November 12, 2024 04:05 PM Eastern Standard Time

VANCOUVER, Wash.--(BUSINESS WIRE)--ZoomInfo, (NASDAQ: ZI) the go-to-market platform to find, acquire, and grow customers, today announced its financial results for the third quarter ended September 30, 2024.

“We continued our move up-market, fueled by ZoomInfo Copilot and Operations growth, and we delivered strong financial results while improving the quality of new customers that we are bringing in. The entire company is more focused than ever on delighting both our new and existing users via robust product innovation and customer obsession,” said Henry Schuck, ZoomInfo founder and CEO. “Net revenue retention was stable for the third consecutive quarter and we again grew our $100k and million dollar customer cohorts. We remain steadfast in our commitment to growing levered free cash flow per share and driving significant long-term value creation for our shareholders.”

Third Quarter 2024 Financial Highlights:

• GAAP Revenue of $303.6 million, a decrease of 3% year-over-year.
• GAAP Operating income of $43.5 million and Adjusted operating income of $111.7 million.
• GAAP Operating income margin of 14% and Adjusted operating income margin of 37%.
• GAAP Cash flow from operations of $18.2 million and Unlevered free cash flow of $110.7 million.

Recent Business and Operating Highlights:

• Introduced a series of enhancements to ZoomInfo Copilot, including:
• Expanded our partner ecosystem, with new and improved integrations with G2, Gong, HubSpot, Microsoft Dynamics 365, SalesLoft, and TrustRadius.
• Account activity alerts across multiple channels, including Slack, Microsoft Teams, email and in-app.
• Incorporated new gen AI model delivering strategic account prioritization and a prioritized seller homepage based on key signals and insights.
• Improved Copilot analytics impact reporting dashboard.
• Named a Leader in the 2024 Gartner® Magic Quadrant™ for Account-Based Marketing (ABM) Platforms.
• Achieved a perfect 100% user satisfaction rating for the Sales Intelligence, Buyer Intent, Lead Capture, and Market Intelligence categories as part of G2’s Fall 2024 reports. ZoomInfo products have collected more than 8,000 5-star reviews on G2.
• Expanded real-time buyer signals for more accurate and timely sales insights; with early users reporting a 58% increase in engagement, a 62% increase in email response rates, and nearly 25% of their pipeline attributed to action taken on Copilot signals.
• Closed the quarter with 1,809 customers with $100,000 or greater in annual contract value, an increase of 12 from the prior quarter.
• During the three months ended September 30, 2024, the Company repurchased 24,478,696 shares of Common Stock accounting for approximately 7% of total shares outstanding, at an average price of $9.89, for an aggregate $242.1 million. Since initiating a buyback in March last year, the Company has repurchased approximately 17% of outstanding shares.

The Company uses a variety of operational and financial metrics, including non-GAAP financial measures, to evaluate its performance and financial condition. The accompanying financial data includes additional information regarding these metrics and a reconciliation of non-GAAP financial information for historical periods to the most directly comparable GAAP financial measure. The presentation of non-GAAP financial information should not be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP.

Business Outlook:

Based on information available as of November 12, 2024, ZoomInfo is providing guidance for the fourth quarter and full year 2024 as follows:

Conference Call and Webcast Information:

ZoomInfo will host a conference call today, November 12, 2024, to review its results at 4:30 p.m. Eastern Time, 1:30 p.m. Pacific Time. To participate in the live conference call via telephone, please register here. Upon registering, a dial-in number and unique PIN will be provided to join the conference call.

The call will also be webcast live on the Company’s investor relations website at https://ir.zoominfo.com/, where related presentation materials will be posted prior to the conference call. Following the conference call, an archived webcast of the call will be available for one year on ZoomInfo’s Investor Relations website.

Non-GAAP Financial Measures and Other Metrics:

To supplement our consolidated financial statements presented in accordance with GAAP, this press release contains non-GAAP financial measures, including Adjusted Operating Income, Adjusted Operating Income Margin, Adjusted Net Income, Adjusted Net Income Per Share, and Unlevered Free Cash Flow. We believe these non-GAAP measures are useful to investors in evaluating our operating performance because they eliminate certain items that affect period-over-period comparability and provide consistency with past financial performance and additional information about our underlying results and trends by excluding certain items that may not be indicative of our business, results of operations, or outlook.