ZoomInfo Technologies Inc., trading under the symbol ZI, specializes in providing a go-to-market intelligence platform designed to assist businesses in acquiring and growing customers. The company recently reported its first quarter 2025 financial results, indicating a slight decline in revenue but a positive shift in operational metrics and customer retention.

In Q1 2025, ZoomInfo achieved GAAP revenue of $306 million, down 1% year-over-year. However, adjusted operating income was $101 million, yielding a margin of 33%, surpassing the high end of prior guidance. Operating cash flow for the quarter was reported at $119 million, with unlevered free cash flow at $125 million, constituting a margin of 41%.

The company’s annual net revenue retention rate remained stable at 87% for the second consecutive quarter. ZoomInfo closed the period with 1,868 customers, each generating more than $100,000 in annual contract value (ACV), reflecting an increase of 1 customer quarter-over-quarter and an increase of 108 year-over-year.

A significant growth area is the company’s upmarket segment, which now represents 71% of overall business and grew 3% year-over-year. The downmarket segment, however, continued to show a decline, shrinking by 10% year-over-year. Management highlighted that this reflect a strategic shift towards more sustainable relationships with larger clients.

In terms of guidance, ZoomInfo expects Q2 2025 GAAP revenue to range from $295 million to $298 million and adjusted operating income between $101 million and $104 million. For the full year, the GAAP revenue projection is between $1.195 billion and $1.205 billion, anticipating approximately negative 1.2% annual growth at the midpoint.

The company initiated share repurchases in Q1, buying back approximately 8.6 million shares at an average price of $11.05, totaling about $95 million. With a board-approved repurchase authorization of $500 million, $543 million remains for future share buybacks.

ZoomInfo ended the quarter with cash, cash equivalents, and investments amounting to $143 million against gross debt of $1.24 billion, resulting in a net leverage ratio of 2.5x adjusted EBITDA. The unearned revenue at the end of Q1 totaled $484 million with remaining performance obligations of $1.13 billion.

As ZoomInfo modifies its strategic focus, the company will continue to prioritize growth in its upmarket segment while managing its downmarket offerings.