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ZoomInfo, trading under the ticker symbol GTM, is a go-to-market intelligence platform that empowers businesses to find, acquire, and grow customers. The company provides AI-powered insights, trusted data, and advanced automation to enhance the efficiency of revenue teams across sales, marketing, account management, and customer success functions. GTM sells subscriptions for its unified platform and data services, enabling businesses to target, prioritize, and execute revenue campaigns effectively.
- ZoomInfo Copilot - Enhances productivity, targeting, and workflow intelligence for sales teams, integrating real-time insights to improve account prioritization, upselling, cross-selling, and deal closure.
- ZoomInfo Operations - Focuses on data enrichment and strengthening internal systems like systems of record, data warehouses, and AI initiatives, driving growth in enterprise operations.
- Go-To-Market (GTM) Studio - Unifies first- and third-party data for revenue teams to design and execute creative go-to-market plays, integrating data orchestration, AI, and frontline execution.
- Core Sales Offering - Provides company and contact data lookup, expanded to include broader workflows for go-to-market teams.
- Data as a Service (DaaS) - Offers enriched, routed, and cleansed data subscriptions for enterprise operations, enabling territory planning, TAM analysis, and internal AI projects.
- Upmarket Segment - Targets enterprise and mid-market businesses, representing the majority of annual contract value and driving growth through diverse solutions.
- Downmarket Segment - Serves smaller businesses with fewer than 100 employees, focusing on retaining logos and right-sizing contracts.
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With downmarket business expected to contract into the high negative teens and upmarket growth in mid-single digits, how will you adjust resource allocation if a worsening macro environment puts further pressure on downmarket revenue without sacrificing overall profitability?
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Given that the upmarket segment enjoys several thousand basis points better margins than the downmarket area, what specific actions will you take to safeguard operating margins if current customer mix improvements stagnate or reverse?
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As you shift more transactions to digital self-service in the micro SMB segment, how do you plan to mitigate potential risks related to customer engagement and retention compared to traditional sales-led models?
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Your Q2 guidance reflects an incremental layer of caution amid macro uncertainty; what defined economic or market triggers would prompt a re-evaluation of your guidance framework in the coming quarters?
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Considering your aggressive share repurchase strategy in an opportunistic market, how do you balance the need for strategic investments in growth-driving technology and potential tuck-in acquisitions without compromising long-term innovation?
Recent press releases and 8-K filings for GTM.
- Henry Schuck provides a business update emphasizing accelerated product innovation and a strategic shift toward upmarket growth.
- The company has decided to reduce its workforce by approximately 6% to enhance operational efficiency and focus on key areas.
- Affected employees will receive severance packages and transition support as part of the reduction plan.
- Ticker change update: ZoomInfo recently changed its ticker from ZI to GTM as part of a strategic repositioning to highlight its go-to-market intelligence platform.
- Growth and business segmentation: The company detailed its focus on enhancing upmarket customer retention—currently at 87%—and shifting resources from downmarket to drive mid-to-high single-digit annual growth.
- Product innovation and financial strategy: Key product updates include robust evolution of Copilot for seamless go-to-market actions, alongside guidance of unlevered free cash flow of approximately $430M and active share buyback initiatives.
- Upmarket focus: The company highlighted that its upmarket business now accounts for 71% of total ACV, growing at 3% YoY as it shifts focus from downmarket segments.
- Downmarket adjustments: The downmarket segment now represents 29% of total ACV and is declining at 10% YoY as the company enhances business quality.
- Product innovation: The Copilot product, now at a $150M run rate ACV, remains central to new customer acquisitions, with the recent announcement of the go to market studio further broadening its value proposition.
- Capital allocation: The firm is aggressively repurchasing shares, emphasizing the alignment of capital allocation with its growth strategy.
- Rebranding and positioning: ZoomInfo changed its trading symbol from ZI to GTM to reflect its focus on being the core go-to-market intelligence platform.
- Strong Q1 financial performance: The company reported GAAP revenue of $3.00 $6,000,000 and adjusted operating income of $101,000,000 at a 33% margin, exceeding guidance.
- Upmarket growth momentum: Upmarket initiatives drove a 3% year-over-year growth with 71% of the business accelerating, while downmarket business declined by 10% YoY.
- Product enhancements and share repurchase: The launch of GTM Studio and robust performance of Copilot expanded go-to-market use cases, and the company repurchased 8.6 million shares at $11.05 (totaling $95M) with additional share buyback authorization remaining.