Q2 2024 Zoominfo Technologies Inc Earnings Call Transcript
Key Points
- ZoomInfo Technologies Inc (ZI) saw its best new business quarter in both the mid-market and enterprise segments ever, with significant growth in $100,000 and $1 million ACV customer cohorts.
- The company launched and monetized ZoomInfo Copilot, an AI-powered offering, which has already generated more than $18 million in ACV across over 1,000 logos.
- ZoomInfo Technologies Inc (ZI) reported strong operational performance with net revenue retention stabilizing for the first time since Q4 2021.
- The company's operations and Data-as-a-Service offerings grew 23% year-over-year, demonstrating strong 117% net retention rate.
- ZoomInfo Technologies Inc (ZI) has made significant operational changes to reduce future write-offs, including requiring prepayment from riskier SMB customers.
- ZoomInfo Technologies Inc (ZI) took a $33 million charge in Q2 due to higher-than-expected write-offs related to prior period sales, particularly with SMBs.
- The company revised its full-year guidance downward due to the charge and increased conservatism around future financial performance.
- Despite operational improvements, the company is not assuming any positive trends will continue in the back half of the year, reflecting a cautious outlook.
- ZoomInfo Technologies Inc (ZI) experienced increased write-offs in June, particularly from SMB customers, impacting its financial results.
- The company is facing challenges with nonpayment from SMB customers, leading to increased bad debt expenses and other related costs.
Good day, and thank you for standing by. Welcome to the ZoomInfo Second Quarter 2024 Financial Results Conference Call. (Operator Instructions) Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Jerry Sisitsky, Investor Relations. Please go ahead.
Thanks, Amy. Welcome to ZoomInfo's financial results conference call for the second quarter 2024. With me on the call today are Henry Schuck, Founder and CEO of ZoomInfo; Cameron Hyzer, our CFO; and Graham O'Brien, who will become our interim CFO. After Henry and Cameron's remarks, we will open the call to Q&A. During this call, any forward-looking statements are made pursuant to the safe harbor provisions of US securities laws.
Expressions of future goals, including business outlook, expectations for future financial performance and similar items, including, without limitation, expressions using the terminology may, will, expect, anticipate and believe and
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