Slide 1: Q2 2020 Financial Results
Q2 2020 Financial Results August 10, 2020
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those expressed or implied by these statements. You can generally identify our forward-looking stat
Slide 3: Business Model Delivering Durable Growth and Profitability at Scale
Business Model Delivering Durable Growth and Profitability at Scale Business Model 99% >10x Subscription(1) LTV/CAC(2)(3) Scale Organic Growth $445mm 40% Annualized Q2’20 Allocated Q2’20 Allocated Combined Combined Receipts(1)(4) Receipts YoY Growth(1)(4) Network Effects ~50mm Contact record events
Slide 4: Q2 2020 Financial Summary (Unaudited)
Q2 2020 Financial Summary (Unaudited) GAAP Non-GAAP(1) ($mm, except per share amounts) Quarterly Increase Quarterly Increase Results YoY Results YoY Allocated Combined Revenue $110.9 62% Receipts $111.2 40% Adjusted Operating Operating Loss $(31.2) NM(2) Income $55.0 33% Adjusted Operating Operating
Slide 5: Quarterly Revenue and Allocated Combined Receipts
Quarterly Revenue and Allocated Combined Receipts(1) ($mm) (2) $116.0 40% $111.2 Q2 2020 $96.0 (2) YoY Growth $79.4 $76.0 $56.0 +62% GAAP Revenue $36.0 $16.0 +40% Allocated Combined ($4.0) Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Receipts(1)(2) Adjustments to GAAP revenue to calculate ACR(1)(
Slide 6: Adjusted Operating Income and Margin
Adjusted Operating Income and Margin(1) $60.0 (1) 90% ($mm) $55.0 Q2 2020 33% 80% $50.0 70% (1) $41.3 49% $40.0 60% 50% 52% Adjusted Operating $30.0 49% 40% Income Margin(1) $20.0 30% $10.0 20% 33% 10% YoY Growth in adjusted Operating Income(1) $0.0 0% Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020
Slide 7: Unlevered Free Cash Flow and uFCF Conversion
Unlevered Free Cash Flow (uFCF) and uFCF Conversion(1)(2) $60 175% ($mm) Q2 2020 35% (1) $52.2 155% $50 135% 95% (1) $40 $38.6 115% 95% Unlevered free cash flow $30 93% 95% conversion(1)(2) 75% $20 55% $10 35% 47% 15% Unlevered Free Cash Flow Margin(1) $0 -5% Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020
Slide 8: Balance Sheet Highlights and Net Leverage
Balance Sheet Highlights and Net Leverage ($ in Millions, except Net Leverage Ratio) As of March 31, 2020 As of June 30, 2020 Cash and cash equivalents $63.0 $259.1 Total contractual maturity of outstanding $1,261.4 $756.4 indebtedness Trailing Twelve Months (TTM) Adjusted EBITDA(1) $191.4 $205.9 Ne
Slide 9: Guidance (as of August 10, 2020)
Guidance (as of August 10, 2020)(1) (in Millions, except margin and per share data) Q3 2020 FY 2020 GAAP Revenue $116 - $118 $451 - $455 Adjusted Operating Income(1) $53 - $55 $213 - $217 Adjusted Operating Margin(1) 46% 47% Adjusted Net Income Per Share(1) $0.08 - $0.09 $0.29 - $0.30 Unlevered Free
Slide 10: Long-Term Targets
Long-Term Targets (as a % of Allocated Combined Receipts) YTD 2020 Long-Term Target Adjusted Gross Margin 88% 88 – 90% Adjusted Sales and Marketing Expense 25% Mid 20% range Adjusted Research and Development Expense 6% 7 – 9% Adjusted General and Administrative Expense 8% 8 – 10% Adjusted Operating
Slide 11: Non-GAAP Reconciliations
i. Non-GAAP —J | Reconciliations
Slide 12: Non-GAAP Financial Measures
Non-GAAP Financial Measures To supplement our consolidated financial statements presented in accordance with GAAP, this presentation contains non-GAAP financial measures, including Allocated Combined Receipts, Adjusted Operating Income, Adjusted Operating Income Margin, Adjusted Net Income, Adjusted
Slide 13: Non-GAAP Financial Measures
Non-GAAP Financial Measures We define Adjusted Net Income as Adjusted Operating Income less (i) interest expense,(ii) other (income) expense, net, and (iii) income tax expense (benefit) including incremental tax effects of adjustments to arrive at Adjusted Operating Income and benefits related to th
Slide 14: Reconciliation from GAAP Revenue to Allocated Combined Receipts
Reconciliation from GAAP Revenue to Allocated Combined Receipts ($ in Millions) Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 GAAP Revenue $54.6 $68.5 $79.1 $91.1 $102.2 $110.9 Impact of fair value adjustments to acquired 8.5 10.7 8.1 4.9 1.4 0.3 unearned revenue Pre-acquisition ZI revenue 9.7 — —
Slide 15: Reconciliation from GAAP Net Loss to Adjusted Operating Income
Reconciliation from GAAP Net Loss to Adjusted Operating Income ($ in Millions) Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Net loss $(40.2) $(19.9) $(12.4) $(5.5) $(5.9) $(56.2) Benefit from income taxes (3.3) (1.4) (1.0) (0.8) (0.4) (12.9) Interest expense, net 23.5 26.9 26.5 25.6 24.5 25.1 Los
Slide 16: Reconciliation from GAAP Net Loss to Adjusted EBITDA
Reconciliation from GAAP Net Loss to Adjusted EBITDA Trailing Twelve Months as of Trailing Twelve Months as of ($ in Millions) March 31, 2020 June 30, 2020 Net income / (loss) $(43.8) $(80.1) Benefit from income taxes (3.6) (15.0) Interest expense, net 103.5 101.6 Loss on debt extinguishment 2.2 14.
Slide 17: Reconciliation from GAAP Operating Cash Flow to Unlevered Free Cash Flow
Reconciliation from GAAP Operating Cash Flow to Unlevered Free Cash Flow ($ in Millions) Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Cash flow from operating activities $14.2 $(5.3) $18.5 $17.0 $28.3 $25.3 Interest paid in cash 5.6 42.1 23.0 24.4 23.3 23.8 Purchases of property and equipment and
Slide 18: Reconciliation from GAAP Net Loss to Adjusted Net Income Per Share
Reconciliation from GAAP net loss to Adjusted Net Income Per Share Amortization of Acquired Tax Impacts of Three months ended June 30, 2020 Equity-based Transaction Related GAAP Margin% Intangibles and Fair Value Adjustments and Adjusted Net Income Adjusted Margin% ($ in Millions, except per share d
Slide 19: Reconciliation from GAAP Net Loss to Adjusted Net Income
Reconciliation from GAAP net loss to Adjusted Net Income Amortization of Acquired Tax Impacts of Three months ended June 30, 2019 Equity-based Transaction Related GAAP Margin% Intangibles and Fair Value Adjustments and Adjusted Net Income Adjusted Margin% ($ in Millions) Compensation Adjustments fro
Slide 20: Reconciliation from GAAP Net Loss to Adjusted Net Income
Reconciliation from GAAP net loss to Adjusted Net Income Amortization of Acquired Tax Impacts of Six months ended June 30, 2020 Equity-based Transaction Related GAAP Margin% Intangibles and Fair Value Adjustments and Adjusted Net Income Adjusted Margin% ($ in Millions) Compensation Adjustments from