RPD Fund Doubles Down on ZoomInfo, Buys Another $16 Million in Stock

RPD Fund Management bought 1,564,102 shares of ZoomInfo (GTM) in Q4 2025 (~$16.10M), raising its stake to 9,628,318 shares valued at $97.92M and making GTM 42.45% of the fund's 13F reportable AUM. The quarter-end position value rose $9.94M; GTM was $5.94 on Mar 19, 2026 (down 43.3% YoY and ~92% since 2021), trading at ~5x FCF and ~6x forward earnings with 32% FCF margins. Growth has materially decelerated (sales declined in 2025; +3% in the latest quarter) but large-customer ARR expansion and strong FCF underpin RPD's contrarian deep-value interest.

Analysis

RPD’s incremental accumulation likely increases the market’s sensitivity to any flow out of GTM; that can create episodic liquidity vacuums that amplify price moves on both news and rebalancing days. For a mid‑cap, high‑service SaaS/data vendor, concentrated owner behavior matters more than for broader-cap software names because institutional supply is thinner and algorithmic liquidity is minimal.

The company’s shift toward consumption pricing and larger ACV customers creates a subtle tradeoff: higher revenue durability per contract but greater short-term usage volatility. That dynamic magnifies the importance of cohort-level telemetry (ARPU per large customer, churn by usage bucket) as the primary near-term driver of reported growth and multiple re‑rating.

AI and alternative data entrants are the principal second‑order threats — not because they will immediately erase value, but because they shorten the time window for multiple recovery and make buyers (strategic or PE) more price‑sensitive. Conversely, sustained expansion in high‑ACV cohorts or a non‑dilutive margin conversion would be a clean catalyst for private‑market interest, compressing liquidity premiums and producing sharp multiple expansion within 6–18 months.

Near term (weeks–months) expect idiosyncratic volatility tied to customer updates and contract repricing; medium term (6–24 months) the binary outcomes are consolidation/strategic bid versus further secular multiple compression if AI-driven substitutes gain adoption. Monitoring cohort KPIs and institutional flow into/off GTM will be far more predictive than headline revenue prints alone.

Key Decisions for Investors

• Tactical long via options (directional, defined risk): buy Jan 2027 GTM 6/12 call spread (long 6, short 12) sized to 0.5–1% of portfolio notional. Rationale: asymmetric upside if cohort expansion continues; max loss = premium paid, upside capped ~2–4x premium if re‑rating occurs within 9–12 months.
• Paired sector spread (relative value, 3–9 months): go long GTM equity (1–2% NAV) and short NICE/Appian (combined 1% NAV) to isolate go‑to‑market data recovery vs broader software multiple moves. Use equal dollar sizing and 15% pair stop; target 1.5:1 reward:risk if GTM cohort momentum outperforms consensus.
• Protective collar for holders (capital preservation, 6 months): buy GTM 6‑month put one strike below current price and finance by selling an OTM call 1.5x strike. Rationale: preserves upside optionality while capping maximum drawdown from a negative AI or churn shock — suitable for concentrated positions.
• Event‑driven volatility play (4–10 weeks around KPI/earnings): buy a short‑dated straddle only if management signals a large‑ACV cohort update; allocate <0.25% NAV given IV risk. Exit immediately post‑release; target>2x premium capture on a clear beat or miss to offset IV decay.