Summary of ZoomInfo Q2 2026 Earnings Call

1Key Financial Results and Metrics

GAAP Revenue: $310 million, up 1.2% year-over-year.

Adjusted Operating Income: $110 million, up 5% year-over-year, with a margin of 35%.

Unlevered Free Cash Flow: $107 million, representing a 98% conversion from adjusted operating income.

Net Revenue Retention: 89%, down from 90% in the previous three quarters.

Customer Growth: 1,891 customers with at least $100,000 in ACV, a year-over-year increase of 9 customers.

Stock Repurchase: 6.3 million shares bought back at an average price of $4.51.

Goodwill Impairment: Noncash charge of $651 million due to a decline in market capitalization.

2Strategic Updates and Business Highlights

Product Launch: Introduction of GTM.AI, a headless go-to-market context layer that integrates with various workflows, enhancing customer access to data insights.

Customer Engagement: Strong performance in the operations business with 20% ACV growth year-over-year.

Market Position: 76% of revenue now comes from upmarket customers, indicating a healthier customer base.

Capital Allocation: Continued focus on profitability with equity repurchases and debt retirement at a discount, enhancing financial flexibility.

3Forward Guidance and Outlook

Q3 Guidance: Expected GAAP revenue between $298 million and $301 million, with adjusted operating income between $113 million and $115 million.

Full Year 2026 Guidance: GAAP revenue projected between $1.207 billion and $1.217 billion, a 3% year-over-year decline at midpoint; adjusted operating income expected between $446 million and $451 million.

Free Cash Flow: Anticipated range of $403 million to $423 million for the full year.

4Bad News, Challenges, or Points of Concern

Sales Cycle Length: Continued longer sales cycles impacting upsells and net revenue retention, particularly in the software segment.

Downmarket Performance: Downmarket ACV declined 12% year-over-year, prompting a strategic shift to a product-led growth approach.

Goodwill Impairment: Significant noncash charge reflects market challenges and could impact investor sentiment.

Competitive Environment: Ongoing confusion in the market with many competitors, particularly in the software sector, leading to cautious growth expectations.

5Notable Q&A Insights

Customer Feedback on GTM.AI: Positive initial responses indicate that customers are integrating GTM.AI into their workflows, enhancing consumption of ZoomInfo's data.

Upmarket Growth Concerns: Upmarket ACV growth has slowed, with specific headwinds noted in the software segment.

Competitive Positioning: The company remains confident in its unique data ownership and product offerings, which differentiate it from competitors like Clari.

Future Workforce Strategy: The company anticipates a more streamlined workforce and cost structure as it approaches 2027, aiming for efficiency in operations. Overall, ZoomInfo's Q2 2026 results reflect a mix of cautious optimism with strategic initiatives aimed at long-term growth, despite facing challenges in certain market segments.