ZI - Earnings call transcript Q1 2022 | ZoomInfo Technologies Inc.

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Operator

Good day and thank you for standing by. Welcome to the ZoomInfo First Quarter Year 2022 Financial Results Conference Call. At this time, all participants are in a listen-only mode. After the speakers’ presentation, there will be a question-and-answer session. [Operator Instructions] I would now like to turn the conference over to today's speaker, Mr. Sisitsky. Jerry ahead. go Please

Jerry Sisitsky

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

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

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

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

X:XX Time, information Schuck. our website. to on Henry virtual With look event, you And hope your through we to CEO, that the Eastern Investor I'll are we the hosting more at June beginning we our can turn Thursday, call investor available that, Relations forward join over for us participation. is X, Lastly, PM

Henry Schuck

and Jerry, welcome everyone. you, Thank

The to was year. first great a the quarter start

strategy initiatives. growth of and continue execute across We drive all successfully our to our major

resonating is world-class with platform, layer and is data deeply insights with RevOS which customers. integrated expanding our Our

We ZoomInfo. In first of running million, embrace integrated $XXX we year-over-year revenue on using and Chorus solution. when increase a the of in of of SalesOS and experience, are customers quarterly the customers Engage the platform, XX% platform and GAAP we free flow. and quarter. delivered XX% In XXX% for sequential Adjusted more drove margin of reinforcing integrated quarter, value income increasingly the the growth of operating an days stack we XX% the in growth than adjusted combined the in was $XXX more sales generated quarter, cash seeing their offering, million number more

deliver to greater We X,XXX profitability new growth, the revenue we grow. continue up basis. as We on more a ACV customer saw customers the $XXX,XXX the with And a closed in with flow continues leading TCV across strong a combination basis year-over-year growth QX to ever at scale. and had team than average new ACV, these best business an quarter of than in XX% ever incredibly cash on free quarter their while generation customers and best

profiles investment non-U.S. headcount the while rolling our coverage, our quality maintained in million On adding office. in have the international data London over platform quadrupling year-to-date currency side, Euro XX.X professional our in we and support out and

remains in greater $XXX focus for continued added result revenue here, a international than on at As ACV business and a business. EMEA a strong of our run high million rate growth set record new XX% we year-over-year

business is Europe Our Canada. and Western international by driven predominantly

exposure We have Europe. to virtually Eastern zero

those highlight for The also three continued quarter. offerings continued platform with deal and relationships clients. ZoomInfo least We across an customers the offering, deals enterprise existing us. We our have our out with increase build all traction signed at enterprises, a we have with expanding a been to more of solid signed see in number have decade. with new And customers firms to they with leading RevOS I’ll their landing eight-figure continue as Alphabet We and to customers.

other their force to allows part recently modern with the deal structure and their an quickly to self million leverage relationship OperationsOS into serves inaccurate compliance access Hitachi, ZoomInfo accurate Our large database anyone as historically prospect Alphabet their streamlines understanding a Alphabet's to expanded their security, provisioning ability the intranet, across highly our to we getting ACV type provisioning. comfortable platform we to to publishing while their delivering practices collection tremendous and at allowing directly released data and value data of ZoomInfo to process. campaign. sell into user normalized, to This directly SalesOS automated now That are revenue instantly. them clean And sales plus privacy, go-to-market OperationsOS for of company A provide since team on more continues pulled ZoomInfo's with and their With was opportunities enterprise ZoomInfo roadmap to data sales of append department of is our team expansion at data the consolidated our Google's insights marketing teams the platform. warehouse in future leverage across and that platform data sellers, companies. they teams add By insights effectively. enterprise data marketing a and and engagement leveraging go way into APIs, grew is consumed for success and has view matched to a help recently $X also and leveraging and for of our just leads sales inform acceleration market. company data important enrich

We and marketing automation, software of the While been data result promised that a systems. Hitachi as change CRM. to quality lack The of flowing through intend high leverages those across data unrealized has value by lakes, that. next-generation software

of up enrichment lead website and visitor deal, build Shopify's information configuring embracing looking more the Xx, for data identification to More Finally, prospecting Shopify increasingly automated just functionality, a the propensity enrichment. alerts. outbound users SalesOS effectiveness, XX% in to platform. email analytics, and automatically scores inbound intent leveraging are enrich advanced enable Customers hundreds them a our OperationsOS. more multi-year signed that rules, platform users from and expanding saved by workflow than growing adding or than from to using including of lead expansion active auto functionality ACV improve buy searcher beyond are

Following tremendous platform the enterprise excited areas we already of both the expanding close quarter, on to completed our capabilities once the acquisitions, our invest and recently share two TalentOS behind. market other we are opportunity, and where see growth bolster rebranded it the and

now and must sourcing. Candidates have reputations massively On could great Roles been work job employee an sophisticated much that in data the marketing is understanding marketing to team early competitive know companies Access the record recruitment company Comparably review talent. to significantly have solutions and product in our lose a TalentOS thought leveraging scaling April, enhancements high system. modern their Comparably an increasing gives effectively a TalentOS influence each enterprise previously has go-to-market, identify, enterprise quality and through acquired traditional organizations to for operations. go-to-market environment. platform with most combined strategy provides requires Dogpatch never of and work with with In applying go-to-market direct engage and faced expertise for revenue TalentOS new candidates a workflows. and side, data in-demand today's acquired best and ability go-to-market enterprise in their Dogpatch We've combination digitization go-to-market for Dogpatch ZoomInfo In that sophistication organizations. hiring to have for for higher revenue board to building companies a challenging empower retaining recruiting source, insights talent. Advisors data environment their on proven such outperforming and millions with any and hiring journey. Employees an sales have cultures performing employer that adds advantages analysis, online, even driving launch teams experiences software to month. companies a candidates we customers. companies revenue every vital and influence. demand to in we reaches teams before more expect Labs, are employee consultancy marketing modernizing significantly the track of on that their job. With And of for benefits significant competitive popular is go-to-market they hire negative Comparably, Comparably and of out all by branding SaaS and roles. leadership are a plus company top suite for operations sales for relevant for filled

Labs. of playbook Salzman, of every the part This will join to CEO Ben enhancements within time, and for our Labs our modern company. suite to of ZoomInfo drive put lead expand enterprises ZoomInfo immediately expect the we product. capabilities will As Over across ZoomInfo go-to-market reach Dogpatch’s acquisition,

platform. of RevOS capabilities innovate to nature management recruitment functionality solutions and of and better continue In the to as HR, new the offer, our and evolving reflect RecruitingOS our and professionals deliver order across the TalentOS. rebranded breadth we for improved talent we We

We TalentOS institutions to adding Workday, QX. our to doubled TalentOS both six are Management customers seen Cheesecake just And pleased percentage onto The we've Recruiters, with count from using months the XX% compared TalentOS and leading early extremely Factory, offering ago, drive several hiring platform we've ACV needs. with financial our their more success grew and the than the of customer Redfin Sanford Rose,

launching experience, guided in a base to onboarding have campaign. automation a make grow, platform to investments for email and As journey our a starting new a quickly user's experience we customer the continues to user continued world-class adding first

enterprise as we orchestration users, as Data-as-a-Service QX, Search workflow. is ZoomInfo can expanded new build or Amazon in our to data expand AI-powered complete data our APIs within a enterprise capabilities and BigQuery, powered our integration intelligence for needs, In the via similar experience in directly Boolean that or to Customers a from. to in. enabling released RingLead accounts. company with well power systems and candidates or an accessible OperationsOS search are system Databrick, recommendations bulk lever, work recruit out advanced data large support as Bulk as we narrow provides new offering intelligence on and Snowflake, SX, SFTP key companies our set we For entirely and of platform by products, APIs. Hierarchy they any Databricks Google scale scale Databrick, Contact leading now

customers can Cloud to ZoomInfo’s and data Google where BigQuery out mileage intelligence the Finally, businesses eliminate data more seamlessly data cumbersome of Cloud with Google with get by with ingestion integration joint business, our the the in processes Google on Through to they BXB months qualified work. new directly leads we reach launched and and power partnership to systems of and target after for marketers accessing give built ZoomInfo cloud of account new In in building, we marketing platform data our designed sales top drive planning ways and team. and and based February, our BigQuery. data intelligence accounts shared MarketingOS announce

and have campaigns teams network leverages rates throughout company product as and the media future revolutionize deployable upload through and chat. and beyond. our ZoomInfo network, social marketers Just engaged And enables display by the and chat target our part managers relevant visitors ad in cloud working account right form our marketing MarketingOS, with professional by convergent execute leveraging imagine robust display OS, prospects solutions audiences, sales and their channel. intelligently we the and hard account marketers platform inboxes ads for now increase sequence across professional data time to value to allow new with to sales by MarketingOS automation and of inside to of highest been and and marketers. assets, data lead instantly selling, of through their a natively accurate executives and both configurable both messaging complete real marketers but identify populating creative social originally form data engaging

and We July same which and A/B then supported nearly reporting nurture of built-in stream creative interoperability of through because our in sales customers. tightens our handoffs optimization last teams from since the testing, and platform the of tripled alignment. key unlocks allows data system, year and cross-departmental Chorus marketing number of work the platform Finally, of we for and have operating foundation, Chorus acquired and ad

driving pipeline. to surfacing and the increasingly are with and rates both the pipeline and conversation category higher intelligence. allowing on behind and seeing close leadership go-to-market and their are efforts help success Chorus. XXX,XXX scenes slower identify could now manager QX, what’s with customers Behind recording, sales a quickly and front signals we monitor meetings We new easily deal to person ongoing the deals, Deal their introduce month factor each are deals. teams In at in insights derailed surface the analyzing attach – deal the signals scan existing development in to risk on sales manage revenue that and

certain a stage to when rep stuck gets slow to or opportunity example, a prospects deal in For unusually respond outreach. are

from out CRM into our conversation many visibility CRM with sync themselves We dynamic between contacts engaged, to they the Both strengthened Microsoft which cycle. allows pull HubSpot customers flowing Chorus, provide Chorus and information This include integration everything momentum. information our also e-mails bidirectional in Chorus’ users through to of integration. prospects. allows now from pipeline CRM transcripts, and rolled parse how a their accuracy, And new sales of next are can use to all to and number the actions forecasting that better best their to tool

compliant, We continue compliance organizations for ensure relates continue ensure on to across to we Calendar. their our privacy scheduled have meetings And of to GDPR embedded click compliant users way it recorded recording are tools meetings. patented flow while and offering. in all the Chorus, and fully lead their and as single the to all Chorus, to our a need Google analogies in Rest compliance into meeting,

our in Finally, driven to five persona where iOS Chorus the approach emerging attraction for now Analyst Store, we really rating. application Day, multi-product At expanding Chorus, has star more and on adoption more busy we mobile our about the which and Google downloads and hear a quarter Play platform, a share a thousands RevOS will in portfolio. XXX% released of about the product upcoming even you’ll our

will share their the of the joining more our our efficiency about using customers platform. of and lineup experiences share Additionally, more great will we to executives us growth a have and about key model who of ZoomInfo and durability be

Before I moment and departing Mironov. wanted of Board wrap members, to two our Patrick Jason to up, a take acknowledge McCarter, I

seats As is firm since has by Board Carlyle’s and trended the number ZoomInfo TA’s ownership each and down reduced. represented of IPO, the

first me. result, Associates us Patrick TA Board. joined in a to of As both stepped XXXX ZoomInfo company have in the Jason the see the in and as and in promise investor part Jason recently investment off was and

an presence rely eight an but to of counsel, success. on He all be start looks as interest year. served expect and has I of smart, years, His of his investment In but unrelenting XXXX our a to Board strategic, will and and and for focal endless Meetings us what for at growth. every came last friendship takes allowed founder advocate mentor the Patrick continued in I in a part missed, our the to sponsor. advice Carlyle’s his advocate and Over continue best for a important him and as an mostly Patrick to of XXXX be has closing, decisions. is great embodied our feedback joined for amount the from point him company’s we loyalty. strong momentum had for as

team of earliest exemplify activating opportunity. a large growing to consistent and strong continues We’re stages and the And execution. in market the

extremely Chief with to are hand We opportunity in Cameron Hyzer. And our confident it over ahead. Financial the that, I’ll Officer,

Cameron Hyzer

all initiatives, and The functionality executed areas and international their remains continue across companies growth. of portfolio is Henry. outperformed with growth motions the We our Thanks, including of was customers. strategy invest our advanced emerging terrific enterprise, behind of platform. well in terms go-to-market in resonating environment another the and and platform quarter execution strong QX demand improving to guidance

growth regardless confident drive be penetration economic value of are given narrow to will level able we customers we environment. We durable and that our market that tremendous of to provide current the the

revenue operating year million this As to billion a guidance margin of $XXX midpoint, $XXX raising in adjusted our operating income At $X.XX the XX% for are an and $X.XX million. income XX%. to result, million full growth we revenue of adjusted to represents to

delivered XX% to QX, deliver per free unlevered more XXXX up cash to million, $XXX adjusted expect and In compared share the which revenue of days growth we than year-over-year, for in flow. XX% sequential we XXXX, implies GAAP $X For quarter. as QX

expanding the a invested of and we success XX% products months, XX Adjusted to was over impact for $XX India relative income growth the to last and grew Revenue sales in the was in customers revenue in the margin Excluding U.S. customers organic business, quarter year. from international and QX million are for and strong to of QX of last committed respect our further the within driving XX%. outside international acquired London With operating XX% We growth total XX%. team in also revenue is our in growing Israel.

Our of expanded customers XXX in more investment the in than drive and motion $XXX,XXX our advanced within enterprise functionality continue addition engagement more This TalentOS with and with in the our and to penetration offerings. growth platform reflected of customers. recently ACV MarketingOS is and further than our

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

that cash XXX% expect to operating basis, of adjusted unlevered continued the to income. as We percentage XXX% flow be will a of an in range conversion on free annual

of comparably Dogpatch of Following million and net cash the end we the for $XXX approximately quarter, in cash, acquired. acquired Advisors

acquisitions to in drag millions create the modest margins these contribute points year. the remaining quarters XXXX, revenue and for to this dollars low a expect We teens, in X X of on of

to metrics were expected months. $XXX are to that and million in XX performance calculated believe delivered are small activity a accretive at future in only or and RPO in to end and in financials modest in billings which we forward. to our period remaining obligations was revenue forward the operating assess we’ll acquisitions income have and be be imprecise and impact obligations, quarter liabilities on momentum. respect expect the We XXXX, these growth While them next performance $XXX $XXX With RPO million the are XXXX million and of unearned to of

saw a EBITDA, trailing quarter revenue an net $X.XX months days With days agreements. our sequential credit and improvement focus adjusted as XX gross in we a in revenue the leverage debt. At EBITDA with trailing defined months growth, QX, in in growth X.X cash of adjusted result, EBITDA We continued we X.X delivered As the which adjusted growth. carried times on XX end first leverage ratio in sequential the billion of is XX% times we quarter. consolidated

upgrades also and from to Moody’s received respectively BB recently and our for corporate BaX We ratings. S&P both

with will received MSCI outlook the an report, that, launch of and results. full also for AA. our outlook provide our our I second we the quarter Following With from to upgraded inaugural ESG XXXX upgrade rating year for ESG increased

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

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

providing are full updated as XXXX We follows. guidance year

in range An guidance. billion the $XXX revenue $XXX guidance. the of from million, prior up $X.XX million range operating $X.XX of prior $XXX $XX midpoint GAAP from We of billion, to million million expect our at our the adjusted to in up income

range expect midpoint $X.XX to XX income the up per points from million in of outstanding, average non-GAAP $X.XX We previously. diluted the shares on weighted share based XXX at

$XXX midpoint to up and cash $XXX For we previously. $XXX between the flow, unlevered from free million generate expect million at million

the and the guidance prior me guidance year an at adjusted questions. With flow XX% year to an free XX% guidance to over full call margin cash full of our midpoint up XX% income revenue at Our margin also of let implies turn of our the unlevered the operating operator midpoint it open for GAAP implies that, XX%. growth and from

Operator

question And Phil Instructions] comes first of from our [Operator Suisse. Winslow Certainly. Credit

is open. line Your

Phil Winslow

growth I a XX my mean, you from taking couple out one you guess, $XX had and on made RingLead efficiency? they’re XX%, expand for up was products another organic required Henry the but Thanks quarters you how I What there? the that. one you I at million that jumped choosing questions Thanks. obviously, Cameron, and million, ZoomInfo of of of revenue at the then of RingLead but now you of inside two that question do I guys. sort Chorus personas. and again quarter. yourself How the questions strong congratulate differentiate telling out comments metrics to months, obviously, the saw about over kind about the versus think ZoomInfo is underscoring me and are follow of Hey, great now of $XX.X sort versus the the you’ve past new get AI some continue just Chorus unit for customers stack sales point why of in a solutions And economics you and

Henry Schuck

Thanks, Phil.

out stacks. customers trying there modernize first, think, to their I are go-to-market

out out intelligence they’re for there so routing solutions to real hear do customer. BXB chat there looking scoring looking insights in of to website. that on And for for they’re They’re the they for time, teams sales the lead that lead have their voice looking conversation improve and their out the

they’re – so And of already what customers and ZoomInfo.

solutions and better are up buyers in. missing gets do key as and of motion. because can routing of better, it And and so it Chat leads and because gets them data that common into synergies account provide, they better, so can between chat enrichment them. data we when when better, can Lead to these is, solutions. talk account we they conversation, well, offer sales our go-to-market with that the that better we accounts conversation coming all identify account manager solutions assignment together, gets you account foundation insights have together of these have you executive the route out we’re you’re into about look, work to right embed foundation point on that with executive, because intelligence don’t a when cycle able them get a in come And don’t when in can about them, a think surround no the tell there that we the off the number that’s cobbling that for thinking

in more across different more a digitize really customers seeing to we’re about more more And solutions are and see data all platform. of are that platform them. and of them that future go creates sizes seeing the of where all with customers And easy motions. and them the are strategic so of approach them to really conversations working differentiator the to the their And market it’s these robust and taking to having foundation these

Cameron Hyzer

And the cycles respect can more solutions, at integrating sales be is selling complex you’re we’ve Phil with times a longer. naturally, as to by efficiency, But little what that the sales found conversations with able advantage solution see of value already and to that getting cycles customers a our that taking are those of sales out compress we’re otherwise. might real versus what you

might So enterprise around as while or a sales we’re initiatives, different complex whether efficiency international cetera. products, in more to little continuing move that’s invest et or

forward We maintain an expect level industry leading marketing to revenues and to and well. continue sales marketing going our grow capacities, can for as new grow our sales so of sales we to be to that efficiency able

Phil Winslow

Great. work. the team. up Thanks great Keep

Operator

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

Your is open. line

Mark Murphy

something was Henry, Dogpatch wondering, Yes. then to Comparably, confirm that one is of of And you’re Cameron, two recruiter work data their is applicable awards. TalentOS think generating the Is XXX% kind or I the as my against it’s lines. that to to what small. for places solidify looks sales competing quarter. for any that a and acqui-hire just on kind you. best of it and of you like of designed HR doing with something kind to leads of a Comparably product Glassdoor add can just I’ll great Advisors, congrats I like I, an Thank people

Cameron Hyzer

reasonably are large small was the a Dogpatch is engagements consulting Yes, a for more but really So it relationships small delivering of where than Comparably and Dogpatch go-to-market Dogpatch history great acqui-hire an and clients. both they have company, definitely first.

outside think of terms we the on by be well. people, And further handful those much deliver. that class box it’s think to deliver they’re in we’re and the their that being they but to bringing to solutions able I able value able offering accelerate of we’ll engagement, So as that a very of that that

Henry Schuck

where focused TalentOS we And our adding very on that’s focused platform on with value we’re Comparably acquisition. to – look, that Comparably are

a content does quickly a SaaS you reviews allows recruiting behind of easily to that for than their from HR and that Comparably Slack just the Now lot through create more allow careers easy to solutions quickly employee see able and survey is pages, that them to for and feedback that email online suite solicit professionals tool deploy. to that use recruiters their they’re their employees

the They’re that sourcing provide time engagement of solution really of to inside today our When need really makes job our candidates we the environment we recruiting they are post history. is a combination get hear be to and And the in and in from anymore. we TalentOS they fill with we a on most where could their digitization struggling And marketing reach That’s and the out hiring job a TalentOS for challenging so marketplace tools there goals. history. find and direct the and candidates the clients what clients something their platform is combined suite the at sourcing recruitment to think able hiring historically employer see our case roles, branding right important they in not candidates. that important instantly that ads to board Comparably the

Mark Murphy

Thank you.

Mark Murphy

Mark. Thanks,

Operator

question And Barclays. Lenschow from of our Raimo comes next

Your open. line is

Raimo Lenschow

talked my little Congrats offices bit et the have clients [indiscernible]. you to a seeing and focused any and of and you is Can higher U.S. taking congrats. me Europe Europe. more Thanks of U.S. their impact mean, better, – like And cetera. solution was impact the piece from about I into the theory, there London, where see do the kind for but Europe well. anything on talk anything from in questions. obviously in you push side to opening from level, more you year of on the as the What’s it any is on get your macro on Thank Do you helping people this I year, the

Cameron Hyzer

Yes. Thanks, Raimo.

or see don’t point at any really Europe in the this U.S. we So on impact

either in other Our and efficiently. if in ways of more most customers to think that’s our the almost stress, more take coming time down see more And makes look think when value, the so broader functionality a our – historically, be effective, efficient, also to solution anything adding solutions. are times in effectively for do than helps immediate a I something entirely whether have efficiencies or on in that you businesses be selling U.S. in a times And cases, you out something to they’re first you things time I to value it’s to other customers that are and all see are Europe cases that additional invest looking or of solution see economic potentially businesses looking they faster and for whenever great it is which stress, time, in or that

Raimo Lenschow

Yes. Thank you.

Operator

question comes from of Hynes next our Canaccord. DJ And

Your line is open.

DJ Hynes

Hey, numbers. a set know of Henry, January. added the expertise, we in you UK. had you in back Chief I Great ton Compliance particularly, guys. thank so of Officer experienced a very

belt, – recommendations or Now privacy had his quarter that a plus he’s Simon’s observations made around you practices? ZoomInfo’s under any any can share

Henry Schuck

bring Yes. a us. that the we’ve our other innovate one, I us recruit environment thing Look, of just ZoomInfo, privacy a our access continue think Simon that real to I of complicated not regulatory regulatory we And as posture. I is well how complicated for think environment seen that helping privacy network of and for big to think see with is complicated it’s understanding in as professionals we the through and all thing compliance customers. to looking to the is, we’re number think the It’s

than leverage more world. enterprise to regulatory just navigate to has he experience as expertise in in the the that Simon’s look customers about anybody else we’ve been they of so And construct. front able And our in

in internationally, And seeing regulatory so expertise to an opportunities we’re because Simon’s environment. unlock the ability of

DJ Hynes

Thank Perfect. you.

Operator

from comes of Mizuho. question next Panigrahi Our Siti

Your open. is line

Siti Panigrahi

my question. I more impressive. Thanks for customer XXX,XXX customer ask just that’s within very versus What Thank getting cross is products. want about going the Mizuho. you. taking Net than large multiple to Ad, installed Yes. new the base getting customer, sell

Cameron Hyzer

for thanks Siti, joining. So

are the customers much then I sometimes that historically your as to just that offering You we customers time. case, the a platform. are a and for that – with versus those buying the or them on middle customers how there, are kind cut smaller added and was of and parts out number little we of coming expand different a over trial that upselling that grow of that tend question customers been It over of a existing in but land think is has XXXk a

the that customers that the cohort a of there to does are we on momentum, case in think smaller customers add coming customers momentum to continued year, are upsell. as Yes, with in and see most XXXk that little well. more growing where number to But we from that's in XXXk we’ve a continues to I continuing coming or be that at grow last then that XXXk of – that So a started and be started at we've QX, continue us and in customers bit over there XXXk. level

Siti Panigrahi

you. Thank

Operator

Wells Turrin comes And question Fargo. Michael from next of our

is line Your open.

Michael Turrin

level fair Cameron, the you're afternoon. margins most to margin there. Op is M&A last is that at those expect you margins margins stabilize high the around for some a suggesting sounded then basis. a rest help on compare the outlook suggest guide around? provided? organic somewhere of this that versus year still Hey Thanks. delta of growth Is again, prior XXs, QX, out, just called Good to it to comfortable year. here you and of what but And increase the else like you'd anything attributable remain holding the add the in the an you. you'd Thank meaningful in entirely contrast that the levels characterization guide full or guide us suggests

Cameron Hyzer

absolutely. Yes,

margin at a construct inversely are year we correlated from where perspective, certainly, Day, So out margins on that our growth. to are somewhat last the focused laid Analyst we

upfront So we investment and customers the on bringing those implementing faster into customers. we have grow, the more

XX%. at where the we're levels so organically at growing around today, growth of And

drift and I think down operate at, grow the larger that margins is accelerate margins to within that and growth, we or and we've if what We’d would And laid able base we're guidance certainly possible off growth that a the that we'd up. then come to margins expect it as to a larger somewhat. moderates certainly, little. continue expect to out the

Michael Turrin

Thank you.

Cameron Hyzer

Thanks.

Operator

next of Lane And comes Parker from question our Stifel.

open. is line Your

Parker Lane

had in Yes, here. be majority the Thanks I you've the to talk TalentOS been the customers success so of has fair little SalesOS Thanks. in are wanted organizations like see basis? – something on an the attracted say past? to you there of hi. specifically taking a to Would used or bit Recruiter have that number the are that uptick And beginning stand-alone a that for with for far ZoomInfo, Henry, to question. it about TalentOS

Henry Schuck

through customers go-to-market That the the procurement We're can have I base said, we customer already seeing also think cycle accelerate well. a security and privacy we're review Parker, time we relationships and as being from new on where customers. the with sales accounts. in perspective, been already within from focus focused those where demand to come has our

about that The who value broad And the breadth so the are that have those good of there's conversations. people positioned using to assortment when a we solution Redfin, from way think Cheesecake of And to out the platform. from who feel of about you companies we're everything get Factory really

the platform. TalentOS Now same area is obviously in the is the user a business. not It of SalesOS user as different the

the user also the that SalesOS, today. focus say of on our wouldn't user but I actual So, customers, customer the end was base been has a

Parker Lane

Thank helpful. Very you.

Operator

And our Rangan Sachs. from Goldman question next of comes Kash

open. Your is line

Kash Rangan

to together? group your congrats. How is much relative puzzle Hey like into you about pieces a in puzzle the look put is with And core cetera, of of doing if the levers I other you you’re do when congratulations way each you strategically, share it much your that gaining with of TalentOS, that Can And company in these as pieces you're are how on of you getting OperationsOS, platform that you different how it more categories, see successful, the go? the can domains upside SalesOS budgets customers? from synergistic data so who et a in the a RevOS? multiples Operations, far you're in to categories the that you of at to trying core through the layers are guys looks talk and MarketingOS, much platform. data all Marketing, where core product your TalentOS, buy of put previously, customer Henry, with completely is Thank lead can the together were to of if Sales, piece quarter. terms ACV

Henry Schuck

that or where are market. to insights Thanks got of an solution Who are Kash. a you embedded team. the founded team go-to-market It's you we sort from? taking data where were We this was we and often market? digital that core we first from market question or start and came new reality, taking In on When platform, ZoomInfo data question. the a with SalesOS interesting a were have a way inside that to that a a demand generation that team of marketing evangelizing wasn't sales data. creating

tremendous we continue we a in – see see greenfield SalesOS the to And so platform. opportunity

and tripled that can If space. making nearly We're you go-to-market you that of at customers somebody. space, efficient that not investment, a high way people willing a investment intelligence, the the we’re about more number to in return on take think they conversation motion look market. We're an the displacing essentially a optimizing are investment to go small get by make that to

ago in bring not personalized and the not job decade TalentOS, out inside experience. as ways. website to incredibly in engaging you digital before directly customers it's in go to calling same a decade of them candidates bespoke. They board, way a SMS or and a in corporation, when e-mail recruiting use sourcing. same chat today They're give candidates see and with not a tends They're to and You that, did reach they're thing using they recruiters the that candidates department and

recruiting we we're – we're when making that displacing where significant so another motion a significantly department, budget, go more efficient. not And into

get you that in team You manager senior outplacement after talent director for of recruiter up with or can you an your running a can that an and opportunity. online fraction a find spend $XX,XXX or to executive for talent or on you spend to ZoomInfo

motion you're more so that efficient. making And

And more much ultimate efficient more are make their so customers to solutions that willing without displace these to having motion something invest in our today. to exists

Cameron Hyzer

can the when with in SalesOS. I than even that think some within this early we But provide for and our cases, or the point. proposition greater days the with and they're from the marketing value to OperationsOS customers. in we're about think MarketingOS at have potential it's Certainly, operations, we deriving growth And be customers ACV even the what where able the

customers platform spending So we on actually they sales. just particular more have parts on that than are of are the those

that's we earning look customers So, expand could think by I we that just the where the the we're within at multiples SalesOS, expand for our that's deployed. thing currently what to opportunity only when of

Kash Rangan

arguably, good improve that's And retention So to would right? the news.

Cameron Hyzer

retention are as significant see those improvement there more well. Retention We is definitely customers that advanced functionality. of using level customers our for improves already a as

Kash Rangan

gentlemen. Thanks,

Operator

question from Stanley. next comes And of Weiss our Morgan Keith

is line Your open.

Elizabeth Porter

Hi, able What Thank on to I monetizing an get this should of Thanks. so Weiss. update opportunity. on Keith we is much. how is schedule Elizabeth Porter through purchase the on the about you hoping think for in was the opportunity? to being government GSA uptake that

Henry Schuck

Yes.

days in that that opportunity. think to about of is I the it today way really we're think early

the good but we with and stated promise, the go days government still team come opportunity, GSA the for we've are offering to as as in that opportunity. that we've days. We out really really of momentum Lots it's through come seeing out schedule. early an But and after it's early

Elizabeth Porter

Thank it. you. Got

Operator

Research. next our of comes question Zukin from Wolfe And Alex

open. Your line is

Alex Zukin

as pipeline for and faster were RPO billings would was bookings would P&L. anything the that about not are on out slipped this think out you I current those perfect just large that believe called I for current a an but much be quarter. the and necessarily deal growing current this demand? thanks run engagements, should that bookings. know of the How think with on the want from Any of I Cameron, ahead I great than my billings just types for they're in taking that about RPO large of I then given maybe you there to deal be? metrics, high to helpful. call year a guys, the talked but four Congrats Hey Or why How quarter deals. seeing calculated for at environment, – macro say, And last, level, demand do not the think. the the to Henry sense And the RPO there RPO impact all I quarters, If environment, pipeline eight questions. Alphabet, we figure, factors. figures. about isolate that maybe current guess really for

Cameron Hyzer

Eastern focusing macro We Realistically, obviously, you the the real quick. jump now. isolated the see not start in that's we if of and on don't if So a of kind right Realistically, don't primary I'll on recession. fears business one factors, we're Europe two being in kind the deals. conflicts and areas, pipeline, potential of Europe one large being, just second in much areas of Eastern we where the do our historically, any impact into

leaning those that. recession more And large of potential think I deals, terms for that being recession deals by or unimpacted in larger customers are certainly, thoughts, and to are any even in are efficient more effective. So harder

on because customers I those for more can around to they time sorts that generating quick that system that something on decelerating, value likely of motions. as is effectiveness So, and time value, can cycles our so quick are that's opposed I to focused go-to-market to accelerating focus get think sales and to and imagine efficiency where even that

largely our at worth to On highest that the out out And ratio far, of when of of so think COVID, more actually, bookings of QX XXXX bookings if historically. was the ratio like by discussion, I it's had sorry. than bookings, related in pointing QX like or that they deferral billings quarterly bookings, was and certainly QX there of XXXX of of and you billings year, of the bookings look to were some came bookings last the to ratio our and done a billings to QX we been of of billings

distorts in think, noise another looking And just otherwise the of at. be of figures levels you're QX the can kind metrics that looking imperfect bookings when growth compare growth. billings I those XXXX, you'd certainly, of where that's at that be one of and So

Alex Zukin

Thank you Perfect. guys.

Henry Schuck

Brad. thanks Yes,

Operator

Rishi Jaluria from comes question of next RBC. our And

open. is line Your

Rishi Jaluria

for questions so business. my much taking continued see Thanks and nice Wonderful. strengthen the to

terms Just simple of in geography. one a

expanding you're So Europe. your presence in

or specifically seems your how do in want the about Maybe get the that thinking – Because a opportunity a in completely but through natural base. I hoping office adjacency opened how think up You especially you're markets? emerging emerging the in about sense GX it it like for seems up to walk you in pretty can international first obvious, opportunity, Thanks. India. markets? you us different and India,

Henry Schuck

Yes.

the there and as have customer talent bulk of management success, it India, relates is we to engineering. product the I think around support,

go-to-market a perspective. from the us. London manage opportunity the the India teams in one see Israel with zones makes success Today, and engineering more Australia, is can the support for geography across it our product so product future, interface as the time as And potentially well than New we Zealand, a operation with interfaces R&D that world customer help us and sense as from perspective, think time go-to-market office we and zone which

Rishi Jaluria

Great. you. Thank

Operator

Thank you.

Our next question comes from Koji Ikeda Bank America. of of

line open. Your is

Koji Ikeda

upon actually TalentOS primary my for of Cameron. about and land a to its over here. to Thanks a it question wanted question. I Henry, for prior being potential kind MarketingOS Hey, taking build with shifting hey

new the inbound a it points an seeing you customers those MarketingOS ASP. stand-alone unique and to I looking ad features in It I has solve has mean, there. share ZoomInfo product, you It pain it that, also has maybe tech of some that for account-based if are are demand but some And as clearly, you try could are a are, basis? understand marketing. the So what MarketingOS.

Henry Schuck

Yes. Great question.

with customer audience on completion customers focused our or still form automation the it of We are campaign, relationships marketing. have platform for an base sales from SalesOS often building seeing existing are we marketing perspective, on outbound enrichment. and marketing-related inbound are Many MarketingOS using demand that where for for we existing our

a we so a; customers from big of our amount the are marketing who have of already And bulk department.

look, that. a is, spend is of to network. sign networks ad our outbound and the our XXX million this a out network. them, million time show to to building more and to build lot profile, conversations, able on And love the to the the of so of audiences And built audience then through that deploy the we'd way and ad our media because to across expanded deploy display we deploy automation done them social let BXB through and for and audience And one solution more have the have social deploy first things sales across what through build display ZoomInfo. an marketing efforts network high-value through team hear audience to professional marketers of getting we've when and profiles believe We media company platform inside we're we deploy XXX were across it's them MarketingOS go the capabilities do up these of to we we a

that the IT the that's provide we're health platform And reason we the display the foundation that's able getting haven't that against. companies We business ads media data had that putting And and say, Its do ability at of powerful. Oregon now to the one's that like and turnkey networks, easily you're think can every way We significantly that leveraging we differentiated. start networks. a and within differentiated California, care And know is so built the in specific buyer to why on social new. data an asset the VPs marketer within of persona top against Nevada ad that a and audience, build network. have. That's incredibly because marketers persona this of now targeting across across display we're because ad think no

Koji Ikeda

so Got it. Thanks much. Henry. Thanks

Operator

of question McGinnis comes Taylor from UBS. next Our

Your line is open.

Taylor McGinnis

taking my Thanks for hi. Yes, question.

is like seems Chorus, good portion outlook. from the of It So and a the the TalentOS newer outperformance a on opportunities. some margin question coming of Engage,

bigger become from Cameron, impact the these the in margin the or pieces structure to of in of keep a early differences stage? at these as mind mix, potential of anything there portion is So some

Cameron Hyzer

of incremental focus efficiency on model, one less acquisitions more generate taking certainly, efficient sales that we're have sales a is the that And able of the where much to done basis. them our a putting pieces we've into on around and companies

continue think what process bit some the forward I you is of platform efficient become synergy of that outlook they'll realizing to that deeply go those newer well. those get and that acquisitions, to, we're where acquisitions need into margin kind the more faster model, as integrated the So we kind from but they're kind we about more of to think going sales that of again a cycles if running see, earlier as little integrating have able of some then through into where of we

at kind in of were around able before, we've which extended So public, kind laid where to that type those I is construct out rate, be that deliver a of of the XX-ish acquisitions. we we went mid-XXs we'd the growth think where margins when

XXs. And we're comfortable that. levels with we'll over think drift that larger the start margins And and growth a very XXs, larger but we those now to obviously, the moderate off grow expect kind at time. stepped that I little, to rates as levels, base, we're of growing high margins back continue low and see we in up up

Taylor McGinnis

Thanks. Great.

Henry Schuck

Thank you.

Operator

from our And Piper question comes of next Bracelin Brent Sandler.

Your open. line is

Brent Bracelin

layer particularly are get data do software appetite strong flows. be Are M&A in biggest the high Love about the seeing that strategy to IPO, thoughts up beat to is core any the – seen if what really you great guess, the opportunities cash I Henry, my I Cameron, into lower is are to you appetite more move to M&A valuations given hear at resonating. platform, – the Thanks. there bigger Good since the companies seems quarter into afternoon. Shopify from leading profits to Alphabet, the the is is have. dollar cloud this clearly, on on given here what like guess, resonating more a today, momentum level, opportunities? question much M&A, think just apps you vision you've just operating here

Henry Schuck

you Thank Yes. for the question.

market technologies, doing layering ability the laid four We're buy We a proven really content them them just We to around we've to then platform that if what understand to that have our take a take grow. finished close And look. how about Today, build, think us achieve partner we take M&A, saying. as or our you'll and something clear around Cameron the vision out on for I criteria matches that and with really our see various want personas. our data vision analysis way see to feel good we ecosystems integrate we to a that around evolve. vision. vision across our to

Cameron Hyzer

layer I'd that. Brent, probably on And to

historically. disciplined at secrets of good that criteria is that sure One the being it we've making the M&A really about up being meets and set

continue to And that. so plan we

the little mirror come I public sometimes have that a think, while kind it the private in valuations of think but markets be. valuations, come I reality down, certainly for takes to to fully

our on So out where we're we criteria focused on while are of or than else. there meeting opportunities valuations more are kind are just core anything moving there,

Brent Bracelin

sense. Thanks. Makes color. it. Got Helpful

Operator

question of James. comes from Raymond Peterson last Now, Brian

open. Your line is

Unidentified Analyst

This my is for for taking Chase [ph] on Brian. Thanks question.

one Just the just Can of guys see then the elaborate broader customer guys you announcement there. operations obviously aggregation you integration, entire the from Labs. demand our the side. to but market? And kind ramping Thanks. the the understanding ZoomInfo in I'm of the think on how meet about

Henry Schuck

is of enterprises coming I software efficient. consultancy Labs – is that acquisition efforts Advisors ZoomInfo helps and go-to-market efforts Yes, incredibly so go-to-market data using make their of professional the out the build Dogpatch And think firm Dogpatch launch effective and those off Advisers. and insights to and of services

driven our they to they the with they where have don't interconnected there. innovative what playbook us customers where world run we but software is ability prospects, have are where telling they're talk and so pathway seamlessly, get motions And by go-to-market data their our to a is when a our sales want

is that are And a integrated each data the talk help that see with of layer foundation interconnectivity our of motion. so that's sits a that's Lab we're our future and drives ZoomInfo mechanism what hopeful other data-driven, to provide to our cloud customers to where the application where and to innovative, do at systems

our And vision, customers not is to so here that only turns the see ZoomInfo ZoomInfo into achieve acquisition, then Advisors designed Labs, Dogpatch help which also at but that.

Unidentified Analyst

Thanks. Perfect.

Operator

Henry conference turn to now for would back closing remarks. to I Schuck like Mr. the

Henry Schuck

can us more We're platform virtually Day share profitability. and leading Eastern. our our Thank both join that of to Great. everyone. you. about growth approach p.m. June with for X at Thank We X:XX Analyst you, you the and on hope you excited combination

Operator

Thank This you concludes participating. conference call. today's for

You may disconnect. now

ZoomInfo (ZI) 3 May 222022 Q1 Earnings call transcript