Go-to-market intelligence provider ZoomInfo (NASDAQ: GTM) reported Q3 CY2025 results topping the market’s revenue expectations, with sales up 4.7% year on year to $318 million. Guidance for next quarter’s revenue was better than expected at $308.5 million at the midpoint, 1.2% above analysts’ estimates. Its non-GAAP profit of $0.28 per share was 9.5% above analysts’ consensus estimates.

Is now the time to buy GTM? Find out in our full research report (it’s free for active Edge members).

StockStory’s Take

ZoomInfo’s third quarter results saw the company outperform Wall Street’s revenue and profit expectations, with management attributing success to its ongoing transition toward larger enterprise customers and the rapid scaling of new AI-powered products. CEO Henry Schuck emphasized that the company’s proprietary data assets and expanded product suite, such as Copilot and GTM Workspace, have driven stronger customer engagement and improved net revenue retention. Management highlighted sustained margin improvement and stronger upmarket traction as key operational achievements.

Looking ahead, ZoomInfo’s raised guidance reflects management’s confidence in continued upmarket momentum and expanding adoption of AI-driven go-to-market solutions. CFO Graham O’Brien stated that the company expects its ongoing innovation, particularly with products like GTM Studio, will support higher renewal rates and deeper penetration within large customer accounts. Schuck added, “We are providing the unified data foundation that connects CRM data, engagement signals, intent data, call transcripts, and market intelligence into one AI-ready system, giving sellers AI to allow them to shift their focus away from the time-consuming low-value tasks.”

Key Insights from Management’s Remarks

Management credited the quarter’s outperformance to a mix of upmarket growth, enhanced AI product adoption, and disciplined operational execution.

• Upmarket strategy gains traction: The shift toward enterprise-grade customers resulted in 73% of total annual contract value now coming from the upmarket segment, with a 6% growth rate and improved net revenue retention above 100% in this cohort.
• AI-driven product expansion: The Copilot and GTM Workspace platforms saw continued adoption, with Copilot driving higher customer engagement and renewal uplift, while GTM Studio generated early positive feedback as a unified data management and execution tool for sales operations.
• Operations suite accelerates growth: The operations suite, integrating proprietary data and AI, was ZoomInfo’s fastest-growing product, expanding over 20% year over year and contributing to increased customer stickiness, especially among larger organizations.
• Salesforce partnership broadens reach: The new integration with Salesforce’s Agentforce allows sales teams to leverage ZoomInfo’s data directly within their existing CRM workflows, enhancing natural language opportunity discovery and targeted prospecting.
• Operational discipline improves margins: Margin expansion was driven by disciplined investments, a higher quality customer base, and better payment risk management in the downmarket segment, which included reducing invoice write-offs by 45% since last year.

Drivers of Future Performance

Management’s outlook centers on sustaining upmarket expansion, accelerating adoption of AI-driven go-to-market tools, and maintaining strong operational efficiency.

• Enterprise focus continues: Management believes deepening relationships with large customers, coupled with expanded product offerings, will drive recurring revenue and higher retention, as enterprise clients increasingly adopt ZoomInfo’s AI-driven workflows.
• AI innovation and integration: The company expects that new product launches, including GTM Studio and ongoing enhancements to Copilot, will support broader usage across sales and marketing roles, leading to additional upsell and cross-sell opportunities.
• Ongoing margin discipline: Management plans to maintain profitability through further operational improvements, focusing on efficiency gains from AI adoption internally and continued cost control, particularly in the downmarket segment.

Catalysts in Upcoming Quarters

In the coming quarters, the StockStory team will be tracking (1) the pace of adoption for GTM Studio and Copilot among large enterprise clients, (2) continued expansion into the upmarket segment and improvement in net revenue retention, and (3) the impact of Salesforce integration on customer acquisition and upsell activity. Additionally, internal efficiency gains from AI and further product innovation will be important indicators of sustained margin growth.

ZoomInfo currently trades at $11.65, down from $11.83 just before the earnings. At this price, is it a buy or sell? The answer lies in our full research report (it’s free for active Edge members).

Our Favorite Stocks Right Now

Donald Trump’s April 2025 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities.

The smart money is already positioning for the next leg up. Don’t miss out on the recovery - check out our Top 5 Strong Momentum 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-small-cap company Exlservice (+354% 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.