ZoomInfo Analyst Day + Company Overview

ZoomInfo had their analyst day yesterday and came out with a target of $2B in revenue by FY’25 which is well above consensus and represents a 31% CAGR from here. This bullish update seems to have been largely passed over by the market considering it is down today. At 40% FCF margins, I believe it is attractively valued at current prices. TAM also more than doubled since IPO thanks to new acquisitions and sits at $52B. Think it’s the clear leader in a large and growing space, has an excellent combination of growth and profitability, and it continues to grow its moat.

I also wrote an overview of the business.


ZoomInfo was ranked a leader by Forrester Wave. They offer the greatest breadth and depth of data on target customers in their sector. They cover 120M professionals across 14M companies and provide a guarantee that 95% of data is current.

Main uses are to get new leads, but ZoomInfo also offers org charts and intent data (which customers are intending to make a purchase). This is something not a lot of competitors provide because it’s harder to get (you have to go directly to former employees for org charts). They price per seat and have 3 tiers with the average today being ~$2,100/year. They also have a free community tier where members must allow ZoomInfo to collect their email contacts for their Contributory Network in exchange for 10 contact credits per month. ZI gets its data mainly from 3 sources: their unique Contributory Network (50M email signatures daily), acquisitions such as that of RainKing and ZoomInfo, and algos that scrape 45M web domains daily.


Their moat lies in the network effects from their Contributory Network. 60% of ZoomInfo’s 16,000 paid clients participate to improve data accuracy, thus attracting more customers. 4M records are updated daily out of 120M total records so it’s significant.

Competitors with fewer users are not able to replicate this level of organic data collection so this is a major differentiator given $ZI is the leader. Because people’s contacts change all the time, maintaining the most up-to-date database will always be a challenge.


LinkedIn Sales Navigator is cheaper but is a closed platform that does not integrate with existing workflows, has a higher chance of having stale data, and does not usually have corporate contact information (relying on InMail). It’s more of a complement than a competitor.

Niche players like Infogroup, InsideView, Databook, TechTarget, etc. focus on specific datasets and generally lack the scale and quality of data that ZoomInfo offers. Legacy Data Providers like D&B Hoovers also lack the same quality and breadth of data.

Their closest competitor is InsideView which does not do anything like ZI’s Contributory Network, opting instead to acquire data either directly from third parties or through scanning the public web. I believe ZI’s lead will continue to extend over time as a result.


They are guiding for 42% growth this year with 43% FCF margins. It scores the best on Rule of 40. They also have a manageable amount of debt. Although switching costs are low, they are being built up with more integrations and as the platform improves, there will be very little reason to switch. NRR was ~108% in '20 which should improve as they move upmarket. Current valuation looks reasonable relative to growth/margins.


Their efficient bottom-up sales motion leads to an average sales cycle of just 30 days and >10x LTV/CAC. Their core TAM is $27B and they are currently just 2% penetrated. Notable customers include Zoom, Okta, and Shopify, with no customer forming >1% of revenue

They also enjoy a lot of optionality. TAM currently sits at $52B thanks to the following expansions:

Q3 2020 - Launched Engage: automated sales dialer, built-in email automation, and technologies to manage sales workflows.
Q4 2020 - Acquired Everstring: Data management capabilities
Q1 2021 - Launched Recruiter: identify, target, and engage with new talent. See work history, technologies used, and department org charts.
Q2 2021 - Acquired Insent.ai: conversational marketing platform, identifies website visitors and uses AI to initiate conversations and improve conversions

Using their best-in-class database as the foundation, they are building an application layer with seamless integration to help sales reps and marketers make better use of the data. Their goal is to be the first ever go-to-market operating system.


The main risk is regulatory. GDPR and CCPA have not been expanded to include B2B data yet, but ZI has been proactive in informing users that their data is being collected, which may lead to higher opt-out rates. They also rely on cookies to collect intent data, but it is a small part of the overall package.



Interesting notes on ZoomInfo, growing rapidly and plans to continue expanding. I guess the market agrees with you Richard up 8% today.

Database provider ZoomInfo Technologies Inc. is on the hunt for additional acquisition targets, Chief Financial Officer Cameron Hyzer said. “We are seeing more room for mergers and acquisitions,” Mr. Hyzer said, adding that ZoomInfo is looking for potential targets to build out its product offering.

(END) Dow Jones Newswires

June 15, 2021 18:09 ET (22:09 GMT)

Copyright (c) 2021 Dow Jones & Company, Inc.

ZoomInfo Technologies Inc. will likely run out of space once its employees return to working in the office. The company, which went public last year, has more than 2,000 employees now following recent acquisitions, up from about 1,000 in June 2020.

(END) Dow Jones Newswires

June 15, 2021 18:14 ET (22:14 GMT)

Copyright (c) 2021 Dow Jones & Company, Inc.

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I just listened (belatedly) to the Analyst Day presentation https://video.zoominfo.com/watch/MAQAhbppr1SxUPfg53iZnU and a couple of things impressed me.

First, International growth outpaced growth in the U.S. (up 65%) though off a smaller base. And this despite the fact that they were unable to place “boots on the ground” (as they put it) due to Covid. They had staff here (western hemisphere) working EMEA hours care for that area so most of their growth came from the UK and adjacent countries but expect greater adoption over a much larger part of that area now that it looks like restrictions may be lifted soon and they will open offices in the area(s).

There was also an interview with a T-Mobile executive talking about their use of ZI for sales in general as well as their recent merger with (Sprint I believe?) in particular. She said integration was much easier since they were both users of ZoomInfo and they used it to draw territory boundaries. She also pointed out that if they didn’t have ZI they could not replicate the effective go to market motion they currently have.

The CEO responded to an Analyst’s question about ROI with the example of an HVAC company whose go to market strategy was to have their sales reps go into a metropolitan area and leave brochures with persons in buildings who looked like they might be potential customers at some point, track that activity manually and follow up. Now they target business who are likely to need/be looking for their service now and their sales conversion rates are much higher. He also said most SMB’s operate in this fashion resulting in a very large greenfield opportunity for them since no other company offers this level of visibility into potential customers.

The CEO impressed me as an effective communicator and if they can continue to execute on their opportunity I believe the stock price will inevitably follow their growing revenue.

Disclaimer: The presentation was around 2 hours and I wrote this off of my notes. Corrections are welcome…




One last thing I forgot to include in my previous post.

It has been pointed out that there seems to be little enthusiasm among investors for what ZI offers. The lack of share price movement cited, however my TD Ameritrade profile page shows the percentage of ZI stock held by institutions to be 99.20% “calculated from current quarterly filing as of today”.

If this statistic is correct, while individual investor sentiment for ZI may be subdued, SOMEONE appears to have conviction.



ZI - Recently announced Microsoft Integration. More info on July 12th. Some previously mentioned LinkedIn as a competitor, seems like more of a partnership?

ZoomInfo (NASDAQ:ZI), a global leader in go-to-market intelligence solutions, today announced a new integration with Microsoft to help companies accelerate their growth by directly accessing the full ZoomInfo platform within Microsoft Dynamics 365. ZoomInfo’s constantly refreshed data will now be centralized within Dynamics 365, ensuring customers have seamless and secure access to find, create, and update their system of record.

With ZoomInfo integrated into Dynamics 365, joint customers can now create and update new and existing records to eliminate data decay in Dynamics 365, and they can control the configuration and distribution of data across their system of record. The ability to access ZoomInfo’s data from Dynamics 365 provides a user-friendly way to pull in valuable intelligence on prospects and customers.

“We’re unleashing the power of ZoomInfo within Dynamics 365, one of the top customer relationship management systems in the world,” said Henry Schuck, ZoomInfo Founder and CEO.

For more information, visit the ZoomInfo and Microsoft Dynamics 365 landing page or attend the LinkedIn Live event on Monday, July 12 at 11 a.m. ET.

© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.


<>For more information, visit the ZoomInfo and Microsoft Dynamics 365 landing page or attend the LinkedIn Live event on Monday, July 12 at 11 a.m. ET.

What ZI are accomplishing was the exact vision for the integration of LinkedIn and Microsoft’s Dynamics 365 and the driver of the acquisition.

I can easily see ZI becoming a takeover target for SalesForce.com or Microsoft before they steal too much of the value chain for themselves.



Hi Mike,
Thanks for those notes you took from Analyst Day. I added mine to where you left off here:

What would happen if you took away ZoomInfo from T-Mobile?
VP of Sales and Marketing at T-Mobile: “Mass Chaos”!!!

Me here: Sounds sticky to me!!

ZoomInfo is discovering (in part from their own customers), cleaning, then enriching massive data sets put together from ‘nearly 100 million companies’. ZI CEO repeatedly calling ZI, the essential data layer for Sales, Marketing and Recruiting across the globe.
ZoomInfo uses extensive Deep Learning and ML to increase both accuracy and relevance of information for Sales and Marketing and now Recruiters.

Per ZI CIO-with Snowflake integration, ZoomInfo becomes the ‘Single Source of Truth for Marketing Organizations. This is real Data driven anylytics used for Marketing for the first time’
me here: he said this at the end of his presentation as an obvious mic drop moment)…

Per the CIO, when accessing ZoomInfo on the Snowflake Platform businesses can do all this while securing, matching and (me here: basically ‘filling in all the empty boxes their CRM product has placed in front of their Sales or marketing reps’) ‘all in just a few clicks’.

And… now with this Microsoft partnership I understand ant’s comment about Salesforce and MS needing to buy ZoomInfo.

ZoomInfo’s eight figure deal: took six months to get eleven executives to sign off on the deal.
My take: So their customers are not so much coming to them.

Nor is the ZoomInfo product intuitive, (in one of the slides, sorry I don’t have a time stamp, if you email me I’ll send the picture I took)-there was a 4x YoY increase in Advanced Trainings used to insure customers expand their use of ZoomInfo’s available products.

Note : with 108% net retention rate- see higher rate with the increasing Enterprise size customers?

UiPath is a customer
Sean Kane, VP Sales and Marketing at UiPath: before utilizing ZoomInfo, finding the right person to talk to for any kind of landing on a deal was “like finding a needle in a hay stack”. IMO, this guy was a bit too emphatic about the need for UiPath to utilize ZoomInfo in order to grow their business.

2x growth of cust+>$100,000 YoY

10% of over all Revenue coming from International’s markets. (+65%YoY)

LTV/CAC well above 10
“We believe we are able to become the defacto Operating System for go to market teams”.

Me here: Yes ZI is an AI enabled Cloud Category Crusher. The relatively low NRR may be explained by the apparent lack of intuitiveness in their expansion across the enterprise. Not in my notes but I was impressed by the Culture of never ending improvement. Perhaps this will get them to improve their user interface to make it more intuitive for their customers. The ZoomInfo Culture may be an empty Sales pitch or it may be as amazing as it appears. I’m holding 8% to see if they do what they say their going to do as well as they can say it. I’m watching this one closely.

Hope this was helpful,