Zoominfo Technologies Inc at Canaccord Genuity Growth Conference Transcript

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

Question: David Hynes - Canaccord Genuity Corp - Analyst : Maybe we can talk a little bit about Q2, just to kind of level set everybody, what you saw in the quarter, obviously, some favorable trends with AI and enterprise. But kind of what was top of mind for you coming out of the quarter, and what excites you as you look forward?

Question: David Hynes - Canaccord Genuity Corp - Analyst : Yeah. I got that on my list. We're going to get there shortly. I'm curious, when did you sense the change in tone of the conversations were becoming more strategic? Like if we rewind, right, it's been -- a lot has happened in the last 12, 18 months. You guys have brought new product to market, et cetera. Like when did you get the sense that like the strategic value, not that it wasn't delivering value before, but that operations use case, the go-to-market Studio, like when did that stuff really start to inflect?

Question: David Hynes - Canaccord Genuity Corp - Analyst : Yeah. Yeah. Makes sense. Graham, Henry teed me up for it. Congrats on the permanence of the new role. I know you've been at ZoomInfo for some time now, but it's great to see and well deserved. Maybe talk about some of the changes that you brought to the finance organization. I guess it's -- I don't know what the interim period was, was it 9 months, 10 months, something like that.

Question: David Hynes - Canaccord Genuity Corp - Analyst : It's been about a year now. So maybe talk about just over the last year, kind of what you've tried to do with the finance org and some of the changes that you put in place.

Question: David Hynes - Canaccord Genuity Corp - Analyst : Yeah. Yeah. Henry, you talked a little bit about kind of the delineation of the business. It's been very helpful to outsiders, I think, to think about the growth matrix that upmarket, downmarket breakout. You'd find it for us. You said 72% of the mix is now upmarket. You alluded to this, but I'd love to unpack a little bit more just the unit economics between the two different businesses. Obviously, the bigger portion is faster growing, but there's better economics as well. So maybe just unpack kind of what upmarket versus downmarket unit economics look like.

Question: David Hynes - Canaccord Genuity Corp - Analyst : Yeah. Yeah. One of the topics that's come up a lot during earnings season is just yield on organic search for PLG-driven business models. I realize it's a little bit of a higher touch sale kind of where you're focused further upmarket, but you do have SMB, PLG components to the business still. I'd be curious just what you're seeing in terms of organic search and yield through the -- now that AI answer engines are becoming more prominent and if there's anything you guys are doing to kind of change how you show up.

Question: David Hynes - Canaccord Genuity Corp - Analyst : Yeah. That's good. And if we think about the growth matrix going forward, enterprise continues to get better. What's going to have a more dramatic impact, like further improvement in the enterprise business or less degradation from the SMB? Like how do you think about those pieces building into kind of what does the future growth looks like for ZoomInfo?

Question: David Hynes - Canaccord Genuity Corp - Analyst : Yeah. Yeah. It's just a stronger base to continue to grow inside of. Graham, maybe this is one for you. Just like thinking about vertical exposure for the business, I think, in Q2, you actually called out some green shoots maybe impact, and it is the first time that there was a positive contributor to growth in some time. The business has since, over the last several years, kind of diversified away from tech. So there's two questions in there. One is that diversification story. And then the second is just what you're seeing in tech.

Question: David Hynes - Canaccord Genuity Corp - Analyst : Yeah. Yeah. We've talked a lot about AI through your comments kind of coming out of Q2 and what's driving the business forward. But I'd love to kind of double-click on some of the products, Copilot, the Data-as-a-Service offering, go-to-market Studio. Can you just kind of talk about each, a quick overview on kind of what they help customers do and why it's important to the growth story?

Question: David Hynes - Canaccord Genuity Corp - Analyst : Yeah. Makes perfect sense. Clearly, lots of complement between go-to-market Studio and Copilot. How do you think about kind of pricing and packaging those together? And are we early in that process? Is there more you think you can do on that front? Any comments would be interesting.

Question: David Hynes - Canaccord Genuity Corp - Analyst : Okay. Kind of just the price sensitivity question in general. I mean, I think when times were tough, there was an investor narrative that ZoomInfo is the premium priced product in the space. It's because you deliver the best data, the most accurate data. But there's always this narrative like there are lower-cost alternatives out there and maybe not as good but cheaper works in a tough environment. Has the price -- is price sensitivity still an issue in sales cycles? Or does the leaps you've taken in AI kind of remove some of those concerns, I guess, I would say.

Question: David Hynes - Canaccord Genuity Corp - Analyst : Yeah. Yeah. It's good to hear. Any AI customer success stories that are kind of top of mind for you that you would point to?

Question: David Hynes - Canaccord Genuity Corp - Analyst : Yeah. Yeah. I don't want to guess or speculate at the customer, but there was a recent IPO that we are part of. That sounds like it would have been a good fit for them.

Question: David Hynes - Canaccord Genuity Corp - Analyst : Yeah. I want to talk about the record deal that you signed in Q2. I think you said it was the largest TCV deal ever in company history, pretty significant expansion. Just talk about kind of the evolution of that customer and what led to the commitment in the upsell.

Question: David Hynes - Canaccord Genuity Corp - Analyst : Yeah. That's awesome. It's great to get that long-term commitment. Graham, I want to ask you on the numbers, right? So Q2 kind of got one of the biggest beats we've had in a while. The story here today is enterprise is going really well. It's growing faster, larger share of the mix, better unit economics. AI is doing well. But I felt like there was a little bit of tempering of expectations for '26. Maybe you don't want folks to get over their skis or ahead of themselves. Just what was the message you were trying to convey?

Question: David Hynes - Canaccord Genuity Corp - Analyst : Yeah. Yeah. Fair enough. As consumption becomes gradually a bigger part of the business, how does that impact your ability to forecast?

Question: David Hynes - Canaccord Genuity Corp - Analyst : Yeah. Okay. And how do you think about capital allocation these days? You buying back stock? Personally bought stock over the last year, I guess it was. You're generating a lot of cash. Kind of what are the puts and takes as you see it today? And how do you think about kind of the longer-term opportunity for margins? 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 13, 2025 / 6:00PM, GTM.OQ - Zoominfo Technologies Inc at Canaccord Genuity Growth Conference

Question: David Hynes - Canaccord Genuity Corp - Analyst : Yeah. Good. And then Graham, I'll give you the margin question. Like in a low single-digit growth scenario, can you still expand margins? Or do we need faster growth?

Question: David Hynes - Canaccord Genuity Corp - Analyst : Yeah. So Henry, maybe just to wrap and see our tickers wound down on us. It feels like the business is in a better spot than it has been for several years now. What's the message you want investors to leave with?

Question: David Hynes - Canaccord Genuity Corp - Analyst : Yeah. It's a great message: playing offense, generating a ton of cash, cheap stock.

Question: David Hynes - Canaccord Genuity Corp - Analyst : Awesome.