Summary
ZoomInfo's first quarter of fiscal 2025 showed a company trading top-line growth for margin discipline. Revenue for the quarter ended March 31, 2025 was $305.7 million, down 1% from $310.1 million in the prior-year quarter. Gross profit fell 3% to $258.4 million, and gross margin slipped to 84.5% from 86.0%. The decline traced to lower revenue, higher depreciation on internally developed capitalized software, and rising hosting fees. Operating income moved the other way. It rose 17% to $50.3 million, and operating margin climbed to 16.5% from 13.9%. Net income jumped 77% to $26.8 million, and diluted earnings per share rose 100% to $0.08 from $0.04. The prior-year period carried $30.2 million in litigation settlement charges tied to the Class Actions, which flattered the year-over-year comparison.
Cash generation held steady. Operating cash flow for the quarter was $119.2 million, up 3% from $115.9 million. Capital expenditures rose 16% to $14.8 million, driven by new facilities and more capitalization of development expenses. On a non-GAAP basis, unlevered free cash flow was $124.5 million, up 1%. Deferred revenue reached $484.4 million, up 9% from $444.3 million, and the company noted that $480.8 million of that balance sits in current liabilities. Remaining performance obligations were $1.13 billion, flat against the prior-year quarter. The company repurchased 8,598,274 shares during the quarter at an average price of $11.05, for $95.0 million.
The customer mix kept shifting upmarket. ZoomInfo closed the quarter with 1,868 customers holding $100,000 or more in annual contract value, up 108 year-over-year and up 1 from the prior quarter. Upmarket customers accounted for 71% of ACV as of March 31, 2025. Net revenue retention rounded to 87%, which the company said improved sequentially, and stood at 85% a year earlier. Management pointed to AI-first solutions and launched Go-To-Market Studio, a command center for revenue teams. The stock also began trading under the symbol GTM on May 13, 2025, replacing ZI.
Guidance frames a softer near term. For the second quarter of 2025, ZoomInfo guided non-GAAP adjusted operating income to $101 million to $104 million and non-GAAP adjusted net income per diluted share to $0.22 to $0.24. For the full year 2025, it guided adjusted operating income to $426 million to $436 million, adjusted net income per diluted share to $0.95 to $0.97, and unlevered free cash flow to $420 million to $440 million. The company guided weighted average shares outstanding of 350 million for the second quarter and 352 million for the full year.
Risks remain visible. Management flagged adverse macroeconomic conditions and expects cost of service as a percentage of revenue to stay consistent or modestly increase, citing rising AI consumption costs and customer onboarding expenses as it migrates customers to Copilot. Restructuring and transaction-related expenses were $5.4 million in the quarter, tied mostly to severance and lease restructuring. The tax receivable agreement liability stood at $2,763.7 million as of March 31, 2025, and remeasurements of that liability can swing results. Total net leverage to Adjusted EBITDA was 2.5x, and the company held $138.5 million in cash and cash equivalents. Adjusted operating income, a non-GAAP measure, fell 15% to $100.9 million, and adjusted EBITDA fell 13% to $107.7 million, showing that the GAAP profit gain leaned on the absence of prior-year litigation charges.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q1 FY2025 | Q4 FY2024 | QoQ | Q1 FY2024 | YoY |
|---|---|---|---|---|---|
| Revenue | $305.7M | $309.1M | -1.1% | $310.1M | -1.4% |
| Gross profit | $258.4M | $255.9M | +1.0% | $266.7M | -3.1% |
| Gross margin | 84.5% | 82.8% | +1.7 pp | 86.0% | -1.5 pp |
| Research & development | $51.1M | $56.4M | -9.4% | $43.7M | +16.9% |
| Sales & marketing | $106.0M | $114.9M | -7.7% | $99.4M | +6.6% |
| General & administrative | $45.8M | $48.3M | -5.2% | $75.1M | -39.0% |
| Total operating expenses | $208.1M | $225.0M | -7.5% | $223.7M | -7.0% |
| Operating income (loss) | $50.3M | $30.9M | +62.8% | $43.0M | +17.0% |
| Operating margin | 16.4% | 10.0% | +6.4 pp | 13.9% | +2.6 pp |
| Net income (loss) | $26.8M | $14.6M | +83.6% | $15.1M | +77.5% |
| Net margin | 8.8% | 4.7% | +4.0 pp | 4.9% | +3.9 pp |
| Diluted EPS | $0.08 | $0.04 | +$0.04 | $0.04 | +$0.04 |
| Customers | 1,868 | — | — | — | — |
Risks
Cost of service is expected to remain consistent or modestly increase due to rising AI consumption costs and customer onboarding expenses as existing customers migrate to Copilot and new Copilot customers are acquired and onboarded. Gross margin decreased 1.5 pp in FY2025 Q1 compared to FY2024 Q1.
The company had a $2,763.7 million liability related to projected obligations under its tax receivable agreements as of March 31, 2025. Changes in tax law or state income apportionment could lead to substantial remeasurement of the TRA liability through Other loss, net.
Management expects near-term net revenue retention to be impacted by macroeconomic conditions. Net revenue retention was 87% as of March 31, 2025 and 85% as of March 31, 2024, while revenue decreased 1.4% in FY2025 Q1 compared to FY2024 Q1.
Operational changes implemented in Q2 2024 shifted focus toward customers more likely to pay, renew, and grow, and required upfront prepayment from higher-risk prospects. These changes contributed to the revenue decrease in FY2025 Q1 and may continue to affect revenue comparability.
Restructuring and transaction-related expenses were $5.4 million in FY2025 Q1 compared to $0.2 million in FY2024 Q1, primarily employee severance and lease restructuring. As new leases commence, the company may face increased impairment expenses for spaces it does not intend to occupy or plans to sublease.
SaaS KPIs
All quarters →Adjusted Operating Income Margin
Unlevered Free Cash Flow
Net Revenue Retention
Customers with $100,000+ ACV
Summary, forecast, risks and KPIs are extracted from ZoomInfo Technologies Inc.'s SEC filings for Q1 FY2025 (10-Q / 10-K and the 8-K earnings release); GAAP figures in the summary are checked against the reported XBRL data. They can contain errors; the filings are authoritative. Processed Oct 1, 2026.