ZoomInfo's Q3 earnings call reflected strong financial performance with record revenue and cash flow growth, bolstered by significant share repurchases and robust Copilot adoption. However, challenges persist in the SMB segment and sequential growth remains negative, prompting conservative future guidance.

Company Guidance

During the ZoomInfo Q3 2024 earnings call, the company reported GAAP revenue of $304 million, exceeding previous guidance, and an adjusted operating income of $112 million, with a margin of 37%. ZoomInfo's net retention rate stabilized at 85% for the third consecutive quarter. The company saw a 17% year-over-year increase in unlevered free cash flow, amounting to $111 million. The enterprise segment showed strong growth, contributing significantly to revenue, with the $100,000 customer cohort expanding by 12 accounts. Copilot, a key product, performed above expectations, contributing $60 million in ACV, and driving customer engagement with reported gains in prospect engagement and email response rates. The company also repurchased 24 million shares, reducing shares outstanding by approximately 7%, and aims to achieve at least $1 of levered free cash flow per share in 2024, with plans for further growth in 2025.

Record GAAP Revenue and Adjusted Operating Income

GAAP revenue for the third quarter was $304 million, and adjusted operating income was $112 million, a margin of 37%, both exceeding the high end of the previously provided guidance.

Significant Share Repurchase

In Q3, ZoomInfo retired 24 million shares, approximately 7% of total shares outstanding, as part of an accelerated share repurchase program.

Strong Cash Flow Growth

Unlevered free cash flow for the quarter was $111 million, up 17% year-over-year.

Copilot Performance Exceeds Expectations

Copilot surpassed $60 million of ACV in the quarter with significant customer-reported benefits, including a 58% increase in prospect engagement rates and a 62% improvement in email response rates.

Enterprise and High-Value Customer Growth

The 100,000 customer cohort grew by 12, and revenue from this cohort now makes up 44% of the ACV. There were also significant increases in million-dollar-plus customers.

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ZoomInfo Technologies (ZI) Earnings, Revenues Date & History

The upcoming earnings date is based on a company’s previous reporting, and may be updated when the actual date is announced

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ZI Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change	Slides	Play Transcript
Aug 10, 2020	2020 (Q2)	- / 0.07	-0.129	154.26% (+0.20)	―	―
Nov 09, 2020	2020 (Q3)	- / 0.11	-0.08	237.50% (+0.19)	―	―
Feb 22, 2021	2020 (Q4)	- / 0.12	-0.036	433.33% (+0.16)	―	―
May 03, 2021	2021 (Q1)	0.10 / 0.13	0.04	225.00% (+0.09)	―	―
Aug 02, 2021	2021 (Q2)	0.12 / 0.14	0.07	100.00% (+0.07)	―	―
Nov 01, 2021	2021 (Q3)	0.12 / 0.13	0.11	18.18% (+0.02)	―	―
Feb 15, 2022	2021 (Q4)	0.13 / 0.18	0.12	50.00% (+0.06)	―	―
May 02, 2022	2022 (Q1)	0.15 / 0.18	0.13	38.46% (+0.05)	―	―
Aug 01, 2022	2022 (Q2)	0.18 / 0.21	0.14	50.00% (+0.07)	―	―
Nov 01, 2022	2022 (Q3)	0.20 / 0.24	0.13	84.62% (+0.11)

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat

Missed

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ZI Earnings-Related Price Changes

Report Date	Price 1 Day Before	Price 1 Day After	Percentage Change
Nov 12, 2024	$13.08	$10.53	-19.50%
Aug 05, 2024	$9.80	$8.01	-18.27%
May 07, 2024	$16.02	$12.14	-24.22%
Feb 12, 2024	$16.02	$18.32	+14.36%

Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.

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