ZoomInfo Q1 2025 slides: revenue dips 1% as company rebrands to GTM

Introduction & Market Context

ZoomInfo Technologies Inc (NASDAQ:ZI) reported its first quarter 2025 financial results on May 12, showing a slight revenue decline but maintaining strong profitability metrics. The company announced plans to change its trading symbol from "ZI" to "GTM" effective May 13, 2025, reflecting its strategic positioning as a Go-To-Market Intelligence Platform.

Following the earnings release, ZoomInfo’s stock declined 2.33% in after-hours trading to $10.07, after closing the regular session up 10.53% at $10.34. This reaction contrasts with the company’s Q4 2024 results, which had triggered a 17.52% stock surge on stronger-than-expected performance.

As shown in the following slide highlighting ZoomInfo’s key financial metrics:

Quarterly Performance Highlights

ZoomInfo reported Q1 2025 revenue of $305.7 million, representing a 1% year-over-year decline. Despite the revenue dip, the company maintained strong profitability with an adjusted operating income of $100.9 million, though this figure was down 15% compared to the same period last year. The adjusted operating income margin stood at 33%, down from 39% in Q1 2024.

The company’s unlevered free cash flow reached $124.5 million, up 1% year-over-year, with an impressive 123% conversion rate and 41% margin. Net revenue retention rate was 87%, indicating some customer contraction in the existing base.

The detailed financial summary shows the comparison between GAAP and non-GAAP metrics:

The trend in adjusted operating income and margin over the past nine quarters reveals the recent compression in profitability:

Despite the overall revenue decline, ZoomInfo continues to show strength in the enterprise segment, reporting 1,868 customers with annual contract values exceeding $100,000, a sequential increase of one customer. The company serves more than 35,000 customers across diverse industries.

Strategic Initiatives

A significant announcement in the Q1 presentation was ZoomInfo’s trading symbol change from "ZI" to "GTM," which aligns with the company’s positioning as a Go-To-Market Intelligence Platform. This rebranding reflects the company’s strategic focus on providing comprehensive data and intelligence solutions for sales, marketing, and operations teams.

As illustrated in the following slide announcing the trading symbol change:

ZoomInfo is emphasizing its comprehensive data universe as a key competitive advantage. The company’s platform includes extensive company and contact data, signals data, and custom data, supported by various GTM services:

The company is also highlighting its recognition as a leader in the GTM intelligence space by major analyst firms:

Capital Allocation & Balance Sheet

ZoomInfo continues to return capital to shareholders through an aggressive share repurchase program. During Q1 2025, the company repurchased 8.6 million shares at an average price of $11.05, for an aggregate of $95.0 million. In February 2025, the board of directors authorized an additional $500.0 million for share repurchases, bringing the total available for future repurchases to $542.5 million as of March 31, 2025.

The company’s balance sheet remains solid, with $142.5 million in cash and investments as of March 31, 2025. Total (EPA:TTEF) contractual maturity of outstanding indebtedness stood at $1,236.6 million, resulting in a net leverage ratio of 2.5x based on adjusted EBITDA or 2.3x based on cash EBITDA.

The following slide provides a detailed overview of the balance sheet highlights and leverage metrics:

Forward-Looking Statements

For Q2 2025, ZoomInfo expects revenue between $295 million and $298 million, with adjusted operating income between $101 million and $104 million. For the full year 2025, the company projects revenue in the range of $1.195 billion to $1.205 billion and adjusted operating income between $426 million and $436 million.

The company also expects to generate between $420 million and $440 million in unlevered free cash flow for the full year 2025, representing a strong cash flow conversion rate.

As shown in the guidance table below:

Executive Commentary

"We delivered another quarter of better-than-expected financial results and Upmarket momentum," stated the company in its presentation, highlighting the continued focus on enterprise customers despite the overall revenue decline.

ZoomInfo’s management emphasized multiple growth levers, including efficient sales-led customer acquisition upmarket, digital product-led acquisition downmarket, increasing demand for data from broader AI adoption, and platform cross-sell opportunities.

The company continues to position itself as a leader in GTM intelligence, with a comprehensive data foundation that includes information on over 100 million companies, 500 million contacts, and billions of signals. This data asset is described as a necessary component for successful B2B AI agents, aligning with the company’s previous commentary about becoming "the de facto provider of data and AI in the enterprise."

While ZoomInfo faces challenges in maintaining revenue growth, its strategic repositioning, strong cash flow generation, and aggressive capital return program suggest management confidence in the company’s long-term value proposition in the evolving B2B data and intelligence market.

Full presentation:

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