ZoomInfo’s Upmarket Pivot: A Contrarian Opportunity in Transition

Amid a volatile tech landscape, ZoomInfo Technologies (ZI), now rebranded as GTM (ticker: GTM), stands at a critical inflection point. While near-term headwinds in its down-market segment have sparked skepticism, the company’s deliberate shift toward upmarket dominance—bolstered by its AI-powered GTM Studio platform—paints a compelling picture of long-term value. For investors willing to look past short-term noise, this transition presents a rare buying opportunity.

The Upmarket Play: Growth That’s Here to Stay

ZoomInfo’s strategic pivot to the upmarket segment—now contributing 71% of revenue with 108% YoY customer growth—is the bedrock of its sustainability thesis. Unlike the commoditized down-market, where pricing pressures and competition are fierce, the enterprise space demands high-touch, AI-driven solutions that ZoomInfo uniquely delivers.

The data is clear: . While down-market revenue growth slowed to 12% in Q1 2025, upmarket bookings surged, driving overall revenue to $306 million, a 24% YoY increase. This shift isn’t just about revenue; it’s about margin expansion. Enterprise customers typically have higher retention and cross-selling potential, reducing the volatility that plagues smaller clients.

GTM Studio: The AI Moat Expands

At the heart of this transition is GTM Studio, ZoomInfo’s AI-driven platform that integrates sales intelligence, CRM, and analytics into a single workflow. This isn’t incremental innovation—it’s a full-stack reimagining of go-to-market (GTM) strategy.

The platform’s AI capabilities, which include predictive lead scoring and real-time account insights, have already begun paying dividends. . NRR hit 128% in Q1 2025, up from 115% a year earlier, as enterprise clients deepen their reliance on GTM Studio. Competitors like Salesforce and HubSpot lack this integrated, intelligence-first approach, leaving ZoomInfo with a widening moat.

Undervalued Despite Progress

Despite these positives, ZoomInfo trades at a P/E of 343.78, a figure that seems high until you contextualize it against its growth trajectory. Goldman Sachs’ recent price target of $8.50—now comfortably below the stock’s $10.31 closing price—overlooks the upmarket’s outsized contribution. Meanwhile, the company’s $1.5 billion share buyback program, initiated in 2024 and 35% complete, signals confidence in its undervaluation.

The disconnect between valuation and fundamentals is stark: . While the stock has dipped to $11.05 post-earnings volatility, it remains above Goldman’s bearish target, suggesting the market underestimates the upmarket’s long-term impact.

The Contrarian Case: Volatility as Opportunity

Critics argue that ZoomInfo’s Q1 revenue miss—$306 million vs. $310 million estimates—exposes execution risks. But this view misses the bigger picture. The “miss” was entirely due to a strategic reduction in low-margin down-market contracts, a move that improves profitability and customer quality.

The company’s FY 2025 guidance—$1.2 billion in revenue and $0.96–$0.98 EPS—aligns with consensus, but the real upside lies in 2026+. With GTM Studio’s AI capabilities scaling across enterprise clients and upmarket adoption accelerating, a reacceleration in growth is all but baked in.

Act Now: The Risk/Reward Is Lopsided

ZoomInfo’s current volatility creates a high-conviction entry point. The stock’s $3.53 billion market cap sits at a 30% discount to its peak valuation, despite stronger upmarket traction and margin improvements. Meanwhile, short interest remains elevated, with bears fixated on near-term noise.

The contrarian thesis is simple: ZoomInfo is transitioning, not declining. The upmarket’s flywheel—higher retention, deeper integrations, and AI-driven upsells—is just gaining momentum. By 2026, its enterprise revenue could eclipse $1.5 billion, making today’s dips a buying opportunity.

Final Call: Position for the Upmarket Future

Investors should ignore the noise and focus on ZoomInfo’s strategic clarity. With GTM Studio solidifying its enterprise leadership and upmarket growth outpacing peers, this is a stock primed to reward patience. At current levels, the risk/reward favors buyers—especially as the company’s buybacks and AI-powered moat signal confidence in its own future.

. The upward trajectory is undeniable. Act now before the market catches up.

Disclosure: This analysis is for informational purposes only. Always conduct your own research before making investment decisions.