Zoominfo Technologies Inc Q2 2025 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Brad Zelnick - Deutsche Bank Securities, Inc. - Analyst : Excellent. Thanks so much for taking the questions and congrats all around, especially to Graham and ZoomInfo on his appointment becoming official. Guys, I wanted to ask about the largest deal in history that you called out, which seems to be really strong validation of everything you've been telling us about the upmarket opportunity. What more is there to say about what actually drove it? And at a time where we hear everybody's becoming more efficient, to see this kind of expansion is amazing. And just really quick, Graham, one for you, especially on your appointment as CFO. I don't want to leave you out. How should we think about the 6% RIF and its impact to next year? Thanks so much, guys. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. AUGUST 04, 2025 / 8:30PM, GTM.OQ - Q2 2025 Zoominfo Technologies Inc Earnings Call

Question: Brad Zelnick - Deutsche Bank Securities, Inc. - Analyst : Thanks so much for taking the questions, guys.

Question: Mark Murphy - JPMorgan Securities LLC - Analyst : Thank you very much. And Graham, I will add my congrats on the news, and very well deserved. I wanted to ask about Q2 in the month of June, which are big upmarket periods for you. Can you comment at all on the exit velocity there, just in terms of close rates, but also how you think about pipeline build heading into the second half? And also within it, if you drill into the software vertical, is there any reason to think that that's turning the corner, and maybe that that can become additive to your growth profile going forward rather than impairing it in the second half?

Question: Mark Murphy - JPMorgan Securities LLC - Analyst : Great to hear. Thank you very much.

Question: Elizabeth Porter - Morgan Stanley & Co. LLC - Analyst : Great. Thank you so much. And I'll add my congratulations, Graham. My question on a recent CIO survey, we actually saw that sales was a top area where the adoption of AI was having an overall improvement in the cost base of the business unit. So I just wanted to delve a little deeper on the conversations you're uncovering as it relates to that greater efficiency. And if that is driven more on the lower headcount side, is there any sort of framework or view on how much savings that customers you think can ultimately be captured by ZoomInfo? Thank you.

Question: Elizabeth Porter - Morgan Stanley & Co. LLC - Analyst : Thank you.

Question: Kash Rangan - Goldman Sachs & Co. LLC - Analyst : Hey, thank you very much. Congrats to Graham. We could see this coming when we hosted you guys. And I told you, Henry, that Graham was doing a great job, so nice to see the promotion. One for you, Henry, as you take a step back, look at the past three years of this gut-wrenching downturn we've all lived through, I guess as analysts, we learn from our mistakes and things that don't work more than things that work. As you look at your business, what are the things that you've learned from the past three years that you will put to work in the future and that arms you better to make better decisions on the business steered forward that you couldn't know three years ago? And also with respect to AI, it feels like the frontier models are truly magical, but everybody has access to these frontier models. Everybody has the data, and it feels like the software community might have overestimated how much it can charge for these AI products. And then you start to see some customer pushback, not on the value, not on what it does, but how much they are willing to pay for it. So what is going to be enduring with the go-to-market AI solutions long term that you think you can be part of the permanent stack of AI solutions in the future? Thank you so much.

Question: Kash Rangan - Goldman Sachs & Co. LLC - Analyst : I like your answers. Thank you so much, Henry. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. AUGUST 04, 2025 / 8:30PM, GTM.OQ - Q2 2025 Zoominfo Technologies Inc Earnings Call

Question: Koji Ikeda - BofA Securities, Inc. - Analyst : Yes, hey, guys. Thanks so much for taking the questions, Henry and Graham, and I too will add my congrats to Graham on the CFO role. Well deserved there, Graham. Okay, so I wanted to ask a question. Maybe this is geared towards Graham, a little bit more forward-looking here. I look at Bloomberg and the Street growth estimates for 2026, and it's roughly close to 3%. And I do appreciate the guide up for the second half of this year, but it does imply an exit growth rate of about negative 1.6% for that fourth quarter. And of course, I do understand there's a lot of nuances in the model here, but as the model begins to normalize in the second half, how do we think about that exit rate mismatch to where the Street's at currently for 2026? Is there anything that we should really be focusing on here?

Question: Koji Ikeda - BofA Securities, Inc. - Analyst : Thank you.

Question: Parker Lane - Stifel, Nicolaus & Co., Inc. - Analyst : Hey, guys, good afternoon, and thanks for taking the question. Graham, I think it's been about a year since you installed the business risk model, PLG, and self-serve motion on the downmarket piece of the business. I was just wondering if you could comment on how that's improved the margins of that segment. And as you march towards stabilization of the downmarket, how much of an opportunity is there to drive some additional leverage in that piece in particular?

Question: Parker Lane - Stifel, Nicolaus & Co., Inc. - Analyst : Appreciate the feedback. Thank you.

Question: Michael Turrin - Wells Fargo Securities LLC - Analyst : Hey, great. Thanks very much. Appreciate you taking the questions. Graham, just on the segmentation commentary, did you say upmarket, 4% growth; and downmarket, down 11%? I'm just -- we're working on the fly, but hoping you could help bridge how that translates to the 5% growth reported for the quarter. And then as a second part, you touched on it a bit, but with the revenue increase running a bit ahead of the updates to the bottom line. Are there certain areas of the business you're planning to invest back into a bit more given the upmarket motion you're seeing? Thanks.

Question: Michael Turrin - Wells Fargo Securities LLC - Analyst : Thank you.

Question: Alex Zukin - Wolfe Research LLC - Analyst : Hey, guys. Thanks for taking the question. Graham, again, a huge congrats, I think, from everybody in the community on the promotion. Maybe on NRR, again, you guys have mentioned this a few times. The improvement that you've seen over the past few quarters has been pretty substantial. I guess, what gives you the confidence that that can continue? Is there a way to think about the pasting of that improvement as we get through the rest of the year? And then on profitability, we hear you on the reinvestment makes sense given the accelerating upmarket activity. You talk about operating margin leverage not being in conflict with that. Maybe help give us a little bit of a flavor of that, because the full-year raise on op income, a little bit less, obviously, than the pass-through on the top line. How should we think about that trending over the course of the next year?

Question: Alex Zukin - Wolfe Research LLC - Analyst : Perfect. Thank you, guys.

Question: Raimo Lenschow - Barclays Capital, Inc. - Analyst : Perfect. Thanks. Henry, going for you on Copilot, obviously, in the industry, there's a lot of AI noise. A lot of people kind of are trying to come up with their own AI-, agentic-, Copilot-type offerings. What are you seeing in terms of your Copilot's offering perception in the market? How does it stack up with the other guys? Can you speak to that a little bit more? And Graham, congrats from me as well. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. AUGUST 04, 2025 / 8:30PM, GTM.OQ - Q2 2025 Zoominfo Technologies Inc Earnings Call

Question: Raimo Lenschow - Barclays Capital, Inc. - Analyst : All right, thank you.

Question: Jackson Ader - KeyBanc Capital Markets, Inc. - Analyst : Great. Good evening, guys. Thank you for taking the questions. My questions are both on that large deal, the largest TCV deal. I guess just number one, how can you characterize maybe the ACV of that deal compared to the prior contract? And then the other follow up, Henry, you kind of hinted that this deal might be a signal to other potential upmarket customers. And so I'm curious whether you have any particular industries or other companies that have a similar look and feel that you can just kind of line up and then take this reference customer and go knock those down. Thank you.

Question: Jackson Ader - KeyBanc Capital Markets, Inc. - Analyst : Got it. Thank you.

Question: Taylor McGinnis - UBS Securities LLC - Analyst : Yes, and congrats, Graham. And thank you guys for taking my question. Graham, for you, you made comments earlier that market retention has been the highest in years. So what does NRR of the upmarket business look like today? And as we think about the path to get back to the 90s and higher, could you just provide a little bit more color on what the guide assumes? And any early thoughts as we think about 2026?

Question: Taylor McGinnis - UBS Securities LLC - Analyst : Perfect. Thank you.

Question: Tyler Radke - Citigroup Global Markets, Inc. - Analyst : Yes, thank you very much for taking my questions. And Graham, congrats again for me. In terms of the -- couple questions just on kind of the emerging parts of the business. So Copilot, encouraging to hear the continued momentum there. I'm curious as you start to approach some of the Copilot renewals, which I think will be in the back half of this year, would you expect those contracts to grow faster than the initial point of sale? Obviously, customers have been using Copilot in those situations for over a year. So do you think that could be a catalyst to re-accelerate NRR for folks that are using Copilot? And then secondly, just on the operations hub, I think you said growth there was above 20%. Did that accelerate versus last quarter, or was that pretty consistent versus last quarter? Thank you. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. AUGUST 04, 2025 / 8:30PM, GTM.OQ - Q2 2025 Zoominfo Technologies Inc Earnings Call

Question: Tyler Radke - Citigroup Global Markets, Inc. - Analyst : Great. Thank you.

Question: Brian Peterson - Raymond James & Associates Inc. - Analyst : Thanks, gentlemen. nd congrats, Graham, on the new role. So I wanted to hit on net new. I'm curious how that's gone this year versus your expectations. And Henry, as we think about these upmarket customers looking at how they're treating data, do you think they'll make more standardized investments, i.e., bigger deal sizes versus what you've seen historically, maybe where they're taking a little bit smaller bites of the apple? Thanks, guys.

Question: Brian Peterson - Raymond James & Associates Inc. - Analyst : Thanks, Henry.

Question: Austin Cole - Citizens JMP Securities LLC - Analyst : Great, thanks for taking the question. This is Austin Cole on for Pat. Henry, a question for you. At this point, anyone who is visiting San Francisco is going to see billboards for AI SDRs, and there's a bunch of small players in that space popping up. So I'm just wondering, is that something that's coming up in any of your conversations with customers? Do you kind of buy into that vision? Why or why not, and how does maybe an AI SDR stack up against Copilot from a product perspective? Thanks.

Question: Austin Cole - Citizens JMP Securities LLC - Analyst : Great, thanks, and congrats to Graham.

Question: Surinder Thind - Jefferies LLC - Analyst : Thank you. Henry, just as we look at some of the wins that you've had, especially the bigger ones, it seems like there's a theme of consolidation there where you're displacing some competitors. Given the current environment, it seems like there's enough data points for clients to make bigger decisions at this point. There's enough comfort with the technology and the track records of products. Can you talk a little bit about that theme and if consolidation is where we think the next year or two is going to be in terms of growth? And then maybe we get that the growth in headcount within sales after that period, or how we should maybe think about those dynamics?

Question: Surinder Thind - Jefferies LLC - Analyst : Thank you.