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Mar 31

ZoomInfo Q1 2025 Earnings Report

ZoomInfo reported Q1 2025 results with a slight revenue decline but notable improvements in profitability and product innovation.

Key Takeaways

ZoomInfo delivered better-than-expected results for Q1 2025 with strong profitability, despite a small drop in revenue. The company emphasized upmarket momentum and introduced a new Go-To-Market Studio platform.

Revenue slightly declined by 1% YoY to $305.7M

Net Income rose to $26.8M, up from $15.1M a year ago

Launched Go-To-Market Studio to unify data and GTM strategy

Announced ticker change to ‘GTM’ starting May 13, 2025

Total Revenue
$306M
Previous year: $310M
-1.4%
EPS
$0.23
Previous year: $0.26
-11.5%
Customers with $100K+ ACV
1.87K
Previous year: 1.76K
+6.1%
Net Revenue Retention Rate
87%
Gross Profit
$258M
Previous year: $261M
-1.1%
Cash and Equivalents
$139M
Previous year: $406M
-65.9%
Free Cash Flow
$125M
Previous year: $123M
+1.5%
Total Assets
$6.41B
Previous year: $6.75B
-5.2%

ZoomInfo

ZoomInfo

Forward Guidance

ZoomInfo expects Q2 revenue between $295M and $298M and maintains its full-year revenue forecast, while guiding stable operating income and EPS.

Positive Outlook

  • Maintained FY2025 revenue guidance of $1.195B–$1.205B
  • Q2 2025 adjusted EPS guided at $0.22–$0.24
  • FY2025 adjusted operating income expected at $426M–$436M
  • Consistent unlevered free cash flow guidance of $420M–$440M
  • Q2 adjusted operating income forecasted at $101M–$104M

Challenges Ahead

  • Revenue guidance for Q2 implies continued YoY decline
  • No unlevered free cash flow guidance provided for Q2
  • Adjusted net income and EPS expected to be flat QoQ
  • Customer count growth slowed with only 1 net add QoQ
  • Reported GAAP revenue declined YoY in Q1