Thursday, September 9, 2021

ZoomInfo (ZI) a history of opportune acquisitions

 Today, I wish to provide a little more color on one of my bigger positions ZoomInfo. ZI is US subscription-based software as a service (SaaS) company that sells access to its database of information about business people and companies to sales, marketing and recruiting professionals. Their tag line is simple

ZoomInfo is a leading go-to-market intelligence platform for sales and marketing teams.

Some Facts about ZI which made me invest in it: it has shows a 48% revenue growth over 3 years, 54% revenue growth (TTM vs prior TTM), gross profit margin 87%. Midcap at 24B. Its EPS growth was 50% and has a 97% institutional ownership. It is also part of my 'Hot watch list stocks' which is release every week on Twitter (see image for handle). These are the stocks that are potentially excellent picks long term and doing well in regards revenue and cash flows.  

I am of the firm opinion, that a business that generates positive and increasing operating cash flow is one which has the most opportunities to grow under able leadership. ZoomInfo checks all of those qualities hence is part of my portfolio. 

The stock has done well since I acquired it, and I anticipate it will continue to do well in future. The reason for this is the leadership at ZoomInfo has demonstrated acumen for acquiring companies that add to its value and provide a tremendous growth spurt. They are also exceptionally adept at making the right partnerships to further their business. That being said, here is a timeline chart of ZoomInfo acquisitions. On a side note, DiscoverOrg merged with ZoomInfo to be the company it is today, 2 of the acquisitions early on are this DiscoverOrg/ZI mash but that should not change our assessment of the company.


ZoomInfo: A timeline of acquisitions (blank) and partnerships (orange)

In order to further understand how these acquisitions added to the growth of the company, I have summarize this information in the table below (* represents partnerships).


Who

When acquired

Why was it acquired?

How (did it help?)

iProfile

2015

pioneer of sales intelligence for the technology industry

Combine iProfile’s comprehensive global professional contact and sales intelligence database with DiscoverOrg’s proprietary sales intelligence and analytics

Rainking

2018

delivering the most accurate intelligence that sales and marketing teams use

Solidify company’s position as the world’s leading B2B sales and marketing data provider, to accelerate pipeline and revenue growth

Y Labs

2018

 

To expand its center for product development and security operations.

Datanyze

2018

world-wide leader in technographic data: uses machine learning and proprietary methodologies to capture the technologies

be able to supplement its company and contact information with real-time alerts that enable sales and marketing professionals to sell based on customer technology decisions.

NeverBounce

2019

a leading provider of email verification and list cleansing services

enhanced accuracy of in-platform emails, seamlessly verify all email data in their internal marketing and sales systems

Komiko

2019

Komiko’s AI-powered CRM automation, playbooks, and predictive analytics

to accelerate the sales pipeline with valuable analytics,

Clickagy

2020

a leading provider of artificial intelligence-powered buyer intent data

Streaming Intent, an innovative solution that identifies companies with above-average search volume on business-to-business (B2B) topics within minutes of their web activity

Everstring

2020

a leading artificial intelligence-powered, business-to-business (B2B) data solutions provider.

EverString gives ZoomInfo a comprehensive business data graph, providing the foundation needed for enterprises to identify their total universe of customers and prospects, define their ideal profiles, leverage granular keywords and attributes to predict success, and focus their go-to-market motions.

BeyondCodes*

2021

a leading B2B demand generation company serving customers in India and globally.

partnership provides companies in India, as well as other countries in Asia, with direct and unprecedented access to ZoomInfo’s leading sales intelligence platform.

Leadspace*

2021

business-to-business (B2B) customer data platform provider,

partnership gives sales and marketing teams an unprecedented combination of B2B intelligence with enterprise-level data management and activation tools. Customers of Leadspace can now get access – via new connectors – to ZoomInfo’s leading B2B intelligence, so they can go to market more efficiently and effectively.

Snowflake*

2021

the Data Cloud company

Snowflake Data Marketplace to centralize and streamline data delivery. Customers can now use Snowflake’s platform to integrate ZoomInfo’s industry-leading company and business contact data into their technology stacks—with no additional integration or extract transform load required—and generate insights at scale.

Insent

2021

a powerful conversational marketing platform that identifies website visitors in real time, uses artificial intelligence (A.I.) and advanced lead routing rules

Initiate real-time conversations, and increases conversions

Lean Data*

2021

a leader in lead-to-account matching and routing

delivers a seamless, elegant product experience for their joint customers. provides customers with the ability to deliver leads to the right sales representatives with greater accuracy and speed, driving revenue growth.

ChorusAI

2021

a leader in Conversation Intelligence

Enable Insight-Driven Targeting, Coaching, and Decision-Making for Go-to-Market Teams

Ringlead

2021

an industry leader in data orchestration and revenue operations automation

Enable companies to streamline and execute data-driven go-to-market motions at scale based on high-quality, actionable data.

Thus every single partnership or acquisition ZoomInfo management has made, has been synergistic to the business and has propelled growth.

Disclaimer: All the information has been collected from public sources.  I own shares of ZoomInfo.