The tactic of moving "upmarket" is one many leading SaaS companies do as it usually results in higher retention and larger revenue longer term. A "Land and Expand" approach allows ZoomInfo to be a pure contact data provider at first before "expanding" into an account with upsells such as its Sales and Marketing platforms. This revenue beat analyst expectations by $13.25 million, which is a testament to their new "platform" or modular strategy. Revenue was $267.1 million, up a rapid 54% year over year, with 42% of this growth being purely organic and excluding recent acquisitions. ZoomInfo generated strong financials for the second quarter of 2022. In addition, the fully enriched data can also flow back to Snowflake for storage, which is a game changer for Business Intelligence. This enables first and third-party data to be brought together and used as an extra enrichment source. Recently, the company has also announced a way for customers to integrate Snowflake ( SNOW) with Ringlead (owned by ZoomInfo). The whole platform really helps from contact and connection to the final close of a deal. This may not seem like a big deal, but this really does help with conversions as multiple studies show the more fields in the form the lower the chance of it being filled out. Adobe Marketo was a pioneer with this feature and calls it " progressive profiling". Its FormComplete feature allows lead capture forms to be automatically enriched with known prospect data and thus minimising the number of fields, which need to be inputted by the prospect. This can also be integrated with Slack Notifications to enable a Sales Rep to respond rapidly. The platform even includes a chatbot platform called "Chorus" which can identify high-priority leads on the website and then spark a conversation with them. As you can see from the chart below, this now covers intent data, sales engagement, Account Based Marketing, site visitor identification, and more. However, ZoomInfo has now brought this all together into one platform, which simplifies management for teams. Historically, many B2B teams would have used at least one of the aforementioned platforms (Salesforce, HubSpot, etc.), in addition to a database such as ZoomInfo, RocketReach, or LinkedIn Sales Navigator ( MSFT) to get contact information. The company now offers an alternative to Salesforce ( CRM), HubSpot ( HUBS), and even Adobe Marketo ( ADBE) with its Revenue Operating System (RevOS). These include platforms for Sales, Marketing, Operations, and even Talent recruitment. ZoomInfo has expanded its market opportunity by launching a suite of new products which go beyond just a contact database. However, since then, they have expanded this TAM to $100 Billion. At its IPO in June 2020, the company had a Total Addressable Market (TAM) of $24 billion. ZoomInfo is a software company which has historically given B2B professionals access to its vast Database of contacts. In this post, I'm going to dive into the evolving business model, financials, and valuation for the juicy details, let's dive in. In this case, one of the original founders Henry Schuck is the CEO, which is great to see. In addition, a key trait I look for when investing into companies are those which are founder-led. With a super high 116% Retention rate, its >30,000 customers are finding the platform "sticky" and spending more on its new product features. The company has announced strong earnings for the second quarter and management even increased its guidance for FY22. The good news is since June 2022, the stock price has popped by 51%. However, the rising interest rate and high inflation environment caused the stock to get butchered by ~51% along with the rest of the growth stock market. Since its IPO in June 2020 till November 2021, the stock price effectively doubled. ZoomInfo ( NASDAQ: ZI) is a leading Go to Market Intelligence platform which was founded in 2007 as DiscoverOrg before being acquired by competitor Zoom Information in 2019.
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