite options that intent, for trigger and more our sales this

be expect revenue mentions more triggers adopt, playbook We go-to-market iterate as that to before. available keywords key Chorus innovation, triggers new will and test and help they never new continue even customers and share that a and plays to been we proven teams as Further, will add have workflows to our workflows. enabling adding

added first sync data users we We sales party to and object our to also through data ability close results ZoomInfo's or opportunity ZoomInfo created data. to lead the which gives search owner, first integration. ranges. continue In our and QX, include unify on party our into with bridge third-party and source enables type, Sync, stage, a to users salesforce gate exclude based opportunity ZoomInfo

of in quarter. inclusion bookings, we to last engagement teams June new job growth communications flow talent Engage, purchasing Additionally, on to hiring about our doubled which research to consumption filters two integrations and became systems Greenhouse to extensively that which conducting with goals, allows last particular sales a custom for they Clickagy, quarters. smart XXXX. June and set prospects which of gauge candidates Engage achieve available identify after I than our XXXX nurture from automation JobDiva, call, and the leading are intent up like Key products help a the spoke continued saw to included to acquired as with significant Recruiter, nearly ever QX more platform, and And active Chrome features most of and than have results Streaming intent more experience in Xx the extension, the added part which recruiter, second market conference while released intent ACV kind sequentially for financial grow journey each sequentially their go growing number in small, still recruiter while users our XXx patterns out Google ZoomInfo seats diversity in diversity recruiters, and ATS enable to reach had and recruiters quarter. recruiters opening. our for

ZoomInfo features recruiting confident Our road Recruiter map that transformation will drive for are digital professionals talent everywhere. acquisition and includes we

office analytics, directly A and new real-time new instance executives new services into cloud-based established including an highlight and live landmark users opens funding to operations happening business – market. ZoomInfo's a defined leaving and released coming that total data This changes provide addressable feed market Snowflake Snowflake enabling orchestration entering platform, openings, plans. ever-changing ZoomInfo integration data wherever their Fortune and customers. to rounds, of going, using across XXX of organization, our mutual firm customers our the view we addressable the companies across to with door market seamless addressable can and to financial location total TAM real-time of use data Snowflake and For This delivery our their is professionals, we their are planning. strategic enrichment many Snowflake's building we to go-to-market the their just total integration warehouse, potential the ability highlights the cases for data deliver intelligence, one new more a

integration Zoho directly We And introduced to CRM. from full dynamic available connector ZoomInfo Microsoft a also the Dynamics application. announced a new within with XXX, also to ZoomInfo access the platform we providing integration new

increased maintaining talented meaningful coverage analysts, to prediction with This was email data driven and accuracy and improvements the to continued international title systems driving to standards further rates coverage month, dashboards our process both quality, and of people tens out delivering specialized and we've behind in data now and changes the in especially expanded algorithms, more that in on expansion and XXX With order our build our each expanding have data to than asset. business, than high dedicated business team, every and We've of a focused monitors we we data contacts evidence-based In more algorithms, validation by regularly Europe. by to data make in and million month the coverage, train data plus data high on we resulting across this data team XXX company Europe, our employment and of our testing data continuing and scientists, engineers, all-time we've of acceleration robust, levels team months, a in investments accuracy. and a This our points our accuracy thousands focus manually team professionals refine XX%. and global is made highs. of researchers coverage, the need being translation, platform at of scalable data. ingest In meaningful all international last XXX both contact quality internationally XX testing

increased capital platform provider enhancements and customers with consulting activity Office We HR expanded Andreessen by utilization, in provider us increased HVAC to transacted dollar the levels Goosehead will continuous Ferry, brought features Korn this and investment with diverse independent quarter, including firm improved Horowitz; both highest quality All and the We retention of worked again an global logo software XX%. Sonesta of Staples; of driving Bill.com; group high-growth retention and in seat engagement ever payroll a We data retention a with Monster. like meaningful Systems; spend net a which Insurance, Comfort even provider, on improvements and and driving customer these venture quarter, expect rates. insurance, personal yield companies and we for the and that Hotels; year-over-year firm. Depot; are

reinforcing sales largest the platform is now our team, imperative We large for are to market. the go-to tech looking becoming spend their entire transform stack their for organizations that strategic

the in driving growth also accelerating are opportunity. We enterprise

quarter more $XXX,XXX compared from to of more or with than we XXX June before ACV, have in XXX XX, than As X,XXX up more customers the and quarter last that.

enterprise in reasons. driven the strength Our number of a by is

First, we share helping us providing company and data, against have of coverage, meaningfully expanded breadth the reach better legacy vendors. take

in exists. our Second, and their our large organizations enrich partnerships technology, data robust APIs, Microsoft like with our enable enterprise-grade it integrations investment Snowflake firms including to and and customer wherever

data need levels And ever adds. key infrastructure of across closing, activity. execute We accuracy history. focused elevated customers. our in to worrying us switching customer as Third, highest one processes enterprise vendors. leadership, place expanded initiatives. teams our our enterprise without and service the for on solutions they We that services the are through in our of highest all QX and levels finally, a everything at data proposition larger they sales of delivery more we growth people investment in go-to-market are specialized And with enterprise can the and multiple exclusively retention and new these and an great we level allow continue had consulting, best value find our for ever enterprises together data to provide coverage drove about for In are

experience the customer opportunity, acquire are Chief Cameron our and great that, enhancements, onboarding, go-to-market over highest taking continue growth functionality, hand delivering new satisfaction levels Hyzer. we the to integrate of it a and Officer, our platform. vision to user on enterprise and customer We and ever. is With develop, Financial off. I'll integrations investment modern improving International engagement saw driving Our of in across

Cameron Hyzer

financial that a our QX Henry. are quarter was for guidance year. Thanks, the strong expectations. raising And great results a we with again result, as financial our exceeded

at of of to provided. seeing, strength we With the the revenue XXXX, our the expect from of growth range XX% midpoint prior in are XX% we up broad-based deliver guidance now

our vectors, of industry-leading while on delivering As we in levels growth, remains focus revenue still durable delivering growth profitability. invest additional

faster operating result, increasing million. to Chorus, in we $XXX than As in year-over-year, impact more negative our revenue revenue international to acceleration the the are adjusted includes This for than adjusted range income million guidance growing growth, million $X income an margin motions, growth of of year XX%, is propel both adjusted million growth and to a underpinned million $XXX million cash flow. year-over-year the was adjusted and net million The from million. QX, guidance XX% resulting in from in The $XX $XXX prior adjusted the are enterprise profitability of growth operating in in to $XX million accelerating income the revenue absolute and an represents and which up guidance $X this business, investment margins XX% second to guidance. quarter. million. revenue additional $XX This delivered exceeded $XXX also prior GAAP with The the guidance organic quarter. This our quarter for and operating first our operating was helped up lower that we organic result revenue was the of of organic is assumptions to operating QX. our XX%. growth growth overall $XXX both income included increased levels which In by exceeded range income from represents In not slightly our success doubling quarter,

we we the time at across ending from XXXX our the quarter investments June As IPO. X,XXX nearly expenses, on employees, of employees with X,XXX increased to headcount the in our move board, up

across invest the and We capacity to product particular expansion engineering of organization growth. continue on and entire sales expect to sustained drive investments the to focus with

flows flow cash the approximately cash In equivalents, flow. the million interest in Turning of $X adjusted generated and XXX% the million, for of We included million $XX with $XXX we million to free cash quarter, quarter, second cash the in $XX investments. and quarter. operating Unlevered short-term was balance the which sheet ended quarter cash, income. operating payments of

line top to free XXX% a on of operating anticipate levels and basis. rates respect performance the growth, in million high annual remaining an expected next as consistently of to was drive to or are and With to ability revenue were adjusted of $XXX XX million, $XXX range flow conversion income which our we XXX% of percentage performance cash of quarter end in unearned result at liabilities unlevered future $XXX million obligations, the the a delivered now the obligations, months. RPO, be As

As assess I've outlined to momentum. and RPO in forward the imprecise calculated be and metrics in-period activity past, billings can

growth. confidence adjusted growth XX% growth strong focus sequential sequential the achieved second days the expectations days This the in for continuing the quarter, revenue As We revenue we quarter. momentum we gives in result, our year. us adjusted revenue sequential a strong on first to raise delivered

million gross of credit at trailing leverage debt consolidated agreements. As times net we XX of $XXX adjusted EBITDA our EBITDA, carried in months in XX, times and cash a XX trailing defined June months as which is ratio X.X X.X EBITDA,

the with payments. of expect the we form notes February issue an third realize a we assets outlook year securities the XXXX. that also of upgrading quarter bonds Loan This Concurrent all-cash the than $XXX Term provide that in BB-, Following first million a the corporate acquired the for add-on in level to closed over rating lien upgraded B their cash in asset debt upgrading purchase acquisition, our million the with on outlook $XXX approximately S&P of includes the our of for first XXXX. time with in along to maturity we benefit BB more specified issued announcement, lien the to million $XXX and with BAX. due and and updated reduced of upgraded our our for time July. of February With the the to $XXX full liabilities that, B. At close million quarter, and to Chorus.ai security rating transaction I'll Moody's tax associated XXXX tax add-on

$X $XXX expect we million an Chorus. per net $X.XX $XX includes $XXX range from $XX is approximate negative to be of adjusted Chorus, $X.XX of an which share. and contribution approximate to the range operating from the the which in GAAP of range to of contribution million revenue QX, expected includes income in million, income For in million million million, $X Non-GAAP to of

contribution at of business margin revenue is XX% adjusted Our When an implied midpoint the from from the be the adjusted Chorus, income expected XX%. QX margin implies guidance growth income core year-over-year operating excluding of operating GAAP the XX%. to and

from in full-year million, We now to million, increase million for range prior and of up income includes average not are million our a in XXX to to our We $X from prior as million free be $XXX to shares $XXX prior share, prior $X.XX million guidance of $XXX our to to cash to guidance. updating of of $X.XX our to year Chorus, $X range weighted income to million amounts outstanding. $XXX an follows. of $X million of included prior Non-GAAP to diluted GAAP includes And prior of based XXXX an $XXX to $X $XXX increase in the the negative guidance share, guidance. guidance our $XXX $X.XX we operating million, million million guidance million Chorus contribution million. per unlevered $XXX adjusted from from in And flow million, is from contribution the our from $XXX expect $XXX expected revenue million net be our $XXX on per anticipate not increase million an both $XXX $X.XX to million guidance included of and

acquisitions. of GAAP to points me This compares open operator questions. approximately prior guidance full-year implies call it with for up to by XX% of to turn guidance growth XX%. contributed X the Our that, the percentage let our growth, revenue over With

Operator

Instructions]. [Operator

comes of question from Stan line first the Morgan Your from Stanley. Zlotsky

Stan Zlotsky

level, when the benefit look that's to all you fundamental across that are pace you strong numbers? in growth very really metrics through results, right shift high there's the a flow up a your accelerating it and to shift now happening a growth right. very fair Is and say its accelerating actually guys seeing is quarter. the all are on certainly, At and Congratulations the that

Henry Schuck

more a seeing product is it's ever toward the think the trend continued to than touches go-to-market. digitize companies go offering this early most complete market, we're I a I customers that's of And companies digitization a efforts. going has in still a sales force, the market. because very a for shift secular long way the how that companies more think to I think that And it of and to for in you're we are larger have around to what trend very, stages existed. their time be of But digitization talking a

Stan Zlotsky

mentioned you sorry, million million from Cameron, revenue of to for ballpark? the full $X write-downs impact much – mentioned you Henry, $X revenue year. the deferred How Chorus.ai, On was

Cameron Hyzer

So I we're metric at this that's not, think, that a disclosing point.

Operator

we Zukin up, Next Alex Wolfe from Research. have

Alex Zukin

maybe you feels you, to you get as the in for data to your we a stay about first customers think one, starting more software if of how as how Henry, transitioning the deliver to that your to value quantify thinking with from of can a incremental get you by vendor, sense value just the you're because would a about you're for that. to and increase that the do love overall longer the So, it like consolidate platform? terms you income customers continue

Henry Schuck

see part anything take Cameron Let has the and add. me first if to

website. to excited that Their is is their and things do I we in are their can needs accounts, within and every looking to insights, customer business. for sales about just for think, fingertips the don't account market. the insights first, insights to one it. of data data have order we're question with the data There no and go managers about reps at prospecting they more opportunity Their new middle the and add are conversation and customers land and to digitization 'hey, to want just They They with say, way data reach continue want to go-to-market They want landed funnel. to optimize chat to add sophisticate of looking automation intelligence They add that, effort.' out insights and we've their to good add or to to don't we're effectively sales for efficiently. their to are the sellers the them. their our that motion. Once

our not And those of inside there are launch those of of those in but have one embedded able so, them. because motions. sophistication we're solutions asset offer only best-in-class every as competitively themselves, conversations and And also they we're to they're in differentiated right data customers that

we And those customer to opportunity continue into solutions so, to see base. big a our add

Cameron Hyzer

TAM I to on. other Investor there Alex, we the it's it's if back additional intelligence that the $XX see we Day, the a went the way respect There's as you'll data in materials [ph] with grew And almost at doubles million. for our we in that Engage now whether whether intelligence, TAM that's from the look to the workflow continue part that think think think we're that, that incrementally when them. or in as I quantify good as together But as adding value an conversational segments, much is we then, how $XX add was version. of adjacent business would recruiter put a earn the that core more customers those indication I for and million that TAM and we're we you you that public focused or DAST can the to more add

Alex Zukin

what the platform? And to just Does When the one new actually of the the that platform, year the Cameron, another is is then, of when about you And and you. migration introduction migrating the Understood. process? new by think the for the end to maybe you're Incent? us customers of uplift accelerate Chorus average how percentage that remind

Cameron Hyzer

so that's users proposition testament is do well. as we tend normally. Certainly, flat renewal, when of we renewal we inflation-like of the really terms data functionality. additional like-for-like taking of do new And get customers to they're what functionality is that more of a It's to level value integrating, seats, migrate on large in tend tend which to the a and data they to and an What or they're the to on They take non-event extent the to target pay we that's they take what on a would customers out same basis, a number see their platform. us. roll that just of additional a same it

So, deliver intelligence, as including continue chat like in continue to us and our for them to conversation more we're that additional customers with or value. certainly, discussion things expand that another to opportunity is

Operator

also we on, J.P. have Moving Mark from Morgan. Murphy

Mark Murphy

you defining measuring customer Henry, quarter. highest had you reached solid how And very a QX on congrats commented my curious I'm of it. are add the and I'll engagement. level that

the active number that are et API instance, or minutes or calls at users, driver in looking the seeing For you strong daily of underlying cetera? of day transactions what logged just engagement? the is or per And

Henry Schuck

quarter usage at But We versus ways. usage This [ph]. look product, we was exports of log-ins exciting look our increases meaningful websites a product our over-usage. products, pretty at product. usage our through at in in sync now we modules. also of salesforce a We products, specific because different dial We really our our Intent reach-out look product, saw across our look workflows number

All And higher quarter. the throughout saw of in and levels quarter. jumped those engagement users using platform it using overall by overall, of we the the

Mark Murphy

follow-up, a are you count you just today the seat a within of As wondering in of sales your organization penetrated how do typical terms customer. think I'm

that been today that might where single maybe a I around see large and think was some kind ago go you of in where year have enterprises. of sitting that interested slice over just that sort There was somewhere among can a about And X% I'm low time? digits.

Henry Schuck

we're look, the penetrated customer I still across single-digit think, base.

market, States. service of another customer addressable United total who's seat seat customers, should every enterprise opportunity XX.X we're is a And selling count thing broader existing I business see customers. across we we the with be that just, salespeople the about expanded think count person to you are to our within product ZoomInfo's. million or about the think there excited a enterprise think just in if our a And expand billion-dollar key

for the expands front a large of And well. different on us the sell. market Chorus solutions so, us still that addressable of all total market And we as in

Operator

have we up, Beliov Nikolay Goldman Sachs. Next from

Nikolay Beliov

billion for done case you you the the for by secondly, in the win rates And are Is reacceleration? the captive drivers the enterprise the you be. you for As traction across by number seeing the enterprise and platform traction enterprise? Cameron, reduce please your have down don't break reasons the on traction, $X for enterprise might What the opportunity, to winning seeing? mind, the increasing what us revenue increase, you friction if or you're one, can evidenced adoption followed whatever sequential there, intent double-clicking for

Cameron Hyzer

I'll great let that. it's and into drivers growth question, Nikolay. Henry high-level a kind But of drive the kind the you of give execution I'll around

I growth them in different order the I in that we identified focus to continuing we've we're that the past. various against execute think the on, vectors think largely

So, of in of now in well. opportunity both helped the that really XXX,XXX those as That's ACV. is now customers that good traction And number That's are largest and upsells retention motion. seen over terms drive X,XXX. we've enterprise over

mentioned, our Henry best had. retention had ever we've we activity that quarter for As

different to continue from coming new industries a see variety and in We of customers geographies.

use it the investments more and well and that as as to and we've focus our international improving our has functionality. features with driver continuing alternative on motion, traction second real that. international see other adjacent the we're The to in specific international made data and cases, platform as address cases then on focused thirdly, And accelerate we been having teams seen use and regions,

And that. like and I excited we're as think platform. the well. continues has really platform to about excited integration Henry laid and what we're out other quarter, go gained the on functionality features the can recruiting momentum second about within bring lot Chorus, The that do a of we in Engage

Henry Schuck

an on focused health side, on supported segment for team we've are execution not the couple just success the can and on on enterprise so those to keeping in think they responsible be accounts. opportunities things those We be by Number those who are a base, opportunity. customer managers our customer of up that that of at would them experienced enterprise the focused sellers ZoomInfo. the there. enterprise one, touch hired We're I I driving that

behind On behind Microsoft integrations product invested and also side, the the behind platforms we've APIs and Microsoft Dynamics. Snowflake with enterprise-grade like with the integrations

data against Our and to EverString the as a the as across enrichment and our well. a deliver put of motion together Clickagy given data us Intent from we've driving service a of the package asset perspective allows sizes. really acquisition enterprise enterprise companies that the is solid And has integration data then, us Intent the contracts after and all inside also

Operator

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

Siti Panigrahi

IPO impressive you're don't this mid-market. the you kind to see should year, or year that, of ACV would enterprise last trends how kind know that seeing see sort definitely after versus a helpful. funnel you I of be linearity but but wondering on some in I year, you quarters of trend It's last was tough we know of could trends this small right I traction. think few you any this sales did kind or and give or disclose about any us any in if year? guys trends

Cameron Hyzer

way The to maturity from of high all applicable of we and companies great up sophistication. the teams thing regardless to levels take low really is levels very size, about our platform of is that can it sales

of board. So, the it kind is across applicable

strength We continue and small as to real business see well. mid-market in

because a customers our because we've of small to there a a seen can think But We're that over in grow are that, invest but large platform, on retention up. good capacity grow we've lot bring go over grow larger on those much to the to terms time. we've we've our have in as have still to if selling a opportunity success in and a sales actually effort customers expansion team. small invested efforts is metrics to and millions the customer dollars and smaller enterprise of medium-sized a be customers of we seen continue we And focused board that motion potential deal, we're the across potential, continuing I and enterprise our time.

deliver continue small So motions. with growth but to improving Part our in, we that also we've businesses medium-sized more of is stay environment that drive that that. and their the seen and them economic help of value we're

Operator

Hynes next from DJ Canaccord. comes the from Your question of line

David Hynes Jr.

that of can the data like of And you guess, you the how collection cannot it? improvements. in is you be, rules internationally I quality would the behind two now just what muscle part to do? data great feel markets? how are quarter. different in international then, the some to on it of be you coverage the do Congrats gave But and needs put sales international real Henry, the update an where some us on data and question of the different terms can Like practices are us remind

Henry Schuck

as across across have a that analysts best improve platform we data And that we assets engineers XXX I million do humans of to on million board, Look, across move the to all international changes And people first, are jobs have that of they're whether of think exists. with business have XXX just constantly alone. I also changes international asset. focused team and improving and have have, companies grow, with we constantly keeps we're the you our And we of data who that the professionals. data all those up companies, domestic. industry, XXX that going the on data can't number an think or that engine

do can't with just You machines that alone.

on behind behind. solution and best You invested get have best I investing that's have the to combine coverage go-to-market those do believe a organization internationally. we accuracy We've it accounts. to the our worth

ahead stance collect invest the board. We data sense quarter how way increasing we industry company XX% and to data From GDPR I'll of collection industry. or of of the the European doing data that internationally. across work from method really about perspective transparent platform data, the we're some last talked our perspective, the about with first give compliance a choice a that way is our access I and done we're you how from coverage. a data perspective. than in customers an we've behind in within automated update and more that's program way. continue We're that of way organization notice up number that our with that one, that proud privacy can in coverage a collection the we're And our any

the so go our in to that find our back and was that and team French, can the asset languages, records to other collected One able be that of our those data into English, asset was German, and platform. already within data into that published Italian, things actually titles can Danish, many translate XXX,XXX we've do go map titles we

work international And so, already But where data that investments all European sets. within driving human combine we'll there. the in you loop methods the a we the of the make that with really to and growth continue have collection is data

Operator

we also on, from Ikeda Bank have America. Koji Moving of

Koji Ikeda

quarter. Thank on taking questions. Congrats for you nice my a

soon Chorus. to recent Just the in traction Chorus. was It's for the one really remarks if I hear for wins customer post-acquisition. you the how with wondering getting you could me. on Thank you're great commentary prepared customer technology so little more with a acquisition you're dig partners out on their maybe there on from how I fits really strategies. Chorus larger your customers maybe what and the and overall curious was hearing bit go-to-market the

Henry Schuck

have just packages Chorus our have our And start the the saying: to 'wow, last where largest SMB customers. number we're across didn't customers customers about the able base. from spread the I to acquisition, companies.' are acquisition. into talking our guys saw you intelligence Chorus reps sell to had our month into I customers excited conversation who feedback I are since a this. you of the know on recordings side, on Really customer I that positive know bringing and the both day of of to ZoomInfo ZoomInfo we new

solutions, combined integrate And about be and seeing customers ZoomInfo. great we about great going Chorus able do to into the our receptivity so, we're when to from traction, excitement we're what

is customers done a seen thing we've a Incent the take ability have that technology the the on product then of in with map we've and full and EverString, other trust our a road solution. with our done the have data think to they more our integrate asset I work work on lot to it of robust Clickagy, top bring much and it market asset, innovate to with

And going able do intelligence so, to what space. they're we're in to the excited conversation about be

Koji Ikeda

Just one quick follow-up.

happen? integrated on could of Chorus sort ZoomInfo, once we when mentioned is that to the expect timeline You fully on any into color

Henry Schuck

the of first Chorus We integrated expect XXXX. before fully the half have into of to ZoomInfo end

Koji Ikeda

quarter. great a on Congrats

Operator

from Wells Moving on, have Turrin we Fargo. also Michael

Michael Turrin

in we previously I referenced you've here. the of margin of Maybe just growth. can we laid you're puts capacity line the accelerating to given you're any framework are useful. trade-offs? constraint added biggest the Cameron, some top rare the go you the really know revisit rule company to sales XXX back you And just that comments Can seeing, managing is some how how out?

Cameron Hyzer

We time. are investments to making to continuing on focus durable over drive growth

that. invest well to of growth. take business, such product advantage sales of are a But going engineering drive really opportunity to to and capabilities our and our as well-positioned in we're as capacity to think I have us continue the in we in big front invest that

we've Day, that able the obviously, deliver I levels to that expect above been well. deliver And, to accelerate and a in level seen growth of operating XX% next we levels terms is laid expect quarter think solid we of four-day-ish we at margins. as at at mid-XXs Analyst at of our state margins business, we've the natural the a [ph] out and XX% growth, be good little here our as to

mid-XXs growth bring you a levels our a and our numbers, little. of But large engineering on that base, order continue forward, up continue sales that terms base. adding larger to think, of get to to to well And foot we capabilities I can. our are we'll off a margins look see long to may in growing we growth we'll larger we're marketing capacity as naturally, off for product and in a down continue comes as as and growth gas down going think as with rule the that, keep I bigger that above as as of come as a the level little

Michael Turrin

follow-on. quick a I to want make clarify. I sure Just

improvement? mentioned expectations driving Was – free that? or that here there a it's conversion. We attached time this again elevated for expectation increasing flow saw is you Could detail ongoing cash was that just to what's any quarter. just frame You add that on

Cameron Hyzer

to ongoing of to we're levels. view deliver come, operating expectation we'll as XXX% some as in able adjusted I time that unlevered for as quite income on range flow percentage particularly that No. an cash accelerated growing be free the XXX% to a

Operator

Stifel. Parker from up, have also Lane we Next

Parker Lane

systems of be systems address the lot Henry, another to get that you going like to had the management the there sense deal learning the initial out using coaching one most a budget of you've closed, conversations greenfield? is sales on that adjacent since There In today. those do are here opportunity Chorus. are customers

Henry Schuck

Yes.

tool that types a ZoomInfo, Our with new ZoomInfo. of solution opportunity what is for we Chorus, technology. a the are ROI solutions value much the to time on you demonstrate opportunity so excited on similar pretty that a compelling the see continue they like sense like get sales this is being both white leader sales with to conversation of And about days, a is ZoomInfo implement like space, the when find Chorus implement Once of ZoomInfo, category on what sees is side so when they solutions. the they market. intelligence and these to able get the what on that budget of you get sub-XX we're and of cycles quick Most they the to

Operator

have McGinnis Next up, we Taylor UBS. from

Taylor McGinnis

quarter, thanks for Congrats on taking much so the question. my and

NRR maybe better any offerings retention of last that. recruiting impacts if know the just recently, year, start think, enterprise on two other and provide to Engage And curious know more I to I meaningful numbers between like And become color part well. that trending as So, mix you're around I and was that's a XXX%. able extent how to But been might and contributors the deal given the SMB curious increasing then, sizes. that, to that

Cameron Hyzer

end our the it's report annual look we of retention we do is the year. the that net retention kind calculation do an of of at end the basis, on to year, going at What annual We next that see. starting an given the activity

business mix investments gives customers best in than of the helps of support that had certainly and will So, more the think should investing functionality. as help we're and but see seen terms have quarter we've customer that XXXX the over of we while a And capabilities are factor, a and those as certainly, made our factor, improving higher customer providing and operational features the is and add-on our additional net product, more as a generating the the functionality or within like advanced And success we upsells confidence in we well. ever take that in Engage the retention that that in I a it's teams, of or us impactful other in the that we I saw see Certainly, well. less that investing within time think on certainly, was retention retention quarter customers shift a things, of all renewing quarter, from perspective, XXXX. activity that part and QX we've

the of they're and XXXX. Engage the those meaningful. the think grow, are I might part more be expect than that become and than business, it XXXX we more growing necessarily But XXXX as will Chorus overall and meaningful But it's faster anticipate small. in relatively that in still certainly do business I'd

Operator

also we have question Terry Truist. Tillman from Moving from a on,

Joseph Meares

per about wondering, share watch, is I'm that metrics Terry. base a think number This $XXX,XXX of customers? of customer? other that KPIs how there large products just potentially of Are now any on evolution or have we for the Joe very going you forward Could should that average you customers? like maybe million-dollar Meares you

Cameron Hyzer

the cases, start average products bundled a take I of developed levels customers it's per of functionality. where into platform different cases, in we've I'll think an And some levels Certainly, number functionality customer. our the add-on. is with in those and, other

So, be to is going number look cleanest products of that can I average certainly the that bundling think we at, a we metric as possibility. per going the customer is change which not forward, particularly

customer. big million of continue a We over us, with dollar customers, in have that million assess the $X of providing do of XXXk spending differentiator we're level a terms we'll amount a that. that that terms few pretty found quite value to are we to that is customers but In

to enterprise those advantage of and in tools point think provide tend I smaller take that the customers to that view so continuing customers. have an of than their much invest internal we really more to capabilities are

metric that's focus think relevant the on to most I at So, this time.

Operator

Peterson Raymond Brian have from James. we up, Next

Brian Peterson

I'm where Just you're there, just really or Congrats that strong results. in success. or driving use quickly. landing the curious on case? in international what's on any I commonality is there terms country in hit market wanted either of about real to curious,

Henry Schuck

I meaningfully we motion. motion think, the internationally see behind US what go-to-market go-to-market first, the international that is is

years as You US. of can them of the kind think behind five seven to

come that into largely see we the market when it's so, solutions providing, And that they and we're evangelistic.

focused other Europe I English-speaking focused on we're the see, we're other is today. that things we area think the that

– rest so continue out and landing countries. international motions to we'll put continuing more market, that's focused in investment behind build different that to out, And we focus we're we we're the as so, that mostly where go-to-market today. of data on we're And asset. the those And as build

Cameron Hyzer

on real in of a seen where team real we're from what sales, add to drive are seeing success we in to our – that, lift is think terms it's investing that. we've I to

on first UK them where early the zones quarter, invest continued can until we physically from it's in the as customers Boston, making. we're past there, and well. COVID lift, team in up the we've but because aligning Europe, they're and the and to in investment focused That's – the second that So, get seeing to countries a sitting biggest in time other we're that they're getting mostly also bringing mostly Ireland, all restrictions,

So, excited the as countries. in the about – opens invest in future, locally to of up number a about a little particularly world excited continuing

Operator

Next up, from we have Raimo Lenschow Barclays.

Raimo Lenschow

the think of well and do, could opportunity market you you there's question? to Sorry ask want of if kind Can stuff with where potential Henry, around in that well. on moment, a the as what do BXC be real a that. Congrats on to AI in there's powerhouse focus of another that. going Chorus a at and if lot But you look lot and from I you me about at as How you're BXB. this asset? you look going conversational about

Henry Schuck

opportunity, sell Look, the taking States in think huge other be exclusively these United it's a where XXX,XXX we're companies XX.X could opportunity, that advantage of salespeople BXB focused on think we to companies the million that we solutions.

think use for of are a really intelligence. I interesting lot there So, cases conversation

BXB going intelligence conversation we're the we talent think, and see acquisition I use with on go-to-market, and an opportunity focused around but well. the today, recruiting also cases, recruiting be to in as particularly space

within And us those confines. so, you'll operate see

Raimo Lenschow

One follow-up on international.

strong really growth. So,

will at quite the is do of Like the a moment, of think to Can the but in you low will it's overall a the up you're a about mix you in bit you evolve? the there? still small trying up run build-out think the that base, how aim this talked long this You How again. little for of starting revenue. kind sales about you significantly. you're from part Because for? of terms shape talk that kind Congrats do coverage obviously,

Cameron Hyzer

through journey. think of much Raimo, at a I that, similar larger look gone companies When I that have

for percent or think there's So, international you like instance, great of for look someone is still opportunity from generate that. XX-plus thing lot of salesforce, domestically. their at And markets. revenue a I the They us that

revenue domestically. going But coming at we're real I think something to the is a a So, growth great that's international our something see third certainly over markets long looking we'd really term, over from possibility aim of and for.

Operator

on, Sandler. we Brent Bracelin from also Moving Piper have

open, is sir. line Your

Clarke Jeffries

This is on Clarke Jeffries for Brent.

looking over question past the expansion new First and highlighted at and verticals software is, what business out the of few traction stand the some services. continues outside to of is quarters, I think customers

there really the opportunity sales invoicing, and the market overall narrative XXXk of lift traditional And question the BXB of acceleration is in in from wasn't an potential of a part how awareness those have seeing unlocked. we're process, then is whether in deals? industries that improve was that maybe an here be automation to the and what contribution characterize being the would systems today maybe customers in there second awareness total overinvested driving some intelligence funnel first the The there that you is, workflow could where that part, but opportunities

Cameron Hyzer

the extent, Henry lesser two-thirds those, less industries, of to our software, services real first I'll other to non-early translates our as services, growing than continuing more customers solutions or And aware industries point, software overall. into certainly contribution. seeing to the Certainly, dive becoming and and also can from over they're how we're business from industries But growth adopter on continue outside I'll well. revenue our and software a take just better industries, just XXXk from not go-to-market business more more comes than core certainly, customers, see cohort ACV as hearing this services. more overall data-driven in what customers part look business their of of quickly apply motions to he's that but and it, we they the us, small come of those and for at call to the and of but at are so specifically. let motions from kind those

Henry Schuck

and me enterprise that know they to and at these executive the a want appetite frontline to that. and the Clarke, conversations to behind reps they be they is their for it. to I team. sales insights want large they amaze to about ceases engaging, thing view And And enterprises. how those in in change as there made And level have never to to they the CRM a the and ZoomInfo be provide be enable think really as many it that want real insightful, analog engaging we a CRM so they CRM it real excited be is sales bridge manual with processes investment

particularly, so, going and to there they're appetite industries, the And we're seeing that is about excited way digitize a to opportunity, that in we think tremendous market. that, non-traditional the

Operator

to time. CEO, turn the Mr. closing I no back questions any to further Schuck, like our I'm showing remarks. at you. would this Thank Henry conference for

Henry Schuck

appreciate everyone. XXXX. forward of our look of Thanks, you. you through with Great. the Thank continue to half meeting us we investors I back more and as joining today

Operator

you, ladies Thank conference joining. all you concludes and This gentlemen. our call. Thank for

may all You disconnect.

ZoomInfo (ZI) 3 Aug 212021 Q2 Earnings call transcript