Zoominfo Technologies Inc. · NASDAQ:GTM

Zoominfo Technologies — Q3 2022 Earnings Presentation

36 slides from Zoominfo Technologies's earnings presentation, Nov 1, 2022

1. Slide 1: Investor Overview and Financial Results

   Investor Overview and Financial Results DATE November 1, 2022

2. Slide 2: Forward-Looking Statements

   Q3 EARNINGS CALL > SAFE HARBOR STATEMENT Forward-Looking Statements This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform A

3. Slide 3: Business Model Delivering Durable Growth and Profitability at Scale

   Q3 EARNINGS CALL > OVERVIEW Business Model Delivering Durable Growth and Profitability at Scale Growing TAM $100Bn Scale Growth Retention Estimated TAM(1) $1.15B 46% 116% Network Effects Annualized Q3 2022 Revenue Q3 2022 YoY Revenue Growth FY 2021 Net Revenue Retention rate(6) >100M Contact record

4. Slide 4: The Modern Revenue Operating System

   Q3 EARNINGS CALL > OVERVIEW The Modern Revenue Operating System Go-to-Market Recruiting / Employee Branding Foundational Data Layer Data-as-a-Service Enrichment Recruitment Intelligence Data Quality Management Routing Recruitment Automation Lead-to-Account Matching Email Verification Talent Engageme

5. Slide 5: Consistently Ranked as a Product Leader

   Q3 EARNINGS CALL > OVERVIEW Consistently Ranked as a Product Leader The Forrester WaveTM: B2B G2 Grid for Sales Sales Intelligence 2021 SoftwareReviews Marketing Data Providers Intelligence Software TrustMap Conversation Intelligence Data Quadrant ZoomInfo Technologies ZoomInfo Technologies ZoomInfo

6. Slide 6: Best-of-Breed in a Unified Platform: RevOS

   Q3 EARNINGS CALL > OVERVIEW Best-of-Breed in a Unified Platform: RevOS Solutions Market Reputation Category for Lead Intelligence Contact Data 235m+ Contacts #1 by G2 in Market Intelligence Company Data 100m+ Companies #1 by G2 30k+ Individual ZoomInfo Aligns Marketing and Sales Tech A in Sales Inte

7. Slide 7: Diverse Data Sourcing Feeds Evidence-Based AI/ML Systems

   Q3 EARNINGS CALL > OVERVIEW Diverse Data Sourcing Feeds Evidence-Based AI/ML Systems 7

8. Slide 8: Product Vision and Privacy Leadership

   Q3 EARNINGS CALL > OVERVIEW Product Vision and Privacy Leadership ZoomInfo's Product Vision ZoomInfo's Privacy Leadership See how customers use the greatest source of data and insights to ZoomInfo Chief Compliance Officer, Simon McDougall, speaks to power the go-to-market motion for four different p

9. Slide 9: Addressing a Large and Growing Opportunity

   Q3 EARNINGS CALL > OVERVIEW Addressing a Large and Growing Opportunity ZoomInfo's Global TAM Today (5)(6) $40B $30B $20B $10B $100B SalesOS OperationsOS MarketingOS TalentOS As of 12/31/21 (2)(3)(4) $14B $12B $18B $7B $7B $6B $6B North America International Data $70B Conversation Intelligence Chat E

10. Slide 10: Multiple Levers for Sustained Growth

    Q3 EARNINGS CALL > OVERVIEW Multiple Levers for Sustained Growth Select acquisitions to complement platform Expand Personas: MarketingOS, OperationsOS, TalentOS Increased usage of advanced functionality Seat and data expansion Further penetrate international markets Acquire new customers 10

11. Slide 11: Recent New and Expansion Customers

    Q3 EARNINGS CALL > OVERVIEW Recent New and Expansion Customers More than 30,000 Customers from Small, Mid-sized, and Large Organizations Across a Diverse Set of Industries 11

12. Slide 12: Recent Platform Highlights

    Q3 EARNINGS CALL > OVERVIEW Recent Platform Highlights Expanded Data Pipeline Engagement & Automation Admin Management • In SalesOS customers now receive proactive contact, • Created a self-serve path for purchasing additional seats, • ZoomInfo’s global contact database has grown by 60 company, and

13. Slide 13: Demos of Selected Product Functionality

    Q3 EARNINGS CALL > OVERVIEW Demos of Selected Product Functionality + Comparably Pro + Chorus G2 Integration 13

14. Slide 14: ZoomInfo Drives Value for Customers

    Q3 EARNINGS CALL > OVERVIEW ZoomInfo Drives Value for Customers $1 million+ in 200% increase 10x ROI from Revenue revenue in 6 months in revenue ZoomInfo Took speed to lead from 50% reduction in time Sales reps gain back 4 Efficiency 20 minutes to 60 seconds Customer ROI spent researching hours of p

15. Slide 15: Customer Case Study - R-Zero

    Q3 EARNINGS CALL > CASE STUDIES Customer Case Study - R-Zero Industry Occupational Health & Safety Segment Mid Market The Results Location Salt Lake City, Utah, USA Time savings and tech stack efficiency gains The Solution The Results While R-Zero’s sales team initially turned to ZoomInfo to “ZoomIn

16. Slide 16: Customer Case Study - Momentive

    Q3 EARNINGS CALL > CASE STUDIES Customer Case Study - Momentive Industry Media & Internet Segment Enterprise The Results Location San Mateo, CA, USA Took speed to lead from 20 minutes to 60 seconds with OperationsOS The Solution The Results After running an extensive evaluation on all of the data Wi

17. Slide 17: Video Case Study - ThinkingAhead Executive Search

    Q3 EARNINGS CALL > CASE STUDIES Video Case Study - ThinkingAhead Executive Search ThinkingAhead Industry Staffing Segment Mid Market Location Nashville, TN, USA 17

18. Slide 18: Q3 2022 Financial Results

    Q3 2022 Financial Results

19. Slide 19: Financial Results Overview

    Q3 EARNINGS CALL > FINANCIAL RESULTS Financial Results Overview >30,000 Paying Customers1 Financial Results “As a best-in-class high-growth software company with strong profitability, our customers are looking to us for best practices on how to grow efficiently - we do that by leveraging ZoomInfo's

20. Slide 20: Q3 2022 Financial Summary (Unaudited)

    Q3 EARNINGS CALL > FINANCIAL RESULTS Q3 2022 Financial Summary (Unaudited) GAAP Non-GAAP(1) Quarterly Change Quarterly Change ($M, except per share amounts and percent figures) Results YoY Results YoY Revenue $287.6 46% Adjusted Operating Operating Income $51.8 156% $118.4 51% Income Adjusted Operat

21. Slide 21: GAAP Revenue Growth ($M)

    Q3 EARNINGS CALL > FINANCIAL RESULTS GAAP Revenue Growth ($M) 46% $287.6 Q3 2022 $197.6 46% GAAP Revenue Growth 42% Organic Revenue Growth(1) Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 GAAP Revenue 1. Organic Revenue excludes revenue from products acquired within the las

22. Slide 22: Adjusted Operating Income ($M) and Margin

    Q3 EARNINGS CALL > FINANCIAL RESULTS Adjusted Operating Income ($M) and Margin(1) 51% Q3 2022 $118.4 41% $78.4 Adjusted Operating Income Margin(1) 41% 39% 51% YoY Growth in Adjusted Operating Income(1) Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Adjusted Operating Income

23. Slide 23: Unlevered Free Cash Flow (uFCF) and uFCF Conversion

    Q3 EARNINGS CALL > FINANCIAL RESULTS Unlevered Free Cash Flow (uFCF) and uFCF Conversion(1)(2) 36% Q3 2022 $99.8 84% Unlevered free cash flow $73.3 conversion(1)(2) 94% 84% 35% Unlevered Free Cash Flow Margin(1) Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Unlevered Free C

24. Slide 24: Balance Sheet Highlights and Net Leverage

    Q3 EARNINGS CALL > FINANCIAL RESULTS Balance Sheet Highlights and Net Leverage As of As of ($M, except Leverage Ratios) December 31, 2021 September 30, 2022 Total contractual maturity of outstanding indebtedness $1,250.0 $1,250.0 Cash, cash equivalents, restricted cash, and short-term $332.5 $444.8

25. Slide 25: Guidance (as of November 1, 2022)

    Q3 EARNINGS CALL > FINANCIAL RESULTS Guidance (as of November 1, 2022)(1) FY 2022 FY 2022 Q4 2022 (as of 8/1/2022) (as of 11/1/2022) GAAP Revenue $298 - $300 million $1.08 - $1.09 billion $1.094 - $1.096 billion Adjusted Operating Income(1) $121 - $123 million $433 - $437 million $442 - $444 million

26. Slide 26: Non-GAAP Reconciliations

    Non-GAAP Reconciliations

27. Slide 27: Non-GAAP Financial Measures

    Q3 EARNINGS CALL > NON-GAAP FINANCIAL MEASURES Non-GAAP Financial Measures To supplement our consolidated financial statements presented in accordance with GAAP, this presentation contains non-GAAP financial measures, including Adjusted Operating Income, Adjusted Operating Income Margin, Adjusted Ne

28. Slide 28: Non-GAAP Financial Measures

    Q3 EARNINGS CALL > NON-GAAP FINANCIAL MEASURES Non-GAAP Financial Measures We define Unlevered Free Cash Flow as net cash provided from operating activities less (i) purchases of property and equipment and other assets, plus (ii) cash interest expense, (iii) cash payments related to restructuring an

29. Slide 29: Reconciliation from GAAP Net Income (Loss) to Adjusted Operating Income

    Q3 EARNINGS CALL > NON-GAAP FINANCIAL MEASURES Reconciliation from GAAP Net Income (Loss) to Adjusted Operating Income ($M except percent figures) Q3 2021 Q3 2022 Net income (loss) $(40.9) $17.9 Add (less): Expense (benefit) from income taxes 45.5 32.1 Add: Interest expense, net 13.9 11.6 Add: Loss

30. Slide 30: Reconciliation from GAAP Net Income (Loss) to Cash EBITDA

    Q3 EARNINGS CALL > NON-GAAP FINANCIAL MEASURES Reconciliation from GAAP Net Income (Loss) to Cash EBITDA ($M) Trailing Twelve Months as of September 30, 2021 Trailing Twelve Months as of September 30, 2022 Net income (loss) $(14.0) $185.1 Add (less): Expense (benefit) from income taxes 96.3 (39.7) A

31. Slide 31: Reconciliation of Non-GAAP Leverage Ratios

    Q3 EARNINGS CALL > NON-GAAP FINANCIAL MEASURES Reconciliation of Non-GAAP Leverage Ratios As of As of ($M, except Leverage Ratios) December 31, 2021 September 30, 2022 Total Net Leverage Ratio (Adjusted EBITDA) Total contractual maturity of outstanding indebtedness $1,250.0 $1,250.0 Less: Cash and c

32. Slide 32: Reconciliation from GAAP Operating Cash Flow to Unlevered Free Cash Flow

    Q3 EARNINGS CALL > NON-GAAP FINANCIAL MEASURES Reconciliation from GAAP Operating Cash Flow to Unlevered Free Cash Flow ($M except percent figures) Q3 2021 Q3 2022 Cash flow from operating activities $46.5 $85.7 Purchases of property and equipment and other assets (4.8) (7.7) Interest paid in cash 1

33. Slide 33: Reconciliation from GAAP Net Income (Loss) to Adjusted Net Income Per Share

    Q3 EARNINGS CALL > NON-GAAP FINANCIAL MEASURES Reconciliation from GAAP Net Income (Loss) to Adjusted Net Income Per Share Amortization of Acquired Tax Impacts of Three months ended September 30, 2022 Equity-based Intangibles and Fair Value Transaction Related GAAP Margin% Adjustments from Adjustmen

34. Slide 34: Reconciliation from GAAP Net Income (Loss) to Adjusted Net Income Per Share

    Q3 EARNINGS CALL > NON-GAAP FINANCIAL MEASURES Reconciliation from GAAP Net Income (Loss) to Adjusted Net Income Per Share Amortization of Acquired Tax Impacts of Nine months ended September 30, 2022 Equity-based Intangibles and Fair Value Transaction Related GAAP Margin% Adjustments from Adjustment

35. Slide 35: Reconciliation from GAAP Net Income (Loss) to Adjusted Net Income Per Share

    Q3 EARNINGS CALL > NON-GAAP FINANCIAL MEASURES Reconciliation from GAAP Net Income (Loss) to Adjusted Net Income Per Share Amortization of Acquired Tax Impacts of Three months ended September 30, 2021 Equity-based Intangibles and Fair Value Transaction Related GAAP Margin% Adjustments from Adjustmen

36. Slide 36: Reconciliation from GAAP Net Income (Loss) to Adjusted Net Income Per Share

    Q3 EARNINGS CALL > NON-GAAP FINANCIAL MEASURES Reconciliation from GAAP Net Income (Loss) to Adjusted Net Income Per Share Amortization of Acquired Tax Impacts of Nine months ended September 30, 2021 Equity-based Intangibles and Fair Value Transaction Related GAAP Margin% Adjustments from Adjustment

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