ZoomInfo’s fourth quarter was marked by a clear upmarket shift and ongoing AI-driven product expansion, but the market reacted negatively to the results. Management highlighted that growth was primarily fueled by larger enterprise customers and increasing adoption of its Copilot platform, with CEO Henry Schuck noting, “Upmarket again grew 6% in our seasonally largest upmarket quarter.” However, management acknowledged persistent challenges in the downmarket segment and lingering headwinds from changes in AI and search engine optimization (SEO) that weighed on customer acquisition and renewal rates.
Is now the time to buy GTM? Find out in our full research report (it’s free for active Edge members).
ZoomInfo (GTM) Q4 CY2025 Highlights:
- Revenue: $319.1 million vs analyst estimates of $309.3 million (3.2% year-on-year growth, 3.2% beat)
- Adjusted EPS: $0.32 vs analyst estimates of $0.28 (13.5% beat)
- Adjusted Operating Income: $122.6 million vs analyst estimates of $118.9 million (38.4% margin, 3.2% beat)
- Revenue Guidance for Q1 CY2026 is $307.5 million at the midpoint, roughly in line with what analysts were expecting
- Adjusted EPS guidance for the upcoming financial year 2026 is $1.11 at the midpoint, in line with analyst estimates
- Operating Margin: 17%, up from 10% in the same quarter last year
- Annual Recurring Revenue: $1.25 billion (1.7% year-on-year growth, beat)
- Billings: $365 million at quarter end, in line with the same quarter last year
- Market Capitalization: $1.94 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 Q4 Earnings Call
- Mark Murphy (JPMorgan) asked about the overall health of the software industry and AI disruption concerns. CEO Henry Schuck said customer focus on growth remains strong and noted many top AI-native companies are ZoomInfo customers.
- Elizabeth Porter (Morgan Stanley) asked about margin trajectory as ZoomInfo shifts upmarket. CFO Graham O’Brien replied that upmarket customers drive higher margins and that new AI product rollouts are expected to lead to both margin expansion and some gross margin pressure.
- Brad Zelnick (Deutsche Bank) questioned how new product momentum reconciles with muted growth guidance. O’Brien responded that guidance assumes stable upmarket and worsening downmarket performance, with no incremental revenue from new AI products factored in.
- Taylor McGinnis (UBS) inquired about low bookings growth and downmarket trends. O’Brien said mix shift toward upmarket should help accelerate growth, and management expects downmarket headwinds to ease as SEO-related impacts are addressed.
- Rishi Jaluria (RBC) asked about customer concerns with consumption-based pricing models. Schuck explained that ZoomInfo provides transparency and controls to help customers manage costs and avoid unexpected charges.
Catalysts in Upcoming Quarters
In the coming quarters, the StockStory team will monitor (1) increased Copilot and GTM Workspace adoption rates among both new and existing enterprise customers, (2) the effectiveness of initiatives aimed at recovering downmarket and SEO-driven demand, and (3) the pace and impact of the shift to consumption-based pricing. Execution on these fronts will be critical for ZoomInfo’s ability to drive sustainable revenue growth and margin improvement.
ZoomInfo currently trades at $6.46, down from $7.32 just before the earnings. In the wake of this quarter, is it a buy or sell? The answer lies in our full research report (it’s free).
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