ZoomInfo Technologies Inc Common Stock The KeyBanc Technology Leadership Forum 2026
Review the key takeaways and the transcript of this earnings call.
- ZoomInfo reported a solid Q2 with results generally above expectations.
- Unlevered free cash flow increased 7% year over year to $107 million in Q2.
- Margins improved year over year due to business restructuring and cost base reduction.
- The company had a very strong quarter for new large customers spending at least $100,000 annually, driven by a focused enterprise account executive team.
- ZoomInfo's data asset includes over 100 million companies and 500 million professionals, enhanced with billions of signals surfaced using AI.
- The company has been an early mover with AI, notably with ZoomInfo Copilot, which has hundreds of millions of dollars of ACV and has been in market for over two years.
- Go to Market Studio showed promising month-over-month growth in Q2 and is expected to be the core hub for products moving forward.
- ZoomInfo is intentionally reducing its down market business, which now represents 24% of total business, aiming for an 80/20 mix longer term.
- The company believes its data moat remains strong due to proprietary data and the ability to marry it with first-party data to create a context graph.
- Competition in the down market remains from lower quality, lower priced data providers, but ZoomInfo differentiates by providing data, context, and execution layers.
- Software and tech verticals represent a significant portion of the business, but software customers are facing budget constraints and build versus buy considerations, leading to some delayed purchases and downsells.
- ZoomInfo's revenue run rate is $1.2 billion with annualized adjusted expenses of about $740 million and $55 to $60 million in annual debt service.
- The company generated $1.20 of adjusted free cash flow per share last year and expects to exit the year with about $1.25 free cash flow per share.
- Capital allocation now includes share buybacks and debt repurchases, with no clear preference between debt, equity, or reinvestment.
- Adjusted gross margins are about 87%, and management is comfortable with a decline to 85% if it drives gross profit upside from increased AI consumption.
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Transcript
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Thumbs up. Okay, great. Welcome, everybody. Good afternoon. The 2026 version of the KeyBank Capital Markets Technology Leadership Forum. My name is Jackson Ader, enterprise software analyst here at KeyBank. Really happy to have Graham here from ZoomInfo. We are going to let him introduce himself and the company. I'll go through a bunch of questions that I have prepared, but I'll come to the audience a couple of times, hopefully in the 25 minutes or so that it's interactive. And I'll flag to you guys that I'm coming to the audience, so you can be thinking of questions. I think that covers it. Yeah, go ahead. Graham, you want to introduce yourself and the company, please?
Thanks, Jackson. Really happy to be here. Thank you for hosting us. My name is Graham O'Brien. I'm the CFO of ZoomInfo. ZoomInfo provides and sells data and software to go-to-market professionals, sales reps, VPs of RevOps, anyone who sells products and services to other businesses. Our data asset starts with about 100 million-plus companies, 500 million-plus professionals, and then we're able to identify and harvest billions of signals that we layer on top of that data asset, and then surface those signals using AI to notify reps, managers as to what their next best customer might look like, how and when to engage with that customer, and give them all the information and the context they need to grow their business.
Just reported last week. Yep.
Last Wednesday night. You mind giving us the highlights and the takeaways from that quarter?
Sure. It was a solid quarter. We reported results that were generally above expectations. I think some of the highlights in the quarter was strong unlevered free cash flow quarter. We were up 7% year-over-year, so we delivered $107 million of unlevered free cash flow in Q2. I'd also call out margin improvement. Improving margins year-over-year. We were able to restructure the business in Q2 and reduce the cost base while we continue to navigate a growth transition. I'd also highlight it was a very strong, large customer new business quarter. So we have our 100K cohort. These are customers that spend at least $100,000 with us annually. Net new lands into that cohort, so customers that are making new business purchases at or above $100,000. So it was one of our best quarters ever from an ACV perspective.
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