ZoomInfo Technologies Inc at Canaccord Genuity Growth Conference Transcript

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

Question: David E. Hynes - Canaccord Genuity Corp., Research Division - Analyst : Yes. I'm going to operate under the assumption that most people are familiar with the ZoomInfo business at this point. So maybe we can just start with kind of a quick recap on Q2, what you saw kind of any key topics of conversation coming out of the quarter? And then we can dig into the details.

Question: David E. Hynes - Canaccord Genuity Corp., Research Division - Analyst : Yes. Macro is obviously top of mind for everybody. I'm sure you're sick of answering that question. But maybe if we kind of parse the drivers of growth into new customer wins, gross retention, and expansion, talk about what you're seeing across each of those 3?

Question: David E. Hynes - Canaccord Genuity Corp., Research Division - Analyst : Yes. And we have some questions on that. Before we get there, like do you think there's a case to be made that there's any counter-cyclicality for demand or value prop, the thesis, I guess, would be like, "hey, if we're going to hire less, maybe we'll find technologies to help who we have be more productive". Are you seeing any signs of that playing out or is that wishful thinking?

Question: David E. Hynes - Canaccord Genuity Corp., Research Division - Analyst : Yes. Yes. You alluded to some of the advanced functionality upsells in your prior answer. Engage in course are obviously foundational of that effort. So just remind us on kind of like attach rates, new customers versus in the base and then ASP uplift, like how significant are these to your business?

Question: David E. Hynes - Canaccord Genuity Corp., Research Division - Analyst : Yes. Yes. I mean, so you're talking about doubling at a minimum, potentially tripling with the full scope of stuff that's adopted and it's still 30% of ARR, is that what you said upfront?

Question: David E. Hynes - Canaccord Genuity Corp., Research Division - Analyst : Yes. Let's talk about competition with those. You alluded to kind of closing the gap or passing some of the point solution providers. But there are dedicated guys, I think you have Engage, you have Outreach and SalesLoft, and you have Gong versus Chorus. What's the advantage that ZoomInfo has versus the point solution providers? Like why do you beat them?

Question: David E. Hynes - Canaccord Genuity Corp., Research Division - Analyst : Yes, that's a good answer. So you guys have been pretty acquisitive. Are we in digestion mode? Is there more you want to do? How are you thinking about it?

Question: David E. Hynes - Canaccord Genuity Corp., Research Division - Analyst : Yes. So good investors always kind of poke holes in their own thesis. And one of the questions that I get a lot as folks trying to poke holes in the ZoomInfo story is around exposure to venture-backed tech start-ups, and we're seeing layoffs across portions of the industry. You guys have done some work to quantify this, so remind us of that. And then just more broadly, like are you seeing headcount reductions or seat count reductions in any segments of your customer base and how are you managing it?

Question: David E. Hynes - Canaccord Genuity Corp., Research Division - Analyst : Yes. So with the kind of introduction of RevOS, we have a whole number of different personas that you've introduced that you're selling into marketing, talent, you talked about Ops. I guess, what kind of traction are you seeing outside of sales? Does it always start with sales? Are you landing?

Question: David E. Hynes - Canaccord Genuity Corp., Research Division - Analyst : And where you're seeing traction in these outside of sales personas, is it more of a pull motion? Or do you feel like it's a push on behalf of your sales 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 10, 2022 / 4:00PM, ZI.OQ - ZoomInfo Technologies Inc at Canaccord Genuity Growth Conference

Question: David E. Hynes - Canaccord Genuity Corp., Research Division - Analyst : Yes. Yes. Transitioning topics. Privacy, your favorite topic, I'm sure.

Question: David E. Hynes - Canaccord Genuity Corp., Research Division - Analyst : It's one we have to ask about, it comes up often. So look, there's been some changes, right? New Chief Compliance Officer, kind of a revamped privacy center. I've been asked, is it proactive or reactive? I think I know the answer, but I'll turn it to you. And then maybe more interestingly, talk about kind of how ZoomInfo uses privacy and security as an advantage in the field.

Question: David E. Hynes - Canaccord Genuity Corp., Research Division - Analyst : Yes. Yes. I want to hit on the numbers. Time is (inaudible) a little bit. But look, 42% organic growth last quarter, 42% free cash flow margins. I mean it's off the chart. You've been pretty transparent and thoughtful around kind of the trade-off between growth and profits, and we don't need to revisit that conversation. But just the outlook for organic growth as we kind of look into the back half of the year? I think there's some interesting dynamics with RingLead and Chorus will start to contribute to organic growth in the back half, so how are you thinking about that?

Question: David E. Hynes - Canaccord Genuity Corp., Research Division - Analyst : Yes. Longer term, at some point, growth slows, where do margins peak...

Question: David E. Hynes - Canaccord Genuity Corp., Research Division - Analyst : Fair enough. Look, I think maybe ANSYS hit like low 50s margins at one point. It's like the best I can remember. Like what -- how high is up for ZoomInfo?

Question: David E. Hynes - Canaccord Genuity Corp., Research Division - Analyst : Yes. Last question I've been asking all my companies that have been presenting is just kind of a concluding thought. But what do you think is something that investors still underappreciate about the ZoomInfo story?

Question: David E. Hynes - Canaccord Genuity Corp., Research Division - Analyst : Yes. Yes, it makes sense, and it's clearly playing out in the performance of the business. So Cameron thank you for doing this. Thank you for being here. Look forward to keeping tabs on progress.