Go-to-market intelligence provider ZoomInfo (NASDAQ: GTM) announced better-than-expected revenue in Q1 CY2026, with sales up 1.5% year on year to $310.2 million. On the other hand, next quarter’s revenue guidance of $301.5 million was less impressive, coming in 2.8% below analysts’ estimates. Its non-GAAP profit of $0.28 per share was 8.7% above analysts’ consensus estimates.
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ZoomInfo (GTM) Q1 CY2026 Highlights:
- Revenue: $310.2 million vs analyst estimates of $308 million (1.5% year-on-year growth, 0.7% beat)
- Adjusted EPS: $0.28 vs analyst estimates of $0.26 (8.7% beat)
- Adjusted Operating Income: $109.7 million vs analyst estimates of $106.8 million (35.4% margin, 2.7% beat)
- The company dropped its revenue guidance for the full year to $1.20 billion at the midpoint from $1.26 billion, a 4.9% decrease
- Management reiterated its full-year Adjusted EPS guidance of $1.11 at the midpoint
- Operating Margin: 18.7%, up from 16.5% in the same quarter last year
- Free Cash Flow Margin: 29.2%, down from 42.4% in the previous quarter
- Billings: $311.7 million at quarter end, in line with the same quarter last year
- Market Capitalization: $1.90 billion
Company Overview
Operating a platform it calls "RevOS" - short for Revenue Operating System - ZoomInfo (NASDAQ: GTM) provides sales, marketing, and recruiting teams with business intelligence and analytics to identify prospects and deliver targeted outreach.
Revenue Growth
A company’s long-term sales performance can indicate its overall quality. Any business can put up a good quarter or two, but many enduring ones grow for years. Thankfully, ZoomInfo’s 18.8% annualized revenue growth over the last five years was decent. Its growth was slightly above the average software company and shows its offerings resonate with customers.
Long-term growth is the most important, but within software, a half-decade historical view may miss new innovations or demand cycles. ZoomInfo’s recent performance shows its demand has slowed as its revenue was flat over the last two years. 
This quarter, ZoomInfo reported modest year-on-year revenue growth of 1.5% but beat Wall Street’s estimates by 0.7%. Company management is currently guiding for a 1.7% year-on-year decline in sales next quarter.
Looking further ahead, sell-side analysts expect revenue to grow 1.1% over the next 12 months, similar to its two-year rate. This projection is underwhelming and suggests its newer products and services will not lead to better top-line performance yet.
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Billings
Billings is a non-GAAP metric that is often called “cash revenue” because it shows how much money the company has collected from customers in a certain period. This is different from revenue, which must be recognized in pieces over the length of a contract.
Over the last year, ZoomInfo failed to grow its billings, which came in at $311.7 million in the latest quarter. This alternate topline metric underperformed its total sales, meaning the company recognizes revenue faster than it collects cash - a headwind for its liquidity that could also signal a slowdown in future revenue growth. 
Customer Acquisition Efficiency
The customer acquisition cost (CAC) payback period represents the months required to recover the cost of acquiring a new customer. Essentially, it’s the break-even point for sales and marketing investments. A shorter CAC payback period is ideal, as it implies better returns on investment and business scalability.
It’s relatively expensive for ZoomInfo to acquire new customers as its CAC payback period checked in at 166.5 months this quarter. The company’s slow recovery of its sales and marketing expenses indicates it operates in a highly competitive market and must invest to stand out, even if the return on that investment is low.
Key Takeaways from ZoomInfo’s Q1 Results
It was good to see ZoomInfo provide EPS guidance for next quarter that slightly beat analysts’ expectations. On the other hand, its full-year revenue guidance missed and its revenue guidance for next quarter fell short of Wall Street’s estimates. Overall, this quarter could have been better. The stock traded down 28.6% to $4.32 immediately after reporting.
ZoomInfo underperformed this quarter, but does that create an opportunity to invest right now? If you’re making that decision, you should consider the bigger picture of valuation, business qualities, as well as the latest earnings. We cover that in our actionable full research report which you can read here (it’s free).
