Zoominfo Technologies Inc at Barclays Global Technology Conference Summary

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

Question: Raimo Lenschow - Barclays - Analyst : <_ALACRA_META_ABSTRACT>You've been at ZoomInfo for a while, but it's now in the CFO function. From your perspective, so what are your priorities here?

Question: Raimo Lenschow - Barclays - Analyst : And then I mean, it's -- the issues we had the last few years, I mean, it wasn't just ZoomInfo. It's the whole industry. Maybe talk a little bit about -- if you wanted to talk about ZoomInfo a little bit, but it doesn't need -- how do we get here? What -- from your observations, what happened? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. DECEMBER 11, 2024 / 11:40PM, ZI.OQ - Zoominfo Technologies Inc at Barclays Global Technology Conference

Question: Raimo Lenschow - Barclays - Analyst : Yeah. And then if you think about it, you as a management team -- and I felt kind of sorry for Cameron as well because how do you guide when there's so many changes going on in the industry, nothing really ZoomInfo, it's more of the industry. If you think about from you as a management team, what are the surprises or the learnings that you had over the last couple of years?

Question: Raimo Lenschow - Barclays - Analyst : Is that in a way, your -- you focus on what you can focus yourself on and then the market is the market. But I mean, how do you guys think about -- we basically had the overinvestment in 2020, '21. I mean now we're thinking talking about 2025. It's four years later. Do you think there is at some point or do you see early signs that there's some point that people realize, okay, well, we've done the optimization. And initially, it was like people had preboard seats, but then they didn't hire the sales guy, then they -- sales force got reduced, they got used again. But now, how do you feel talking to customers in terms of where we are in that kind of optimization of sales again?

Question: Raimo Lenschow - Barclays - Analyst : Yeah, well, let's just kind of (inaudible) REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. DECEMBER 11, 2024 / 11:40PM, ZI.OQ - Zoominfo Technologies Inc at Barclays Global Technology Conference

Question: Raimo Lenschow - Barclays - Analyst : Yeah. Okay. And I mean, the last area that seems to cause trouble is the low end, low end. Can you speak to what's going on there?

Question: Raimo Lenschow - Barclays - Analyst : Yeah. And then can you talk a little bit -- you talked a little bit about how you stabilized the attrition, et cetera. Can you talk a little bit about some of the action you took? Because you could also argue it's like, well, look, they went down and at some point, they don't go down anymore. So you -- but what were the actions that you took to -- and I'm asking because efficiency gains are more like running the organization better is also like a good thing for being a better company going forward? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. DECEMBER 11, 2024 / 11:40PM, ZI.OQ - Zoominfo Technologies Inc at Barclays Global Technology Conference

Question: Raimo Lenschow - Barclays - Analyst : Yeah. Okay. And then the -- just last question, I want to finish it out. You partly answered it, but like how do you -- if you think about the market at the moment, on our side -- sorry, on our side, we saw Salesforce talking a little bit better last quarter. I don't know how much material these changes really were. Then we saw Trump winning the election, so the SMB sentiment is picking up. Is that something that you follow as well? And has that translated into something? Or is it just way too early?

Question: Raimo Lenschow - Barclays - Analyst : And then how much lead time do you get -- or maybe what are you looking at? And how much lead time do you get from that if things are getting better in terms of what are you -- do you look at the top of the funnel? Or what are the things that you as a CFO can do or -- to get yourself more comfortable?

Question: Raimo Lenschow - Barclays - Analyst : And then on that note, a little bit, as an organization, you obviously haven't been standing still from a product development perspective. So there's a lot -- what you can offer is a lot broader and what it works like two, three, four years ago. Can you talk a little bit about some of the initiatives there and how are they feeding into that now?

Question: Raimo Lenschow - Barclays - Analyst : Maybe just -- because Copilot gets everyone thinks like -- and look, Salesforce is doing, oh, we're Agentforce and Copilots are our own generation. Maybe talk a little bit about what Copilot does compared to like because everyone thinks about the Microsoft Copilot?

Question: Raimo Lenschow - Barclays - Analyst : And then how do you achieve that? In terms of do you have an LLM model for everyone? Or how does it -- how do you with Copilot?

Question: Raimo Lenschow - Barclays - Analyst : And then how does it work from a customer perspective? Do I need to sign up for it and pay more? Do you automatically upgrade them, but they need more data like there's work that needs to be done, how do we have to think about it?

Question: Raimo Lenschow - Barclays - Analyst : And then when you say double-digit price increase, when they do it, is that just for those per seat per those customers that are moving? Or is it because 10% of the base are moving, and that's where you look at a double digit

Question: Raimo Lenschow - Barclays - Analyst : Yeah, yeah. And then how do you see the -- because it's so exciting, is that 100% -- if people are in, it's 100%? Or do you still see 50% of the seats get it in and 50% not and then they kind of do --

Question: Raimo Lenschow - Barclays - Analyst : And then how should we think about -- obviously, look, it's not that you're the only one that discovered GenAI. How -- what's the -- how are you fitting with your Copilot into what the rest of the industry is doing? Is now everyone is selling Copilot or you relatively unique? Or is the breadth of what you do with Copilot is more than the other guys? How do you compare yourself there?

Question: Raimo Lenschow - Barclays - Analyst : Yeah, yeah. I mean, what's the -- what are you seeing in the industry evolving? A lot of your competitors were private and smaller, how is behavior there? Because maybe I'll stop with the open question there, yeah.

Question: Raimo Lenschow - Barclays - Analyst : I mean is there -- I mean, what's the investment needed from your perspective as well in terms of GenAI infrastructure, GPU capacity, et cetera, is that a gating factor at some point?

Question: Raimo Lenschow - Barclays - Analyst : Yeah, if you run Copilot or is that something where you can view -- you can secure more capacity and so you can compete better against some of the smaller 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. DECEMBER 11, 2024 / 11:40PM, ZI.OQ - Zoominfo Technologies Inc at Barclays Global Technology Conference

Question: Raimo Lenschow - Barclays - Analyst : Yeah, yeah. And -- I mean, what's the impact on gross margins, if you have a Copilot customer versus a normal customer?

Question: Raimo Lenschow - Barclays - Analyst : Okay. Yeah. So you wouldn't -- so is it an idea to have the customer participate more? Or is that price -- the fixed price that you have for that it's going to cover it? Or is there at some point a wake up moment if the usage

Question: Raimo Lenschow - Barclays - Analyst : Yeah. And then you mentioned AI. Obviously, you acquired a good data set, and you were one of the best data assets in town. And we have Salesforce doing a lot more stuff, et cetera, in there. How do you think about data asset and letting it -- leveraging more as you go into a broader AI world and other people want to work with you -- more work with you?

Question: Raimo Lenschow - Barclays - Analyst : Yeah. Okay. Changing gear a little bit. If you think about, obviously, growth has slowed down a little bit, but your -- you still were very kind of cash flow generative, profitable company. How do you think about that balance now? And how do you see yourself there?

Question: Raimo Lenschow - Barclays - Analyst : Yeah, yeah. And then the -- if you think about -- if time should get better, how do you think about that think about rebuilding capacity, et cetera, and to drive the future growth because you don't want to save yourself to death either. How do you go about that?

Question: Raimo Lenschow - Barclays - Analyst : And where are we on sales productivity at the moment because that's another thing where people don't think if the productivity is not where kind of totally you want to, there's a lot of buffer initially there to start growing with that rather than just having to hire people again. Where are you on that productivity curve?

Question: Raimo Lenschow - Barclays - Analyst : Yeah. Okay. And last thing, if you think about growth as well, can you talk a little bit about international?

Question: Raimo Lenschow - Barclays - Analyst : Yeah, yeah. Okay. But the -- if you think the initial focus will be -- because your domestic sounds like it's [further,] so it's probably more a domestic focus than international focus.

Question: Raimo Lenschow - Barclays - Analyst : Yeah. Okay. And then last question for me -- sorry, last couple of questions. How do you think capital -- I mean you're very cash generative. How do you think capital structure from here?

Question: Raimo Lenschow - Barclays - Analyst : And then you mentioned M&A, I guess, one way. Obviously, there has been a lot of disruption in the market, which basically means there's just potentially some very interesting technology assets out there that might have suffered. How do you think about M&A from here?

Question: Raimo Lenschow - Barclays - Analyst : Yeah. I mean if you look at where you are in the market, is there a big adjacency possible? Or is it just actually -- it does feel more like tuck-ins?

Question: Raimo Lenschow - Barclays - Analyst : And is it more like -- if you think about it, is it more like a data -- like there's certain data assets versus software assets like --

Question: Raimo Lenschow - Barclays - Analyst : Yeah, yeah. Good. Okay. Actually, I really enjoyed our conversation. Thanks for joining us here. 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. DECEMBER 11, 2024 / 11:40PM, ZI.OQ - Zoominfo Technologies Inc at Barclays Global Technology Conference