SEC Filing | Zoominfo Technologies, Inc.

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zi-20220630

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2022

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File Number 001-39310

ZoomInfo Technologies Inc.

(Exact name of registrant as specified in its charter)


Delaware						87-3037521
(State or other jurisdiction of incorporation or organization)						(I.R.S. Employer Identification No.)

805 Broadway Street, Suite 900
Vancouver, Washington						98660
(Address of principal executive offices)						(Zip Code)
(800) 914-1220
(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:


Title of Each Class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, par value $0.01 per share	ZI	The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.


Large Accelerated Filer	☒	Accelerated Filer	☐
Non-accelerated Filer	☐	Smaller reporting company	☐
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined by Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of July 22, 2022, there were 403,441,729 shares of the registrant's common stock outstanding.

ZoomInfo Technologies Inc.

Quarterly Report on Form 10-Q

For the Quarterly Period Ended June 30, 2022

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			Page
Glossary			ii
Cautionary Statement Regarding Forward-Looking Statements			iv

PART I - FINANCIAL INFORMATION
Item 1. Financial Statements			1
Condensed Consolidated Balance Sheets			2
Consolidated Statements of Operations			3
Consolidated Statements of Comprehensive Income (Loss)			4
Consolidated Statements of Changes in Equity (Deficit)			5
Consolidated Statements of Cash Flows			7
Notes to the Consolidated Financial Statements			9
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations			49
Item 3. Quantitative and Qualitative Disclosures About Market Risk			73
Item 4. Controls and Procedures			74
PART II - OTHER INFORMATION
Item 1. Legal Proceedings			75
Item 1A. Risk Factors			75
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds			75
Item 3. Defaults Upon Senior Securities			75
Item 4. Mine Safety Disclosures			75
Item 5. Other Information			76
Item 6. Exhibits			78
Signatures			79

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GLOSSARY

As used in this quarterly report on Form 10-Q (this “Form 10-Q”), the terms identified below have the meanings specified below unless otherwise noted or the context indicates otherwise. References in this Form 10-Q to “ZoomInfo Technologies Inc.” refer to ZoomInfo Technologies Inc. and not to any of its subsidiaries unless the context indicates otherwise. References in this Form 10-Q to “ZoomInfo,” the “Company,” “we,” “us,” and “our” refer (1) prior to the consummation of the Reorganization Transactions, to ZoomInfo OpCo and its consolidated subsidiaries, and (2) after the consummation of the Reorganization Transactions, to ZoomInfo Technologies Inc. and its consolidated subsidiaries unless the context indicates otherwise.

•“2021 Form 10-K” refers to the Annual Report on Form 10-K of ZoomInfo Technologies Inc. for the fiscal year ended December 31, 2021 as filed with the SEC on February 24, 2022.

•“Blocker Companies” refers to certain of our Pre-IPO OpCo Unitholders that are taxable as corporations for U.S. federal income tax purposes.

•“Blocker Mergers” refers to the mergers described under “Reorganization Transactions” in Note 1 to our unaudited consolidated financial statements included in Part I, Item 1 of this Form 10-Q.

•“Carlyle” refers to investment funds associated with The Carlyle Group.

•“Class P Units” refers to Class P Units (including, without limitation, any indirectly held Class P Units) of ZoomInfo OpCo.

•“Common Stock Option” refers to an award granted under Section 7 of the 2020 Omnibus Incentive Plan.

•“Continuing Class P Unitholders” refers to certain Pre-IPO Owners who continued to hold Class P Units following the consummation of the Reorganization Transactions and the IPO.

•“Continuing Members” refers to Pre-IPO Owners who continued to hold HoldCo Units or OpCo Units following the Reorganization Transactions and the IPO.

•“Customers” refers to companies that have contracted with us to use our services and, at the time of measurement, maintain one or more active paid subscriptions to our platform. Paid subscriptions will generally include access for a number of employees or other affiliated persons of the customer.

•“Exchange Tax Receivable Agreement” refers to the tax receivable agreement entered into with certain Pre-IPO OpCo Unitholders.

•“Founders” refers to Henry Schuck, our Chief Executive Officer, and Kirk Brown.

•“HoldCo Units” refers to the class of units of ZoomInfo HoldCo.

•“HSKB” and “HSKB I” refers to HSKB Funds, LLC, a privately held limited liability company formed on February 9, 2016 for the purpose of issuing equity to certain persons who had performed and would continue to perform services for ZoomInfo OpCo.

•“HSKB II” refers to HSKB Funds II, LLC, a privately held limited liability company formed on May 28, 2020 for the purpose of effecting a reorganization of HSKB I at the time of the IPO and to issue equity to certain persons who had performed and would continue to perform services for ZoomInfo OpCo.

•“IPO” refers to the initial public offering of Class A common stock of ZoomInfo Technologies Inc.

•“LTIP Units” refers to a class of partnership units that are intended to qualify as “profit interests” in ZoomInfo OpCo for federal income tax purposes that, subject to certain conditions, including vesting, are convertible by the holder into OpCo Units.

•“OpCo Units” refers to the class of units of ZoomInfo OpCo and does not include Class P Units.

•“Pre-Acquisition ZI” refers to Zoom Information Inc.

•“Pre-IPO Blocker Holders” refers to the Pre-IPO Owners that held their interests in us through the Blocker Companies immediately prior to the IPO.

•“Pre-IPO HoldCo Unitholders” refers to the Pre-IPO Owners that held HoldCo Units immediately prior to the IPO.

•“Pre-IPO OpCo Unitholders” refers to the Pre-IPO Owners that held OpCo Units immediately prior to the IPO.

•“Pre-IPO Owners” refers collectively to the Sponsors, the Founders, and the management and other equity holders who were the owners of ZoomInfo OpCo immediately prior to the Reorganization Transactions.

•“Reorganization Tax Receivable Agreement” refers to the tax receivable agreement entered into with the Pre-IPO Blocker Holders.

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•“Reorganization Transactions” refers to the transactions described under “Reorganization Transactions” in Note 1 to our unaudited consolidated financial statements included in Part I, Item 1 of this Form 10-Q.

•“Restricted Stock” refers to our common stock, subject to certain specified restrictions (which may include, without limitation, a requirement that the Participant remain continuously employed or provide continuous services for a specified period of time), granted under Section 8 of the 2020 Omnibus Incentive Plan.

•“Restricted Stock Unit” refers to an unfunded and unsecured promise to deliver shares of our common stock, cash, other securities or other property, subject to certain restrictions (which may include, without limitation, a requirement that the Participant remain continuously employed or provide continuous services for a specified period of time), granted under Section 8 of the 2020 Omnibus Incentive Plan.

•“SEC” refers to the Securities and Exchange Commission.

•“Securities Act” refers to the Securities Act of 1933, as amended.

•“Sponsors” refers collectively to TA Associates, Carlyle, and investment funds associated with 22C Capital LLC and its predecessor.

•“TA Associates” refers to investment funds associated with TA Associates.

•“Tax Receivable Agreements” or “TRA” refers collectively to the Exchange Tax Receivable Agreement and the Reorganization Tax Receivable Agreement.

•“ZoomInfo HoldCo” refers to ZoomInfo Intermediate Holdings LLC, a Delaware limited liability company, and a direct subsidiary of ZoomInfo Technologies Inc.

•“ZoomInfo OpCo” refers to ZoomInfo Holdings LLC (formerly known as DiscoverOrg Holdings, LLC), a Delaware limited liability company, and a direct subsidiary of ZoomInfo HoldCo and indirect subsidiary of ZoomInfo Technologies Inc.

iii

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CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS

From time to time we make statements concerning our expectations, beliefs, plans, objectives, goals, strategies, future events or performance and underlying assumptions and other statements that are not historical facts. These statements are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those expressed or implied by these statements. You can generally identify our forward-looking statements by the words “anticipate,” “believe,” “can,” “continue,” “could,” “estimate,” “expect,” “forecast,” “goal,” “intend,” “may,” “might,” “objective,” “outlook,” “plan,” “potential,” “predict,” “projection,” “seek,” “should,” “target,” “trend,” “will,” “would” or the negative version of these words or other comparable words.

We have based our forward-looking statements on our management’s beliefs and assumptions based on information available to our management at the time the statements are made. We caution you that assumptions, beliefs, expectations, intentions and projections about future events may and often do vary materially from actual results. Therefore, we cannot assure you that actual results will not differ materially from those expressed or implied by our forward-looking statements.

The following are some of the factors that could cause actual results to differ from those expressed or implied by our forward-looking statements, including forward-looking statements contained in this Quarterly Report on Form 10-Q:

•the ongoing COVID-19 pandemic, including the global economic uncertainty and measures taken in response, could materially impact our business and future results of operations;

•larger well-funded companies may shift their existing business models to become more competitive with us;

•we may be unable to provide or adapt our platform for changes in laws and regulations or public perception, or changes in the enforcement of such laws, relating to data privacy, which could impact our ability to efficiently gather, process, update and/or provide some or all of the information we currently provide or the ability of our customers and users to use some or all of our products and services;

•we may experience competition from companies that more effectively cater to our customers by offering more tailored products or platforms at lower costs;

•adverse general economic and market conditions may reduce spending on sales and marketing, which could harm our revenue, results of operations and cash flows;

•a decline in demand for sales and marketing subscription platforms could negatively impact our business;

•if we are unable to improve our technology and keep up with new processes for data collection, organization, and cleansing, competing products and services could surpass ours;

•we may be unable to provide a highly accurate, reliable, and comprehensive platform moving forward, which could cause a reduction in demand for our products and services;

•we rely on third-party systems that we do not control to integrate with our system and we may be unable to continue to support integration;

•we may be unable to attract new customers and expand existing subscriptions, which could harm our revenue growth and profitability;

•a decrease in participation in our contributory network or increased opt-out rates could lead to a deterioration in the depth, breadth, and accuracy of our platform;

•changes in search engine algorithms and dynamics could negatively affect traffic to our website;

•we may fail to protect and maintain our intellectual property;

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•cyber attacks and security vulnerabilities could result in serious harm to our reputation, business, and financial condition;

•third-parties could use our products and services in a manner that is unlawful or contrary to our values;

•we may be unable to successfully integrate acquired businesses, services, databases, and technologies into our operations, which could have an adverse effect on our business;

•we may be unsuccessful in selling our products or retaining our customers if the quality of our customer service falters;

•our indebtedness could adversely affect our financial condition, our ability to raise additional capital to fund our operations, our ability to operate our business, our ability to react to changes in the economy or our industry, and our ability to meet our obligations under our outstanding indebtedness, and could divert our cash flow from operations for debt payments;

•the parties to our stockholders agreement have special rights and interests that may conflict with ours or yours in the future; and

•other factors described under “Risk Factors” in Part I, Item 1A of our 2021 Form 10-K, and in other reports we file from time to time with the SEC.

These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in this Form 10-Q and our other filings with the SEC. Should one or more of these risks or uncertainties materialize, or should any of our assumptions prove incorrect, our actual results may vary in material respects from those projected in our forward-looking statements. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. Our forward-looking statements do not reflect the potential impact of any future acquisitions, mergers, dispositions, joint ventures, investments, or other strategic transactions we may make.

You should not place undue reliance on our forward-looking statements. Each forward-looking statement speaks only as of the date of the particular statement, and we undertake no obligation to update or revise any forward-looking statements whether as a result of new information, future developments or otherwise, except as required by law.

Website Disclosure

The Company intends to use its website as a distribution channel of material company information. Financial and other important information regarding the Company is routinely posted on and accessible through the Company’s website at https://ir.zoominfo.com. In addition, you may automatically receive email alerts and other information about the Company when you enroll your email address by visiting the “Email Alerts” section of our investor relations page at https://ir.zoominfo.com. The information on our website is not incorporated herein or otherwise a part of this Form 10-Q.

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PART I - FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

INDEX TO FINANCIAL STATEMENTS



Unaudited Consolidated Financial Statements of ZoomInfo Technologies Inc. and Subsidiaries

Condensed Consolidated Balance Sheets			2
Consolidated Statements of Operations			3
Consolidated Statements of Comprehensive Income (Loss)			4
Consolidated Statements of Changes in Equity (Deficit)			5
Consolidated Statements of Cash Flows			7
Notes to the Consolidated Financial Statements			9

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ZoomInfo Technologies Inc.
Condensed Consolidated Balance Sheets
(in millions, except share data)

	June 30,		December 31,
	2022		2021
	(unaudited)		(*)
Assets
Current assets:
Cash and cash equivalents	$	352.7	$	308.3
Short-term investments	12.9		18.4

Accounts receivable, net	161.9		187.0
Prepaid expenses and other current assets	45.3		27.1
Income tax receivable	6.0		4.9
Total current assets	578.8		545.7

Restricted cash, non-current	5.8		5.8
Property and equipment, net	47.8		41.7
Operating lease right-of-use assets, net	60.1		59.8
Intangible assets, net	431.4		431.0
Goodwill	1,695.8		1,575.1
Deferred tax assets	4,083.4		4,116.0
Deferred costs and other assets, net of current portion	105.4		77.8
Total assets	$	7,008.5	$	6,852.9

Liabilities and Permanent Equity
Current liabilities:
Accounts payable	$	19.9	$	15.9
Accrued expenses and other current liabilities	84.5		103.3
Unearned revenue, current portion	410.1		361.5
Income taxes payable	7.7		8.4
Current portion of tax receivable agreements liability	5.4		10.4
Current portion of operating lease liabilities	8.2		8.1

Total current liabilities	535.8		507.6

Unearned revenue, net of current portion	1.7		2.7
Tax receivable agreements liability, net of current portion	3,046.8		3,046.0
Operating lease liabilities, net of current portion	61.4		61.5
Long-term debt, net of current portion	1,234.3		1,232.9
Deferred tax liabilities	1.8		1.5
Other long-term liabilities	2.8		2.8
Total liabilities	4,884.6		4,855.0


Commitments and Contingencies (Note 11)

Permanent Equity:

Class A common stock, par value $0.01	4.0		4.0


Additional paid-in capital	1,954.1		1,871.6
Accumulated other comprehensive income (loss)	30.9		9.5
Retained Earnings	134.9		112.8

Total equity	2,123.9		1,997.9

Total liabilities and permanent equity	$	7,008.5	$	6,852.9

________________

(*) The Condensed Consolidated Balance Sheet as of December 31, 2021 has been derived from the audited consolidated financial statements at that date but does not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements.

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ZoomInfo Technologies Inc.
Consolidated Statements of Operations
(in millions, except per share amounts; unaudited)

	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021

Revenue	$	267.1	$	174.0	$	508.8	$	327.3

Cost of service:
Cost of service(1)	34.7		23.5		67.5		44.9
Amortization of acquired technology	12.3		6.8		23.5		13.5
Gross profit	220.1		143.7		417.8		268.9

Operating expenses:
Sales and marketing(1)	95.2		49.9		179.3		98.7
Research and development(1)	49.5		24.0		95.1		44.4
General and administrative(1)	29.2		21.9		57.0		40.7
Amortization of other acquired intangibles	5.6		4.8		10.9		9.6
Restructuring and transaction-related expenses	1.1		2.2		3.6		6.6
Total operating expenses	180.6		102.8		345.9		200.0
Income (loss) from operations	39.5		40.9		71.9		68.9

Interest expense, net	11.7		10.1		23.5		16.6
Loss on debt modification and extinguishment	—		—		—		5.9
Other (income) expense, net	1.4		0.1		2.8		(0.1)
Income (loss) before income taxes	26.4		30.7		45.6		46.5
Income tax expense (benefit)	10.5		6.2		23.5		55.9
Net income (loss)	$	15.9	$	24.5	$	22.1	$	(9.4)

Less: Net income (loss) attributable to noncontrolling interests	—		15.2		—		(21.9)
Net income (loss) attributable to ZoomInfo Technologies Inc.	$	15.9	$	9.3	$	22.1	$	12.5

Net income (loss) per share of Class A and Class C common stock:
Basic	$	0.04	$	0.05	$	0.06	$	0.07
Diluted	$	0.04	$	0.05	$	0.05	$	0.07

________________

(1)Amounts include equity-based compensation expense, as follows:


	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Cost of service	$	5.0	$	3.2	$	9.6	$	6.7
Sales and marketing	20.4		7.2		36.5		15.6
Research and development	15.3		3.2		30.9		5.8
General and administrative	6.3		3.5		12.5		7.1
Total equity-based compensation expense	$	47.0	$	17.1	$	89.5	$	35.2

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ZoomInfo Technologies Inc.
Consolidated Statements of Comprehensive Income (Loss)
(in millions; unaudited)

	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021

Net income (loss)	$	15.9	$	24.5	$	22.1	$	(9.4)
Other comprehensive income (loss), net of tax
Unrealized gain (loss) on cash flow hedges	6.3		(3.0)		27.7		7.1
Realized (gain) loss on settlement of cash flow hedges	(0.2)		1.5		1.4		3.0
Amortization of deferred losses related to the dedesignated Interest Rate Swap	0.1		0.1		0.1		0.1
Other comprehensive income (loss) before tax	6.2		(1.4)		29.2		10.2
Tax effect	(1.7)		0.1		(7.8)		(1.3)
Other comprehensive income (loss), net of tax	4.5		(1.3)		21.4		8.9
Comprehensive income (loss)	20.4		23.2		43.5		(0.5)

Less: Comprehensive income (loss) attributable to noncontrolling interests	—		14.4		—		(16.5)
Comprehensive income (loss) attributable to ZoomInfo Technologies Inc.	$	20.4	$	8.8	$	43.5	$	16.0

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ZoomInfo Technologies Inc. Consolidated Statements of Changes in Equity (Deficit) (in millions, except share data)

	New ZoomInfo Common Stock
	Shares	Amount		Additional paid-in capital		Retained Earnings		AOCI		Total Equity
Balance, December 31, 2021	403,315,989	$	4.0	$	1,871.6	$	112.8	$	9.5	$	1,997.9
Issuance of Class A common stock upon vesting of RSUs	187,659	—		—		—		—		—
Shares withheld related to net share settlement and other	(80,067)	—		(4.4)		—		—		(4.4)
Exercise of stock options	14,790	—		0.3		—		—		0.3
Forfeitures / cancellations	(43,210)	—		—		—		—		—

Net income (loss)	—	—		—		6.2		—		6.2
Other comprehensive income	—	—		—		—		16.9		16.9

Equity-based compensation	—	—		42.5		—		—		42.5
Balance at March 31, 2022	403,395,161	$	4.0	$	1,910.0	$	119.0	$	26.4	$	2,059.4
Issuance of Class A common stock upon vesting of RSUs	233,923	$	—	$	—	$	—	$	—	—
Shares withheld related to net share settlement and other	(75,351)	—		(3.2)		—		—		(3.2)
Exercise of stock options	13,714	—		0.3		—		—		0.3
Forfeitures / cancellations	(111,789)	—		—		—		—		—

Net income (loss)	—	—		—		15.9		—		15.9
Other comprehensive income	—	—		—		—		4.5		4.5

Equity-based compensation	—	—		47.0		—		—		47.0
Balance at June 30, 2022	403,455,658	$	4.0	$	1,954.1	$	134.9	$	30.9	$	2,123.9

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ZoomInfo Technologies Inc. Consolidated Statements of Changes in Equity (Deficit) (in millions, except share data)

	Old ZoomInfo									New ZoomInfo Common Stock
	Class A Shares	Class A Amount		Class B Shares	Class B Amount		Class C Shares	Class C Amount		Shares	Amount		Additional paid-in capital		Retained Earnings		AOCI		Noncontrolling interests		Total Equity
Balance, December 31, 2020	87,697,381	$	0.9	216,652,704	$	2.2	86,123,230	$	0.9	—	$	—	$	505.2	$	(4.0)	$	(2.4)	$	436.8	$	939.6
Effect of LLC Unit Exchanges	14,500,582	0.1		(9,776,683)	(0.1)		(3,869,894)	(0.1)		—	—		37.2		—		—		(20.1)		17.0
Issuance of Class A common stock upon vesting of RSUs	20,439	—		—	—		—	—		—	—		—		—		—		—		—
Shares withheld related to net share settlement and other	(30,936)	—		—	—		—	—		—	—		(1.6)		—		—		—		(1.6)
Exercise of stock options	24,758	—		—	—		—	—		—	—		0.5		—		—		—		0.5
Forfeitures / cancellations	—	—		(7,852)	—		—	—		—	—		—		—		—		—		—
Net income (loss)	—	—		—	—		—	—		—	—		—		3.2		—		(37.1)		(33.9)
Other comprehensive income	—	—		—	—		—	—		—	—		—		—		4.0		6.2		10.2
Paid and accrued tax distributions	—	—		—	—		—	—		—	—		—		—		—		(3.0)		(3.0)
Equity-based compensation	—	—		—	—		—	—		—	—		8.3		—		—		9.8		18.1
Balance at March 31, 2021	102,212,224	$	1.0	206,868,169	$	2.1	82,253,336	$	0.8	—	$	—	$	549.6	$	(0.8)	$	1.6	$	392.6	$	946.9
Effect of LLC Unit Exchanges	19,514,930	$	0.2	(15,259,859)	$	(0.2)	(4,040,025)	$	—	—	$	—	$	45.1	$	—	$	0.1	$	(31.1)	$	14.1
Issuance of Class A common stock upon vesting of RSUs	123,729	—		—	—		—	—		—	—		—		—		—		—		—
Shares withheld related to net share settlement and other	(14,333)	—		—	—		—	—		—	—		(0.6)		—		—		—		(0.6)
Exercise of stock options	11,056	—		—	—		—	—		—	—		0.2		—		—		—		0.2
Forfeitures / cancellations	—	—		(32,424)	—		—	—		—	—		—		—		—		—		—
Net income (loss)	—	—		—	—		—	—		—	—		—		9.3		—		15.2		24.5
Other comprehensive income	—	—		—	—		—	—		—	—		—		—		(0.5)		(0.8)		(1.3)
Paid and accrued tax distributions	—	—		—	—		—	—		—	—		—		—		—		(9.2)		(9.2)
Equity-based compensation	—	—		—	—		—	—		—	—		8.4		—		—		8.7		17.1
Balance at June 30, 2021	121,847,606	$	1.2	191,575,886	$	1.9	78,213,311	$	0.8	—	$	—	$	602.7	$	8.5	$	1.2	$	375.4	$	991.7

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ZoomInfo Technologies Inc.
Consolidated Statements of Cash Flows
(in millions; unaudited)
	Six Months Ended June 30,
	2022		2021
Cash flows from operating activities:
Net income (loss)	$	22.1	$	(9.4)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization	42.5		30.6
Amortization of debt discounts and issuance costs	1.5		1.0
Amortization of deferred commissions costs	30.0		18.5
Asset impairments	—		2.7
Loss on debt modification and extinguishment	—		5.9
Deferred consideration valuation adjustments	—		0.2

Equity-based compensation expense	89.5		35.2

Deferred income taxes	18.5		48.1

Tax receivable agreement remeasurement	0.9		—
Provision for bad debt expense	0.6		2.1
Changes in operating assets and liabilities, net of acquisitions:
Accounts receivable	26.8		7.8
Prepaid expenses and other current assets	(3.6)		(3.6)
Deferred costs and other assets, net of current portion	(38.5)		(22.1)
Income tax receivable	(1.2)		1.5
Accounts payable	4.0		12.1
Accrued expenses and other liabilities	(22.7)		(2.3)
Unearned revenue	40.8		53.3
Net cash provided by (used in) operating activities	211.2		181.6

Cash flows from investing activities:
Purchases of short-term investments	(15.2)		(119.8)
Maturities of short-term investments	20.6		41.5
Proceeds from sales of short-term investments	—		42.1
Purchases of property and equipment and other assets	(14.8)		(11.0)


Cash paid for acquisitions, net of cash acquired	(143.6)		(31.8)
Net cash provided by (used in) investing activities	(153.0)		(79.0)

Cash flows from financing activities:
Payments of deferred consideration	(1.1)		(9.4)
Proceeds from debt	—		350.0
Repayment of debt	—		(356.4)
Payments of debt issuance and modification costs	(0.4)		(5.8)
Proceeds from exercise of stock options	0.6		0.8
Taxes paid related to net share settlement of equity awards	(7.6)		(2.9)


Payments of equity issuance costs	(0.3)		—
Tax receivable agreement payments	(5.0)		—
Tax distributions	—		(15.3)
Net cash provided by (used in) financing activities	(13.8)		(39.0)

Net increase (decrease) in cash, cash equivalents, and restricted cash	44.4		63.6
Cash, cash equivalents, and restricted cash at beginning of period	314.1		271.0
Cash, cash equivalents, and restricted cash at end of period	$	358.5	$	334.6

Cash, cash equivalents, and restricted cash at end of period:
Cash and cash equivalents	352.7		332.9

Restricted cash, non-current	5.8		1.7
Total cash, cash equivalents, and restricted cash	$	358.5	$	334.6

Table of Contents


ZoomInfo Technologies Inc.
Consolidated Statements of Cash Flows
(in millions; unaudited)
	Six Months Ended June 30,
	2022		2021
Supplemental disclosures of cash flow information
Interest paid in cash	$	25.6	$	12.3