ZoomInfo’s first quarter results reflected ongoing transition toward upmarket customers and a continued emphasis on AI-powered products and workflow integration. Management attributed the quarter’s performance to growth in enterprise accounts and renewed traction for its Copilot product, while also noting improvements in net revenue retention, especially among larger clients. CEO Henry Schuck explained, “We now have 1,868 customers with more than $100,000 in ACV, a sequential increase after a period of declines.” Management remained cautious about the broader economic environment but saw no material changes in customer behavior during the quarter.
Is now the time to buy ZI? Find out in our full research report (it’s free).
ZoomInfo (ZI) Q1 CY2025 Highlights:
- Revenue: $305.7 million vs analyst estimates of $295.5 million (1.4% year-on-year decline, 3.5% beat)
- Adjusted EPS: $0.23 vs analyst estimates of $0.22 (in line)
- Adjusted Operating Income: $100.9 million vs analyst estimates of $97.77 million (33% margin, 3.2% beat)
- The company slightly lifted its revenue guidance for the full year to $1.2 billion at the midpoint from $1.20 billion
- Management raised its full-year Adjusted EPS guidance to $0.97 at the midpoint, a 1% increase
- Operating Margin: 16.5%, up from 13.9% in the same quarter last year
- Customers: 1,868 customers paying more than $100,000 annually
- Annual Recurring Revenue: $1.21 billion at quarter end, down 1.6% year on year
- Billings: $312.2 million at quarter end, in line with the same quarter last year
- Market Capitalization: $3.41 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions ZoomInfo’s Q1 Earnings Call
- Alex Zukin (Wolfe Research) asked about the timing and strategic rationale for ZoomInfo’s ticker and category change. CEO Henry Schuck explained the move reflects expanded product capabilities and broader customer engagement beyond sales prospecting.
- Mark Murphy (JPMorgan) inquired about Copilot’s adoption trajectory and potential rollout challenges. Schuck emphasized strong upmarket demand and minimal friction related to data security and governance in customer deployments.
- Elizabeth Porter (Morgan Stanley) questioned why improved revenue didn’t lead to higher profit margin guidance. CFO Graham O’Brien noted the decision was due to caution regarding the economic environment, not operational headwinds.
- Kash Rangan (Goldman Sachs) pressed on the profitability trade-offs of moving upmarket. Schuck clarified that upmarket business is more profitable and that digital self-service is being emphasized in the small business segment to optimize resource allocation.
- Brent Bracelin (Piper Sandler) asked about the planned duration and size of the down-market contraction. O’Brien stated that management anticipates further contraction until the upmarket mix reaches approximately 80%, at which point stabilization is expected.
Catalysts in Upcoming Quarters
In the coming quarters, the StockStory team will focus on (1) customer adoption and revenue contribution from new AI-powered platforms like Copilot and Go-To-Market Studio, (2) further improvement in enterprise retention rates, especially in the software segment, and (3) the pace and profitability of the company’s transition away from down-market customers. We will also monitor execution on digital self-service and the impact of resource reallocation on margins.
ZoomInfo currently trades at $10.28, in line with $10.34 just before the earnings. Is the company at an inflection point that warrants a buy or sell? Find out in our full research report (it’s free).
High-Quality Stocks for All Market Conditions
Donald Trump’s victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs.
While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today.
StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.
