Summary of ZoomInfo Q3 2025 Earnings Call

1Key Financial Results and Metrics

GAAP Revenue: $318 million, up 5% year-over-year, exceeding guidance.

Adjusted Operating Income: $118 million, a margin of 37%, marking the highest AOI margin since Q4 2024 and returning to the Rule of 40 for the first time since Q1 2024.

Net Revenue Retention (NRR): Improved to 90%, the highest since Q2 2023, with upmarket NRR exceeding 100%.

Customer Base: 1,887 customers with over $100,000 in ACV, a 4% year-over-year increase.

Operating Cash Flow: $94 million; unlevered free cash flow at $95 million, representing an 81% conversion from adjusted operating income.

2Strategic Updates and Business Highlights

Upmarket Focus: 73% of total ACV now from upmarket customers, with a 6% growth in upmarket ACV.

Product Innovation: Continued expansion of product offerings, particularly in AI-driven solutions like Copilot, GTM Workspace, and GTM Studio, which are gaining traction among customers.

Customer Engagement: Strong engagement with Copilot leading to improved renewal outcomes and higher net retention rates.

Sales Integration: Successful integration with Salesforce through the ZoomInfo Revenue Agent, enhancing data accessibility for sales teams.

3Forward Guidance and Outlook

Q4 Guidance: Expected GAAP revenue between $307 million and $310 million, with adjusted operating income between $117 million and $120 million.

2025 Full-Year Guidance: GAAP revenue projected at $1.237 billion to $1.240 billion (2% growth at midpoint), with an adjusted operating income margin of 36%.

Long-Term Outlook: Commitment to revenue growth, margin expansion, and aggressive share repurchases, with expectations for accelerating free cash flow per share growth in 2026.

4Bad News, Challenges, or Points of Concern

Downmarket Performance: Downmarket ACV declined 10% year-over-year, although showing signs of stabilization.

Seasonality Effects: The shift to an upmarket focus is making the business more seasonal, complicating revenue growth evaluations.

Billings Growth: Calculated billings growth was weaker compared to previous quarters, attributed to changes in booking practices and the nature of year-over-year comparisons.

5Notable Q&A Insights

Revenue Upside Drivers: Key factors for Q3 revenue strength included successful product renewals, significant TCV deals, and the transition to upmarket customers.

GTM Studio Reception: Early feedback on GTM Studio is positive, with expectations for significant adoption across both new and existing customers.

Sales Productivity: New business productivity is consistent, with a deliberate shift of resources towards upmarket sales.

AI Integration: The company is leveraging AI internally to enhance operational efficiency and customer engagement, positioning itself as a leader in AI-driven go-to-market solutions. Overall, ZoomInfo demonstrated strong financial performance and strategic execution in Q3 2025, with a focus on innovation and upmarket growth, while also navigating challenges in the downmarket segment and seasonality. The outlook remains optimistic with raised guidance and a commitment to shareholder value through share repurchases.