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Dec. 10, 2023

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ZoomInfo files for IPO, seeks up to $500 million

SEC filing touts platform as tool for B2B marketing

By , Columbian business reporter
2 Photos
ZoomInfo is headquarted in the 805 Broadway building in Vancouver. The business-intelligence company was founded as DiscoverOrg but acquired competitor Zoom Information last year and adopted the ZoomInfo name for the combined company.
ZoomInfo is headquarted in the 805 Broadway building in Vancouver. The business-intelligence company was founded as DiscoverOrg but acquired competitor Zoom Information last year and adopted the ZoomInfo name for the combined company. (Nathan Howard/The Columbian) Photo Gallery

Vancouver-based business-intelligence company ZoomInfo, formerly DiscoverOrg, is seeking to go public with an initial stock offering targeted to raise up to $500 million, according to a Feb. 26 filing with the U.S. Securities and Exchange Commission.

The company applied to be listed on the Nasdaq under the trading symbol “ZI,” according to the filing. The initial filing document does not list the number of shares to be offered or the price range.

Reached last week, ZoomInfo responded to several questions by referring back to the filing document, but otherwise declined to comment about its IPO plans.

Business-to-business sales

ZoomInfo describes itself as a “go-to-market intelligence platform for sales and marketing teams.” The company operates a subscription-based web platform that gives information about businesses, constantly updated and maintained by artificial intelligence and research teams.

The basic pitch, as outlined in the SEC filing, is that the platform is a tool for business-to-business marketing. It enables corporate sales representatives to speed through the process of researching and contacting new business customers, and it frees up more time to focus on sales.

ZoomInfo CEO Henry Schuck founded the company in 2007 in Ohio and later moved to Vancouver.

In February 2019, DiscoverOrg announced that it had acquired competitor Zoom Information Inc., based in Waltham, Mass., for an amount that was undisclosed at the time. According to the IPO filing, it was $748 million.

DiscoverOrg announced in November that the combined company would adopt the ZoomInfo name, officially becoming ZoomInfo Powered by DiscoverOrg. The company first announced its IPO intentions later that month.

ZoomInfo has grown to become one of Vancouver’s largest employers and one of the biggest names in the area’s technology sector, serving approximately 13,500 client companies. It employs a staff of approximately 1,000, according to its website, with 560 workers at its 805 Broadway office in downtown Vancouver.

In addition to its Vancouver headquarters and the former Zoom Information headquarters in Waltham, ZoomInfo operates offices in Bethesda, Md.; Cleveland, Ohio; Conshohocken, Pa.; Grand Rapids, Mich., and Ra’anana, Israel.

Revenue and operations

DiscoverOrg generated $144.3 million in revenue in 2018, and Zoom Information generated $72.5 million, according to the SEC filing.

In 2019, the combined ZoomInfo — DiscoverOrg for the entire year and the Zoom Information from February through December — generated $293.3 million in revenue. The pre-acquisition Zoom Information generated $9.7 million in revenue in January 2019, before the merger.

ZoomInfo now estimates its annual revenue at approximately $300 million, according to its website.

The company completed the integration of Zoom Information in 2019, including consolidating its sales, marketing and administrative activities, according to the filing. It also developed and launched a new ZoomInfo platform that combines aspects of DiscoverOrg and Zoom Information’s predecessor platforms.

All new customers enrolled since September 2019 have joined the new platform, according to the filing, although the company is maintaining both legacy platforms to serve existing customers.

The legacy platforms still generate the majority of ZoomInfo’s revenue, according to the filing. The company expects existing customers to gradually migrate to the new platform to take advantage of new features and data, but it currently does not have any plans to force customers to migrate.

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Columbian business reporter