ZoomInfo stock soars 10% as AI-driven ‘go-to-market studio’ unleashes new growth hopes

ZoomInfo Technologies Inc. (NASDAQ: ZI) staged a powerful comeback on May 16, 2025, as its stock surged 10.27% to close at $10.31. This marked one of the most significant single-day rallies for the company in recent quarters. The gain came amid a wave of investor enthusiasm following the company’s Q1 2025 earnings release and a strategic rebranding initiative, including a ticker change to “GTM.” Although the stock is still down approximately 23% over the past year, Friday’s rally was underpinned by strong institutional volumes, which more than doubled the average daily turnover. Market participants were particularly encouraged by new signals of enterprise customer growth, stronger-than-expected cash flow, and the debut of ZoomInfo’s AI-powered Go-To-Market Studio.

The surge comes after a prolonged period of underperformance, in which ZoomInfo was often grouped with high-multiple SaaS stocks struggling to regain favor in a cautious macro environment. However, recent developments suggest that the company may be entering a new phase of stabilization and innovation-led reacceleration.

What Were ZoomInfo’s Key Financial Results in Q1 2025?

ZoomInfo reported GAAP revenue of $305.7 million for the first quarter ended March 31, 2025, representing a modest year-over-year decline of 1%. Despite this top-line contraction, the company delivered stronger-than-anticipated profitability. GAAP operating income rose 17% year-over-year to $50.3 million, while non-GAAP adjusted operating income stood at $100.9 million. The adjusted operating income margin of 33% highlighted the company’s focus on cost efficiency amid slowing revenue growth.

Net income under GAAP improved to $26.8 million, or $0.08 per diluted share, compared to $15.1 million, or $0.04 per diluted share, in the same period a year ago. On a non-GAAP basis, adjusted net income was $81.9 million, translating to $0.23 per diluted share. This beat analyst expectations and reflects consistent execution on margin controls, aided by lower sales and administrative costs.

Cash flow generation remained solid. ZoomInfo posted operating cash flow of $119.2 million and unlevered free cash flow of $124.5 million, up 3% and 1%, respectively, compared to Q1 2024. The company’s balance sheet remains stable with $138.5 million in cash and equivalents and $1.22 billion in long-term debt as of March 31, 2025.

How Did Upmarket Momentum and Client Retention Support the Rebound?

A significant highlight in ZoomInfo’s quarterly report was its growing traction in the upmarket enterprise segment. The company ended Q1 2025 with 1,868 customers whose annual contract value exceeded $100,000, marking a net gain of 108 customers year-over-year. These large clients now account for 71% of ZoomInfo’s annual contract value, a notable shift in its revenue composition that suggests greater stability and lower churn risk compared to mid-market and SMB customers.

ZoomInfo also reported a sequential improvement in its net revenue retention rate, which rounded to 87%. While still below peak SaaS benchmarks, this metric showed progress in customer stickiness and expansion within existing accounts. Improving retention in a climate of IT budget rationalization is a key indicator that ZoomInfo’s AI-enhanced offerings are resonating with revenue-focused teams seeking greater efficiency.

What Is the Strategic Significance of the Go-To-Market Studio Launch?

ZoomInfo’s launch of the Go-To-Market Studio marks a pivotal moment in its product evolution. Described as a centralized command center for revenue teams, the platform integrates first-party and third-party data to help orchestrate multi-channel sales and marketing campaigns. It features flexible campaign design capabilities and a built-in Copilot function powered by artificial intelligence, allowing for dynamic activation of targeted go-to-market motions.

According to CEO Henry Schuck, this solution reflects ZoomInfo’s strategic shift toward “AI-first” thinking. By transforming fragmented data into a unified pipeline-building engine, the Studio is designed to solve one of the most persistent problems in modern B2B sales: operational silos and data inefficiency. The move also aligns with the company’s larger transition from a static contact data provider to an integrated go-to-market intelligence ecosystem.

Initial feedback from pilot customers and early adopters has reportedly been positive. Analysts view this launch as a differentiated product offering that could help ZoomInfo defend its market position against increasingly competitive martech players while opening new monetization paths through advanced GTM orchestration.

Why Did Investor Sentiment Improve Despite Soft Revenue Guidance?

While ZoomInfo guided Q2 2025 revenue to fall between $295 million and $298 million — a range slightly below market consensus — the company’s profitability and strategic messaging appeared to offset concerns. The company forecast non-GAAP adjusted operating income between $101 million and $104 million for the quarter, alongside adjusted EPS of $0.22 to $0.24. Full-year 2025 revenue guidance remains in the $1.195 billion to $1.205 billion range, with projected unlevered free cash flow between $420 million and $440 million.

Investor sentiment was further buoyed by the company’s aggressive share repurchase program. During Q1 2025, ZoomInfo repurchased over 8.5 million shares for $95 million at an average price of $11.05. This signals confidence in the intrinsic value of the business and served to support the stock price following months of volatility.

Moreover, the company’s decision to pivot its identity via a ticker change from “ZI” to “GTM” was interpreted by the market as more than a cosmetic shift. It signaled a stronger alignment with the future of AI-enabled, integrated revenue platforms.

What Does the FY2025 Outlook Suggest About ZoomInfo’s Trajectory?

ZoomInfo’s full-year 2025 outlook reinforces its focus on balanced execution. Management anticipates maintaining profitability while continuing to invest in product innovation and customer success. With adjusted net income per share expected between $0.96 and $0.98, the company is likely to remain comfortably free cash flow positive even amid tepid revenue growth.

Executives also hinted at further enhancements to the Go-To-Market Studio throughout the year, positioning the company to capitalize on demand for AI-augmented sales tools across industries. The continued shift toward upmarket and platform consolidation could insulate ZoomInfo from budget cutbacks in the SMB segment, which has traditionally been more price-sensitive.

How Did the Market React to ZoomInfo’s Ticker Change to ‘GTM’?

The official switch to the Nasdaq ticker “GTM” on May 13, 2025, marked a brand reset intended to reflect the company’s transformation into a platform-centric business. While ticker changes do not impact fundamentals, they can shape market psychology and media narratives. In ZoomInfo’s case, the shift came alongside a wave of strategic announcements, including the Go-To-Market Studio and updated retention metrics, helping frame the company’s AI roadmap in a more coherent manner.

The new ticker also aligns closely with ZoomInfo’s enterprise value proposition — enabling smarter, more connected go-to-market systems. As such, institutional buyers appeared to embrace the symbolic change as part of a broader rebranding push that could improve investor perception and reignite growth capital inflows.

What Are Analysts and Institutions Saying About ZoomInfo’s Stock Now?

Analyst sentiment appears to be cautiously recovering. Although valuation concerns remain — especially given a trailing price-to-earnings multiple of nearly 86 — the company’s operational execution is slowly restoring confidence. Institutional participation was notably strong on May 16, suggesting buy-side desks are once again willing to explore long positions, particularly in light of improving margins and potential for AI monetization.

Fund managers may be betting on a multi-quarter turnaround thesis centered on product-led growth and improved customer metrics. However, expectations are now more measured, with consensus likely shifting toward a “Hold” or “Selective Buy” stance as investors await evidence of sustained revenue reacceleration and continued upmarket penetration.

Is ZoomInfo Stock a Buy, Hold, or Sell Going Forward?

ZoomInfo’s stock has entered a potentially pivotal phase. The Q1 earnings beat, AI-first product strategy, and disciplined capital allocation all point to a management team actively repositioning the company. While some risks remain — including elevated valuation and the challenge of reigniting top-line growth — the fundamental direction appears stronger than it was at the end of 2024.

If ZoomInfo can sustain its margin improvements, execute on AI-driven platform initiatives, and deepen its footprint with enterprise clients, there is a clear path to rerating. However, further confirmation will likely be needed in the Q2 print to drive a full consensus upgrade. For now, the outlook supports a cautious “Hold” with upside potential contingent on execution.