ZoomInfo's Appeal Based on Earnings Release~Will the company be on the same level as Salesforce?

The spread of the covid-19, which is raging worldwide, is still having a significant impact on social systems and people's lives more than a year after the outbreak. The declaration of a state of emergency and the lockdown have worsened the economy and employment, further changing the way employees work.

In the wake of the pandemic, many companies switched to work remotely. Subsequently, repeated emergency declarations have led to an increase in the number of companies adopting a hybrid work style that uses both office and remote work. According to a survey by PERSOL Process & Technology Corporation (*1), about 80% of those who feel that they are working efficiently are doing hybrid work. In the post-pandemic era, hybrid work will be the default. So, what should we do to make hybrid work more efficient? The answer, of course, is to use technology.

(*1)【テレワークに関する意識・実態調査】会社への愛着心・信頼感が最も強いのはオンライン×オフラインを組み合わせる“ハイブリッドワーク”を実施している社員であることが判明! | ニュースリリース | パーソルプロセス&テクノロジー株式会社 (persol-pt.co.jp)

In recent years, with the spread of IoT and smart phones, various information related to people and things are being converted into data and accumulated. Efforts to create new value by utilizing big data analysis and AI technology for this data are accelerating worldwide. In this environment, there is a company that has quickly gained attention for being the first technology IPO of 2020. That company is ZoomInfo Technologies.

ZoomInfo Technologies (ZI) is a U.S. business intelligence platform company that offers a service called ZoomInfo, which manages and provides customer data necessary for sales in a cloud database. Its clients include very famous companies such as Salesforce, Google, ZOOM, and Amazon. Let's take a look at what makes the company's service so appealing that many prominent companies want to use it.

The first is the size of the database (DB) and its high accuracy. Currently, the platform has a database of information on a huge number of companies, about 14 million. Moreover, the database is always automatically updated to the latest state, guaranteeing accuracy of over 95%. This is made possible by the four data sources and the number of users.

Four data sources: 1. Contributory Network: 100 million pieces of data information per day 2. Unstructured Public Information: Collects data from over 38 million websites 3. Data Training Lab: 300 researchers 4. Generally Available Information: general information

Number of active users: about 70,000

The more people use the service, the more data it accumulates, and the more useful it becomes. 100 million raw data records are used for ZoomInfo data per day. By increasing the number of active users and acquiring a larger volume of data, it will be possible to ensure further reliability.

In conventional CRMs, it is often the business users, the sales and marketing staff, who are responsible for keeping the information up to date. However, from the above point of view, it is now possible to use ZoomInfo to improve business efficiency.

Next is the richness of the functions. This service is not a simple sales and marketing support service. It offers a variety of functions. It is easier to understand from each perspective of sales and marketing.

Sales perspective: Automatic creation of a list of potential customers No need to connect to CRM or MA, automatic aggregation. Customer information can be checked without switching tools. Automatically alerts the sales team and makes proposals at the best time.

Marketing perspective: Scoring and ranking of new leads Automatic analysis and scoring of good customers. Automatic analysis and scoring of good customers. Automatically provide information that customers are looking for (triggered) Check open rates, time spent on the site, etc. Reduce bounce email rate.

In addition, since it can be connected to the following various SFA and MA, it creates a chemical reaction and builds a higher quality platform.

Lastly, it has high analytical capabilities. As mentioned earlier, it can determine what information the customer is looking for and change the information it provides depending on the customer. In other words, they can approach the right potential customers at the right time. Therefore, by providing the latest customer information, salespeople can reduce the man-hours required to manage customer data and can also check the latest information, thus enabling them to conduct sales more efficiently.

The appeal of ZoomInfo Technologies was the automation and accuracy of the DB, the richness of the functions, and the high level of analysis capabilities. Conventional salespeople spent a lot of time researching, managing, and organizing data, which posed the following three challenges.

1. Inaccurate contact information made it difficult to approach customers efficiently. 2. There was no information to determine when prospects would buy or sign up for a product. 3. Prioritization of targets was intuitive, and data was incomplete and random

The ZoomInfo platform is the solution to these problems. It is truly a high-tech tool. With this platform, we can now compete on quality rather than quantity. I look forward to the company's future growth.

Finally, I would like to summarize the most recent earnings announcements.

2021 Q1 Highlights (Announced on May 3, 2021)

Net sales: $153 million (+50% YoY) Non-GAAP operating income: $66.1 million (+35% YoY) Non-GAAP operating margin: 43% (YoY: 47%) Non-GAAP net income: $50.7 million (+151% YoY) Non-GAAP EPS: $0.13

Operating cash flow: $93.0 million (+229% YoY) Operating CF margin: 61 Free cash flow: $97.5 million (+77% YoY) FCF margin: 63

KPIs NRR (annual percentage change in value of contracts from the same customer): 108% (as of the end of FY2020) Number of customers: 20,000 or more Customers with annual contract amount of $100,000 or more: 950 or more RPO: $592 million