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.
Is now the time to buy GTM? Find out in our full research report (it’s free for active Edge members).
ZoomInfo (GTM) Q3 CY2025 Highlights:
- Revenue: $318 million vs analyst estimates of $303.8 million (4.7% year-on-year growth, 4.7% beat)
- Adjusted EPS: $0.28 vs analyst estimates of $0.26 (9.5% beat)
- Adjusted Operating Income: $117.7 million vs analyst estimates of $111.7 million (37% margin, 5.4% beat)
- Revenue Guidance for Q4 CY2025 is $308.5 million at the midpoint, above analyst estimates of $304.8 million
- Management raised its full-year Adjusted EPS guidance to $1.05 at the midpoint, a 5% increase
- Operating Margin: 21.2%, up from 14.3% in the same quarter last year
- Customers: 1,887 customers paying more than $100,000 annually
- Annual Recurring Revenue: $1.25 billion vs analyst estimates of $1.20 billion (4% year-on-year growth, 4.4% beat)
- Billings: $277.6 million at quarter end, down 1.7% year on year
- Market Capitalization: $3.30 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 From ZoomInfo’s Q3 Earnings Call
- Mark Murphy (JPMorgan) asked what fueled the quarter’s revenue strength. CFO Graham O’Brien cited Copilot renewal uplift, large deal wins, and the upmarket shift, also noting usage-based revenue growth.
- Elizabeth Porter (Morgan Stanley) inquired about early feedback on GTM Studio. CEO Henry Schuck described positive customer responses, especially around unified data management and campaign execution capabilities.
- Sitikantha Panigrahi (Mizuho) questioned upmarket retention and sources of NRR improvement. O’Brien credited targeted product development, upsell opportunities, and sequential gains in both upmarket and downmarket segments.
- Brad Zelnick (Deutsche Bank) sought details on the Salesforce Agentforce integration. Schuck explained that the partnership embeds ZoomInfo’s data in Salesforce workflows, facilitating opportunity identification and future collaborative products.
- Taylor McGinnis (UBS) asked about Q4 guidance and seasonality. O’Brien emphasized consistent guidance philosophy and shifting importance toward year-over-year trends, as the business becomes more upmarket-driven.
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 $10.60, down from $11.83 just before the earnings. In the wake of this quarter, is it a buy or sell? See for yourself in our full research report (it’s free for active Edge members).
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