ZoomInfo Technologies Inc. Q4 FY2025 earnings call

• Ended the year strong with record quarterly revenue and beat top end of guidance. Q4 revenue $319M, up 3% YOY; adjusted operating income $123M, margin 38%.
• Upmarket strategy working: 6% growth in Q4, 1,921 customers with >$100k ACV, over 50% of ACV. Record number of million-dollar-plus customers.
• Product innovation: GTM Studio (orchestration layer), GTM Workspace (AI-native command center), and integrations with CRM platforms. Launched nine vertical datasets in 2025.
• Capital allocation: $1 billion authorization for share repurchases, already retired nearly a quarter of shares since 2023.
• Customer wins: Closed deals with Hilton Hotels, Edward Jones, Kaseya, etc., and won RFP to transform a Fortune 500 company's contact data management.

In the fourth quarter, ZoomInfo delivered revenue of $319 million, up 3% year over year, and adjusted operating income of $123 million, with a margin of 38%. For the full year 2025, revenue was $1.25 billion, adjusted operating income was $446 million with a margin of 36%. The upmarket segment grew 6% in Q4, with 1,921 customers having >$100,000 in ACV, representing more than 50% of total company ACV. Copilot accounted for over 20% of total ACV, more than doubling in 2025. Operations segment grew more than 20% year over year, with ACV nearly a fifth of total ACV.

• Q1 2026 guidance: GAAP revenue $306 million to $309 million, adjusted operating income $105 million to $108 million, non-GAAP net income $0.25 to $0.27 per share.
• Full year 2026 guidance: GAAP revenue $1.247 billion to $1.267 billion, adjusted operating income $456 million to $466 million, unlevered free cash flow $435 million to $465 million. Q1 2026 has two fewer days than Q4 2025; AOI margin expected to build throughout the year.

• Market forces: Public markets' negative sentiment towards software-related companies.
• Interest rate changes: Interest expense on debt expected to increase due to variable rate based on SOFR.
• Real estate restructuring: Impairment charges on offices and expected cash flows from subletting excess space.
• Volatility in billings and bookings: Inherent volatility in these metrics, caution advised against extrapolating too much from their trajectory.

Q: How do you inflate the data quality advantage and pricing power stemming from it, especially with AI scraping tools?

A: Henry Schuck says data quality is increasingly important as customers deploy AI agents, and the value of high-quality data is increasing in customers' minds.

Q: Current copilot penetration and its impact on ACV?

A: Graham O'Brien says 20% of total ACV is from Copilot, on schedule to migrate core customer base, with better renewal outcomes after migration from legacy SalesOS.

Q: How working with customers to navigate pricing and business model to avoid sticker shock?

A: Henry Schuck says transparency in consumption pricing, customers have controllability of spend, and close collaboration to address consumption and cost surprises.