ZoomInfo's Q1 2025: Contradictions Unveiled in Revenue Retention, Strategic Partnerships, and Economic Impact

Upmarket vs Downmarket Revenue Retention and Growth, Strategic Partnerships and Revenue Contribution, Expansion of AI and Data Applications, Net Revenue Retention Trends, and Economic Environment and Customer Retention are the key contradictions discussed in ZoomInfo's latest 2025Q1 earnings call.



Revenue Growth and Upmarket Transition:
- ZoomInfo Technologies reported Q1 2025 GAAP revenue of $306 million, surpassing the high end of their guidance, with an adjusted operating income margin of 33%.
- The growth was driven by a shift upmarket, with 1,868 customers with more than $100,000 in ACV, indicating a 4th consecutive quarter of sequential improvement.
- This upmarket focus was supported by better-than-expected performance from enterprise opportunities and improved net revenue retention.

Innovation and Market Expansion:
- The company launched Go-To-Market Studio and expanded their Copilot product, integrating with CRM and other enterprise systems.
- These innovations enable a broader range of go-to-market professionals, including account executives, account managers, CSMs, and RevOps professionals, to leverage AI and data for better campaign execution.
- The expansion comes in response to customer demand for integrated AI-driven solutions to streamline go-to-market operations.

Share Repurchase and Financial Strategy:
- ZoomInfo repurchased 8.6 million shares in Q1, totaling $95 million, and plans to continue repurchases with an additional $50 million in Q2.
- The company has a remaining share repurchase authorization of $543 million and ended the quarter with $143 million in cash.
- This strategy reflects ZoomInfo's confidence in its intrinsic value and focuses on returning shares to shareholders amid market uncertainties.

Future Outlook and Guidance:
- Despite strong Q1 performance, ZoomInfo raised the low end of their full-year revenue guidance, reflecting an updated cautious approach.
- The guidance for Q2 GAAP revenue is $295 million to $298 million, with adjusted operating income expected to be in the range of $101 million to $104 million.
- The company remains optimistic about its trajectory, focusing on upmarket growth and stabilizing down-market business, while acknowledging broader economic uncertainty.