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$ZI 56% YoY Growth
Market for B2B data is exploding as businesses look for data-driven B2B leads
$ZI is leading the B2B market data
It counts over 120m professionals and 14m businesses in its data basesHere is an EASY thread
$ZI ZoomInfo was founded in 2007
It sells access to its database containing information about business people and companies
First named DiscoveryOrg, it acquired several competitors such as RainKing in 2017 and NeverBounce in 2018
It went public in June 2020
It sells access to its database containing information about business people and companies First named DiscoveryOrg, it acquired several competitors such as RainKing in 2017 and NeverBounce in 2018 It went public in June 2020
In simple terms, $ZI is a go-to-market intelligence platform for B2B sales and marketing teams
They scrape information online and then process the collected data using machine learning
This data is then sold to marketing agencies and corporate sales departments
They scrape information online and then process the collected data using machine learning This data is then sold to marketing agencies and corporate sales departments
“This “360-degree view” enables sellers and marketers to shorten sales cycles and increase win rates by delivering the right message, to the right person, at the right time, to hit their number.”
From
ZoomInfo S-1 Filling
From
ZoomInfo S-1 Filling
ZoomInfo’s execution is impressive, they have collect data on:
120m professionals
14m companies
And they count:
202k paid users
15k corporate clients
It also collects data from its users:
50m contact records events are collected each day
120m professionals 14m companiesAnd they count:
202k paid users 15k corporate clientsIt also collects data from its users:
50m contact records events are collected each day
Great but how large is their market?
$ZI had identified over 740k global businesses that are active in the B2B space and that have more than 10 employees
With a Life-time value of around $32k, this gives a TAM of around $ 24B
$ZI had identified over 740k global businesses that are active in the B2B space and that have more than 10 employees With a Life-time value of around $32k, this gives a TAM of around $ 24B
Leaving plenty of headroom for $ZI as it now counts 15.000 customers As a side-note, they currently have 630 customers that spend $ 100.000 / year and 15 customers that spend over $ 1m / year
But what is their market?
This is the data brokers market Which can be a though one:
Privacy issues and additional regulations may hamper data broker’s activities
Many companies have now developed the ability to scrape data online and focus on their own niche
This is the data brokers market
Which can be a though one: Privacy issues and additional regulations may hamper data broker’s activities Many companies have now developed the ability to scrape data online and focus on their own niche
“Those include big names in people search, like Spokeo, ZoomInfo, White Pages, PeopleSmart, Intelius, PeopleFinders, and the numerous other websites they operate; credit reporting, like Equifax, Experian, and TransUnion; […]
[…] and advertising and marketing, like Acxiom, Oracle, Innovis, and KBM”
By Steven Melendez and Alex Pasternack for FastCompany https://www.fastcompany.com/90310803/here-are-the-data-brokers-quietly-buying-and-selling-your-personal-information
By Steven Melendez and Alex Pasternack for FastCompany https://www.fastcompany.com/90310803/here-are-the-data-brokers-quietly-buying-and-selling-your-personal-information
And who is the giant in this market? ACXIOM LLC which was sold by $RAMP to $IPG for $ 2.3B following the Cambridge Analytica scandal
It’s data encompasses more than 62 countries, 2.5B consumers and +10.000 attributes
Representing 68% of the world’s online population
It’s data encompasses more than 62 countries, 2.5B consumers and +10.000 attributes Representing 68% of the world’s online population
What’s more, well we’re just at the start of the B2B data market As reported by Gartner:
“[…] Reveals that 60% of B2B sales organizations will transition from experience- and intuition-based selling to data-driven selling by 2025” https://www.gartner.com/smarterwithgartner/future-of-sales-2025-data-driven-b2b-selling/
As reported by Gartner:“[…] Reveals that 60% of B2B sales organizations will transition from experience- and intuition-based selling to data-driven selling by 2025” https://www.gartner.com/smarterwithgartner/future-of-sales-2025-data-driven-b2b-selling/
So where are we now?
$ZI projects its TAM to be in the $ 24B, and they currently only have captured 2% of their 740k addressable targets
$ZI projects its TAM to be in the $ 24B, and they currently only have captured 2% of their 740k addressable targets
MenaFN further reports that the data broker market is set to rise by 16% over the 2020 - 2026 period Driven by the constant increase in data on a global scale as the IDC forecasts worldwide data to grow by 61% by 2025 to 175 ZetaBytes
What makes $ZI interesting?
B2B corporates and marketing agencies need to SELL
They need a powerful tool that can give them everything they needs to know about their leads
Organisational chart, connections, contact details, location mapping
B2B corporates and marketing agencies need to SELL They need a powerful tool that can give them everything they needs to know about their leads Organisational chart, connections, contact details, location mapping
This is exactly what $ZI is providing as they provide:
Data on companies
Contact details
Organisational chart
Corporate structure
Funding data
… Much more
Data on companies Contact details Organisational chart Corporate structure Funding data… Much more
How does that translate to customers?
$DOCU DocuSign was seeking to increase the efficiency and effectiveness of its inbound and outbound pipeline generation and selling activities
$DOCU DocuSign was seeking to increase the efficiency and effectiveness of its inbound and outbound pipeline generation and selling activities
Since implementing ZoomInfo, DocuSign can automatically find and add contacts to target accounts in Salesforce It can also gain intelligence and insight on buyers across departments and functions, and access phone and email contact information easily
$ZM Tasked with aggressive revenue growth targets, the Zoom Video sales team tried to increase penetration of target accounts and expand their influence within these accounts
Zoom Video chose the ZoomInfo platform for the level of depth and granularity of the data as well as real time insights. Using the ZoomInfo platform Zoom could identify the right people in the right department with minimal effort, get real-time insights, and close deals
And what are their reviews telling us? Here is what http://G2.com tells us:
ZoomInfo has 4,071 reviews and 4.4 stars overall
LinkedIn Sales Navigator has 1,189 reviews and 4.2 stars overall
InsideView Insights has 693 reviews and 4.3 stars overall
ZoomInfo has 4,071 reviews and 4.4 stars overall LinkedIn Sales Navigator has 1,189 reviews and 4.2 stars overall InsideView Insights has 693 reviews and 4.3 stars overall
D&B Hoovers has 346 reviews and 3.9 stars overall
Lead411 has 245 reviews and 4.6 stars overall $ZI leads by a wide margin
Financials Check Sales reached $ 123m in Q3 ’20 up 56% YoY up from 40% in the previous Q Gross Margins of 78% up from 77% a year earlier
Operating income reached $ 18.4m up from $ 13.1m a year earlier
Operating Margins of 15% down from 16.5% a year earlier
Current assets stood at $ 421m versus current liabilities of $ 247.5m
Here is $IPG vs $ZI ’s valuations In order to give a directional senses of where $ZI could end
$IPG has an EV of $ 11.6B, Q sales of $ 2B and 12% EBIT margins - No growth pre-Covid
$ZI has an EV of $ 7.2B, Q sales of $ 123m and 15% EBIT margins - 56% YoY growth
In order to give a directional senses of where $ZI could end $IPG has an EV of $ 11.6B, Q sales of $ 2B and 12% EBIT margins - No growth pre-Covid $ZI has an EV of $ 7.2B, Q sales of $ 123m and 15% EBIT margins - 56% YoY growth
THE BOTTOM LINE The market for B2B data is rising fast as companies leverage data in order to find new leads and customers $ZI has one of the best product in its niche and is innovating fast in order to grow its database and improve its user experience
This translates into fast growing sales (56% YoY) and is supported by an operating margin of 15%, giving the cash it needs to continue its expansion The market is under heavy scrutiny from regulators in Europe and North America
Marker is competitive with numerous local and niche competitors We stay on the sidelines for now and will review their next earnings 
$RKT is on our watchlist To Be Reviewed SOON
Disclaimer - This is not investment advice in any form and investors are responsible for conducting their own research before investing.
Sources
✑ Investor presentation
✑ Company website
✑ IDC
✑ G2
✑ Fast Company
✑ MenaFN
Sources
✑ Investor presentation
✑ Company website
✑ IDC
✑ G2
✑ Fast Company
✑ MenaFN
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