Q2 2025 ZoomInfo Technologies Inc Earnings Call

Graham O’Brien: Thanks, Michelle. Welcome to ZoomInfo's financial results conference call for the second quarter 2025. With me on the call today are Henry Schuck, Founder and CEO of ZoomInfo, and let me be one of the first to congratulate Graham O’Brien, who is also on this call, who is our newly named Chief Financial Officer. During this call, any forward-looking statements are made pursuant to the safe harbor provisions of U.S. securities laws, expressions of future goals, including business outlook, expectations for future financial performance, and similar items, including without limitation, expressions using the terminology may, will, expect, anticipate, and believe, and expressions which reflect something other than historical facts are intended to identify forward-looking statements. Forward-looking statements involve a number of risks and uncertainties, including those discussed in the risk factors section of our SEC filings. Actual results may differ materially from any forward-looking statements.

Is being recorded. I would like now to turn the conference over to Jerry Suski, Vice President of Investor Relations. Please go ahead, sir.

Thanks, Michelle. Welcome to ZoomInfo's financial results conference call for the second quarter of 2025. With me on the call today are Henry Schuck, founder and CEO of ZoomInfo, and let me be one of the first to congratulate Graham O'Brien, who is also on this call and is our newly named Chief Financial Officer.

Graham O’Brien: The company undertakes no obligation to revise or update any forward-looking statements in order to reflect events that may arise after this conference call, except as required by law. For more information, please refer to the forward-looking statements in the slides posted to our Investor Relations website at ir.zoominfo.com. All metrics on this call are non-GAAP unless otherwise noted, or reconciliation can be found in the financial results press release or in the slides posted to our IR website. With that, I'll turn the call over to Henry.

During this call, any forward-looking statements are made pursuant to the safe harbor provisions of U.S. securities laws, expressions of future goals, including business outlook, expectations for future financial performance, and similar items, including, without limitation, expressions using the terminology "may," "will," "expect," "anticipate," and "believe" and expressions which reflect something other than historical facts. Our intent is to identify forward-looking statements. Forward-looking statements involve a number of risks and uncertainties, including those discussed in the risk factor section of our SEC filings. Actual results may differ materially from any forward-looking statements. The company undertakes no obligation to revise or update any forward-looking statements in order to reflect events that may arise after this conference call, except as required by law.

Henry Schuck: Thank you, Jerry, and welcome, everyone. We executed well across our strategic priorities, delivered another quarter of strong financial results, accelerated upmarket growth, and raised our guidance for the year, which now calls for positive revenue growth in 2025. We are delighting our customers and feel closer to them than ever. We are positioned to play offense with accelerating product innovation, a strengthening competitive position across our solutions, and a team that is laser-focused and has an ownership mentality. All these inputs should drive accelerating free cash flow per share growth over the next few years and beyond. During the quarter, GoToMarket Studio went live and has a growing set of customers.

For more information, please refer to the forward-looking statements, and the slides posted to our investor relations website at IR. Document.com all metrics on this. Call are non-gaap. Unless otherwise, noted or reconciliation can be found in the financial results, press release, or in the slides posted to our IR website with that, I'll turn the call over to Henry.

Thank you, Jerry, and welcome, everyone.

We executed well across our strategic priorities, delivered another quarter of strong financial results, accelerated upmarket growth, and raised our guidance for the year, which now calls for positive revenue growth in 2025.

We're delighting our customers and feel closer to them than ever. We're positioned to play offense with accelerating product innovation, a strengthening competitive position across our solutions, and a team that is laser-focused and has an ownership mentality. All these inputs should drive accelerating free cash flow per share growth over the next few years and beyond.

Henry Schuck: ZoomInfo Copilot continued on its strong growth trajectory, and our suite of operations solutions again grew more than 20% year over year, validating that our customers are increasingly recognizing that they must make an infrastructural investment in data if they want to win in an AI world. All three solutions are driving stickier workflows and more habituated engagement across our customer base. In Q2, GAAP revenue was $307 million and adjusted operating income was $105 million, a margin of 34%, both above the high end of guidance. Q2 is a quarter that typically skews more upmarket, and we leveraged that opportunity with an increasing number of our largest customers embracing workflows, automation, and data as they expand their usage of our overall platform. We now have 1,884 customers with more than $100,000 in ACV, a sequential increase of 16 customers, and a year-over-year increase of 87 customers.

During the quarter, Go to Market, Studio went live and has a growing set of customers. ZoomInfo Co-Pilot continued on its strong growth trajectory, and our suite of operations solutions again grew more than 20% year-over-year, validating that our customers are increasingly recognizing that they must make an infrastructural investment in data if they want to win in an AI world.

all 3 Solutions are driving stickier workflows and more habituated engagement across our customer base

In Q2, GAAP revenue was $307 million and adjusted operating income was $105 million, a margin of 34%, both above the high end of guidance.

Q2 is a quarter that typically skews more up market and we leverage that opportunity with an increasing number of our largest customers embracing workflows Automation, and data as they expand their usage of our overall platform.

Henry Schuck: ACV growth in the quarter from that cohort was materially higher than last Q2 as our largest customers continue to expand and embed more of our data and AI agents in their workflows. We added customers to our million-dollar cohort, driving sequential and year-over-year growth in total ACV, as well as the average ACV per million-dollar customer. ACV for the million-dollar cohort was up more than 25% year over year. Upmarket ACV accelerated from 3% year-over-year growth in Q1 to 4% year-over-year growth in Q2. 72% of our business is now upmarket. Net revenue retention improved to 89% in the quarter, up four percentage points in three quarters, with upmarket retention the highest it has been in several years. During the quarter, we closed upmarket opportunities with Avis Open Exchange, Spectrum, Swift, and the Washington Commanders.

We now, have 1884 customers with more than 100,000 dollars in ACB, a sequential increase of 16 customers and a year-over-year increase of 87 customers.

ACV growth in the quarter from that cohort was materially higher than last Q2 as our largest customers, continue to expand and embed more of our data and agents in their workflows.

We added customers to our million-dollar cohort, driving sequential and year-over-year growth in total ACV, as well as the average ACV per million-dollar customer.

ACV for the million-dollar cohort was up more than 25% year-over-year.

Upgrades in Q1 to 4% year-over-year growth in Q2.

72% of our business is now up Market.

Net revenue retention improved to 89% in the quarter up 4, percentage points. In 3, quarters with up Market retention the highest, it has been in several years.

Henry Schuck: Additionally, a multinational provider of finance, HR, and payroll software doubled its spend with us and is now leveraging a wide swath of our Data as a Service products within their data science teams to build foundational data with company firmographics, technographics, hierarchy data, and signals across funding announcements, intent topics, and project scoops. The customer expects this investment to have an immediate impact on market reactivity, win rates, and hard costs on FTEs across their go-to-market organization. At UKG, we identified and unlocked an opportunity to transform their territory planning, account scoring, and first-party data enrichment by improving data integrity across the organization using ZoomInfo Operations, Data as a Service, and our AI-powered signals.

During the quarter, we closed up Market opportunities with Avis. Open exchange Spectrum, Swift and the Washington Commanders.

The customer expects, this investment to have an immediate impact on Market reactivity. Win rates and hard costs on FTE across their go to market organization.

At UKG, we identified and unlocked an opportunity to transform their territory planning, account scoring, and first-party data enrichment by improving data integrity across the organization, using ZoomInfo Labs.

Henry Schuck: We expanded our relationship with a leading spend management platform to develop a custom Data as a Service solution that amplifies their go-to-market engine and accelerates their initiative to grow their customer-based companies with more than 10 employees. By partnering with their business systems, engineering, and business intelligence teams, we analyzed company records and contacts against their ideal customer profile, identified white space opportunities, and delivered a new universe of data that integrates seamlessly into their existing go-to-market workflows. These accounts were all already in our 100K cohort of customers, and all three more than doubled their spend year over year. This is a trend that we expect to continue to see within our customer base. Our go-to-market motion is now designed to drive increased platform adoption and expansion across our existing upmarket customers.

Data as a service and our AI powered signals.

We expanded our relationship. With the leading spend management platform to develop a custom data as a service solution that amplifies their go to market engine and accelerates their initiative to grow their customer base of companies with more than 10 employees.

By partnering with their business systems engineering and business intelligence teams. We analyze company records and contacts against their ideal customer profile. Identified whites space opportunities and delivered, a new universe of data that integrates seamlessly into their existing go to market workflows.

Henry Schuck: While not reflected in our Q2 financial results, shortly after the close of the quarter, we signed the largest TCV deal in the history of ZoomInfo, reinforcing our upmarket growth potential. This is a nearly eight-figure annual contract across four years with an existing upmarket customer that materially extends their use of the ZoomInfo platform. This customer has been using ZoomInfo for over a decade, during which time they have increased annual spend by 40x. What started as a simple contact lookup contract has evolved into a long-term partnership that leverages our data, signals, and workflow activation layer with custom DAS deliveries becoming embedded into their critical go-to-market workflows. Customers like this one underscore how critical we are to organizations as they transform the way they go to market.

These accounts were all already in our 100K cohort of customers and all 3 more than doubled their spend year-over-year. This is a trend that we expect to continue to see within our customer base. Our go to market in motion is now designed to drive increased platform adoption and expansion across our existing up Market customers.

And while not reflected in our Q2 Financial results shortly after the close of the quarter, we signed the largest tcv deal in the history of Zoom info reinforcing, our upmarket growth potential. This is a nearly 8 figure annual contract across 4 years with an existing up Market customer. The materially extends their use of the zoom info platform. This customer has been using Zoom info for over a decade during which time they have increased annual spend by 40x,

What started as a simple contact lookup contract, has evolved into a long-term partnership that leverages our data signals and workflow. Activation layer with custom Dash, deliveries becoming embedded into their critical. Go to market workflows,

Henry Schuck: Today, 72% of our ACV is coming from larger upmarket customers, an area where we see higher levels of profitability and accelerating revenue growth. As we successfully execute on our transition upmarket, we continue to invest behind this strategic shift. During our last earnings call, we made clear our intention to build a go-to-market intelligence platform. We continue to see great momentum on that journey throughout Q2 as enterprises move beyond accessing data to demanding AI-powered systems that can think, predict, and act on their behalf, positioning our solutions and platform as the intelligent backbone of their go-to-market operation. First, with Copilot, our AI for frontline seller productivity. In the quarter, the first set of customers who adopted Copilot a year ago came up for their first renewal on the product.

Customers like this, 1 underscore, how critical we are to organizations as they transform the way they go to market.

Today, 72% of our ACV is coming from larger up-market customers, an area where we see higher levels of profitability and accelerating revenue growth.

As we successfully execute on our transition up market, we continue to invest behind this strategic shift.

During during our last earnings, call we made clear Our intention to build the go to market intelligence platform. We continue to see great momentum on that Journey throughout Q2 as Enterprises move Beyond access accessing data to demanding AI powered systems that can think predict and act on their behalf.

Positioning our solutions and platform as the intelligent backbone of their go-to-market operation.

Henry Schuck: Though it's still early, we are observing renewal rates that are materially better than on legacy ZoomInfo sales and are performing better than expected. Since Q4 2024, active users have increased their number of monthly AI actions by more than 40%, showing increasing adoption in daily workflows. We also expect continued traction upmarket as upgraded Copilot features and AI agents launch later this year. Second, GoToMarket Studio is our operational counterpart to Copilot, enabling sales leaders and revenue operations teams to architect campaigns and strategies while Copilot executes against those strategies at the front line. They are designed to work together, driving expansion across different personas and new use cases within the same enterprise account. GoToMarket Studio went into early access in July with the first set of customers from our oversubscribed waitlist.

First with co-pilot, our AI for Frontline seller, productivity in the quarter, the first set of customers who adopted co-pilot a year ago. Came up for the first renewal on the product.

Though it's still early, we're observing renewal rates that are materially better than on Legacy Zoom. Info sales are performing better than expected.

Since Q4 2024, active users have increased their number of monthly AI actions by more than 40%, showing increasing adoption and daily workflows.

We also expect continued traction up Market as upgraded co-pilot features and agents launched later this year.

Second, Go-To-Market Studio is our operational counterpart to Co-Pilot, enabling sales leaders and revenue operations teams to architect campaigns and strategies, while Co-Pilot executes against those strategies at the front line.

They're designed to work together driving expansion across different personas and new use cases within the same Enterprise accounts.

Henry Schuck: We will be GAing GoToMarket Studio ahead of schedule, and as it continues to scale across our customer base, we have an unprecedented opportunity to enable go-to-market leaders to actually deliver results with AI and automation. Early customers are using GoToMarket Studio to generate insights faster than ever with just a fraction of the effort. Account scoring and prioritization, automated research and enrichment, churn prediction modeling, and competitive intelligence are some of the first features that our early users are embedding into their AI-enabled workflows. We're eliminating data silos, automating manual tasks, and delivering real-time buyer intelligence, ensuring every seller is engaging with the right accounts at the right time with the right message. With GoToMarket Studio, Copilot, and Data as a Service, our go-to-market intelligence platform is creating the unified data foundation for go-to-market AI.

Go to market. The studio went into Early Access in July, with the first set of customers from our oversubscribed waitlist.

We will be gaing go to market Studio ahead of schedule.

And as it continues to scale across our customer base, we have an unprecedented opportunity to enable go-to-market leaders to actually deliver results with AI and automation.

Early customers are using Go to Market Studio to generate insights faster than ever, with just a fraction of the effort on account scoring and prioritization, automated research and enrichment. Turn, prediction modeling, and competitive intelligence are some of the first features that our early users are embedding into their AI-enabled workflows.

Eliminating data, silos automating manual tasks and delivering real-time buyer intelligence. Ensuring every seller is engaging with the right Accounts at the right time with the right message.

Henry Schuck: In Q2, we continue to automate the downmarket experience, and where we're able to reduce and, in some cases, reallocate downmarket resources. In this rapidly changing technology landscape, we will continue to be ahead of the curve in our internal adoption of AI, resourcing smaller but more productive teams. In one instance, we were able to restructure a team from more than 25 employees to two, leveraging AI to support the automated creation of content and the workflow to connect that content across the business. We deployed some of that excess headcount into upmarket sales roles, where we continue to add headcount.

With go to market Studio. Co-pilot and dash our go to market. Intelligence platform is creating the unified data foundation for go to market AI.

in Q2, we continue to automate the down market experience and where we're able to reduce and in some cases reallocate down Market resources,

In this rapidly changing technology landscape. We will continue to be ahead of the curve in our internal adoption of AI resourcing smaller. But more productive teams and 1 instance, we were able to restructure a team from more than 25 employees to 2.

Leveraging AI to support the automated creation of content, and the workflow to connect that content across the business.

Henry Schuck: We see these changes leading to better customer experiences while capturing efficiencies in the process and have a number of additional areas around the business where we believe we can reinvent our operating model powered by AI, resulting in better customer experiences, faster decisions, reduced headcount by leveraging AI, and improved margin performance. In the quarter, we were also able to be aggressive against our share buyback program, retiring 15.9 million shares of common stock at an average price of $9.22. I'm committed to driving durable positive revenue growth, faster AOI growth, and even faster free cash flow per share growth via opportunistic and price-sensitive buybacks. Before I turn the call over to Graham, we announced today that we are naming him CFO. Graham first joined us as part of the ranking acquisition in 2017 and has had a great track record over his eight-plus years at ZoomInfo.

We deployed some of that excess headcount into up market sales roles where we continue to add headcount.

We see these changes leading to better customer experiences while capturing efficiencies in the process and have a number of additional areas around the business where we believe we can reinvent our operating model powered by AI resulting in better customer experiences faster, decisions, reduced headcount by leveraging, Ai and improved margin performance.

In the quarter, we were also able to be aggressive against our share buyback program retiring 15.9 million shares of common stock at an average price of $9.22.

I'm committed to driving durable, positive Revenue growth faster, aoi growth, and even faster free cash flow per share growth via opportunistic and price sensitive buyback.

Before I turn the call over to Graham, we announced today that we are naming him CFO.

Henry Schuck: He has done a fantastic job serving as our interim CFO, a period of time when we consistently delivered on expectations, redoubled our focus on profitable growth, and continued our shift upmarket. He has been a great partner to me and to the investor community, and I'm confident he is perfect for the job. It has been a highlight of my career to watch him grow into this role. With that, I'll turn the call over to our Chief Financial Officer, Graham O’Brien.

Graham first joined us as part of the ranking acquisition in 2017 and has had a great track record over his 8 plus years of Zoom info. He has done a fantastic job serving as our interim CFO a period of time. When we consistently delivered on expectations, redoubled our focus on profitable growth and continued our shift up Market. He has been a great partner to me and to the investor community and I'm confident he is perfect for the job. It has been a highlight of my career to watch him grow into this role.

Graham O’Brien: Thanks, Henry. I appreciate the kind words. I am excited about the opportunity, and I am confident that we will continue to accelerate along this promising trajectory as we focus on customer value and expanding upmarket. My philosophy as CFO is that the ultimate arbiter of the value of a business to its owners is the long-term free cash flow per share it generates, and I will be dedicated to effectively delivering that. I am committed to earning and keeping investor trust and recognize that we must compete for shareholders and their capital through superlative operating and financial performance. We have a real opportunity to reaccelerate revenue growth while prioritizing profitability and growing free cash flow per share, and I am confident that the path we are on will create meaningful shareholder value.

With that, I'll turn the call over to our Chief Financial Officer, Graham O'Brien.

Thanks Henry, I appreciate the kind words, I'm excited about the opportunity and I am confident that we will continue to accelerate along this promising trajectory as we focus on customer value and expanding up Market.

my philosophy of CFO is that the ultimate Arbiter of the value of a business to its owners is the long-term free cash flow per, share it generates and I will be dedicated to effectively delivering that

I'm committed to earning and keeping investor trust and recognize that we must compete for shareholders and their capital through superlative operating and financial performance.

Graham O’Brien: Shifting to the results for the quarter, Q2 GAAP revenue was $307 million and adjusted operating income was $105 million, a margin of 34%, both above the guidance ranges we provided. Year to date, revenue is up 2%, and largely due to the downmarket sales seasonality of Q1, annualized sequential revenue growth was negative 0.8%. We delivered strong results in the quarter, and as a result, we are raising our expectations for the full year. We are ahead of schedule in our shift upmarket, and we are increasingly confident in the trajectory of ZoomInfo Technologies Inc. and our path to consistently delivering rule of 40 results coupled with attractive dilution rates and declining stock-based compensation expenses. We are now guiding to positive revenue growth for the full year 2025. Copilot had another strong quarter, and operations continued to grow greater than 20% year over year.

We have a real opportunity to re accelerate Revenue growth while prioritizing profitability and growing free cash flow per share and I am confident that the path we are on will create meaningful shareholder value.

Shifting to the results for the quarter.

Q2, GAAP revenue was $307 million and adjusted operating income was $105 million, with a margin of 34%. Both figures are above the guidance ranges we provided.

Year-to-date revenue is up 2%, largely due to the down market sales and the seasonality of Q1 annual life. Sequential revenue growth was negative 0.8%.

We delivered strong results in the quarter. And as a result, we are raising our expectations for the full year.

We are ahead of schedule in our shift up market, and we are increasingly confident in the trajectory of the company and our path to consistently delivering Rule of 40 results. Coupled with attractive dilution rates and declining stock-based compensation expenses.

we are now guiding to positive Revenue growth for the full year 2025

Graham O’Brien: Upmarket is now 72% of the business, and upmarket growth is accelerating, growing 4% year over year. The downmarket business is now down to 28% of total ACV and contributes even less of total adjusted operating income. Downmarket declined 11% year over year in the quarter, and we remain confident that it will be a smaller and healthier version of itself over the long run. Our overall net revenue retention improved in the quarter to 89%, and upmarket retention is at its highest level in years. The growth in our 100K and million-dollar customer cohorts was better than expected in Q2. Q2 is still a relatively noisy year-over-year comparison period, and as we transition into the second half of the year, the year-over-year comparisons will become much cleaner.

CoPilot had another strong quarter in operations, continuing to grow greater than 20% year-over-year.

Upgrades and up market growth is accelerating growing 4% year-over-year.

In business is now down to 28% of total ACB and contributes, even less of total adjusted operating income.

The down market declined 11% year-over-year in the quarter, and we remain confident that it will be a smaller and healthier version of itself over the long run.

Our overall, net revenue retention improved in the quarter to 89% and up Market retention, is that its highest level in years.

The growth in our 100K in million-dollar customer cohorts was better than expected in Q2.

Graham O’Brien: As we look to the back half of the year, we anticipate getting more insight that will help us better understand renewal trends for early tranches of Copilot customers, as well as customers that transacted to the new business risk model last year. While still very early, the results to date have been promising and give us incremental confidence in our longer-term growth algorithm. As more of the business comes from larger upmarket customers, we see continued opportunities for higher levels of profitability. We are confident in our ability to deliver improving levels of profitability with improving revenue growth, with margin expansion materializing over time and not always in a linear manner to upmarket mix shift. Turning to cash, operating cash flow was $109 million in Q2, and unlevered free cash flow for the quarter was $100 million, a margin of 33%. In Q2, ZoomInfo Technologies Inc.

Q2 is still a relatively noisy, year-over-year comparison period. And as we transition into the second half of the year, the year-over-year comparisons will become much cleaner.

Understand renewal trends for early tranches of co-pilot customers as well as customers that transacted to the new business risk model last year.

While still very early, the results to date have been promising and give us incremental confidence in our longer-term growth algorithm.

As more of the business comes from larger upmarket customers, we see continued opportunities for higher levels of profitability. We are confident in our ability to deliver improving levels of profitability with improving revenue growth.

with margin expansion, materializing over time and not always in a linear manner to up Market, mix shift

Turning to cash.

Graham O’Brien: repurchased 15.9 million shares of common stock at an average price of $9.22 for an aggregate $146 million. With the favorable market conditions, we accessed our revolving credit facility to meaningfully accelerate share repurchases during the quarter. Since inception, we have allocated more than $1 billion to share repurchases, retiring approximately 95 million shares while maintaining comfortable leverage ratios. We expect to continue to primarily use the cash flow we generate to retire shares of ZoomInfo Technologies Inc. as we believe that will generate the best possible long-term return for shareholders. We ended the quarter with $177 million in cash, cash equivalents, and investments, and we carried $1.3 billion in gross debt. As a result, our net leverage ratio is 2.5 times trailing 12 months adjusted EBITDA and 2.3 times trailing 12 months cash EBITDA, which is defined as consolidated EBITDA in our credit agreements.

Operating cash flow was 109 million in Q2 and unlevered free cash flow for the quarter was $100 million a margin of 33%.

In Q2, the company repurchased 15.9 million shares of common stock at an average price of $9.22 for an aggregate of $146 million.

With the favorable favorable market conditions. We accessed our revolving credit facility to meaningfully accelerate share repurchases during the quarter.

Since Inception, we have allocated more than 1 billion dollars to share repurchases retiring, approximately 95 million shares while maintaining comfortable leverage ratios.

We expect to continue to primarily use the cash flow we generate to retire shares of ZoomInfo, as we believe that will generate the best possible long-term return for shareholders.

We ended the quarter with $177 million in cash, cash equivalents, and investments, and we carried $1.3 billion in growth debt.

Graham O’Brien: With respect to liabilities and future performance obligations, unearned revenue at the end of the quarter was $473 million, and remaining performance obligations, or RPO, were $1.15 billion, of which $842 million are expected to be recognized in the next 12 months. Turning to guidance for Q3, we expect GAAP revenue in the range of $302 million to $305 million. We expect adjusted operating income in the range of $110 to $113 million and non-GAAP net income in the range of $0.24 to $0.26 per share. We are raising our guidance for the year, and we now expect to deliver positive revenue growth for 2025. For the full year 2025, we now expect GAAP revenue in the range of $1.215 to $1.225 billion, representing positive 0.5% annual growth at the midpoint of guidance.

As a result, our net leverage ratio is 2.5 times trailing 12 months, adjusted EBITDA, and 2.3 times trailing 12 months cash EBITDA, which is defined as consolidated debt in our credit agreements.

With respect to liabilities and future performance obligations under revenue, at the end of the quarter, we had $473 million in remaining performance obligations, or RPO.

Turning to guidance for Q3, we expect GAAP revenue in the range of $302 million to $305 million.

We expected adjusted operating income in the range of $110 million to $113 million.

And non-GAAP net income in the range of $0.24 to $0.26 per share.

We are raising our guidance for the year, and we now expect to deliver positive revenue growth for 2025.

For the full year 2025, we now expect GAAP revenue in the range of $1.215 to $1.225 billion.

Graham O’Brien: Adjusted operating income in the range of $433 to $437 million, representing a 36% margin at the midpoint of guidance. We expect non-GAAP net income in the range of $0.99 to $1.01 per share based on 346 million weighted average diluted shares outstanding. We expect unlevered free cash flow in the range of $422 to $442 million. Now, I will turn it over to the operator to open the call for questions.

Representing positive 0.5% annual growth at the midpoint of guidance.

Adjusted operating income in the range of 433 to 437 million representing, a 36% margin at the midpoint of guidance.

We expect non-gaap net income in the range of 99 cents to $1.11 per share. Based on 346 million weighted, average diluted shares outstanding.

And we expect unlevered free cash flow in the range of 422 to 442 million.

Michelle: Thank you. As a reminder, to ask a question, please press star one one on your telephone and wait for your name to be announced. To withdraw your question, please press star one one again. We do ask that you please limit to one question. The first question is going to come from Brad Zelnick with Deutsche Bank. Your line is open.

Now, I will turn it over to the operator to open the call for questions.

Thank you. As a reminder, to ask a question, please press star, 1, 1, 1 on your telephone and wait for your name to be announced.

And to withdraw your question, please press star 1 1 1 again and we do ask that you please limit to 1 question.

Jeremiah Sisitsky: Excellent. Thanks so much for taking the questions, and congrats all around, especially to Graham O’Brien and ZoomInfo Technologies Inc. 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 have been telling us about the upmarket opportunity. What more is there to say about what actually drove it? At a time where we hear everybody is becoming more efficient, to see this kind of expansion is amazing. Just really quick, Graham, one for you, especially on your appointment as CFO, I do not want to leave you out. How should we think about the 6% RIF and its impact to next year? Thanks so much, guys.

In the first question is going to come from Brad zelnik with dorchi bank, your line is open.

Henry Schuck: Great. Thanks, Brad. The large deal that we talked about, it is a really nice win. It standardizes ZoomInfo as the enterprise data foundation and sales intelligence platform at one of the world's most sophisticated go-to-market organizations. That company is retiring a number of legacy tools. We are embedding Copilot into a new CRM, and we are aligning sales, marketing, operations, and AI on a single go-to-market system that is powered by us. We are really today at the center of a few key strategic priorities for any forward-thinking company. Every company wants to consolidate data into a single source of truth and then enable real-time activation across their go-to-market teams. They want their sellers and their marketers to move with AI-driven insights and workflows, and they want to be able to drive better segmentation, better personalization, and better forecasting at enterprise scale.

Excellent. Thanks so much for taking the questions, and congrats all around, especially to Graham and zoom info on his appointment, becoming official, guys. I 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 what more is there to say about, what? Actually drove it. And at a time where, you know, we hear everybody's becoming more efficient, uh, to see this kind of expansion is amazing and just really quick. Graeme, uh, 1 For You, especially on your appointment with the CFO. I don't want to leave you out. How should we think about the 6% riff? And its impact to next year? Thanks so much guys.

Great. Thanks. Brad.

Um the the the large deal that we talked about, it's a really nice win, it's standardized and zoom info as the Enterprise data foundation and sales intelligence platform at 1 of the world's most sophisticated go to market organizations.

On a single go to market system, that's powered by us.

And we're at really today at the center of a few key strategic priorities for any Forward Thinking company.

Every company wants to consolidate data into a single source of truth. They want to enable real-time activation across their go-to-market teams, allowing their sellers and marketers to work with AI-driven insights and workflows.

Henry Schuck: They are looking to us to be able to deliver that. So we are really proud of the new solutions that we brought to market that enable us to be a key strategic partner in these large organizations. We are excited that this is a great, large first step into telling the customer base that we can be that kind of enterprise upmarket partner.

And they want to be able to drive better segmentation, better personalization, and better forecasting at enterprise scale.

And they're looking to us to be able to deliver that. So we're really proud of the new solutions that we've brought to market that enable us to be a key strategic partner in these large organizations.

Graham O’Brien: I can comment on the 6% reduction in SOAR in June. I view this as a proactive measure as we continue to find pockets in the business where we can be more efficient. I would think about this as a step in our progression towards delivering meaningfully better margins in 2026.

And we're excited that this is a great, large first step into telling the customer base that we can be that kind of enterprise upmarket partner.

Jeremiah Sisitsky: Thanks so much for taking the questions, guys.

And, uh, yeah, I can comment on the 6% reduction in force in June. I viewed this as a proactive measure as we continue to find pockets in the business where we can be more efficient. I would think about this as a step in our progression towards delivering meaningfully better margins in 2026.

Thanks so much for taking the questions, guys.

Michelle: Thank you. The next question will come from Mark Murphy with J.P. Morgan. Your line is open.

Various Analysts: 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 builds heading into the second half? 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?

Thank you. And the next question will come from Mark Murphy with JP Morgan? Your line is open.

Graham O’Brien: I think we feel really good about the pipeline we have heading into the back half of the year. Q2 and Q4 were upmarket weighted quarters, and Q2, in our view, certainly didn't disappoint. We feel really good about the upmarket pipeline in Q4. As we mentioned earlier in the call, we are starting to see early signs of better renewal outcomes, upmarket and downmarket, as we get into Q3. That's what makes us feel positive about the back half of the year. On the software vertical, Q2 was our fifth sequential quarter in a row where we saw improving net dollar retention in the software vertical. I can safely say that in Q2, software returned to being a contributor of growth to the business for the first time in a long time.

Thank you very much and Graham. I will add my, uh, congrats on the news and very well deserved. Um, I wanted to ask about the, you know, Q2 in the month of June, which are big up Market, uh, periods for you. Can you, can you comment at all on the exit of velocity there just in terms of close rates? But also, you know, how you think about, uh, pipeline builds, um, heading into the second half and, and, and also, uh, 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, uh, you know, become additive to your growth profile going forward, rather than rather than impairing it in the second half?

Yeah, I I think we can we feel really good about the the pipeline we have heading into the back half of the year. Uh, Q2 and Q4 are our, our more upmarket, weighted quarters and and Q2, you know, and our abuse certainly didn't disappoint. Um, we feel good, really good about the up Market pipeline in, in Q4. And, you know, we, as we mentioned earlier, in the call, we are starting to see early signs of better renewal, uh, outcomes up market and down Market in, um, as we get into Q3. So that's, you know, what makes us feel positive about the back half of the year and then that from the software vertical,

Various Analysts: Great to hear. Thank you very much.

We Q2 is our fifth sequential quarter in a row where we saw improving net dollar retention in the software vertical. Um and I can, you know, safely say that in Q2 software returned to being a contributor of growth to the business for the first time in a long time.

Michelle: Thank you. The next question will come from Elizabeth Porter with Morgan Stanley. Your line is open.

Great to hear. Thank you very much.

Thank you. And the next question will come from a

Various Analysts: Great. Thank you so much. I will 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. I just wanted to delve a little deeper on the conversations you are uncovering as it relates to that greater efficiency. 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 Technologies Inc.? Thank you.

Reporter with Morgan Stanley, your line is open.

Great. Thank you so much and I'll add my congratulations Graham. Um, my name is my question on a recent CIO survey, we actually thought 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 head count side, is there any sort of framework or view on how much savings that customers you think can ultimately be captured by Zoom info? Thank you.

Henry Schuck: Elizabeth, I think when we are talking to our customers, they are obviously leaned in on trying to find opportunities to drive efficiencies in their go-to-market organizations leveraging AI, but they actually lack first the data foundation to be able to do that. Data from go-to-market tools and conversations with customers lives in a number of different areas. Some of it is in Snowflake, some of it is in CRM, some of it is in your conversation intelligence vendor. There is this huge universe of third-party data that exists about your prospective customers or your existing customers that does not live in any of your first-party systems. When we are talking to our customers, particularly go-to-market operators, what they are telling us is, yes, there is a lot we want to do, but we have no centralized way to get the data together.

Elizabeth, I think when we're talking to our customers,

They are obviously leaned in on trying to find Opportunities to drive efficiencies in their go to market organizations, leveraging AI. But they actually lack first, the data Foundation to be able to do that data, from go to market tools and conversations with customers lives in a number of different areas, some of its in snowflakes, some of its in CRM, some of it is in your conversation intelligence.

Vendor and then there's this huge Universe of third-party data that exists about your perspective, customers or your existing customers. That doesn't live in any of your first-party systems. And so when we're talking to our customers, particularly go to market,

Henry Schuck: We have a lot of creative ideas on the ways that we want to work with AI, but we cannot execute on those ideas because we have to stand in line in a long IT queue to bring the data together, to pull it together for us to have a view of our customer base. What we are doing, what we have done with GoToMarket Studio is first get that data foundation right.

Henry Schuck: You are actually seeing that same desire to cleanse and enrich and have a strong data foundation show up in our growth numbers for our operations product, which are up 20% year over year, where customers are now more than ever leaning into us and saying, "Hey, I have some first-party data, but I also need to marry that to third-party data in order to be able to drive any of the AI initiatives internally at my company." We are seeing customers lean in there. They are looking for the right data foundation and then the right partner from a data and insights perspective. We are building them workflow so that it is not just that data, but it is embedded inside of their workflow so they can take advantage of that data, take advantage of that insight.

Henry Schuck: We are seeing really strong results from being able to do that, particularly in the upmarket.

Data Foundation, right? And you're actually seeing that same, um, desire to cleanse and enrich and have a strong data Foundation show up in our growth numbers, for operations product, which are up 20% year-over-year, where customers are now more than ever leaning into us and saying, hey, I have some first-party data, but I also need to marry that to third-party data in order to be able to drive any of the AI initiatives internally at my company. And so we are seeing customers lean in there. They're looking for the right data foundation and then the right partner from a data and insights perspective and then we're building them workflow so that it's not just that data but it's embedded inside of their workflow so they can take advantage of that data. Take advantage of that insight.

And we're seeing really strong results from being able to do that particularly in the up Market.

Various Analysts: Great. Thank you.

Michelle: Thank you. The next question comes from Kash Rangan with Goldman Sachs. Your line's open.

Various Analysts: Hey, thank you very much. Congrats to Graham O’Brien. We could see this coming in before I showed you guys, and I told you, Henry Schuck, that Graham O’Brien was doing a great job, so nice to see that promotion. One for you, Henry Schuck. As you take a step back, look at the past three years of this gut-wrenching downturn we've all lived through, 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 that arms you better to make better decisions on the business, tier it forward that you couldn't know three years ago?

Thank you. And the next question comes from Kash Rangan with Goldman Sachs. Your line is open.

Hey, thank you very much. Congrats to Graham, who you can see this coming when, uh, before. Should you guys, and I told you, Henry, that Graham's doing a great job. So nice to see the promotion. Long for you, Henry. As you take a step back and look at the past three years of this gut-wrenching down that we've lived through, I guess as an analyst, we've learned from our mistakes and the things that don't work more than we learn from the things that do work. As you look at your business, what are the things that you've learned from the past three years that...

Various Analysts: 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. It feels like the software community might have overestimated how much it can charge for these AI products. 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. 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.

Uh, you will put to work in the future and that arms, you better make better decisions on the business tier moving forward, uh, 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 that data.

It seems like, uh, the software community might have overestimated how much we can charge for these AI products.

And then you start to see some customer push back, not on the value. Not not on what it does. But uh,

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, The Proven stock of AI Solutions in the future? Thank you so much.

Henry Schuck: Great. Thank you, Kash. I will try to hit all of these here. Look, I think from a learning perspective, you have heard us talk about this over the last year, but two things that really matter are the way we think about our customer base and the makeup of that customer base, as well as product innovation. I think when we were, if I were wound the clock three years, we were not spending that much time thinking about where the next best customer should come from for us. We were generating demand. We were closing that demand quickly, but a lot of that demand was coming in the far reaches of the down market. Those customers have the lowest lifetime value. As customers of ZoomInfo Technologies Inc., they churn at the highest rates. They grow at the lowest rates.

Great. Thank you cash. I'll try to hit all of these here. Um, look, I think from a learning perspective. Um, you've heard us talk about this over the last year but 2 things that really matter are the way we think about our customer base and the makeup of that customer base.

As well as product Innovation. And I think when we were, you know, if I were around the clock 3 years, uh, we weren't spending that much time. Thinking about where the next best customer should come from for us. There were, you were generating demand. We were closing that demand quickly, but a lot of that demand was coming in the, in the far reaches of the down Market. Those customers have the lowest lifetime value.

Henry Schuck: When we took a look at the business and thought about what would drive durable growth for us for a decade to come, one of the big realizations was that in the upmarket, we have really sticky customers. We have great product-market fit. Those customers are vastly more profitable for us than their downmarket counterparts. They grow faster. They have higher net retention. I would tell you the second thing is around product innovation and getting close to our customers. What we have been able to do over the last two years is really drive an innovation-first product roadmap. We have rebuilt our product teams. We have rebuilt our engineering teams. We are closer to the customer and understand what they really want, what they want to invest in, what they care about. We are building better software than we ever have before.

You, uh, as customers as Zoom info they turn at the highest rates, they grow at the, the lowest rates. Um, and so when we took a look at the business and thought about what would drive durable growth for us for a decade to come 1 of the big realizations, was that in the up Market, we have really sticky customers, we have great product Market fit. Um, those customers are vastly more profitable for us than our, than their down Market counterparts, they grow faster, they have higher, uh, net retention

Henry Schuck: We leaned way in on leveraging AI to drive efficiencies in that organization and deliver more product, more software at a higher velocity than we ever have before. Our customers are getting better product from us. We are aligned to the right customer segments that drive long-term durable growth. The third thing I would tell you is that our data advantage is way bigger than we ever imagined. We have invested even more behind our data advantage to make sure that our customers are getting the best third-party data from us.

Henry Schuck: When you think about your comments around the foundational models, yes, they have eaten up a lot of the publicly available information that exists or all of the publicly available information that exists, but we have a unique data asset that does not exist inside of the foundational models that is critical for customers to use to get in front of the right customers at the right time. It is not available in a foundational model, and it is context-specific. Our customers are leveraging that to get ahead of their competition and have value beyond what they would get out of a ChatGPT wrapper.

I would tell you the second thing is around product Innovation and getting close to our customers. And so, what we're, we've been able to do over the last, uh, 2 years is really driving Innovation. First product roadmap we've rebuilt, our product teams, we've rebuilt, our engineering teams, we're closer to the customer and understand what they really want. What they want to invest in what they care about, and we're building better software than we ever have before. And we leaned way in on leveraging, AI to drive efficiencies in that organization, and deliver more products, more software at a higher velocity than we ever have before. So, our customers are getting better product from us, we're aligned to the right, customer segments, that drive long-term durable growth. And then, the third thing I would tell you is that our data Advantage is way bigger than we ever imagined. And so we've invested even more behind our data advantage, to make sure that our customers are getting the best third-party data from us. And when you think about your comments around the foundation,

Various Analysts: Lucky Rances. Thank you so much, Henry.

Leveraging that to get ahead of their competition and have value beyond what they would get out of the chat GPT rapper.

Michelle: Thank you. The next question will come from Koji Aikida with Bank of America. Your line is open.

Like your answers. Thank you so much Henry.

Henry Schuck: Yeah, hey, guys. Thanks so much for taking the questions, Henry and Graham. I too will add my congrats to Graham on the CFO role. Well deserved there, Graham. I wanted to ask a question. Maybe this is geared towards Graham. A little bit more forward-looking here. I look at Bloomberg Industry Street growth estimates for 2026, and it is roughly close to 3%. 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. Of course, I do understand there is 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 is at currently for 2026? Is there anything that we should really be focusing on here?

Thank you. And the next question will come from Koji Ikea with Bank of America. Your line is open.

Yeah. 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. Uh, well-deserved their grand

Okay, so I wanted to ask a question.

I mean, maybe this is geared towards Graham a little bit more forward looking here. You know, I I look at Bloomberg in the street, um, Street growth estimates for 2026 and it's, you know, roughly close to 3%. And I, and I do appreciate the guide.

Graham O’Brien: Thanks, guys. I will start with the implied Q4 revenue figure that you are pointing out. I will just say, with this raise to guidance out of this quarter, my philosophy has not changed. What is driving the raise is performance of the business. You could look at the guidance philosophy as consistent. That kind of helps with some context around the implied Q4 number. More pointedly on 2026, we feel great about our progress in 2025 so far, but we still need to deliver Q3 and Q4. We feel great about doing that, but our success in doing so will really impact 2026 more than anything. We will start talking about 2026 when we get closer to it.

Up, uh, 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?

Yeah, thanks. Because y'all, I'll start with the implied Q4 Revenue. Figure that, that you're uh, pointing out. And I'll just say, you know, our with this raised to guidance, um, out of this quarter, My Philosophy hasn't changed. Um, you know, the what's driving, the raise is performance of the business and you could, you know, look at the, the guidance Phil philosophy as consistent at that kind of helps, um, with some contacts, around the implied Q4 number and then, you know, kind of more pointedly on 2026.

Henry Schuck: Thank you.

If we feel great about our progress in 2020, 2025 so far, but we still need to deliver Q3 and Q4 we feel great about doing that, but our success in doing, so will really impact 2026 more than anything. So, you know, we'll, we'll start talking about 2026 when we get closer to it,

Michelle: Thank you. The next question will come from Parker Lane with Stifel. Your line is open.

Thank you.

Various Analysts: Hey, guys. Good afternoon, and thanks for taking the question. Graham O’Brien, 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. As you march towards stabilization in the downmarket, how much of an opportunity is there to drive some additional leverage in that piece in particular?

Thank you. And the next question will come from Parker Lane with Steve. Your line is open.

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-served motion on the down Market piece of the business. I was just wondering if you could comment on on how that's improved the margins of that segment. And as you march towards stabilization, that's down Market, how much of an opportunity is there to drive some additional leverage um, in that piece in particular,

Graham O’Brien: Yeah, you know, we continue to shift resources out of downmarket to drive upmarket growth. The downmarket result in Q2 was in line with our expectations. As a reminder, the upmarket business has significantly higher margins than the downmarket business. Our initial guidance model allowed for pretty significant degradation in downmarket growth. With our updated guidance update this quarter, we are now expecting, we are looking forward to a stabilization in the rate of the decline of the downmarket business in the back half of the year. We are seeing good renewal outcomes from customers who have gone through the business risk model. We did not actually optimize that new business risk model until Q3 last year, which is when we also restructured our packaging and pricing downmarket and segmented our new business account executives.

Yeah, you know, we, we continue to shift resources out of down Market, to drive up market, growth the down Market result in Q2 was in line with our expectations. Uh, as a reminder, the up Market business has significantly higher um margins than the down Market business and our initial guidance model allowed for a pretty significant degradation in down market growth, with our updated guidance update this quarter. We're now expecting, um, we're looking forward to a stabilization in the rate of the decline of the down Market business in the back, half of the Year. We're seeing good renewal outcomes from customers who have gone through the business risk model.

Graham O’Brien: So we have a little further to go to lap all of those operational changes, but we still feel as good as ever about the resource shift and the revenue shift upmarket and the opportunity for improving margins that we will deliver.

Various Analysts: Appreciate the feedback. Thank you.

And what, you know, we didn't actually optimize for that new business risk model until Q2 last year, which is when we also restructured our packaging and pricing down market and segmented our new business account executives. So we have a little further to go to lap all of those operational changes, but we still feel as good as ever about the resource shift and the revenue shift up market and the opportunity for improving margins that will deliver.

Michelle: Thank you. The next question comes from Michael Berg with Wells Fargo. Your line is open.

Appreciate the feedback. Thank you.

Various Analysts: Hey, great. Thanks very much. I 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. 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.

Thank you. The next question comes from Michael Turran with Wells, Fargo. Your line is open.

Graham O’Brien: Yes, sure. Yes, it was 4% upmarket growth Q2 year over year and negative 11% downmarket. The 5% revenue growth in Q2, a bit of a noisy comparison there. We had some change in estimates in Q2 last year, so that is kind of the bridging item to get to that plus 5% year over year. On the margins, as we move upmarket, as we reaccelerate revenue, we do not view margin expansion and accelerating revenue growth as conflicting. If we do the math here, the upmarket business has significantly higher margins than our downmarket business by several thousand basis points. That implies that around 80% or more of our adjusted operating income can be attributed to the upmarket business. That is why we continue to feel so confident in improving margins as we return to growth.

Hey, great. Thanks very much. Appreciate you taking the questions. Um, Graham just on the segmentation commentary. Did you say up Market, 4% growth in, in down Market down 11? I'm just, uh, we're working on the fly but hoping you could help bridge how that translates to the 5% growth reported for the quarter, um, and then as a second part you you touched on it a bit but with the revenue increase running uh 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 app market motion. You're seeing thanks.

Do this. Like, you know, as we move up market, as we re-accelerate revenue, we do not view margin expansion and accelerating revenue growth as conflicting.

if we, um,

Graham O’Brien: That margin expansion won't be perfectly linear to upmarket shift, but we do have visibility to that as we exit 2025 and into 2026. Our headcount is significantly lower than it was at the beginning of the year. It is essentially at levels where it was several years ago. We also have some fixed costs that came on in 2025 that should essentially flatten out in 2026, and we should get some operating leverage related to those as well.

Various Analysts: Thank you.

you know, if we do the math here, the market business has significantly higher margins than our down Market business by several thousand business basis points that implies that around 80%, or more of our adjusted operating income can be attributed to the up Market business and that's why we continue to feel so confident in improving margins. As we return to growth that margin expansion won't be perfectly linear to up Market shift, but we do have visibility to to that you know, as we exit 2025 and into 2026, our headcount um is significantly lower than it was at the beginning of the year. It's essentially at levels where it was several years ago. We also have some fixed costs that came on in 2025, uh, that should essentially flattened out in in 2026 and we should get some operate operating leverage related to those as well.

Michelle: Thank you. The next question will come from Alex Zukin with Wolf Research. Your line is open.

Thank you.

Various Analysts: 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 have 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 pacing of that improvement as we get through the rest of the year? 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.

Thank you. And the next question will come from Alex zukin with wolf research. Your line is open.

Hey guys, thanks for taking the question. Graham again at huge congrats setting from everybody uh in in the community uh, on on the promotion. Um, maybe on nrr again, you guys have mentioned this, a few times that Improvement that you've seen over the past few quarters has been pretty substantial. Um, I guess what gives you the confidence that that can continue? Is there a way to think about the pacing of that Improvement? As we get through the rest of the year and then I'm profitability.

Various Analysts: How should we think about that trending over the course of the next year?

Graham O’Brien: Yeah, thanks, Alex. I will start on the retention side. 89% in Q2, up two points sequentially, up four points from three quarters ago. We are still really focused on getting retention back into the 90s. We have the upmarket business where retention is improving within that segment. The upmarket business is also becoming more and more of a mix of the business. You almost get kind of that inorganic revenue or retention benefit from that. We also have a lot of opportunities within our current customers from a persona expansion perspective. Copilot, GoToMarket Studio, that is going to allow us to sell to teams and seats in the existing customer base that we have not previously sold to before. With that mostly upmarket retention opportunity, stabilization downmarket, that two-point retention improvement in Q2, again, that is before closing the largest TCB deal in our history in Q3.

We hear you on the reinvestment, make sense given the accelerating up Market activity. You talk about it operating margin leverage, not being in Conflict. Uh with that maybe help, give us a little bit of of a flavor of that because the the full year, raise on out income a little bit less, obviously than the the rate the pass through. On on the top line. How should we think about that trending over the course of the next year?

Yeah. Well thanks Alice. I'll start on the retention side 89% in Q2 um up 2 points sequentially up 4 points from 3/4 to go. We're still really focused on getting retention back into the 90s. You know, we have the off-market business where retention is improving within that segment. The up Market business is also, you know, becoming more and more of a mix of the business. So you almost get kind of that inorganic revenue or retention benefit from that. We also have a lot of opportunities within our current customers from a Persona expansion perspective, co-pilot go to market Studios.

Graham O’Brien: We feel like we continue to have increasing momentum on this path back to 90% and above 90%. On the margins, I think it is, I would not really call it reinvestment. I think this is mostly timing. The margin benefit from some of the costs that come out from the points of mixed shifts upmarket that we are getting from a revenue perspective almost every quarter, it does not immediately fall down to adjusted operating income. There are step functions of improvement here. We view this largely as a kind of a timing progression rather than a reinvestment. With kind of our resourcing plans, with some of the costs that should level out as we get into 2026, we see good opportunity for margin improvement that kind of comes along with that upmarket shift as we reaccelerate revenue growth.

That's going to allow us to sell to, um, teams and seats in the existing customer base that we haven't previously sold to before. And with that, mostly upmarket, retention opportunity, stabilization down Market, uh, you know, that 2 point retention Improvement in Q2 again that's before closing the largest tcv deal in our history and Q3. So I you know we feel like we continue to have increasing momentum on this path back to 90% and above 90%.

Uh, and then on the margins, you know, I think it's...

It's I wouldn't really call it reinvestment. I think this is mostly timing. The

Various Analysts: Perfect. Thank you, guys.

The the margin benefit from some of the costs that come out from the, you know, the points of uh, mixed shifts up Market that we're getting from a revenue perspective. Almost every quarter, it doesn't immediately fall down to adjusted operating income. There are step functions of improvement here and we view this largely as a kind of a, a timing progression rather than a reinvestment. Um and you know, with kind of our resourcing plans with some of the costs that should level out as we get into 2026. We see, you know, good opportunity for for margin Improvement. Um, that that kind of comes along with that up Market shift, as we accelerate Revenue growth,

Michelle: Thank you. The next question will come from Raymo Linchow with Barclays. Your line is open.

Perfect. Thank you guys.

Various Analysts: Perfect. Thanks. Henry, on for you on Copilot. Obviously, in the industry, there is a lot of AI noise. A lot of people are trying to come up with their own AI agents, Copilot type offering. 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? Graham, congrats from me as well.

Thank you. And the next question will come from Ray Mo Lynn's, child with bar. Clasher line is open, perfect. Uh, thanks Henry on, for you on co-pilot, like obviously in the industry, there's a lot of, you know, AI noise. A lot of people kind of are trying to come up with their own, uh, AI agentic co-pilot, kind of type offerings. What are you seeing in terms of your, your core Pilots offering perception in the market? How does it take up with the other guys? Can you speak to that a little bit more and Graeme Congress from me as well?

Henry Schuck: Hey, Raymo. Thank you for the question. I actually, last quarter, went through a number of our customers on Copilot and tested this question with them directly, wanting to understand where they saw advantages of Copilot, if they were seeing anything else in the market that rivaled it. Those meetings came out incredibly positive. We are ahead on the innovation curve from a product perspective. We were the first ones to really get out there and go to market and offer a Copilot product. We have since significantly expanded that product. Later this year, we are going to be releasing a really big product release around Copilot. We are calling it Copilot 2.0 internally at ZoomInfo. It will have significantly enhanced functionality, new AI agents that go-to-market organizations can leverage, can use for research and prospecting and account planning and the creation of PDFs for their customers.

Henry Schuck: We are really excited about the fact that we got out, we got ahead, and now we have an opportunity to continue to expand the lead that we have with Copilot.

Understand where they saw advantages of co-pilot, if they were seeing anything else in the market that rivaled it and those meetings came out incredibly positive. We are ahead on the Innovation. Curve from a product perspective, we were the first ones to really get out there and go to market and offer a co-pilot product. We've since significantly expanded that product and later this year we're going to be releasing a really big uh, product release around co-pilot. We're calling it co-pilot 2.0, internally at Zoom info and it'll have significantly enhanced functionality new agents, uh that go to market organizations, can leverage can use for a research and prospecting and account planning and the creation of PDFs for their customers.

Various Analysts: Perfect. Thank you.

And so, we're really excited about the fact that we got out. We got ahead, and now we have an opportunity to continue to expand the lead that we have with Co-Pilot.

Michelle: Thank you. The next question will come from Jack McShane with KeyBank. Your line's open.

Thank you.

Various Analysts: Great. Good evening, guys. Thanks for taking the questions. My questions are both on that large deal, the largest TCB deal. I guess just number one, how can you characterize maybe the ACV of that deal compared to the prior contract? Then the other follow-up, Henry Schuck, you kind of hinted that this might be like this deal might be a signal to other potential upmarket customers. I am curious, do 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.

Thank you. And the next question will come from Jack Jackson. Aider with KeyBank your lines. Open.

Great. Uh, good evening guys, thanks for taking the questions. Um, my questions are both on the that large deal, the largest TCB deal. Um, I guess just number 1, how how can you characterize maybe the ACV of that deal compared to the prior contract and then the other follow-up Henry you you kind of hinted that this might be like this deal might be a signal.

Graham O’Brien: Yeah, I can cover the first part. The ACV of that deal after the deal was done is just below eight figures. That represented significant growth off of the prior ACV. You could think of significant growth as millions of dollars.

To other potential up Market customers. Um, 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 and go knock those down. Thank you.

Henry Schuck: Yes, I think that is exactly what we expect to be able to do. There are dozens of customers who look like this customer within our account base who are already doing some business with us that we really have an opportunity to go in and show them how they can standardize on ZoomInfo from a data insights and AI agents perspective as they modernize their go-to-market organizations. I think the trend that we're seeing is our customers are leaning in more with us today than maybe they ever have. You can see that in the three customers I talked about. All of them doubled their spend with ZoomInfo year over year.

Yeah, I can cover the first part um, you know the the ACV of that deal after the deal was done is um you know just below 8 figures and that represented significant growth off of the the prior ACV. You can think of significant growth as as millions of dollars.

Yes, I think that is exactly what we expect to be able to do. There are dozens of customers who look like this customer within our account base who are already doing some business with us. That we really have an opportunity to go in and show them how they can standardize on Zoom info from a Data Insights and AI agents perspective, as they modernize their go to market organizations. I think the trend that we're seeing is our customers, our leaning in more with us today than maybe they ever have, you can see that in the 3 customers. I talked about all of them doubled their, uh,

Henry Schuck: We see a lot of opportunity to continue to do that, both in big monumental ways like we did with this customer, and also in blocking and tackling and hitting doubles along the way where we can grow a customer from $250,000 to $500,000 or a $500,000 customer to a million-dollar customer. We have a tremendous customer base in the upmarket where we're now executing again.

Doubled their their spend, with zoom info year-over-year and we see a lot of opportunity to continue to do that. Both in big Monumental ways like we did with this customer. Um, and also in blocking, and tackling, and hitting doubles along the way where we can grow a customer from 250,000 to 500,000, or 500,000 customer to a million dollar customer. Uh, we have a tremendous customer base in the up Market where we're now, executing again.

Various Analysts: Got it. Thank you.

Michelle: Thank you. The next question will come from Taylor McGuinness with UBS. Your line is open.

Got it. Thank you.

Various Analysts: Yeah, and congrats, Graham. Thank you guys for taking my question. Graham, for you, you made comments earlier that upmarket retention has been the highest in years. What does NRR of the upmarket business look like today? 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?

Thank you. And the next question will come from Taylor McGinness with UBS. Your line is open.

Graham O’Brien: Yeah, thanks, Taylor. I think previously I had said that upmarket retention was in the mid-90s. We are above that now. On a trailing look back, it would be high 90s. I think if you looked at it from an in-period activity perspective, it is above that. So we are executing and delivering significant improvement across 72% of our business with our largest customers. As it relates to the guidance, the guidance for the upmarket business is that we get to mid-single-digit growth in 2025. We are really focused on getting to the top end of that range if not above that range. I think with retention where it is right now upmarket, we would have an opportunity to exceed that assumption. As you start to think about 2026, you know.

Yeah. And uh congrats Graham and thank you guys for for taking my question. Graham. Um for you. You made comments earlier that Mark and retention has been the highest in years. So, what does NR of the up Market business? Look like today? And as we think about the path to get back to the the 90s and higher, could you just provide a little bit more color on what the guide assumes and any, you know, early thoughts as we think about 2026

Yeah, thanks, Taylor. Um, you know, I think previously I had said that our market retention was in the mid-90s. Uh, you know, we're above that now. Um, on a trailing look-back, it would be in the high 90s. And, you know, I think if you looked at it from an in-period activity perspective, it's about that. So we are executing and delivering significant improvements across 72% of our business. Um,

with, with our largest customers and, um,

you know, as as it relates to the guidance,

The, you know, the guy that for the up Market business is that we get to Mid single digit growth in uh, in 2025.

We're really focused on getting to the top end of that range, if not above that range. And I think with, um, you know,

Retention, where it is right now at market, we would have an opportunity to exceed that assumption.

Michelle: mentioned it earlier. It's too early for us to talk about the specifics there. We've got a really big opportunity in Q3 and Q4 to go continue this momentum, and then we'll be able to start talking about 2026.

Graham O’Brien: Perfect. Thank you.

Continue this momentum, um, and then we'll be able to start talking about 2026.

Henry Schuck: Thank you. The next question comes from Tyler Radke with Citi. Your line is open.

Perfect, thank you.

Michelle: Yeah, thank you very much for taking my questions. Graham, congrats again from me. In terms of the couple of questions just on kind of the emerging parts of the business, so Copilot, encouraging to hear the continued momentum there. I am 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. Do you think that could be a catalyst to re-accelerate NRR for folks that are using Copilot? 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.

Thank you. And the next question comes from Tyler, radkey with City, your line is open.

Yeah. Thank you very much for taking my questions. Um, and

Graham, uh, congrats again for me um, in terms of the uh, couple questions just on kind of the emerging parts of the business. So co-pilot, um, it encouraging to hear the continued momentum there. I'm curious as you start to approach some of the, uh, co-pilot renewals, which I think will will will be in the back half of this year. Would you expect those contracts to, you know, grow faster than, you know, the initial point of sale? Uh, obviously customers have been, uh, using co-pilot in in those situations for over a year. So do you think that could be a catalyst to re accelerate nrr for for folks that are using co-pilot? Um, and then secondly, just on on the operations Hub. Uh, I I think you said, uh, growth. There was was above 20%, did that accelerate versus last quarter or was that, uh, pretty consistent versus last quarter? Thank you.

Jeremiah Sisitsky: Yeah, thanks for the question. On the Copilot part of it, when we rolled out Copilot in May of last year and in Q2 of last year, the initial transactions there are either new business transactions or they are migrations from existing customers onto Copilot. We were very successful, I think, in getting uplifts on those transactions as we migrated the existing customer base onto Copilot. What we have always said is that the Copilot and our other products are being designed and being built for customer success and to optimize for retention. How does that customer renew one year in, two years in, three years in? Everything we are building, the approach we are taking to pricing is meant to optimize for adoption and stickiness.

Jeremiah Sisitsky: We are basically approaching this transition where we are going to start having material cohorts of Copilot customers that have been using Copilot for six months or a year start to renew. We got an early view on that at the end of Q2 for some of those initial cohorts, and the early signs were good. We were getting meaningfully better renewal outcomes. Again, that is a small population, but getting meaningfully better renewal outcomes across a product that is a significant part of our business now certainly could be an incremental tailwind to retention, even more so than, or I guess in line with the tailwind we got from the initial migration. On operations, it is still 20% plus growth in the year over year. We had a really strong Q2, and we had not seen signs of deceleration in that number.

Yeah, uh on the thanks for the question on the co-pilot part of it. You know, when we rolled out co-pilot in May of last year and in Q2 of last year, the initial transactions there are either new business transactions or their migrations from existing uh, customers onto co-pilot. We were, you know, very successful. I think, in um, getting uplifts on, on those transactions as we migrated the existing customer base onto kill pilot. But what we've always said is that the, you know, co-pilot or other products are being designed and being built for customer success, and to optimize for retention. So, how does how does that customer re renew 1 year in 2 years? In 3 years in everything? We're building the approach, we're taking the pricing is meant to Optum optimized for adoption and stickiness. So now we're basically, you know, approaching this um, transition where we're going to start having material cohorts of co-pilot customers that that have been using co-pilot for 6 months or a year. Start to renew. We get

Got an early view on that in at the end of Q2 for some of those initial cohorts and the early signs were good we were we were getting meaningfully better renewal outcomes again that's a small population but getting, you know, meaningful better meaningfully better renewal outcomes across a product that is a significant part of our business now, um, certainly could be an incremental Tailwind to retention.

uh, even more so than, um,

Or I guess in line with the tailwind we got from, uh, the initial migration.

and then on operations, uh, you know,

It's still 20% plus growth in the UM.

Michelle: Great. Thank you.

Year-over-year. Uh, we we had a really strong Q2 and we have not seen signs of deceleration in that number.

Henry Schuck: Thank you. The next question will come from Brent Bracelin with Raymond James. Your line is open.

Great. Thank you.

Various Analysts: Thanks, gentlemen, and congrats, Graham O’Brien, 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 Schuck, 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.

Thank you. And the next question will come from Brian Peterson with Raymond James? Your line is open.

Michelle: I will touch on the net new business first of all. I will look at this upmarket versus downmarket. Our upmarket customer acquisition from an ACV perspective continues to grow year over year. Downmarket, we are basically a year into the new business risk model where we were qualifying customers with more rigor, and by doing that, we are even disqualifying a not insignificant amount of new business ACV that we would have historically sold. As we start to fully get through that complete lap in Q3, I think we are going to be in a place where we are back to a steady state new business acquisition engine downmarket.

Uh, thanks gentlemen, and congrats grandma on the new role. Um, so I wanted to hit on net new. I'm curious how that's gone this year, versus your expectations in Henry, as we think about these up Market customers, looking at how they're treating data. Do you think they'll make more standardized Investments?

Yeah, I'll touch on the net new business, first of all. So I'll look at this up Market verse down Market. Um our off-market customer acquisition from an ACB perspective, continues to grow your over year. Uh, and and then down Market, you know, we're we're basically a year into the new business risk model where we were qualifying customers, uh, with more rigor and by doing that we are, you know, even disqualifying, um,

Jeremiah Sisitsky: On the data deals, I think there are probably two things to think about here. I think one is what we're seeing from our customers is that the rhythm to buy data to power their internal systems, to power their AI initiatives, to cleanse and enrich their CRM systems is much different than I've ever seen it before. What we're seeing from our customers is a recognition of the requirements to buy data to marry with their often, almost always out of date, inaccurate, incomplete data that they have internally that they're trying to use to drive an AI initiative. We're seeing bigger deals and more customers prepared to transact around leveraging data to cleanse, enrich, and enhance their own internal first-party data in order to drive AI efficiencies in their business. That is a new motion.

Uh not insignificant amount of new business ACV, that we would have historically sold. So as we start to you know fully get through that complete lap in Q3. Uh I think we're going to be in a place where we are back to a steady state new business uh acquisition engine down Market.

And then on the data deals, Brian, I think there are probably two things to think about here. I think one is what we're seeing from our customers is that they're...

The, uh, rhythm to buy data to power their internal systems to support their AI initiatives to cleanse and enrich their CRM systems.

Is much different than I've ever seen it before. What we're seeing from our customers is a recognition of the requirements to buy data to marry with their often out, almost always out of date, inaccurate, incomplete data that they have internally, that they're trying to use to drive an AI initiative. And so we're seeing bigger, bigger deals, and more customers. Prepare to transact around leveraging data to cleanse enriched, um,

Jeremiah Sisitsky: We spent 20 years telling customers how important it was to make sure that the data in their CRM systems and their data warehouses were accurate and up to date and enriched and had signals associated with it. That felt like a second or third-order problem for many years. This is a first-order problem in enterprises today, far different than it's been in years past, and that is leading to larger deals. The second thing that I would point you to is in the strategic enterprise, the highest end of the upmarket, they are sophisticated enough and know how to buy data. They buy data, they plug it into a workflow that goes into their CRM or their data warehouse. They're sophisticated operators when it comes to leveraging data.

And enhance their own internal first-party data in order to drive AI efficiencies in their business. That is that is a new motion, you know, we spent 20 years telling customers how important it was, to make sure that the data and their CRM systems and their data warehouses were accurate and up-to-date, and enriched and had signals associated with it. And that felt like a second or third order problem for many years. This is a first order problem in Enterprises today, far different than it's been, um, in years past and that is leading to larger deals. The second thing that I would, um, point you to is,

Jeremiah Sisitsky: They have data science teams and data engineering teams, and they can buy raw data and plug it into their systems and their workflows. The minute you move out of that highest end of the strategic enterprise, you get into companies that have far less sophistication. They're not used to buying data. They don't buy data files. They don't have data engineering teams or data science teams to help them with anything. We would show up and not have a great solution that articulates the value of that data inside of their enterprises. With Go-To-Market Studio, that gives us the software layer over what has historically been Data as a Service, files or integrations into data warehouses or CRM systems through APIs.

In the in the Strategic Enterprise, the highest, the highest end of the up Market. There are, they are sophisticated enough and know how to buy data. They buy data, they plug it into uh a workflow that goes into their CRM or their data warehouse, their sophisticated operators. When it comes to leveraging data, they have data science team.

Teams in engineering data engineering teams, um, and they can buy raw data and plug it into their, their systems, and their workflows the minute. You move out of that, highest end of the Strategic Enterprise, you get into companies that have far less sophistication. They're not used to buying data, they don't buy data files. They don't have data engineering teams or data science teams to help them with anything. And so we would show up and not have a great solution that articulates the value of that data inside of their Enterprises.

Jeremiah Sisitsky: We now have a software interface that gives us the opportunity to go articulate the solution to revenue operations and sales operations and go-to-market leaders all across the upmarket, not just in the super strategic enterprise segment of our business. We're really excited about that opportunity to bring that solution, which is, again, our fastest growing solution in our portfolio to a much broader set of customers with Go-To-Market Studio.

With go to market Studio, that gives us the software layer over what has historically been data as a service files or Integrations into Data warehouses, or CRM systems through API. We now have a software interface that gives us the opportunity to go articulate the solution to revenue operations and sales operations. And

Go to market leaders all across the up market and not just in the super strategic Enterprise uh um segment of our business. And so we're really um,

Various Analysts: Thanks, Henry.

Excited about that opportunity to bring that solution which is again, our fastest, our our fastest growing solution and our portfolio to a much broader set of customers with go to market Studio.

Henry Schuck: Thank you. The next question will come from Pat Walravens with Citizens. Your line is open.

Thanks.

Various Analysts: 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 is a bunch of small players in that space popping up. I am just wondering, is that something that is coming up in any of your conversations with customers? Do you kind of buy into that vision? Why or why not? How does maybe an AI SDR stack up against Copilot from a product perspective? Thanks.

Thank you. And the next question will come from Pat wall. Ravens with citizens, your line is open.

Great, thanks for taking the question. This is Austin Cole on for Pat, any question for you, um, 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?

Jeremiah Sisitsky: A lot of billboards, not a lot of productivity or revenue being generated for companies that have invested behind AI agents. I think a lot of pilots that do not turn into longer-term contracts. What we are hearing from our customers is, again, that this is what they have seen across AI agents are a flash in the pan. There are a number of regulatory hurdles to using an AI agent to go outbound that makes it, in many cases, not a good use of technology. I think there are probably opportunities from an inbound perspective when someone fills out an inbound form to be able to correspond with that person using an AI agent, but I think the promise of the AI agent has been largely overblown.

Why. Or why not? And how, how does maybe an AI SDR stack up against? Oh, pilot from a product perspective? Thanks.

Yep. Um, a lot of billboards, not a lot of productivity or revenue being generated for companies that have invested behind AIS. SDRs, I think a lot of pilots that don't turn into longer-term contracts, but we're hearing from our customers is again that this is a, that what Dave's seen across a SDR or a flash in the pan. There are a number of regulatory hurdles to using an AIS SDR to go outbound that makes it in many cases, not a good use of technology. I think there are probably opportunities from an inbound perspective when someone fills out an inbound form to be able to correspond with that person using.

Jeremiah Sisitsky: I think the other thing that we are seeing from our Copilot solution is that it is not just SDRs who are leveraging that. We are seeing account executives, account managers, customer success managers who are leveraging Copilot to understand their customers better, to plan for meetings more thoroughly, to know what insights to bring to their customers, to know which customers to focus on because of signals that we are layering in and delivering to them. While SDRs are and will continue to be a meaningful part of our user base, we are seeing real expansion opportunity outside of that persona as well.

An AI SDR. But I think the promise of the AI SDR has been largely overblown. I think the other thing that, um,

Various Analysts: Great. Thanks. And congrats to Graham.

Mansion opportunity outside of that, uh, outside of that persona as well.

Henry Schuck: Okay. The next question will come from Surrender Finn with Jeffrey. Your line is open.

Great thanks. And congrats to Graham.

Various Analysts: 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? Then maybe we get that, you know, the growth in headcount within sales after that period of how we should maybe think about those dynamics?

Okay, and the next question will come from surrender thin with Jeffrey, your line is open.

Um, thank you, um Henry just in in 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, you know, 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. Can you talk a little bit about that theme? And if, if consolidation is where we think the next year or 2 is going to be in terms of growth,

Jeremiah Sisitsky: Yep. I think the first thing I would tell you is we are seeing increased opportunities for consolidation across the go-to-market tech stack. I would tell you two years ago, we were not in a position to take advantage or be a beneficiary of that consolidation push, but today, our product innovation has put us in a position to be a beneficiary there. We are seeing customers now consolidate on ZoomInfo. Their sales teams are on it. They want their marketing teams on it. They want their rev ops teams on ZoomInfo as well. We have a real opportunity and have seen it across our customer base. We are winning on consolidation across the go-to-market organization. I do not know if that is going to be the biggest driver of growth in the next 12 months.

And then maybe we get that, you know, the growth in headcount within sales. Um, after that period of how we should maybe think about those Dynamics.

Yep. I think the first thing I would tell you is we are seeing increased opportunities for consolidation across the go-to-market tech stack. You know, I would tell you two years ago, we were not in a position to take advantage or be a beneficiary of that consolidation push. But today, our product innovation has put us in a position to be a beneficiary there. And so, we're seeing customers now consolidate on ZoomInfo; their sales teams are on it, and they want their marketing teams on it.

They want to, they're rev Ops teams on Zoom info as well. And so, we have a real opportunity and have seen it across our customer base. Um, we are winning on consolidation across the go to market organization. I don't know if that's going to be the biggest driver of growth. Um,

Jeremiah Sisitsky: I think there are big drivers of growth in Data as a Service and Go-To-Market Studio and continuing expansion of Copilot, but I do think it will be a contributor to growth as we go forward.

Various Analysts: Thank you.

In in the next 12 months. I think there are big drivers of growth in data and go to market studio and continuing expansion of co-pilot. But I do think it will be a contributor to growth as we go forward.

Henry Schuck: Thank you. That is the last question that we have for today. I would now like to turn the call over to Henry for any closing remarks.

Thank you.

Thank you. And that is the last question.

Jeremiah Sisitsky: Great. Thank you, everybody, for joining us on this journey. We're confident about the balance of the year as we continue to move the business upmarket, and we're releasing some really exciting new solutions to our customer base over the back half of the year and look forward to briefing you on them. Thank you.

We have for today, and I would now like to turn the call over to Henry for any closing remarks.

Henry Schuck: This concludes today's conference call. Thank you for participating, and you may now disconnect.

Great, thank you everybody for joining us. Um, on this journey, we're uh, confident about the balance of the year as we continue to move the business up market and we're releasing some really exciting new solutions to our customer base, over the back half of the year and look forward to briefing. You on them. Thank you.

Disconnect.