Zoominfo Technologies Inc at Bank of America Global Technology Conference Transcript

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

Question: Koji Ikeda - Bank of America - Analyst : Of course, super appreciate it, as always. So just real quick, high-level background. I know a lot of people know ZoomInfo, but for those on the webcast and those in the room that are unfamiliar with it. Maybe just a quick minute or 2 of what is ZoomInfo, what's the opportunity? Who is Cameron Hyzer?

Question: Koji Ikeda - Bank of America - Analyst : What is the pain point that you guys are trying to solve now specifically when customers are coming to you? I imagine over the past several years, especially with generative AI coming into the marketplace, things have changed. Maybe they haven't. I mean when they're coming to you what are they talking about? What they're saying? ZoomInfo help me with this. What is that specifically?

Question: Koji Ikeda - Bank of America - Analyst : ZoomInfo is one of the most real-time [seers] of front office demand with your customer enablement platform for sure. I believe that. And so maybe the question here is about the demand environment. How are you categorizing the demand environment today versus the beginning of the year versus a year ago? How different does it feel? Does it feel like it's getting better, worse, stable?

Question: Koji Ikeda - Bank of America - Analyst : I wanted to dig into that SMB commentary and thinking about the first quarter results and guidance, right? You did lower the full year guidance by about $50 million. And a lot of the questions that I got from investors both print was why $50 million? What happened there? It sounds like it was --

Question: Koji Ikeda - Bank of America - Analyst : What did you specifically see that changed? And those pressures that you saw, are they still there? Are they abating? Does it feel better from that standpoint?

Question: Koji Ikeda - Bank of America - Analyst : And when we look at the full year guidance, it does assume things kind of get a little bit better in the second half, maybe slightly on the days adjusted revenue perspective. But what are you seeing out there that's maybe giving you the confidence in the second half of the guidance [for this year]?

Question: Koji Ikeda - Bank of America - Analyst : Got it. Got it. Let's talk about those renewal cycles a little bit. You have called out in the past some sort of chunk of ACV that still needs to renew. What does that chunk of AR -- or ACV that needs to be renewed? What does that look like today? How is those renewals going? How are you feeling about those?

Question: Koji Ikeda - Bank of America - Analyst : Got it. Thank you for that account. I wanted to ask you a question about TRAs. I am not a TRA expert.

Question: Koji Ikeda - Bank of America - Analyst : Something receivable something.

Question: Koji Ikeda - Bank of America - Analyst : So I get the question and I have a hard time answering clearly. Please walk us through the TRA, what is it? What does it need? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JUNE 05, 2024 / 9:40PM, ZI.OQ - Zoominfo Technologies Inc at Bank of America Global Technology Conference

Question: Koji Ikeda - Bank of America - Analyst : Got it. No, thank you for that. I appreciate that. I wanted to switch the conversation to boomerang customers and the customers that have come back to ZoomInfo. I thought that the commentary that customers are coming back was very interesting because I think one of the debates on ZoomInfo was competition, potential attrition of ZoomInfo going to either competitor -- lower-priced competitors, different types of competitors out there. But here, they are coming back. And so talk to me a little bit about the pace of boomerang customers, what are they telling you? Why are they coming back? Is this a trend that could continue to happen over the next several quarters?

Question: Koji Ikeda - Bank of America - Analyst : Is there any data you could share on those Boomerang customers in terms of duration of time away like maybe last year. We saw them away for a year and now they're coming back faster. Is there anything you can share Is there any data you could share on those Boomerang customers in terms of duration of time away, like maybe last year, we saw them away for a year and now they're coming back faster. Is there anything you could share on that?

Question: Koji Ikeda - Bank of America - Analyst : Okay. Okay. I wanted to touch a little bit about data and privacy. I mean always a big topic for you guys. I remember at Investor Day, I think it was 2 years ago, we had a -- got to see a whole section on how you guys are in the forefront of data privacy. And we definitely appreciated that. Is there any sort of update you can give on how you're thinking about data privacy has anything changed? What has changed in the data privacy world? Is there any sort of upcoming regulations or things that we should be thinking about?

Question: Koji Ikeda - Bank of America - Analyst : Yes. Yes. I wanted to ask a question about sales capacity and how you're thinking about growth, return to growth, balancing growth and profitability. So specifically on sales capacity, what does the capacity look like today? How are you thinking about managing head count over the next 12 to 24 months? And what are some of the triggers that you're looking for, either externally or internally within the business to know now it's time to step on the gas even?

Question: Koji Ikeda - Bank of America - Analyst : Were there any changes to sales compensation plans this year to either push one way or another land versus expand geographies, products? And anything to call out from that front?

Question: Koji Ikeda - Bank of America - Analyst : Got it. Got it. What about from a geographic perspective? Is there any push into certain geographies, whether it's within the U.S. specifically, more international? And how do we think about the geographic push?

Question: Koji Ikeda - Bank of America - Analyst : How should we be thinking about partnerships, specifically with the different technology vendors out there? Thinking about Salesforce, HubSpot, I mean, you listed Databricks, TrustRadius, Trade Desk. Others is partners of you guys. And so how to think about these relationships as potential accelerators of growth for you?

Question: Koji Ikeda - Bank of America - Analyst : Yes. Yes. Maybe last question for you here, Cam. Thank you so much for doing this. Cash flow. Cash flow is an important part and the ability to generate cash flow is an important part of the ZoomInfo --

Question: Koji Ikeda - Bank of America - Analyst : Of your story, of course. So how do you think about managing cash flow? Is there any sort of seasonality that we should be aware of onetime effects or anything to call out with the 2024 cash flow? Just so we're not caught by surprise.

Question: Koji Ikeda - Bank of America - Analyst : Got it. We're out of time. Cam, thank you so much for joining us. Appreciate it.

Question: Koji Ikeda - Bank of America - Analyst : Have fun. Thank you so much.