ZoomInfo Announces Second Quarter 2022 Financial Results
August 1, 2022
GAAP Revenue of $267.1 million Grows 54% year-over-year
GAAP Operating Margin of 15% and Adjusted Operating Income Margin of 40%
Cash Flow from Operations of $106.2 million and Unlevered Free Cash Flow of $108.3 million
VANCOUVER, Wash.--(BUSINESS WIRE)--Aug. 1, 2022-- ZoomInfo, (NASDAQ: ZI) a global leader in modern go-to-market software, data, andintelligence, today announced its financial results for the second quarter ended June 30, 2022.
“Customers of all sizes and industries are leveraging ZoomInfo data, insights, automation, and workflows to drive a more efficient go-to-market motion,
which is critical in any economic environment,” said Henry Schuck, ZoomInfo Founder and CEO. “Our platform strategy is resonating with customers,
and we delivered another record quarter, combining strong revenue growth, profitability, and free cash flow.”
Second Quarter 2022 Financial and Other Recent Highlights Financial Highlights:

Revenue of $267.1 million, an increase of 54% year-over-year.
Operating income of $39.5 million and Adjusted Operating Income of $106.9 million.
GAAP operating income margin of 15% and Adjusted Operating Income Margin of 40%.
Cash flow from operations of $106.2 million and Unlevered Free Cash Flow of $108.3 million.
Business and Operating Highlights:

Earned the International Organization for Standardization (ISO) 27701 privacy certification, further strengthening
ZoomInfo’s commitment to data security and privacy. ZoomInfo has met the rigorous qualifications of ISO 27701, a privacy
extension to the international information security management standard, ISO/IEC 27001, which the company attained in2020. ISO 27701 provides the requirements and guidance for companies to establish, implement, maintain, and continually
improve their Privacy Information Management System.
Expanded our offering by adding Pipeline management and Forecasting within Chorus.ai. This allows us to expand ourfootprint and value proposition throughout Account Executive, Account Management, and Customer Success teams.
Momentum Signals allow our customers to identify deals that need attention by flagging risks like negative buyer
sentiment, issues discussed on calls, slow follow-ups or simply not having the right buyers engaged - all things you would
miss unless you sit on every call.
Integrated the SalesOS experience so customers can engage their prospects through emails, calls, or advanced sales
automation with 1-click, without ever leaving the platform.
Signed the United Nations Global Compact (UNGC), the world’s largest corporate sustainability initiative. By participating in
the UNGC, ZoomInfo has committed to aligning its strategy, culture, and operations in support of the Ten Principles onhuman rights, labor, environment, and anti-corruption. ZoomInfo is one of the first 500 U.S.-based companies to sign the
UNGC.
Closed the quarter with more than 30,000 customers and with 1,763 customers with $100,000 or greater in annual contract
value.

Q2 2022 Financial Highlights (Unaudited)($ in millions, except per share amounts)
GAAP
Quarterly Change YoY
Results
Revenue$267.1

54%

Operating Income

$39.5

(3)%

Non-GAAP
Quarterly Change YoY
Results

Adjusted Operating Income$106.941%

Operating Income Margin

15%

Adjusted Operating Income Margin40%

Net Income Per Share (Diluted)$0.04

Adjusted Net Income per share (Diluted)$0.21

Unlevered Free Cash Flow

$108.3

Cash Flow from Operating Activities $106.2

20%

18%

The Company uses a variety of operational and financial metrics, including non-GAAP financial measures, to evaluate its performance and financial
condition. The accompanying financial data includes additional information regarding these metrics and a reconciliation of non-GAAP financial
information for historical periods to the most directly comparable GAAP financial measure. The presentation of non-GAAP financial information should
not be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP.
Business Outlook:
Based on information available as of August 1, 2022, ZoomInfo is providing guidance for the third quarter and full year 2022 as follows:

Q3 2022
Prior FY 2022
FY 2022
GAAP Revenue$277 - $279 million $1.06 - $1.07 billion $1.08 - $1.09 billion
Non-GAAP Adjusted Operating Income$111 - $113 million $418 - $424 million $433 - $437 million
Non-GAAP Adjusted Net Income per share $0.19 - $0.20$0.75 - $0.77$0.78 - $0.80
Non-GAAP Unlevered Free Cash Flow
Not Guided$435 - $445 million $438 - $446 million
Weighted Average Shares Outstanding
412 million
411 million
411 million

Conference Call and Webcast Information:
ZoomInfo will host a conference call today, August 1, 2022, to review its results at 4:30 p.m. Eastern Time, 1:30 p.m. Pacific Time. To participate in thelive conference call via telephone, please register here. Upon registering, a dial-in number and unique PIN will be provided to join the conference call.
The call will also be webcast live on the Company’s investor relations website at https://ir.zoominfo.com/, where related presentation materials will be
posted prior to the conference call. Following the conference call, an archived webcast of the call will be available for one year on ZoomInfo’s Investor
Relations website.
Non-GAAP Financial Measures and Other Metrics:
To supplement our consolidated financial statements presented in accordance with GAAP, this press release contains non-GAAP financial measures,
including Adjusted Operating Income, Adjusted Operating Income Margin, Adjusted Net Income, Adjusted Net Income Per Share, and Unlevered Free
Cash Flow. We believe these non-GAAP measures are useful to investors in evaluating our operating performance because they eliminate certain
items that affect period-over-period comparability and provide consistency with past financial performance and additional information about our
underlying results and trends by excluding certain items that may not be indicative of our business, results of operations, or outlook.​
Non-GAAP financial measures are not meant to be considered in isolation or as a substitute for the comparable GAAP measures, but rather as
supplemental information to our business results. This information should be read only in conjunction with our consolidated financial statements
prepared in accordance with GAAP. There are limitations to these non-GAAP financial measures because they are not prepared in accordance withGAAP and may not be comparable to similarly titled measures of other companies due to potential differences in methods of calculation and items orevents being adjusted. In addition, other companies may use different measures to evaluate their performance, all of which could reduce theusefulness of our non-GAAP financial measures as tools for comparison. A reconciliation is provided at the end of this press release for each historical
non-GAAP financial measure to the most directly comparable financial measure stated in accordance with GAAP. We do not provide a quantitative
reconciliation of the forward-looking non-GAAP financial measures included in this press release to the most directly comparable GAAP measures dueto the high variability and difficulty to predict certain items excluded from these non-GAAP financial measures; in particular, the effects of stock-based
compensation expense, taxes and amounts under the exchange tax receivable agreement, deferred tax assets and deferred tax liabilities, andrestructuring and transaction expenses. We expect the variability of these excluded items may have a significant, and potentially unpredictable, impact
on our future GAAP financial results.
We define Adjusted Operating Income as income from operations plus (i) impact of fair value adjustments to acquired unearned revenue, (ii)amortization of acquired technology and other acquired intangibles, (iii) equity-based compensation expense, (iv) restructuring and transaction-related
expenses, and (v) integration costs and acquisition-related compensation. We define Adjusted Operating Income Margin as Adjusted Operating
Income divided by the sum of revenue and the impact of fair value adjustments to acquired unearned revenue.
We define Adjusted Net Income as Adjusted Operating Income less (i) interest expense, net (ii) other (income) expense, net, excluding TRA liability
remeasurement expense (benefit) and (iii) income tax expense (benefit) including incremental tax effects of adjustments to arrive at Adjusted
Operating Income and current tax benefits related to the TRA. We define Adjusted Net Income Per Share as Adjusted Net Income divided by diluted
weighted average shares outstanding.
We define Unlevered Free Cash Flow as net cash provided from operating activities less (i) purchases of property and equipment and other assets,
plus (ii) cash interest expense, (iii) cash payments related to restructuring and transaction-related expenses, and (iv) cash payments related tointegration costs and acquisition-related compensation. Unlevered Free Cash Flow does not represent residual cash flow available for discretionary
expenditures since, among other things, we have mandatory debt service requirements.
Cautionary Statement Regarding Forward-Looking Information
This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Actual results maydiffer materially from those expressed or implied by these statements. You can generally identify our forward-looking statements by the words“anticipate,” “believe,” “can,” “continue,” “could,” “estimate,” “expect,” “forecast,” “goal,” “intend,” “may,” “might,” “objective,” “outlook,” “plan,”“potential,” “predict,” “projection,” “seek,” “should,” “target,” “trend,” “will,” “would” or the negative version of these words or other comparable words.
Any statements in this press release regarding future revenue, earnings, margins, financial performance, cash flow, liquidity or results of operations(including, but not limited to, the guidance provided under “Business Outlook”), and any other statements that are not historical facts are forwardlooking statements. We have based our forward-looking statements on our management’s beliefs and assumptions based on information available toour management at the time the statements are made. We caution you that assumptions, beliefs, expectations, intentions and projections about future
events may and often do vary materially from actual results. Therefore, actual results could differ materially from those expressed or implied by ourforward-looking statements.
Factors that could cause actual results to differ from those expressed or implied by our forward-looking statements include, among other things: future
economic, competitive, and regulatory conditions, the COVID-19 pandemic, the successful integration of acquired businesses, and future decisions
made by us and our competitors. All of these factors are difficult or impossible to predict accurately and many of them are beyond our control. For afurther list and description of these and other important risks and uncertainties that may affect our future operations, see Part I, Item 1A - Risk Factors
in our most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission, which we may update in Part II, Item 1A - Risk
Factors in Quarterly Reports on Form 10-Q we have filed or will file hereafter. Our forward-looking statements do not reflect the potential impact of any
future acquisitions, mergers, dispositions, joint ventures, investments, or other strategic transactions we may make. Each forward-looking statement
contained in this presentation speaks only as of the date of this presentation, and we undertake no obligation to update or revise any forward-looking
statements whether as a result of new information, future developments or otherwise, except as required by law.
About ZoomInfo
ZoomInfo (NASDAQ: ZI) is a leader in modern go-to-market software, data, and intelligence for more than 30,000 companies worldwide. ZoomInfo’s
revenue operating system, RevOS, empowers business-to-business sales, marketing, and recruiting professionals to hit their number by pairing
best-in-class technology with unrivaled data coverage, accuracy, and depth of company and contact information. With integrations embedded into
workflows and technology stacks, including the leading CRM, Sales Engagement, Marketing Automation, and Talent Management applications,
ZoomInfo drives more predictable, accelerated, and sustainable growth for its customers. ZoomInfo emphasizes GDPR and CCPA compliance. In
addition to creating the industry’s first proactive notice program, the company is a registered data broker with the states of California and Vermont.
Read about ZoomInfo’s commitment to compliance, privacy, and security. For more information about ZoomInfo’s leading go-to-market software, data,and intelligence, and how they help sales, marketing, and recruiting professionals, please visit www.zoominfo.com.
Website Disclosure
ZoomInfo intends to use its website as a distribution channel of material company information. Financial and other important information regarding theCompany is routinely posted on and accessible through the Company’s website at https://ir.zoominfo.com/. Accordingly, you should monitor theinvestor relations portion of our website at https://ir.zoominfo.com/ in addition to following our press releases, SEC filings, and public conference calls
and webcasts. In addition, you may automatically receive email alerts and other information about ZoomInfo when you enroll your email address byvisiting the “Email Alerts” section of our investor relations page at https://ir.zoominfo.com/.

ZoomInfo Technologies Inc.
Condensed Consolidated Balance Sheets(in millions, except share data)
June 30,

December 31,

2022

2021

(unaudited)
AssetsCurrent assets:
Cash and cash equivalents
Short-term investments
Accounts receivable, net
Prepaid expenses and other current assets$

352.7 $
12.9
161.9
45.3
6.0

308.3
18.4
187.0
27.1
4.9

578.8

545.7

5.8
47.8
60.1
431.4
1,695.8
4,083.4
105.4

5.8
41.7
59.8
431.0
1,575.1
4,116.0
77.8$

7,008.5 $6,852.9$

19.9 $

15.9

Income tax receivable
Total current assets
Restricted cash, non-current
Property and equipment, net
Operating lease right-of-use assets, net
Intangible assets, net
Goodwill
Deferred tax assets
Deferred costs and other assets, net of current portion
Total assets
Liabilities and Permanent Equity
Current liabilities:
Accounts payableAccrued expenses and other current liabilities
Unearned revenue, current portion
Income taxes payable
Current portion of tax receivable agreements liability
Current portion of operating lease liabilities
Total current liabilities
Unearned revenue, net of current portionTax receivable agreements liability, net of current portion
Operating lease liabilities, net of current portionLong-term debt, net of current portion
Deferred tax liabilities
Other long-term liabilities
Total liabilities

84.5
410.1
7.7
5.4
8.2

103.3
361.5
8.4
10.4
8.1

535.8

507.6

1.7
3,046.8
61.4
1,234.3
1.8
2.8

2.7
3,046.0
61.5
1,232.9
1.5
2.8

4,884.6

4,855.0

4.0
1,954.1
30.9
134.9
2,123.9

4.0
1,871.6
9.5
112.8
1,997.9

7,008.5 $6,852.9

Commitments and Contingencies
Permanent Equity:
Class A common stock, par value $0.01
Additional paid-in capital
Accumulated other comprehensive income (loss)
Retained Earnings
Total equity
Total liabilities and permanent equity$

ZoomInfo Technologies Inc.
Consolidated Statements of Operations(in millions, except per share amounts; unaudited)Three Months Ended June 30, Six Months Ended June 30,
2022
Revenue

$

2021

267.1

$

2022

2021

174.0 $

508.8

$

327.3

34.7
12.3

23.5
6.8

67.5
23.5

44.9
13.5

220.1

143.7

417.8

268.9

Sales and marketing(1)

95.2

49.9

179.3

98.7

Research and development(1)

49.5

24.0

95.1

44.4

General and administrative(1)

29.2
5.6
1.1

21.9
4.8
2.2

57.0
10.9
3.6

40.7
9.6
6.6

180.6

102.8

345.9

200.0

39.5

40.9

71.9

68.9

11.7
—
1.4

10.1
—
0.1

23.5
—
2.8

16.6
5.9
(0.1)

Income tax expense (benefit)

26.4
10.5

30.7
6.2

45.6
23.5

46.5
55.9

Net income (loss)

15.9

24.5

22.1

(9.4)

Cost of service:
Cost of service(1)Amortization of acquired technology
Gross profit
Operating expenses:

Amortization of other acquired intangibles
Restructuring and transaction-related expenses
Total operating expenses
Income (loss) from operations
Interest expense, net
Loss on debt modification and extinguishment
Other (income) expense, net
Income (loss) before income taxes

Less: Net income (loss) attributable to noncontrolling interests
Net income (loss) attributable to ZoomInfo Technologies Inc. $Net income (loss) per share of Class A and Class C common stock:

—
15.9

15.2
$

9.3 $

—
22.1

(21.9)$

12.5

BasicDiluted

$
$

0.04
0.04

$
$

0.05 $
0.05 $

0.06
0.05

$
$

0.07
0.07

(1) Amounts include equity-based compensation expense, as follows:

Three Months Ended June 30, Six Months Ended June 30,
2022
Cost of service
Sales and marketing
Research and development

2022

2021

5.0
20.4
15.3
6.3

$

3.2
7.2
3.2
3.5

$

9.6
36.5
30.9
12.5

$

6.7
15.6
5.8
7.1

$

47.0

$

17.1

$

89.5

$

35.2

General and administrative
Total equity-based compensation expense

2021

$

ZoomInfo Technologies Inc.
Consolidated Statements of Cash Flows(in millions; unaudited)
Six Months Ended June 30,
2022
Cash flows from operating activities:
Net income (loss)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization
Amortization of debt discounts and issuance costs
Amortization of deferred commissions costs
Asset impairments
Loss on debt modification and extinguishment
Deferred consideration valuation adjustments
Equity-based compensation expense
Deferred income taxes
Tax receivable agreement remeasurement
Provision for bad debt expense
Changes in operating assets and liabilities, net of acquisitions:
Accounts receivable
Prepaid expenses and other current assets
Deferred costs and other assets, net of current portion
Income tax receivable
Accounts payable
Accrued expenses and other liabilities
Unearned revenue
Net cash provided by (used in) operating activities
Cash flows from investing activities:
Purchases of short-term investments
Maturities of short-term investments
Proceeds from sales of short-term investments
Purchases of property and equipment and other assets
Cash paid for acquisitions, net of cash acquired
Net cash provided by (used in) investing activities
Cash flows from financing activities:
Payments of deferred consideration
Proceeds from debt
Repayment of debt
Payments of debt issuance and modification costs
Proceeds from exercise of stock options
Taxes paid related to net share settlement of equity awards
Payments of equity issuance costs
Tax receivable agreement payments
Tax distributions
Net cash provided by (used in) financing activities

$

22.1

2021
$

(9.4)

42.5
1.5
30.0
—
—
—
89.5
18.5
0.9
0.6

30.6
1.0
18.5
2.7
5.9
0.2
35.2
48.1
—
2.1

26.8
(3.6)
(38.5)(1.2)
4.0(22.7)
40.8

7.8
(3.6)
(22.1)
1.5
12.1
(2.3)
53.3

211.2

181.6

(15.2)
20.6—(14.8)(143.6)(119.8)41.5
42.1(11.0)(31.8)(153.0)(79.0)

(1.1)
—
—
(0.4)
0.6
(7.6)
(0.3)
(5.0)
—

(9.4)
350.0
(356.4)
(5.8)
0.8
(2.9)
—
—
(15.3)(13.8)(39.0)

Net increase (decrease) in cash, cash equivalents, and restricted cash
Cash, cash equivalents, and restricted cash at beginning of period

44.4
314.1
$

Cash, cash equivalents, and restricted cash at end of period

358.5

Cash, cash equivalents, and restricted cash at end of period:
Cash and cash equivalents
Restricted cash, current
Restricted cash, non-current

63.6
271.0
$

334.6

352.7
—
5.8

332.9
—
1.7

$

358.5

$

334.6

$
$

25.6
6.8

$
$

12.3
4.3

Supplemental disclosures of non-cash investing and financing activities:
Deferred variable consideration from acquisition of a business$
Property and equipment included in accounts payable and accrued expenses and other current liabilities $

1.1
1.3

$
$

—
2.3

Total cash, cash equivalents, and restricted cash
Supplemental disclosures of cash flow information
Interest paid in cash
Cash paid for taxes

ZoomInfo Technologies Inc.
Reconciliation of GAAP Operating Cash Flow to Unlevered Free Cash Flow($ in millions; unaudited)Three Months Ended June 30, Six Months Ended June 30,
2022
Cash flow from operations
Purchases of property and equipment and other assets
Interest paid in cash
Restructuring and transaction-related expenses paid in cash

2022

2021

$

106.2
(8.2)
6.1
1.4
2.8

$

88.6
(6.3)
5.5
2.7
1.3

$

211.2
(14.8)
25.6
9.4
2.8

$

181.6
(11.0)
12.3
3.8
2.6

$

108.3

$

91.8

$

234.2

$

189.3

Integration costs and acquisition-related compensation paid in cash
Unlevered Free Cash Flow

2021

ZoomInfo Technologies Inc.
Reconciliation of GAAP Net Income (Loss) to Adjusted Net Income and Income (Loss) From Operations to Adjusted Operating Income(in millions, except per share amounts; unaudited)Three Months Ended June30,
2022
Net income (loss)
Add (less): Expense (benefit) from income taxes
Add: Interest expense, net
Add: Loss on debt modification and extinguishment$

Add (less): Other expense (income), net
Income (loss) from operations
Add: Impact of fair value adjustments to acquired unearned revenue
Add: Amortization of acquired technology
Add: Amortization of other acquired intangibles
Add: Equity-based compensation
Add: Restructuring and transaction-related expenses
Add: Integration costs and acquisition-related expenses
Adjusted Operating Income
Less: Interest expense, net
Less (add): Other expense (income), net, excluding TRA liability remeasurement(benefit) expense
Add (less): Benefit (expense) from income taxes
Less: Tax impacts of adjustments to net income (loss)
Adjusted Net Income
Shares for Adjusted Net Income Per Share(1)

$

15.9
10.5
11.7
—
1.4

Six Months Ended June
30,

2021
$

24.5
6.2
10.1
—
0.1

2022
$

22.1
23.5
23.5
—
2.8

2021
$

(9.4)
55.9
16.6
5.9
(0.1)

39.5
0.6
12.3
5.6
47.0
1.1
0.8

40.9
0.4
6.8
4.8
17.1
2.2
3.5

71.9
1.7
23.5
10.9
89.5
3.6
1.4

68.9
1.1
13.5
9.6
35.2
6.6
6.9

106.9
(11.7)

75.8(10.1)

202.5(23.5)

141.9(16.6)(1.4)(10.5)
0.8

(0.1)
(6.2)
(2.9)

(1.9)
(23.5)
4.3

0.1(55.9)
37.7

84.1
410

$

56.4
404

$

157.9
409

$

107.1
404

Adjusted Net Income Per Share

$

0.21

$

0.14

$

0.39

$

0.27

__________________________
1. Diluted earnings per share is computed by giving effect to all potential weighted average Class A common stock, Class C common stock, andany securities that are convertible into Class A common stock, including options and restricted stock units. The dilutive effect of outstanding
awards and convertible securities is reflected in diluted earnings per share by application of the treasury stock method, excluding deemed
repurchases assuming proceeds from unrecognized compensation as required by GAAP. Shares and grants issued in conjunction with the
IPO were assumed to be issued at the beginning of the period.
Three Months Ended June 30, Six Months Ended June 30,($ in millions)
Adjusted Operating Income

2022$

Revenue

2021
$

267.1
0.6

Impact of fair value adjustments to acquired unearned revenue
Revenue for adjusted operating margin calculation
Adjusted Operating Income Margin

106.9

$

267.7
40%

75.8

2022
$

174.0
0.4
$

174.4

Media Contact:
Steve Vittorioso
Director, Communications
PR@zoominfo.com
Source: ZoomInfo

2021
$

508.8
1.7
$

43%

View source version on businesswire.com: https://www.businesswire.com/news/home/20220801005228/en/
Investor Contact:
Jeremiah Sisitsky
VP of Investor Relations
617-826-2068
IR@zoominfo.com

202.5

510.5
40%

141.9
327.3
1.1

$

328.4
43%