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Here are 1-3 brief analogies to describe ZoomInfo Technologies (GTM):

• LinkedIn for sales and marketing teams.
• The Bloomberg Terminal for B2B sales and marketing professionals.

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• SalesOS: A B2B data intelligence and engagement platform designed to help sales teams identify, connect with, and close target accounts.
• MarketingOS: A B2B data and insights platform providing tools for marketing teams to identify, target, and engage their ideal customer profiles.
• RecruitOS: A talent intelligence platform offering comprehensive B2B data and outreach tools for recruiters to find and engage top talent.
• DataOS: The foundational data intelligence service that provides comprehensive, accurate B2B company and contact information across ZoomInfo's platforms.

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ZoomInfo Technologies (symbol: GTM) primarily sells its services to other companies (B2B) rather than individuals. ZoomInfo provides sales, marketing, and recruiting intelligence platforms and data to help businesses identify, connect with, and engage with their target prospects and talent.

Due to its business model, which involves providing subscription-based services to a vast and diverse customer base (over 34,000 customers as of its latest annual report), ZoomInfo does not typically have a small number of "major customers" that account for a significant portion of its total revenue. Instead, its revenue is diversified across thousands of companies of all sizes, from small businesses to large enterprises, across various industries.

While there are no publicly disclosed "major customers" in terms of revenue concentration, ZoomInfo's customer base includes many well-known companies that utilize its platform. Below are illustrative examples of companies that are customers, often featured in ZoomInfo's public case studies, rather than entities representing a concentrated portion of ZoomInfo's revenue:

• MongoDB (MDB)
• Paycom (PAYC)
• Procore Technologies (PCOR)
• Toast (TOST)
• DocuSign (DOCU)
• Zuora (ZUO)
• Talkdesk (private company)
• Workato (private company)

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• Amazon Web Services (AMZN)
• Google Cloud Platform (GOOGL)

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Henry Schuck, Chief Executive Officer and Chairman

Henry Schuck is the Founder, CEO, and Chairman of ZoomInfo Technologies. He co-founded DiscoverOrg in 2007, which later acquired Zoom Information, Inc. in 2019 and rebranded as ZoomInfo. Before founding DiscoverOrg, Schuck served as the VP of Research & Marketing at iProfile, a sales intelligence firm. DiscoverOrg was backed by private equity firms The Carlyle Group and TA Associates. He has overseen 13 acquisitions, including the acquisition of Zoom Information.

Graham O'Brien, Interim Chief Financial Officer

Graham O'Brien was appointed as ZoomInfo's interim Chief Financial Officer effective September 6, 2024. Previously, he served as the company's Vice President of FP&A, overseeing financial forecasting, budgeting, and reporting. Prior to joining ZoomInfo in 2017, O'Brien held various executive roles at companies including DiscoverOrg, RainKing Solutions, and Kaseya.

Chris Hays, Executive Vice President, International Expansion

Chris Hays transitioned to the role of Executive Vice President, International Expansion, reporting to the CEO, effective October 1, 2023. Before this, he served as President and Chief Operating Officer, and from 2019 to early 2021, he was the Chief Revenue Officer at ZoomInfo. Hays co-founded Inside Sales Team in 2008, where he also served as Head of Revenue Operations until 2015. His prior experience includes global sales, marketing, and operations roles at Lucent and Avaya.

Filip Popovic, Chief Technology Officer

Filip Popovic serves as the Chief Technology Officer at ZoomInfo. His role involves leading technology initiatives for the company.

Russell Levy, Chief Strategy Officer

Russell Levy holds the position of Chief Strategy Officer at ZoomInfo. He is responsible for the company's strategic direction.

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The key risks to ZoomInfo Technologies (ZNT) are primarily related to its market exposure, competitive landscape, and customer-centric challenges:

1. Exposure to the Software Sector and Macroeconomic Headwinds: ZoomInfo's significant reliance on the software sector has made it vulnerable to current macroeconomic conditions. Many software companies have reduced expenses and implemented layoffs, leading to decreased demand for ZoomInfo's services, seat contractions, and smaller contract renewals. This exposure has negatively impacted ZoomInfo's revenue growth, with its revenue outlook representing significantly lower growth compared to previous periods. There is also limited near-term visibility on a demand rebound from this critical sector.
2. Intense Competition and Pricing Pressure: ZoomInfo operates in a highly competitive market for go-to-market and sales intelligence platforms. The company faces strong competition from established players like Salesforce and HubSpot, as well as a growing number of emerging challengers. Customers frequently cite ZoomInfo's pricing, particularly for additional intent services, as a significant challenge during renewals, suggesting a potential barrier to retaining and acquiring customers in a price-sensitive environment.
3. Customer Retention Challenges, Data Accuracy Concerns, and Aggressive Business Practices: ZoomInfo has reported net revenue retention rates below 90%, indicating a consistent loss of its customer base. This is further exacerbated by customer complaints regarding the accuracy of its data. Additionally, the company has faced criticism and numerous complaints concerning aggressive auto-renewal policies, refusal to allow cancellations, automatic price hikes on renewals, and alleged threats from legal counsel, which collectively point to potential issues with customer satisfaction and ethical business conduct. These practices, along with its aggressive data gathering and scraping methods, could lead to reputational damage and potential regulatory scrutiny.

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1. The accelerating development and adoption of artificial intelligence (AI) and Large Language Models (LLMs) pose a clear emerging threat. These technologies are increasingly capable of autonomously extracting, synthesizing, and generating high-quality B2B intelligence from publicly available data sources at scale. This development could democratize access to business data, reduce the cost of building B2B datasets, and erode ZoomInfo's competitive moat built on proprietary data collection and curation, thereby impacting its pricing power and market differentiation.

2. The aggressive expansion and competitive pricing strategies of alternative B2B data providers, particularly those leveraging freemium business models, represent another clear emerging threat. Competitors like Apollo.io have gained significant market traction by offering comprehensive data solutions at lower price points or with generous free tiers, attracting a broad customer base, especially within the small and medium-sized business (SMB) and mid-market segments. This intensifies price competition and could pressure ZoomInfo's market share and profitability if customers opt for 'good enough' solutions at a fraction of the cost.

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ZoomInfo Technologies (GTM) estimates its total addressable market (TAM) to be over $100 billion. This represents a significant expansion from its 2020 estimate of $24 billion, driven by the company's growth into various product categories. This market size is understood to be a global estimate.

ZoomInfo's main product platforms include SalesOS, MarketingOS, OperationsOS, and RecruitingOS. However, the provided information does not specify the addressable market size for each individual product or service.

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ZoomInfo Technologies (NASDAQ: ZI) is focusing on several key initiatives to drive future revenue growth over the next 2-3 years, primarily centered around its strategic shift to serving larger enterprises, innovation in AI-powered solutions, and enhancing customer retention.

1. Strategic Shift to Larger Enterprise Customers: ZoomInfo is actively transitioning its focus "upmarket" to acquire and expand relationships with larger enterprise clients. This strategy is demonstrated by the accelerating growth in annual contract value (ACV) from customers with over $100,000, and its million-dollar customer cohorts. The upmarket segment now constitutes a significant majority of ZoomInfo's ACV, with growth rates accelerating. This pivot is expected to contribute to more stable and higher-value revenue streams.
2. Expansion and Adoption of AI-Powered Products and Workflow Solutions: The company is heavily investing in and prioritizing AI-first solutions and robust product innovation. Key offerings like ZoomInfo Copilot and GTM Studio are central to this strategy. ZoomInfo Copilot, an AI-powered offering that integrates proprietary data with customer's sales and marketing systems, has shown strong traction, exceeding initial expectations in ACV and driving increased user engagement and utilization. Additionally, their Operations and Data-as-a-Service (DaaS) offerings are also experiencing strong year-over-year growth, indicating that these new solutions are expanding ZoomInfo's value proposition and creating stickier customer workflows.
3. Improved Net Revenue Retention (NRR) and Customer Expansion: After facing challenges, ZoomInfo has reported a stabilization and sequential improvement in its net revenue retention rate, particularly within its upmarket segment. The company's efforts to enhance product innovation and customer satisfaction, coupled with the value provided by new AI-driven features, are aimed at not only retaining existing customers but also expanding their usage and spend, thereby contributing to sustained revenue growth. Improving NRR, especially with larger enterprise clients, is a critical component of their financial outlook.

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