ZoomInfo Technologies Inc. reported its financial results for the first quarter of 2025, revealing a revenue of $305.7 million, a slight decrease of 1% from $310.1 million in the same period last year. The company attributed this decline primarily to operational changes implemented in the previous fiscal year. Despite the drop in revenue, net income saw a significant increase to $26.8 million, up 77% from $15.1 million in Q1 2024, largely due to reduced charges related to class action lawsuits and lower bad debt expenses.

The company's gross profit for the quarter was $258.4 million, resulting in a gross margin of 85%, down from 86% in the prior year. Operating expenses decreased to $208.1 million from $223.7 million, reflecting a 7% reduction. Notably, general and administrative expenses fell sharply by 39% to $45.8 million, primarily due to lower litigation-related costs compared to the previous year. In contrast, sales and marketing expenses increased by 6% to $106.0 million, driven by higher employee compensation costs.

ZoomInfo's customer base continues to grow, with 1,868 customers generating over $100,000 in annual contract value (ACV) as of March 31, 2025, compared to 1,760 in the same period last year. The company reported a net revenue retention rate of 87%, up from 85% year-over-year, indicating a stable demand for its services despite macroeconomic challenges. The total unearned revenue as of March 31, 2025, was $484.4 million, with $480.8 million expected to be recognized as revenue within the next 12 months.

In terms of strategic developments, ZoomInfo has continued its share repurchase program, with $95.0 million spent on repurchasing common stock during the quarter. The company has authorized a total of $1.6 billion for share repurchases, with $542.5 million remaining available. Looking ahead, ZoomInfo anticipates continued investment in its platform and customer acquisition efforts, while also navigating the impacts of macroeconomic conditions on its business performance. The company remains committed to enhancing its product offerings and expanding its market presence.

About ZoomInfo Technologies Inc.

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