8-K: ZoomInfo Announces First Quarter 2025 Financial Results, Launches Go-To-Market Studio

ZoomInfo reports its Q1 2025 financial results, highlighting the launch of its Go-To-Market Studio and a change in stock ticker symbol.

Summary

• ZoomInfo announced its Q1 2025 financial results on May 12, 2025.
• GAAP revenue was $305.7 million, a 1% decrease year-over-year.
• GAAP operating income was $50.3 million, with an adjusted operating income of $100.9 million.
• The GAAP operating income margin was 16%, and the adjusted operating income margin was 33%.
• GAAP cash flow from operations was $119.2 million, and unlevered free cash flow was $124.5 million.
• ZoomInfo launched Go-To-Market Studio, a command center for revenue teams.
• The company's common stock will begin trading under the symbol GTM on Nasdaq starting May 13, 2025, replacing the current symbol ZI.
• ZoomInfo closed the quarter with 1,868 customers having an annual contract value of $100,000 or greater, an increase of 108 year-over-year.
• As of March 31, 2025, 71% of the company's ACV was Upmarket.
• The company's net revenue retention rate improved sequentially while rounding to 87% as of March 31, 2025.
• During the quarter, ZoomInfo repurchased 8,598,274 shares of common stock at an average price of $11.05, for an aggregate of $95.0 million.
• The company is providing guidance for Q2 2025 with GAAP revenue between $295 and $298 million.
• The company is providing guidance for full year 2025 with GAAP revenue between $1.195 and $1.205 billion.
• The company is providing guidance for full year 2025 with Non-GAAP Adjusted Operating Income between $426 and $436 million.
• The company is providing guidance for full year 2025 with Non-GAAP Adjusted Net Income Per Share (Diluted) between $0.96 and $0.98.
• The company is providing guidance for full year 2025 with Non-GAAP Unlevered Free Cash Flow between $420 and $440 million.

Sentiment

Score: 7

Explanation: The sentiment is moderately positive due to the launch of a new product and better-than-expected results, but tempered by a slight revenue decrease and lower retention rate compared to industry leaders.

Positives

• ZoomInfo launched Go-To-Market Studio, which could drive future growth.
• The number of high-value customers (>$100,000 ACV) increased by 108 year-over-year.
• 71% of the company's ACV is now Upmarket, indicating a shift towards larger enterprise clients.
• The company repurchased $95.0 million worth of its common stock, suggesting confidence in its future prospects.
• The net revenue retention rate is 87%.

Negatives

• GAAP revenue decreased by 1% year-over-year.
• Adjusted operating income decreased by 15% year-over-year.
• The net revenue retention rate is 87%.

Risks

• Future economic conditions could impact ZoomInfo's performance.
• Competitive pressures in the market intelligence platform space could affect growth.
• The successful integration of acquired businesses is crucial for future success.
• The company's future performance depends on its ability to innovate and adapt to changing market conditions.

Future Outlook

ZoomInfo provides guidance for Q2 2025 with GAAP revenue between $295 and $298 million and full year 2025 GAAP revenue between $1.195 and $1.205 billion. The company also provides full year 2025 Non-GAAP Adjusted Operating Income between $426 and $436 million, Non-GAAP Adjusted Net Income Per Share (Diluted) between $0.96 and $0.98, and Non-GAAP Unlevered Free Cash Flow between $420 and $440 million.

Management Comments

• Henry Schuck, ZoomInfo Founder and CEO, stated that the company delivered another quarter of better-than-expected financial results and Upmarket momentum.
• Henry Schuck, ZoomInfo Founder and CEO, stated that the company continues to prioritize AI-first solutions, along with its best-in-class signals, data, and insights to drive tangible results for its customers.

Industry Context

ZoomInfo's launch of Go-To-Market Studio reflects the industry trend of integrating sales and marketing data and workflows to improve efficiency and drive revenue growth. The company's focus on AI-driven solutions aligns with the broader industry shift towards leveraging artificial intelligence to enhance business intelligence and automation.

Comparison to Industry Standards

• ZoomInfo's net revenue retention rate of 87% is lower than best-in-class SaaS companies, which often exceed 100%.
• Companies like Salesforce and HubSpot often have higher net revenue retention rates, reflecting stronger customer loyalty and expansion within existing accounts.
• ZoomInfo's adjusted operating income margin of 33% is competitive within the SaaS industry, but some companies achieve higher margins through greater operational efficiency or stronger pricing power.

Stakeholder Impact

• Shareholders may react positively to the launch of Go-To-Market Studio and the stock repurchase program.
• Employees may be affected by restructuring and transaction-related expenses, including potential severance and termination benefits.
• Customers may benefit from the unified data and improved workflows offered by Go-To-Market Studio.

Next Steps

• ZoomInfo will begin trading under the new ticker symbol GTM on May 13, 2025.
• ZoomInfo executives will participate in several investor conferences in May and June 2025.

Key Dates

Keywords

ZoomInfo, financial results, Q1 2025, Go-To-Market Studio, revenue, ACV, GTM, stock repurchase, guidance, net revenue retention