3) ZoomInfo Technologies Inc. (NASDAQ:ZI)
Number of Hedge Fund Holders: 37
ZoomInfo Technologies Inc. (NASDAQ:ZI) offers a go-to-market intelligence and engagement platform for sales and marketing teams. ZoomInfo rolled out its new AI-powered platform, ZoomInfo Copilot, which aims to offer more advanced and automated solutions for sales and marketing professionals.
ZoomInfo Technologies Inc. (NASDAQ:ZI)’s introduction of its AI-powered platform, ZoomInfo Copilot, demonstrates its strategic move to stay at the forefront of technological innovation in the B2B data and analytics space. With businesses seeking AI-driven solutions to enhance sales and marketing efforts, its investment in this area might place the company for future growth.
ZoomInfo Technologies Inc. (NASDAQ:ZI)’s early mover advantage in integrating AI into its core platform should create a competitive moat. Copilot surpassed $60 million of ACV (annual contract value) in the quarter, exceeding its expectations. Copilot’s adoption stems from the measurable return on investment it offers. ZoomInfo Technologies Inc. (NASDAQ:ZI)’s customers reported that 25% of their total pipeline is directly attributed to opportunities identified by Copilot. Also, there has been a 58% increase in prospect engagement rates and a 62% improvement in email response rates.
ZoomInfo Technologies Inc. (NASDAQ:ZI) has been experiencing double-digit growth in customer migrations to the Copilot tool. Wall Street expects increased adoption of ZoomInfo Copilot over the upcoming quarters due to features such as strategic account prioritization, expanded integrations (e.g., with HubSpot and Microsoft Dynamics 365), and actionable sales insights.
Baron Funds, an investment management firm, released its Q4 2023 investor letter. Here is what the fund said:
“We were too slow to sell when the probability of a likely thesis change dictated action over inaction. Each investment is like a puzzle. Different pieces are missing in different puzzles. Our process is deliberately slow and is built on collecting and analyzing as much information as possible and building conviction over time. In a highly stressful environment with a wide range of outcomes, a recognized lack of balance with emotions running high, postponing “bad decisions” is often the correct course of action except, when there is evidence of a potential or likely thesis change on the negative side in a bear market. We were often too slow and too timid in running for the exit. For example, when a company’s revenues prove to be less sticky during times of stress despite high average retention rates. ZoomInfo Technologies Inc. (NASDAQ:ZI), the business-to-business (B2B) sales data and software provider readily comes to mind, where we made a mistake selling the stock too slowly, as we did not fully appreciate the extent to which the company oversold unused licenses to its customers, which exacerbated the slowing demand environment, creating a whiplash effect as the license inventory was used up later on, causing revenue growth to decelerate materially.”
