Slide 1: Investor Overview and Financial Results
Investor Overview and Financial Results DATE July 31, 2023
Slide 2: Forward-Looking Statements
Q2 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
Slide 3: About ZoomInfo
Q2 EARNINGS CALL > ABOUT ZOOMINFO ZoomInfo is the go-to- market platform for businesses to find, acquire, and grow customers. 3
Slide 4: Business Model Delivering Durable Growth and Profitability at Scale
Q2 EARNINGS CALL > OVERVIEW Business Model Delivering Durable Growth and Profitability at Scale Growing TAM $100Bn Scale Growth Retention (1) Estimated TAM $1.23B 16% 104% Network Effects Annualized Q2 2023 Revenue Q2 2023 YoY Revenue Growth FY 2022 Net Revenue Retention rate(6) >100M Contact record
Slide 5: The Modern Go-To-Market Approach
Q2 EARNINGS CALL > OVERVIEW The Modern Go-To-Market Approach Win Faster. Increase in • Scale your go-to-market win rates 46% • Automate customer outreach • Simplify your tech stack Win Faster Decrease in deal cycle time 37% Engage Customers. • Connect across channels Increase in quota • Align Sales
Slide 6: The Modern Go-To-Market Platform
Q2 EARNINGS CALL > OVERVIEW The Modern Go-To-Market Platform Our Mission: To unlock the growth potential of businesses and professionals Automation RevOS: The Modern GTM Platform Data as a Service Find, acquire, and win Find the right prospects with actionable ABM at the right time Control the hirin
Slide 7: Consistently Ranked as a Product Leader
Q2 EARNINGS CALL > OVERVIEW Consistently Ranked as a Product Leader The Forrester WaveTM: B2B Marketing Data Providers G2 Grid for Sales Intelligence Sales Intelligence Software TrustMap 7 7
Slide 8: ZoomInfo Aligns Marketing and Sales Tech
Q2 EARNINGS CALL > OVERVIEW Best-of-Breed in a Unified Platform: RevOS Solutions Category Contact Data 280m+ Contacts Company Data 100m+ Companies 30k+ Individual ZoomInfo Aligns Marketing and Sales Tech Technographics Market Reputation Technologies Intent Streaming Intent Stack in a Unified Platfor
Slide 9: Diverse Data Sourcing Feeds Evidence-Based AI/ML Systems
Q2 EARNINGS CALL > OVERVIEW Diverse Data Sourcing Feeds Evidence-Based AI/ML Systems Data Sources Data Types Engine We gather data from We gather a wide variety of intelligence Our intelligence engine brings together, multiple sources on companies and business professionals processes, verifies, and
Slide 10: Product Vision and Privacy Leadership
Q2 EARNINGS CALL > OVERVIEW Product Vision and Privacy Leadership ZoomInfo's Product Vision ZoomInfo's Privacy Leadership See how customers use ZoomInfo's data and insights to power the ZoomInfo Chief Compliance Officer, Simon McDougall, speaks to go-to-market motion for four different personas: Sal
Slide 11: Addressing a Large and Growing Opportunity
Q2 EARNINGS CALL > OVERVIEW Addressing a Large and Growing Opportunity ZoomInfo's Global TAM(1) $100B Global TAM $40B $30B $20B $10B SalesOS OperationsOS MarketingOS TalentOS 1. We calculated our TAM by estimating the total number of B2B companies by employee size for companies with 1,000 or more em
Slide 12: Multiple Levers for Sustained Growth
Q2 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 12
Slide 13: Recent New and Expansion Customers
Q2 EARNINGS CALL > OVERVIEW Recent New and Expansion Customers More than 35,000 Customers from Small, Mid-sized, and Large Organizations Across a Diverse Set of Industries 13
Slide 14: Recent Platform Highlights
Q2 EARNINGS CALL > OVERVIEW Recent Platform Highlights Marketing Campaign Optimization: Enterprise Level Workflows: Account Deal Story in Salesforce: • We've taken workflows to the next level, providing fresher • We have significantly improved the alignment between Sales • We've enhanced the markete
Slide 15: Demos of Selected Product Functionality
Q2 EARNINGS CALL > OVERVIEW Demos of Selected Product Functionality Sales Engagement Enterprise APIs Intent to Engage Salesflow 15
Slide 16: ZoomInfo Drives Value for Customers
Q2 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
Slide 17: Customer Case Study - Ryder Systems
Q2 EARNINGS CALL > CASE STUDIES Customer Case Study - Ryder Systems Industry Transportation Segment Enterprise The Results Location Miami, Florida, USA 25% increase in net new logos As a result, Ryder initiated a pilot program in Today, Ryder’s sales team is using Engage to improve collaboration wit
Slide 18: Customer Case Study - Tide Rock
Q2 EARNINGS CALL > CASE STUDIES Customer Case Study - Tide Rock Industry Financials Services Segment Mid-Market The Results Location Cardiff, CA, USA Capturing high-quality leads in less than 48 hours The Challenge The Results When Tide Rock first acquired ISC, they took inventory of “The ability to
Slide 19: Q2 2023 Financial Results
Q2 2023 Financial Results
Slide 20: Financial Results Overview
Q2 EARNINGS CALL > FINANCIAL RESULTS Financial Results Overview >35,000 Paying Customers1 Financial Results “In Q2 we delivered another quarter of revenue growth, increased profitability, and free cash flow generation,” said 1,893 Customers with > $100k in ACV1 Henry Schuck, ZoomInfo Founder and CEO
Slide 21: Q2 2023 Financial Summary (Unaudited)
Q2 EARNINGS CALL > FINANCIAL RESULTS Q2 2023 Financial Summary (Unaudited) GAAP Non-GAAP(1) Quarterly Change Quarterly Change ($M, except per share amounts and percent figures) Results YoY Results YoY Revenue $308.6 16% Adjusted Operating Operating Income $59.6 51% $125.6 17% Income Adjusted Operati
Slide 22: GAAP Revenue Growth ($M)
Q2 EARNINGS CALL > FINANCIAL RESULTS GAAP Revenue Growth ($M) 16% $308.6 Q2 2023 $267.1 16% GAAP Revenue Growth Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 GAAP Revenue 22
Slide 23: Adjusted Operating Income ($M) and Margin
Q2 EARNINGS CALL > FINANCIAL RESULTS Adjusted Operating Income ($M) and Margin(1) 17% Q2 2023 $125.6 $106.9 41% Adjusted Operating Income Margin(1) 40% 41% 17% YoY Growth in Adjusted Operating Income(1) Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Adjusted Operating Income
Slide 24: Unlevered Free Cash Flow ($M) and uFCF Conversion
Q2 EARNINGS CALL > FINANCIAL RESULTS Unlevered Free Cash Flow (uFCF) ($M) and uFCF Conversion(1)(2) 12% Q2 2023 $108.3 $121.5 97% Unlevered free cash flow conversion(1)(2) 101% 97% 39% Unlevered Free Cash Flow Margin(1) Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Unlevere
Slide 25: Share Repurchase
Q2 EARNINGS CALL > FINANCIAL RESULTS Share Repurchase • On March 14, 2023 the company announced that its board of directors authorized a $100 million share repurchase program ◦ During the three months ended June 30, 2023, the Company repurchased 2.8 million shares of Common Stock at an average price
Slide 26: Balance Sheet Highlights and Net Leverage
Q2 EARNINGS CALL > FINANCIAL RESULTS Balance Sheet Highlights and Net Leverage As of As of ($M, except Leverage Ratios) December 31, 2022 June 30, 2023 Total contractual maturity of outstanding indebtedness $1,250.0 $1,247.0 Cash, cash equivalents, restricted cash, and short-term $551.8 $670.0 inves
Slide 27: Tax Receivable Agreement
Q2 EARNINGS CALL > FINANCIAL RESULTS Tax Receivable Agreement In connection with our IPO, we entered into two Tax Receivable Agreements with certain former unit holders of DiscoverOrg Holdings LLC (the “TRA Holders”). The conversion of these pre- IPO units to common stock, as well as certain restruc
Slide 28: Guidance (as of July 31, 2023)
Q2 EARNINGS CALL > FINANCIAL RESULTS Guidance (as of July 31, 2023)(1) FY 2023 FY 2023 Q3 2023 (as of 5/1/2023) (as of 7/31/2023) GAAP Revenue $309 - $312 million $1.275 - $1.285 billion $1.225 - $1.235 billion Adjusted Operating Income(1) $124 - $126 million $523 - $533 million $493 - $498 million
Slide 29: Non-GAAP Reconciliations
Non-GAAP Reconciliations
Slide 30: Non-GAAP Financial Measures
Q2 EARNINGS CALL > NON-GAAP FINANCIAL MEASURES Non-GAAP Financial Measures To supplement our consolidated financial statements presented in accordance with GAAP, this presentation contains non-GAAP financial measures, including Adjusted Operating Income, Adjusted Operating Income Margin, Adjusted Ne
Slide 31: Non-GAAP Financial Measures
Q2 EARNINGS CALL > NON-GAAP FINANCIAL MEASURES Non-GAAP Financial Measures We define Unlevered Free Cash Flow as net cash provided from operating activities less (i) purchases of property and equipment and other assets, plus (ii) cash interest expense, (iii) cash payments related to restructuring an
Slide 32: Reconciliation from GAAP Net Income (Loss) to Adjusted Operating Income
Q2 EARNINGS CALL > NON-GAAP FINANCIAL MEASURES Reconciliation from GAAP Net Income (Loss) to Adjusted Operating Income ($M except percent figures) Q2 2022 Q2 2023 Net income $15.9 $38.1 Add: Expense from income taxes 10.5 16.6 Add: Interest expense, net 11.7 12.0 Add: Loss on debt modification and e
Slide 33: Reconciliation from GAAP Net Income (Loss) to Cash EBITDA
Q2 EARNINGS CALL > NON-GAAP FINANCIAL MEASURES Reconciliation from GAAP Net Income (Loss) to Cash EBITDA ($M) Trailing Twelve Months as of June 30, 2022 Trailing Twelve Months as of June 30, 2023 Net income $126.4 $123.7 Add (less): Expense (benefit) from income taxes (26.2) 148.2 Add: Interest expe
Slide 34: Reconciliation of Non-GAAP Leverage Ratios
Q2 EARNINGS CALL > NON-GAAP FINANCIAL MEASURES Reconciliation of Non-GAAP Leverage Ratios As of As of ($M, except Leverage Ratios) December 31, 2022 June 30, 2023 Total Net Leverage Ratio (Adjusted EBITDA) Total contractual maturity of outstanding indebtedness $1,250.0 $1,247.0 Less: Cash and cash e
Slide 35: Reconciliation from GAAP Operating Cash Flow to Unlevered Free Cash Flow
Q2 EARNINGS CALL > NON-GAAP FINANCIAL MEASURES Reconciliation from GAAP Operating Cash Flow to Unlevered Free Cash Flow ($M except percent figures) Q2 2022 Q2 2023 Cash flow from operating activities $106.2 $116.7 Purchases of property and equipment and other assets (8.2) (6.2) Interest paid in cash
Slide 36: Reconciliation from GAAP Net Income (Loss) to Adjusted Net Income Per Share
Q2 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 June 30, 2023 Equity-based Intangibles and Fair Value Transaction Related GAAP Margin% Adjustments from Adjustments an
Slide 37: Reconciliation from GAAP Net Income (Loss) to Adjusted Net Income Per Share
Q2 EARNINGS CALL > NON-GAAP FINANCIAL MEASURES Reconciliation from GAAP Net Income (Loss) to Adjusted Net Income Per Share Amortization of Acquired Tax Impacts of Six months ended June 30, 2023 Equity-based Intangibles and Fair Value Transaction Related GAAP Margin% Adjustments from Adjustments and
Slide 38: Reconciliation from GAAP Net Income (Loss) to Adjusted Net Income Per Share
Q2 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 June 30, 2022 Equity-based Intangibles and Fair Value Transaction Related GAAP Margin% Adjustments from Adjustments an
Slide 39: Reconciliation from GAAP Net Income (Loss) to Adjusted Net Income Per Share
Q2 EARNINGS CALL > NON-GAAP FINANCIAL MEASURES Reconciliation from GAAP Net Income (Loss) to Adjusted Net Income Per Share Amortization of Acquired Tax Impacts of Six months ended June 30, 2022 Equity-based Intangibles and Fair Value Transaction Related GAAP Margin% Adjustments from Adjustments and