Zoominfo Technologies Inc. · NASDAQ:GTM
Zoominfo Technologies — Q1 2023 Earnings Presentation
33 slides from Zoominfo Technologies's earnings presentation, May 1, 2023
Slide 1: Investor Overview and Financial Results
Investor Overview and Financial Results DATE May 1, 2023
Slide 2: Forward-Looking Statements
Q1 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: Business Model Delivering Durable Growth and Profitability at Scale
Q1 EARNINGS CALL > OVERVIEW Business Model Delivering Durable Growth and Profitability at Scale Growing TAM $100Bn Scale Growth Retention (1) Estimated TAM $1.20B 24% 104% Network Effects Annualized Q1 2023 Revenue Q1 2023 YoY Revenue Growth FY 2022 Net Revenue Retention rate(6) >100M Contact record
Slide 4: The Modern Revenue Operating System
Q1 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
Slide 5: Consistently Ranked as a Product Leader
Q1 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
Slide 6: Best-of-Breed in a Unified Platform: RevOS
Q1 EARNINGS CALL > OVERVIEW Best-of-Breed in a Unified Platform: RevOS Solutions Market Reputation Category for Lead Intelligence Contact Data 270m+ Contacts #1 by G2 in Market Intelligence Company Data 100m+ Companies #1 by G2 30k+ Individual ZoomInfo Aligns Marketing and Sales Tech in Sales Intell
Slide 7: Diverse Data Sourcing Feeds Evidence-Based AI/ML Systems
Q1 EARNINGS CALL > OVERVIEW Diverse Data Sourcing Feeds Evidence-Based AI/ML Systems 7
Slide 8: Product Vision and Privacy Leadership
Q1 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
Slide 9: Addressing a Large and Growing Opportunity
Q1 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
Slide 10: Multiple Levers for Sustained Growth
Q1 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
Slide 11: Recent New and Expansion Customers
Q1 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
Slide 12: Recent Platform Highlights
Q1 EARNINGS CALL > OVERVIEW Recent Platform Highlights SalesOS - Engage Integration: MarketingOS - Deal Story: ZoomInfo Lite - Product Led • We released Account Deal Story and Spend Reporting, Growth: • We have streamlined the user experience and which allows a deeper dive into the activities and •
Slide 13: Demos of Selected Product Functionality
Q1 EARNINGS CALL > OVERVIEW Demos of Selected Product Functionality Campaign Reach Enrich Workflows 13
Slide 14: ZoomInfo Drives Value for Customers
Q1 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 15: Customer Case Study - Aurea CloudFix
Q1 EARNINGS CALL > CASE STUDIES Customer Case Study - Aurea CloudFix Industry Technology Segment Enterprise The Results Location Austin, Texas, USA Decreased cost per SQL by 50% The Solution The Results With MarketingOS, the team creates automated After implementing MarketingOS, Ruhl observes, “We a
Slide 16: Customer Case Study - MarketSpark
Q1 EARNINGS CALL > CASE STUDIES Customer Case Study - MarketSpark Industry Telecommunications Segment Mid-Market The Results Location San Diego, CA, USA 5x Revenue Opportunities with ZoomInfo Company Data Brick The Solution The Results MarketSpark partnered with ZoomInfo’s Data Services Fueled by Zo
Slide 17: Q1 2023 Financial Results
Q1 2023 Financial Results
Slide 18: Financial Results Overview
Q1 EARNINGS CALL > FINANCIAL RESULTS Financial Results Overview >30,000 Paying Customers1 Financial Results “ZoomInfo again delivered a quarter of growth, profitability, and free cash flow generation,” said Henry Schuck, ZoomInfo 1,905 Customers with > $100k in ACV1 Founder and CEO. “Businesses are
Slide 19: Q1 2023 Financial Summary (Unaudited)
Q1 EARNINGS CALL > FINANCIAL RESULTS Q1 2023 Financial Summary (Unaudited) GAAP Non-GAAP(1) Quarterly Change Quarterly Change ($M, except per share amounts and percent figures) Results YoY Results YoY Revenue $300.7 24% Adjusted Operating Operating Income $66.3 105% $120.3 26% Income Adjusted Operat
Slide 20: GAAP Revenue Growth ($M)
Q1 EARNINGS CALL > FINANCIAL RESULTS GAAP Revenue Growth ($M) 24% Q1 2023 $300.7 $241.7 24% GAAP Revenue Growth 23% Organic Revenue Growth(1) Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 GAAP Revenue 1. Organic Revenue excludes revenue from products acquired within the las
Slide 21: Adjusted Operating Income ($M) and Margin
Q1 EARNINGS CALL > FINANCIAL RESULTS Adjusted Operating Income ($M) and Margin(1) 26% $120.3 Q1 2023 $95.7 40% Adjusted Operating Income Margin(1) 39% 40% 26% YoY Growth in Adjusted Operating Income(1) Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Adjusted Operating Income
Slide 22: Unlevered Free Cash Flow ($M) and uFCF Conversion
Q1 EARNINGS CALL > FINANCIAL RESULTS Unlevered Free Cash Flow (uFCF) ($M) and uFCF Conversion(1)(2) (4)% Q1 2023 $125.9 $121.1 101% Unlevered free cash flow conversion(1)(2) 132% 101% 40% Unlevered Free Cash Flow Margin(1) Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Unlev
Slide 23: Balance Sheet Highlights and Net Leverage
Q1 EARNINGS CALL > FINANCIAL RESULTS Balance Sheet Highlights and Net Leverage As of As of ($M, except Leverage Ratios) December 31, 2022 March 31, 2023 Total contractual maturity of outstanding indebtedness $1,250.0 $1,248.5 Cash, cash equivalents, restricted cash, and short-term $551.8 $625.6 inve
Slide 24: Guidance (as of May 1, 2023)
Q1 EARNINGS CALL > FINANCIAL RESULTS Guidance (as of May 1, 2023)(1) FY 2023 FY 2023 Q2 2023 (as of 2/6/2023) (as of 5/1/2023) GAAP Revenue $310 - $312 million $1.275 - $1.285 billion $1.275 - $1.285 billion Adjusted Operating Income(1) $125 - $127 million $523 - $533 million $523 - $533 million Adj
Slide 25: Non-GAAP Reconciliations
Non-GAAP Reconciliations
Slide 26: Non-GAAP Financial Measures
Q1 EARNINGS CALL > NON-GAAP FINANCIAL MEASURES Non-GAAP Financial Measures To supplement our consolidated financial statements presented in accordance with GAAP, this presentation contains non-GAAP financial measures, including Adjusted Operating Income, Adjusted Operating Income Margin, Adjusted Ne
Slide 27: Non-GAAP Financial Measures
Q1 EARNINGS CALL > NON-GAAP FINANCIAL MEASURES Non-GAAP Financial Measures We define Unlevered Free Cash Flow as net cash provided from operating activities less (i) purchases of property and equipment and other assets, plus (ii) cash interest expense, (iii) cash payments related to restructuring an
Slide 28: Reconciliation from GAAP Net Income (Loss) to Adjusted Operating Income
Q1 EARNINGS CALL > NON-GAAP FINANCIAL MEASURES Reconciliation from GAAP Net Income (Loss) to Adjusted Operating Income ($M except percent figures) Q1 2022 Q1 2023 Net income $6.2 $44.5 Add: Expense from income taxes 13.0 23.7 Add: Interest expense, net 11.8 9.9 Add: Loss on debt modification and ext
Slide 29: Reconciliation from GAAP Net Income (Loss) to Cash EBITDA
Q1 EARNINGS CALL > NON-GAAP FINANCIAL MEASURES Reconciliation from GAAP Net Income (Loss) to Cash EBITDA ($M) Trailing Twelve Months as of March 31, 2022 Trailing Twelve Months as of March 31, 2023 Net income (loss) $135.0 $101.4 Add (less): Expense (benefit) from income taxes (30.6) 142.2 Add: Inte
Slide 30: Reconciliation of Non-GAAP Leverage Ratios
Q1 EARNINGS CALL > NON-GAAP FINANCIAL MEASURES Reconciliation of Non-GAAP Leverage Ratios As of As of ($M, except Leverage Ratios) December 31, 2022 March 31, 2023 Total Net Leverage Ratio (Adjusted EBITDA) Total contractual maturity of outstanding indebtedness $1,250.0 $1,248.5 Less: Cash and cash
Slide 31: Reconciliation from GAAP Operating Cash Flow to Unlevered Free Cash Flow
Q1 EARNINGS CALL > NON-GAAP FINANCIAL MEASURES Reconciliation from GAAP Operating Cash Flow to Unlevered Free Cash Flow ($M except percent figures) Q1 2022 Q1 2023 Cash flow from operating activities $105.0 $108.6 Purchases of property and equipment and other assets (6.6) (6.4) Interest paid in cash
Slide 32: Reconciliation from GAAP Net Income (Loss) to Adjusted Net Income Per Share
Q1 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 March 31, 2023 Equity-based Intangibles and Fair Value Transaction Related GAAP Margin% Adjustments from Adjustments a
Slide 33: Reconciliation from GAAP Net Income (Loss) to Adjusted Net Income Per Share
Q1 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 March 31, 2022 Equity-based Intangibles and Fair Value Transaction Related GAAP Margin% Adjustments from Adjustments a
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