ZI - Earnings call transcript Q3 2021 | ZoomInfo Technologies Inc.

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Operator

Thank you for standing by and welcome to the ZoomInfo Third Quarter Year 2021 Financial Results Conference Call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question-and-answer session. [Operator Instructions] I would now like to turn the call over to your speaker for today, Mr. Jerry Sisitsky, please begin.

Jeremiah Sisitsky

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

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

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

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

those over will the that, Conference, our conferences James, have number we With connect a Wells investor in turn over next Schuck. We NASDAQ participating of to Credit I'll call one you are at to UBS. opportunity hope CEO, Barclays including Raymond we Suisse, Henry of with few the Lastly, events. Fargo, the the and that months, RBC,

Henry Schuck

$XXX rates dollar of annual higher from growth, with we all the improvements XX% up The of products of year-over-year with when accelerating sequentially you, and quarter, features Thank retention for XX% in the results. This ZoomInfo of customers XX% of the net cash and We days category-defining business. delivering leading generation. Adoption and across functionality ever was of quarter International flow our expectations. strong In margins number addition. and worldwide. with million, sizes. of delivered new unlevered is up and we number both customers million, across is customer strong is have every We expected the becoming cash more delivered pointing growth area team of executing adjusted a the indicators exceeding than operating GAAP in In representing welcome, everyone. revenue QX in accelerating, another end-to-end QX, well with than free delivered new Jerry which more growth increasingly closed greater year-over-year. by go-to-market XX% in to customers, are $XX the ACV. is free continues to meaningfully for flow success more teams than And quarter more for $XXX,XXX customers our year-over-year. ACV best XX% known $XXX,XXX than yield quarter of grew The third as new X,XXX up than enterprise investment quarter. company XX,XXX

and first modern and be go-to-market XXX process ZoomInfo reps Based raising company the now of continued want million further offering, with year. in for there. team want This will We an Our materially than one-stop all platform we're targeting the We're coverage grow that third contact that on more year-over-year nearly year annualized platform by more past and office reps or Prospects We our U.K. drove continue and our tell Because international investments approximately Starting the to our be engagement expanded in the information opportunity. and XX% a more competitive investments XX% platform. we sales for in the to tech the be already the data internationally we their highly our guidance these to million than over revenue in of our of have building and company the quarter, opening innovation we with hired in have Europe international unified continue they a based results, on the $XX of platform greater our is on success companies. quarter, us grew the customers employees with demand XX% shop again our XXX and growth a XXX integration business are intelligence, than high, In we platform. and and number reinforces and unified stack grew cover our automation. Europe sales orchestration Internationally, we layers basis. with this representing driving business across the in to an they of international overall further financial data expand million across integrated. and differentiated the moat intelligence layer, story. of professionals contact coverage now our Europe. than businesses our

expanded and enriching X.X data others new have supplemental million our health XXX,XXX contacts with We care asset, nearly contact adding information.

geographies built in in We features. opt-outs presence we've flag preemptive that domain. our now ZoomInfo data control differentiator. the from to highlight new innovated technology why available a ZoomInfo privacy public and is privacy in in contacts further competitive and And can with create experience have These is enable to enhancements customers not a exclude yet also contact for to their investment continued customize reinforce Customers data the certain data support data platform. and our public

During set master within data and by rolled including controls of operations platform, and company granular customers privacy experts robust capabilities. security privacy functionality dozens from guidance data worldwide out data matter the through and of on with team, that filtering team use subject our multinational our network XXXX world-class as and privacy global offered privacy leveraging engaged our prospects Fortune suppression privacy quarter, the region-by-region passport

data fuel processor success XXXX than the After XXX America. of more of Additionally, protection on year began regulations North navigating who had into company's XX based their team a payments fast-growing officer our countries. teams, more data America-based internationally their brought experience across North expansion years engaging to with privacy a in ZoomInfo than with privacy

interactions passport their brought international our gave suppression to call our screening Our opt them framework, would metrics we their in able practices, teams team. our out and and through to innovation was data not including and ZoomInfo's notice do team assist that controls privacy developments integrated confidence and the historical in notice global controls walk master The across with -- around to industry privacy global the and our developments filtering. private platform-native compliance prebuilt add

e-mail are On most to easily platform, and timing combination continued to solution. e-mail and engagement ZoomInfo These prospecting seamless on automation future layer the interactions to rates integration to of with We sellers enhanced that on from recommendations the based response personas, likely data improve the invest based of import engagement from and audiences optimize look-a-like ZoomInfo to sales audiences to a history. maximize an their engage we've engage on enabling deliver insights a response activity engage intelligent rates. added engine and content, analytics, recommendations our

now it's added With Engage. their ACV X,XXX these introduction efficiency in we customers have we for Engage most last more significant QX, year, drive sales the improvements, motions. in than automation leveraging Since to product QX of in and ever

Chorus.ai, estimate a XX% acquired Swiss-based company, engagement the enterprise As a X-figure intelligence passport deal In with nearly July, the a where in and in conversation billion $XX the from our ACV to layer. quarter, closed a pharmaceutical we we layer came an global we the the which opportunity. an other of and intelligence, XX% data example, came from be market leader

of addition to intelligence, acquisition, the help the further new Since enhancements platform, and are their aggressively drive our recordings, to Salesforce to innovative technology We on rolled to Chorus capabilities the year. to Chorus customers the into In we grow customers integrating we've automatically Chorus succeed quickly Salesforce significant now behind and our number CRM advantage. next transcripts investing can the conversation headcount plan driving insights call ZoomInfo over and product and use out product. who Engage accounts. Chorus save a materially

We now ability the whom including ZoomInfo, contact growth. recordings, video and have in teams the to also a close history, tab to all with Chorus risks at view opportunities a clear and they interactions momentum call of a or and business analyze interactions intelligence email they keywords leaders, added inside had at across need activity list, interactions, go-to-market how that the indicates users all their each quick pipeline. of account. next launched their which are where and Sales In September, where momentum trackers interaction deals summary customers enabling Chorus' on drive filter efficiently the gives insights capabilities and signals, based can those interactions in call company our pipeline, managers identify iteration find and a e-mail with, more tools we progressing to reps of revenue those the detailed view

We note-taking ability tagging, activate support with sales a time. brings also immediately Video direct the sales and syncing native others the enabling and improved new join directly app call in for to to launched app Zoom Chorus Communications. The real meeting for Zoom Chorus specialists, experience, Salesforce the into reps overlay

possible the and conversation technology top-rated the features GX recognized out accolades Intelligence. Software XXXX, having list of eight in scores out and All received innovation, was performance XXXX intelligence. Chorus of named their knock categories, as list rest in post-call Best others. XXXX software sales Chorus Chorus seven other on has the Awards as top-rated conversation well. called on the forecasting, this strong data quadrant, was coaching, XXXX a for differentiated was win modeling to recently TrustRadius' landed Conversation measurement, map highest Forrester investment product unnoticed. and and recognized and standing It Wave performer product by industry QX reviews awards road on including above for intelligence and sales and continues

of to ZoomInfo also integrations. number the directly experience to from committee conversation data open website news, and sales inside and as up chat on application improve addition integrated Inbox conversations. within The data Incent.ai. is engage platform chat of intelligence, and notified recruiter, We and and ZoomInfo with ZoomInfo with application, a In directly In more that a we they our integration in-app chat be experiences scooped now to buying features all enabling acquisition chat company added Chat visitors the information, can we robust experience live the prospects. the surround user Slack high-priority engaged the leverage alongside as with work new QX for now Slack teams platform. ZoomInfo marketplace of supported SPRs ZoomInfo development

on application a the and track and to enabling the with are added manage we ZoomInfo While help Through changing -- still added working From recruiters that score applicant variety find specific early, more for candidates to data that number uses projects we from open through customers allowing integration with recruiter candidates than to of QX listen statistically stages innovation from teams, users contributions better and management, our recruiter they perspective, future likely systems. to jobs. doubled science of XXXX. hiring pipeline we are tracking pipeline be to a likely more a data

also a their add allows Recruiter PC to integration professionals with We candidate which acquisition to candidates new pipeline. added talent

acquisition capabilities data rules-driven the and company QX, a ingests the customizable record. and integration data our system of this Within through integrating approach customers' a scores RingLead. launched RingLead into then orchestration we routes our between RingLead platform, data enhances and ZoomInfo. first significant leading cleans, In orchestration layer, to we segments, added provide flexible, of

in go-to-market quarter workflow third from the ZoomInfo In growth more based and on export CRM. increased their their when alone, before XX% level routing ZoomInfo. customers insight go-to-market motions, adoption normalization that automating through orchestration they initiate surface the from customers data of place drive first passed sequential RingLead saw more our that duplication, over Now workflow realizing record are the functionality. to in and this routing records through ensuring our Salesforce, truly data added our or motions take through value automation of the of records With and flow to workflows can investment orchestration customers triggers and continued newly

the from now surpassed ACV. customers in we than X,XXX not XX% have greater our cohort and quarter, XX,XXX ACV with the XXX,XXX with customers overall of customers represent than customers landing more more Growth more year-over-year. and more During more ACV we than the than now These coming the and customers point above products both up with at by initial expansions sale. threshold, of of customers is growing XX% new taking existing XXX,XXX from

During with the multiple customers. landed million-dollar-plus new we quarter, TCV transactions

at Enrich lead and understand a the about proved to and and sales wanted the we The platform largest customer as speed central We an the functionality customer accuracy lead technology automate ZoomInfo role collaboration continue solutions cohort is critical have platform. invested Their contacts. of while beginning to highlighted possible flow stack. remove in built driving as duplicate cycle are our the to growth their to and data a with increasingly project the ASP in in increasing ZoomInfo management of speed increasing driving prospect their aspect orchestration and platform business. company, the client is that much and rates space their every One our revenue data success a to investment and and foundation reinforcing conversion Cleanse of customers, in our organization RingLead, power of lead, in of as the service making multivendor the A also in increased for delivery organization. service playing that full on-demand more use industry driving data recent they the at

intelligence identify increase best out customer fight Place us investments competitive us talent Place won as being To in sales organization. our allowed certified and consecutive enrichment also and XXXX of organization, also which top the has for for we've for using their combined have created, recognized development next won they career in to every strong and continuing by retain to for need data coaching Chorus awards in focus to There and hire fair diversity. TLC every The complete interaction of analytics layer, digital combination years. and success long-term to a global opportunities and than comparably Millennials, of for awards in inclusion. a to create real-time our for recruiting, culture day we world-class the growing Mass at with layer the Work improve customers acquisition a diversity at win Best is from our Work In the drives the on didn't and prospects. the rolled levels prospect drive all has team they've us team. their attract, X% We've from conversions and of This top to as of top implemented customers, across and our a more the solutions all to we customer drive ourselves their and our they've stop to culture funnel, with also up-to-date success orchestration from order full because and company Aside five keep share our a of website our people our talent been talent were Great XX to ZoomInfo investment accurate.

hired as our financial in our and a to quarter aggressively As on exceptional outlook moat we than to raising year delivered as teams our the it XXX QX of continue great third Cameron orchestration the engagement or result, intelligence for ever. is support Officer, in closing, layers growth. end-to-end layer, build that, In big I'll the continue results opportunity worldwide. And we employees as was continue we to build delivering by platform: by to again integrated quarter. alone, a long-term success layer company market an indicated the The substantial Chief I and hire competitive Hyzer. go-to-market investing category-defining With We for hand Financial over layer. more the to our three all our and earlier,

Cameron Hyzer

Thanks, Henry.

income million XX% million. to organic our adjusted guidance increasing now XXXX again are $XXX to ahead for to guidance. the we from results to growth that of at As raise revenue expect year. of expectations, we leading the to up in our revenue $XXX the of midpoint a broad-based with result seeing, guidance growth financial us of $XXX XX% $XXX million we And delivered strength deliver our are million, We of operating

growth, to revenue products growth about year-over-year acquired first acquisitions. while revenue from prior we at in represents Chorus our the We the This recent The organic $XXX was business the range are and same of and excludes for which in the XX% guidance $XXX continue growth that expectations the quarter organic in during million of excited meeting to acceleration underpinned we exceeding growth months In this million deliver, time, GAAP post-acquisition. from exceeded contribution revenue delivered XX revenue XX% and QX, million. growth XX% $XXX quarter. up other the our by

the the newly We with functionality, in and internationally drive continue features to acceleration to see in all our to revenue greater and growth. year-over-year. enterprise than XX% success help International launched contributing revenue growth accelerated

$XX quarter XX% and total now than QX more revenue the international Our than XX% XX% is $XXX,XXX more XX,XXX customers business now and customers more ACV over on up XXXX. these ACV represent ended basis. relative annualized We in an contributed grew with with our than X,XXX more by ACV than than than in more than customers which year-over-year. with generates million $XXX,XXX of subscription the more more Customers to with

a sustainable long profitability as growth by our philosophy service, sales then on believe that that to combined costs of drive low maintaining an is We out revenue leading quarter, an to growth revenue investment a with percentage in continued that Day. adjusted $XX margin with R&D to business income $XX and revenue, accompanied marketing us This continue the set the increased intentional our operating of a million. of performance, recent small enable profitability The our the combined of on million This growth in the of driven growth managing consistent cost the basis, third and growth. is and adjusted guidance deliver and G&A XX% is income term, cost margin XX%. Analyst profile. was in revenue percentage investments we our operating organic exceeded we revenue by annual The $XX framework of and will XXs as acquisitions based of million and represents over the recent at range

in just with our ending we invest IPO. growing employees, at employees of from our up end As continue to the team, over Henry XXXX, indicated, the than X,XXX fewer before quarter May X,XXX

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

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

We an performance in $XXX flow of revenue be XX of were remaining the range the unlevered liabilities expected next basis, expect will end at annual on to million obligations, to income. XXX% was continue obligations, the months. free and million, and operating percentage $XXX $XXX as respect performance future cash delivered adjusted conversion to to that XXX% unearned of a quarter in which of RPO, the or million are With be

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

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

$XXX one in debt of combined notes the February in S&P senior million the Chorus.ai entity pleased our successfully securities corporate first in the with term our to XX BB-, EBITDA X, of acquired the a announced $X.XX to first BB bonds X.Xx say debt level we which as our upgrading BAX. and carried to XXXX RingLead of completed rating that issue time defined $XXX $XXX September, EBITDA and credit to economic at B. we along we that the voting to loan we EBITDA public With February the Chorus, agreements. upgraded with with leverage the upgraded add-on September million consolidated X.Xx of to upgrading I and transaction which trailing months same Moody's important am of third with next also lien a maturity the structure for due net on lien of our respect announcement, reorganization Giving an vote XX in and the interest. and million. and same months cash rating trailing a issued all shareholders we voting multi-class the our holding At eliminating per add-on the share quarter, resulted in In in ratio is stock all shareholders XXXX. step last week. As gross UPC evolution was -- cost adjusted a billion Concurrent B as acquisition in company.

is Class addition single demonstrating the the basis to to in from a in of our structure, that of enable through governance company in conversion majority common a streamlines creating to become step-up inclusion and Up-C and relevant to class that good shares receivable The In expected agreement. to stock our the stock pre-IPO corporate operations, Prior to indices. for step-up complexity converted eliminating company A shares a eligible tax holders taxable event, the in the their basis. reduces benefits

result, currently the $X company liability billion will $X receivable of realization a agreement approximately asset. has tax asset tax the payable a of of As over upon and time billion be deferred a deferred tax which

updated Additionally, full GAAP quarter, million majority $XX to I noncash quarter resulting year entity outlook provide of related executed the we that, of in a the outlook tax expense and for reorganizations the the will QX. for shift and basis fourth simplification XXXX. the With from our which in recorded

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

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

guidance our an $XXX of $XXX to from prior We as $XXX and prior $XXX of now GAAP of $XXX increase the million; income operating XXXX revenue in follows: to our are to range million year to expect $XXX guidance million, million guidance full million increase we million. of adjusted $XXX from million, in an million $XXX the updating our range

million $X.XX on guidance amounts up weighted to share, from both shares in of income to $X.XX net prior range We diluted of $X.XX XXX per based expect our share, the outstanding. non-GAAP per $X.XX

a range $XXX cash expect million For from $XXX unlevered flow, increase our free to of $XXX million, an guidance million. $XXX of million prior we to

GAAP revenue up With let which the guidance growth turn call the that, over questions. year me operator full compares growth revenue revenue guidance implies of XX% and implies of to our it for to open XX%. Our prior organic to XX%

Operator

from Your first question Instructions] is Stan of Stanley. Zlotsky [Operator Morgan

Stan Zlotsky

as kind as Thank data doing of Perfect. And perspective, versus international high international makes a in set congratulations you size data very more those of with those relative the the the data guys data strong versus you there international much different sets your But right? the so different process that guys really and very certainly couple sets? a from U.S. you just sets, questions out just how set? is it's as end, help challenging the A very or that perhaps anything data data quarter. well, business you U.S. up on my build building right, of a quarter. is to level, set from far data a The impressive could XX% growth us put just

Henry Schuck

Stan, thanks for question. the

we -- quarters we I think, that international saw going to the we ago, first, offering. behind invested you said two invest were

the there by are the that. say States would aspects. North United we're really. those internationally, This quarter, continuing do our XX% about together have concerned when putting we be don't behind over multi-currencies asset with to in data And translation or we have announced feel really and year-to-date grew or to worry America I we Obviously, or an international unique that we set. in then challenges data good about Europe investments putting multi-languages

built So we've translation We currency converters. built layers.

high-level markets. all public We have data also government into the sets private, different provide for in and different metrics data tapped companies, that international financial sets,

and different is than XX% we you size to it's a of what -- I perspective we're And America that and Europe close have nearly offering States. the relative perspective, you but North continue challenge as coverage world employees in to XXX where so it's a have in a international how really build close -- launching from is over from unique tell Over rest would we and of that's United well. every with business the Europe the Europe

Stan Zlotsky

follow-up perfect. And for a it, Got you. Cameron, quick

you basis? growth the target then full give mentioned QX organic XX% growth in also XX% a meaningful rough RingLead? write-downs acquisitions? billings If impact at of saw to two an needed can or we to that sense for revenue. you if You there on And billings, from for what just happen us on was any those And year a look Chorus.ai QX the kind inorganic on

Cameron Hyzer

acquisitions in roughly revenue date. the the So added acquisition unearned at million $XX

As metrics that I'm can sure use activity. cleanest I've unearned from be and aren't assess derived mind, that those revenue stated the RPO to can metrics before, our in in-period people

given So is we're on less themselves. be from the to just than in we're that that just much businesses breaking see already variability But probably the the see going the overall, and that metrics noise you'd we difference from integrated growth. from aren't more focused And post-acquisition, the revenue billings bundling sequential out you the customers have those businesses.

Stan Zlotsky

Very Perfect. helpful. Thank you.

Operator

is next Mizuho. Panigrahi Siti from The with question

Siti Panigrahi

$XXX,XXX enterprise in plus Thanks to this see the for customer. question. taking my side, the strength great It's mainly ACV

that? more side? and on is able products more more us it So driving? understand user any you're more into would cross-sell to now Is Yes, helpful. be what's it help Or the color

Henry Schuck

Yes.

the we an unit land growth see customer the enterprise. selling we fits into are in set in think just is, the growth seat product We as then sort where both that then those of I other can success. that and expand of motion expand of land user from cities. into our And see expansion and a and across one business we And business see unit enterprise. expanding enterprise an

functionality. engage fashion. an accelerated we outgrowth the engagement year offering the up our layer And chat functionality, in end the functionality, intelligence we an selling DAS land sell which so with is our of or our in EverString sell our last acquisition where We layer, may enterprise the we into Chorus

coming And cohort in that base. that new so that and user we're expansion you in to as within from able both enterprise new customer products really see growth seats cross-sell as well

Siti Panigrahi

your into improving quality? us of then quality? RingLead RingLead? terms what you color. able Okay, kind cross-sell acquisition, or data bit, would to And a improving in we the that's ACV, help great base customer about And it from of understand data expect your on Or are is ASP

Henry Schuck

is and allow every a call, route number at we're the accuracy We've on is tool make accuracy ASP that data RingLead a data of cross-selling. customer from leads a their designed quality look coming that different perspective, sits an for we a to perspective, our day So product data. score From dashboards normalize, we and about talked to enrich, track dashboards the data is from perspective? improve. Last and product our measures. It's own their not XXX continuing base through tools that that that systems. cleanse, are customer sure different built to

Cameron Hyzer

Yes.

So it from their and the on size usage data. the of much ASP relative depends customer of very an perspective,

So data for customer. a and much amount functionality. be of their the pricing pricing they're geared of heavily other regulator but seats pieces Whereas, the that more for ZoomInfo can geared the towards that towards into on orchestrating also is data both they're systems integrating

ASP. customers with look could the at you the RingLead that ZoomInfo as them of customers, were low as be overlapping when of ZoomInfo So some XX%

XX%. the than around RingLead are on average, Some paying ASP more they for is customers for overall, can be But ZoomInfo. even lift

Siti Panigrahi

That's Thanks, guys. great.

Operator

Your with is JPMorgan. Mark from next question Murphy

Mark Murphy

Congrats very on strong a quarter.

shortages script if there? see impacting your the -- even maybe then as them more and experiencing your the wondering mentioned shortage great of that sales they Henry, skilled rapidly. for viewed to a open if just of for this could if I'm actually resignation, talent. ZoomInfo their you digitize own in the able motions labor some U.S. causing to customers' So it's labor is you're ability perhaps can't, fight in I'm wondering global But the basically, we're out And solution fill sense roles? to being And go-to-market you

Henry Schuck

Yes. Absolutely, enterprise within of mean, Mark. customer user think I opportunity an still the I expansion the first, is of our seats. base, majority there

space the So place white some -- for there's a to even within struggling they're still enterprise, if in the opportunity in enterprise. at some place tremendous hire us

to built and tools candidates are and who we sell candidate in a we've it struggle both I is and resignation to in in ZoomInfo hire. automation help that the reshuffle engagement our We or data ability the and to experiencing in product, built digital asset have identify great technical think to best opportunity where think recruiters customers the around it digital world's way. the see great from recruiter passive the source

about So the that we that in we saw that the and in the there and the growth we quarter future. really good feel offering growth continuing see

to you over Engage use that we're Engage the out point the decade Any recruiter took there. we rolled very we as same in we space seeing on now in about platform. an customer as to of here, count momentum X,XXX similarly solution the analogy XXXX. If We about have customers nearly Engage feel and get a provider QX that Engage and feel

the it well product, I serves sure. on us so think And ZoomInfo recruiter for

Mark Murphy

other perhaps their a was than Cameron reaching had envision for long ZoomInfo in how think rapidly, perhaps You've that very are also one for important a their of had many do can doubt. no system item a your think stack, that becoming that time, that you question or touched ZoomInfo tech line their and they've more sales Henry. last you such number topic done just important quarter. marketing is conclusion My on is or that you I customers CRM maybe as

Henry Schuck

out embedding ZoomInfo alongside whether solution trying that we out we're wanted get solutions are systems getting and more insights. they with of in as investment. I is for and think, convert ZoomInfo platforms. more those are still I help more today. those those to of envision never And And other true those CRM ZoomInfo HubSpot out or your able are there, be the of platforms. number systems can customers or and when dollars of world their CRM they've ways fighting of platforms to engaging CRMs Salesforce of Their their the of users inside value an that Mark, intelligence always any drive insights that out against CRM, to We're they're you CRM think meaningful really record using engagement

Mark Murphy

very thank Excellent you much.

Operator

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

Michael Turrin

Cameron, the towards you're you M&A just of help to think impacted Thanks. those broader able is margin referenced versus targets? is how driving the some the much from growth there organic Good provide investments details afternoon. Helpful XX% profile, around longer-term and to through anything us

Henry Schuck

Sure. Great question.

growth there's So there well acquisition, significant opportunity investment announced the obviously, required. when as Chorus we as that's

XXs us to million. down from, So it, $XX low call itself the acquisition took

think already the about, able accelerate in be annually, coming been XXX% further more the that our that we've quarters. that I was talked able to push than prior as to actually go-to-market acceleration use confident really of acquisition, Chorus' to growing we've through the and we'll team feel

as income track to And we XXXX. it make excited operating of So about the before, still that accretive discussed on we're to second half we're in growth.

Michael Turrin

That's super helpful.

on follow-on that point. a Just

into referenced part that by having might product you that, this with of initial the now how wondering to ZoomInfo observations prior just versus behind much also Chorus. heavily Henry I'm of plans that set be conversations a of and acquisition? aligned is driven portfolio you're investing customer just Just had the some product

Cameron Hyzer

think to to road we're future. obviously help drive first map to helping I customers Michael, the would them is, the the in I listening thing and listening -- product say and our

to acquisition seeing or evangelistic the significantly we're didn't are with When about tremendous a technology that in made see what's by would drive them product way, of And they to the line the know It's conversation with we the by growth across of in intelligence, continue sale. ongoing anticipated to available set. largely conversation which in white Chorus teams. I the conversations we market. to what is we're opportunity those to intelligence talking is But are go-to-market big customers the we background it's largely a calls. investment what available when space nation that those is behind tell that, fact driven So you made that Chorus all easier

Michael Turrin

very you Thank great. That's much.

Operator

question Tillman next is Truist. Terry Your with from

Joe Meares

to on the How this expect Analyst you is do XXXX? you far target to acknowledging noted I full you intention you And how and sales your hires Terry. At Joe are add Hey thus guys, you your think XXX made third Day, this year? Meares for I'm in XX% mentioned quarter. tracking annually. you guys, capacity for plus shake out

Henry Schuck

opportunities long in but by invest add to evangelistic continuing as capacity. to that And I of intelligence market, the I the we platforms continue to largely continue have solid that long engagement sale. we pace in. a where, on -- driven XXXX, think to expect large is overall we're focused the to again, ahead marketing also and have be over continuing say, ahead of intelligence be space and are probably sales that very to orchestration space be and pace really I'd think Yes, the So goal not term, so the very and overall somewhat only is conversation

We to great out to find those continue demonstrate reach and people customers value can them. to that the

pace about real continuing excited team that performance of and see we're well. the to as out So

Joe Meares

Thank you much. so

Operator

Sachs. question is Nikolay from Your next Goldman with Beliov

Nikolay Beliov

thanks question. Hi, my taking for

date horizontal out been data broad double-click in specifically care health data for called the care vertical the You this your on and solution? general, out what has to of you're call set. a verticalizing specifically today and increase vertical care the you to in plans health pretty of the and type depth exposure the collecting what Can today in your health please

Henry Schuck

have health next care where are engagement customers Nikolay, and is their engaging them. I conversations at where we're so identify with prospecting think and best data with focused that to then layer, customers on

the health data United and to vertical. prospecting continue we so with and information use we with with engage believe care and decision-makers of data in that primarily the engagement And surrounding that it's around asset doctors contact to those our within expansion today, platform asset over that XX% within different but we drive our can cover clients States that

Nikolay Beliov

has flow Got how Cameron, model that The should is for a cash receivable mentioned tax dissolved, quick And impact it. you on free now one investors tax that you. forward? the the that as structure been receivable and going

Cameron Hyzer

consider on I agreement rate. tax non-GAAP modeling our is that way largely receivable tax the the would So based

point, make to our those payments will that the we'll GAAP run the savings be to on continuing this still would that works, by rate. paid. taxes non-GAAP versus way pre-IPO accounting have are the we tax holders at otherwise that our generated based So payments through But accounting,

those non-GAAP rate would I being so the forward. of going just part think in tax And model as that of terms about

Nikolay Beliov

Okay.

So you much. Thank it's monthly it. incremental. Got so

Cameron Hyzer

Yes.

Operator

next Research. question Our Wolfe from is Zukin with Alex

Alex Zukin

maybe Henry, taking for questions. the Thanks guys. just for you. Hey,

quarter, would of an talked couple Are those a of either first globally? us little other some scope seeing to us put intelligence sales going that of multimillion mentioned terms the a were context little into walk It reps XQ? versus bit large of the of dollar you've more kind to deals transactions of just You into with for or quarters. prior maybe third signed the a prior in how also bit. core for And And quarters be expansion deals those the driven? of in give you this Is versus more the products sales helpful that cross-sell actual about? SKU you through pipeline

Henry Schuck

Alex. Thanks, Yes.

First, those on those are new deals, the side. business

the larger landing were carve tenured opportunities and So our on larger coming some a a are the decision made larger more They're manage reps inside layer. enterprise couple to ago. that the expanding service. just engagement buying automation sales marketing We funnel. layer. Engage are landing a are out often of They're than quarters the CRM land systems, And accounts buying the in and buying many enrichment pipeline They we're of data automation lead our for side buying core specifically more of intelligence as to those is buying their the transactions, as they solution.

And a set so of the business well. the a we're broader solutions point building see accelerating larger large deals as for large and do have pipeline new -- of sell of we at that a we sale, much we're to pipeline future

Alex Zukin

think was would over Is almost I helpful. the of the metric the the terms sequential in staggering, the we of amount how traction ACV context in should marketing well marketing investment Chorus leveled balance $XXX,XXX, think, with guess up, those those this incremental accounts. extent that for the of versus sales at and on way of anything this Chorus sales I which forward? super And that on I enterprise would. pretty Chorus your into some level, that That's you being as new it least high the add will go about And say, then, the case we into Could in did if I in this there to put read kind be triple level for ultimately it. some the guess came and metrics higher? touched customers in we of within earlier spend Michael internally? right general Do as, and is or to outperformance you make own going saw kind larger what's of thought it think early it yourself you that XXs? guidance And on -- Got

Henry Schuck

of bulk the on questions. core on our against the answer Cameron a unlocking customer would tell one been team management perspective, base. those our has The go-to-market focus from existing largely side, our let to account going is I'm that I you

customer to the For base. enabling we up really demo Chorus to back to the quarter, part environment, of product connectivity organization value large across the our spent a and and proposition them with how drive the from then setting go and to creating teaching go-to-market market our account managers, organizations Chorus growth the

to the team across really customers And we do drive our Chorus management so growth. XX,XXX anticipate leveraging account our

Cameron Hyzer

-- then Chorus. driven was relative And quarter solely by It to our it's yes, think guidance. not worth I [indiscernible]

we're that about most were $X thought everyone to contribute over think the the had had And million really excited that the of small certainly, seeing, $X other do invest that. we going of stated in customers outperform, strong million. that did I outperformance they we and between. to as we're but parts we'll was with we had continue both Chorus into customers board. large the performance across from was traction about and It While business we

marketing As marketing efficient continuing sure capacity we're make that the returns. focused our we're making I investments we to think about think and we solid, that invest sales into have sales but on growth, always and

low into expect I'd than and and I'd growth in require on the XXs above more mid-XXs than us faster this in that's would mid- of faster of probably point, the where to up short grow expect at growth. getting basis the term. sales kind revenue And probably kind range team So market high-XXs that revenue getting growing than the to -- for to that an well is organic we're really

Alex Zukin

so Thanks a great much, Perfect. quarter. again on guys. Congrats

Operator

with Brent from is Sandler. Piper question next Bracelin Your

Brent Bracelin

cross gave close XX% Good to penetration, Engage potential revenue the success us It afternoon. intelligence could bit. product had for of actually think little sell? such that Do give where embrace good early I layer? potential term? here future What's the go like little customers looks guess, a example Henry, I is wanted view half to approaching the you here, the X-figure a into on one Xx Just to has logo you just versus just it where back the go could to you Engage? given that deal that longer

Henry Schuck

Thanks, Brent.

they tell capability. ASPs, you you you're I is you we price invest is, want way that tell the are the entire ability intelligence seats, enterprise would all, the or base, obviously whether primarily. Engage in a to solution I or of an automated I Engage by think, our and SMB layer expect you an first deploy driven can customer, once points is, would and What you're intelligence provides customer user in that an customer spread across layer, that activate our you

where going so are be And lot in you'd in additional across. customer spread you is see that ASPs would our there are see out seats what a to enterprise a X-figure large what smaller those numerous than customers, it's SMB

And so see that's what you would from ASP perspective. an

Brent Bracelin

it. Got

a quick with have makes guess, help the for just So the that success Cameron, that momentum could do Engage to extent you enterprise with broader there. I you, sense clarification.

all delta past, quarter, East talked time the you servicing regions, contribution that given of existing I driving you you you team talked the market kind actually Was Coast by international about quarter? from had I the international initial have the did growth. teams? kind Or the there, this U.K. think in first that international your momentum think acceleration of from just in in driven XX% the over about the further

Cameron Hyzer

teams. our driven That East by all was sales Coast

bring we the online, a as meaningful so them And well. contribution expect from team as U.K. we sales

Brent Bracelin

had. you. I all that's Perfect, Thank

Operator

is question with Raimo Barclays. next from Lenschow Your

Raimo Lenschow

included does like of And squeezing at you're if [ph] if have where and larger me that sales are term the longer a on is become a going if Chorus the changing? more in. purchasing go-to-market, for conversation the you on -- but require have still larger you a of think -- the you how -- kind strategy lot maybe with of item offering to clients think with change the the about you the inside moment, now Henry, Thanks work. it continues kind to

about So how think evolution do your of go-to-market? you the

Henry Schuck

very, -- I being a platform. contact our provider customers' Raimo, being of true perspective, go-to-market think, so end-to-end early data a and the us look, in we're to today, we're transition from very still company

the really lot our just motion. go-to-market we their And of different so a help today, educating conversations that we're all of can customers on ways in our

conversions. get data to in so we're about are And we're we And conversation Engage. their website increase about to about talking the driving websites website de-anonymize our product traffic about that inevitably, workflows We're to complete form and so chat use to create talking automated talking activating we a using traffic product that they motion. purchased, that our go-to-market about websites, talking when they can

ZoomInfo's in can we XX ways solutions bear and built really customer motion different that those them able success with educating And bring large last within solution the help of digital problems. really a months, of at that clients to salespeople on truly can And we've to so, sit different ZoomInfo, and what enterprise can we problems the had go-to-market are out team solve lot doing a solution we here a it's really over who have think look like. stack I against our what is down the

at And us to and be the we that. able continue the do enterprise more level so to sophisticated is there resources to happening invest allow behind to selling

Raimo Lenschow

you. Thank perfect. Okay,

Operator

is Your Parker next question Stifel. from Lane with

Parker Lane

for Thanks taking my hi. Yeah, question.

really deep is handful is platforms? a important debt these those relationships maybe of Microsoft foster value of in level landscape about platform. marketing it ZoomInfo integrations really this. to the and think whole about had there, we and to tools Salesforce How extending software where and know presentation I you tools? have a be used the sales Dynamics widely marketing out situation other the all of strong of IR been the Your slide successful going on the with If integration to Or invest most a sales

Henry Schuck

question. Great Yes.

where in platforms building our I different our customer leveraging. integrations the big we with we'll stronger opportunity see customers think across we invest base, see

and So of you HubSpot through meaningful saw a product. our enrichment couple with really HubSpot into a ago, built integration our we relationship years back significantly enhanced HubSpot

going seeing we're and where is from different place within their their having Snowflake other like of or systems an unique store go-to-market Amazon of a of data sophisticated lot a the think store I a data Azure. having all teams data an or all

can where building alongside And solutions sit us for those the places, systems. all simple strategic systems our from live, that all do of that so so also the insights the different we data enrichment within will drive be and direction of a

Parker Lane

guys. you, again. Thank Thanks

Operator

from is question UBS. Next McGinnis with Taylor

Taylor McGinnis

Hi, my on questions congrats thanks quarter. for much taking and the so

logo new Engage larger the a lot impressive. And has being So Enrich and been and that being driven activity land by about talked pieces. and you've other

ago? land typical lands? about you guys and to have contribution a an can much from products those maybe seeing from And a relative year then with these how of lot maybe that, the uplift So in those you Chorus a I you talk to follow-on of new know pieces And larger as are others.

So would interesting, too? be maybe reads early there any

Henry Schuck

Thanks, Yes. Taylor.

big terms get that uplift it where their is of coming that sale. in of how a customer which As for we of to people we tends on very incremental it, the call depends to are new features tends and the that Engage popular are taking be think seats more kind lands about be, initial of the ASP one at much It teens-ish but from.

in that certainly, and RingLead customers tends often Chorus have teams. be I their complexity to early like -- sources of simplified drive in exciting sale, ZoomInfo a the gets a where with. us take larger too some and that within themselves. that RingLead drive That's think lot as Enrich to just to help data our for solution something great it's focus the part through and on initial more help of little seen in cases, can management account to it that things that taken trying a lands to for sale do products, while different a And begin for motion. We've But they're RingLead the is momentum because the place probably very our it's expansion. people bring rationalize that initial actually variety customers of

Taylor McGinnis

Great. Thank much. you so

Operator

is Hynes next Canaccord. Our from question DJ with

DJ Hynes

Hey great Congrats Hey Henry. Cameron. on results.

ask to the forecasting. core fall Henry. I doesn't script engagement scored of and orchestration. Just sales really is in want one It It modeling was for into of the for me your where areas intelligence, mentioned Chorus about one pillars well.

layer built if So there I'm there's management about wondering you and sales think that? that out a how could be

Henry Schuck

-- e-mail the in level. side I think are are forecasted close is have filled then engagement product, what quarter the ability have Chorus the use buying have have that and meeting to the around never in the committees play that opportunities people key momentum Director from from or missing to gotten that above is of the look Chorus to you're flag a call that opportunities that or perspective seeing specifically, who but an little at opportunities the on all customer analytics

flag intelligence good the tremendous and opportunities. see Chorus across data of digital of of we're leveraging there the to are anomalies to those ZoomInfo data using layer We that's forecast in across really close. And the amount to flag analytics interaction the anomalies to all opportunity both inform and the opportunities a so off that forecasted feeding

DJ Hynes

Yes.

perfect you. makes Thank sense Okay,

Operator

is from question RBC. with next Rishi Your Jaluria

Rishi Jaluria

Thanks Hey, taking guys. question. for my

of environment. to strong continued go in just really and wanted kind results this to commentary environment. back the So much hiring the tough nice I around

sort about already companies Do to you training? close think an Wanted explore better appetite of really make this kind do into that little existing you be that more Because that go be building can step skills and would right, you're acquisition either Chorus, deep would employees something talked how via the that deeper bit And or with help of just in better you'd yourself? of go into a what help one out think to overall. recruiting going You gap productive area environment. doing to to help further. more

Henry Schuck

for Rishi, the thank you question.

for every an layer M&A sales, perspective. our one on focus solutions be an -- enhanced And assets, tools we look, can recruiting those opportunities our using think data really I what are workflow. professionals and us software of perspective, those interesting our day and in and from M&A solutions through from if intelligence their marketing that and are

is I think interesting learning and training an area.

their built a executives allows practices best brought decrease XX% they key within that save infrastructure ramp you in playlist MongoDB ramp when time saw Chorus, right You're and moments significantly an in on. time. account that of Chorus we've calls reduce to that

have think It no next a training looks we and opportunity really can So we JMP. question Jenny, plans Pat deep up through like Chorus to drive path across tremendous learnings line, an the our immediate organization at please. go if but is to open space. with learning in really you

Operator

The line open, is sir.

Henry Schuck

Great.

Patrick Walravens

hear Can okay? thank Great, me, you. you guys

Henry Schuck

Pat. Yes,

Patrick Walravens

congratulations. Amazing. Henry, Hi

Henry Schuck

you. Thank

Patrick Walravens

billion explain cap. at Gartner's And Outreach getting of the end market hoping raised I'm Dong $X you us where So we So call all going, vision. a guys and of is that world it? this There's that you the $X this to see to billion. we're $XX just And can players operations for just do laying the the right? And is end have how do and are sort out? they billion at where the category you Is too much years big who out the call? differentiated? that you in this revenue of whole see being What couple Is of a going?

Cameron Hyzer

No. than you But just is actually I much our Pat, will that quoted. I cap larger think market point out

everything is just our as benefits simplified into confused XX% close going. that anyone share think let don't we've go of we're Henry of the want the space by counts I'll today. north else the but but One I the where of reorganization that is and of I

Henry Schuck

a question. Pat, I And I it's Yes. think, great think

think at going we think are how run efficient one way We own the we I first, most the -- think look sophisticated of the the about operations, we and engines market? go-to-market world. we our internally in

key into is with executive looking do that. I to bring ZoomInfo place through is training taxing. then, is part at at go have jobs. systems intelligence from where go-to-market in we tools Website see so, these all -- we're driven get want us future seat they buy and integrated integrated layer. of onboarding key our our of which companies so to inside What own log from what for just tools really and drive saying, if which platforms look a we're place a It's looking mission-critical one we're key record. want a their of different management you've of we're a chat solutions competitively And What think And have it's back It's XX leveraging, these we either what at market don't were It's and that. that a of into part ones uses is effectiveness with and intelligence And then part and at own ones what down how data. building we better and to or sit and buying opportunity account for and product to And an difficult their perspective. that their and difficult are one our a our think real opportunistic data platform, a seen is perspective. are differentiated? and is we build to conversation that. the to really automation how Sales

Patrick Walravens

Thank great. that's right, Henry. you, All

Henry Schuck

Pat. Thanks,

Operator

question Your Peterson James. from with next Brian Raymond is

Unidentified Analyst

plans This your team think taking strong results we about XXXX ahead of Thanks. set do how quarter you finish guys up more I and first international Really for Thanks we this question. Brian. my Chase as out the know expansion but broadly in [ph] for on is International. 'XX?

Henry Schuck

we're We tremendous we Yes. inning somewhere the time or in up there, we're to And bat first top think internationally. getting every the of see internationally. opportunity hits. We the bottom step

data perspective. think continue we a there. from and And to both is from invest big a behind a going to there go-to-market opportunity perspective We're so it,

And invest in those differentiation Europe would continue Europe see product and both outside us drive and so expect to in I of and go-to-market to in growth internationally, continue our to regions.

Unidentified Analyst

Thanks, Perfect. guys.

Henry Schuck

Jerry indicated, in active And IR everybody. Thanks, QX. everyone. calendar Thanks, Great. a very we have as

today. events we're you where information more our which For be us Thank on all website ir.zoominfo.com. we'll appreciate joining and I you. please attending, at IR visit

Operator

today's conference. That concludes

You may disconnect. now

ZoomInfo (ZI) 2 Nov 212021 Q3 Earnings call transcript