Good day, and thank you for standing by. Welcome to the ZoomInfo acquires Chorus.ai conference call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question- and- answer session. To ask a question during the session, you will need to press star one on your telephone. Please be advised that today's conference is being recorded. If you require any further assistance, please press star zero. I will now hand the conference over to your speaker today, Jerry Sisitsky. Please go ahead. Thanks, Shannon. Welcome everyone, and thank you for joining us today on such short notice. This morning, ZoomInfo announced the acquisition of Chorus.ai. The details of the transaction can be found in the press release that we issued earlier today. You can find the press release and an investor presentation discussing the transaction on our investor relations website at ir.zoominfo.com. Joining me on the call today are Henry Schuck, founder and CEO of ZoomInfo, and Cameron Hyzer, CFO of ZoomInfo. After their remarks, we will open the call to Q&A. Please note that the purpose of today's call is to discuss the Chorus.ai acquisition, and we will not be discussing our second quarter financial results, which are scheduled to be released on Monday, August 2nd. During this call, any forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Expressions of future goals, including business outlook, expectations for future financial performance, and similar items, including, without limitation, expressions using the terminology may, will, and believe, and expressions which reflect something other than historical facts, are intended to identify forward-looking statements. Forward-looking statements involve a number of risks and uncertainties, including those discussed in the risk factors sections of our filings with the SEC. Actual results may differ materially from any forward-looking statements. The company undertakes no obligation to revise or update any forward-looking statements in order to reflect events that may arise after this conference call, except as required by law. For more information, please refer to the cautionary statement included in the slides that we have posted to our investor relations website at ir.zoominfo.com. All metrics discussed on this call are non-GAAP unless otherwise noted. A reconciliation can be found in the financial results press release or in the slides that we have posted to our investor relations website. With that, I'll turn the call over to our CEO, Henry Schuck. Great. Thank you, Jerry, and good morning, everyone. The acquisition of Chorus.ai meaningfully accelerates our vision to deliver the modern go-to-market platform while directly fitting our criteria for acquisitions. First, this is a high-value adjacency where we can leverage our best-in-class go-to-market team to drive significant growth. Second, Chorus integrates with our data and insights to create a differentiated value proposition. The software gets meaningfully better through its integration into our platform. Third, conversational intelligence is core to the go-to-market motion, and finally, this acquisition is accretive in the short term. At ZoomInfo, we've always been focused on helping our customers grow their businesses. We've historically done that by enabling the top of the funnel with technology and data to empower sales and marketing teams to connect with the right accounts and the right buyers at precisely the right time, when they're in the market for specific products and solutions. Our acquisition today of Chorus.ai, a leading provider of conversation intelligence, empowers us to shape the next stage of the funnel, direct customer conversations. Conversation intelligence delivers insights from sales calls, virtual meetings, and video conferences by recording, transcribing, and analyzing sales meetings to deliver deep AI insights. With the vast majority of sales and customer interactions happening digitally, Chorus leverages next-generation natural language processing and voice analytics to give clients a full picture of every digital interaction, including customer calls, emails, and web conferences. These insights make an impact at every level of an organization. Sales reps can listen to prospects on a call and instantly understand their level of engagement, the key takeaways from the call, and what the right next step is. Sales operations leaders and enablement professionals can identify the specific activities and behaviors by top reps that are correlated with success and use that insight to inform rep training, onboarding, and management. Sales managers can go directly to key accounts and quickly see and hear crucial moments in the deal cycle. Executives can easily listen to the customer's voice across many key topics. As a result of these wide-ranging use cases, Chorus opens the door to significantly more users across the organization and every member of the go-to-market team. As a category, conversation intelligence is ranked among the highest satisfaction and highest impact solutions in the sales tech stack, and our best-in-class go-to-market organization can meaningfully accelerate bringing this solution to the market. Combining Chorus with our InboxAI, Chat, and Engage products enables clients to capture every customer interaction, from emails and phone calls to web conferences and website chats. That data is then unlocked by machine learning technology that identifies key insights in the buyer's journey, leading to better sales team coaching, more uniform processes across go-to-market teams, higher revenue, and more accurate pipeline forecasting. Every sales leader in every organization has a process for running pipeline reviews, checking on upcoming opportunities, coaching their teams, and onboarding and training new reps. The insight they use to drive those key motions is all dependent on the reps themselves manually entering notes or commentary into the CRM system. Much like the data on customers and prospects that ZoomInfo enriches and completes, sales managers, enablement professionals, and operations staff often lack visibility and context beyond the minimal amount sales representatives are summarizing for them. When sales teams use Chorus, they have deep visibility into every customer interaction and are able to actually see and hear the customer's voice throughout the sales cycle and the entire customer journey. Chorus' solution embeds directly inside CRM, enabling customers to leverage AI-driven signals to zero in on key moments when competitors are mentioned, when the buying process is articulated, or when both parties agree on next steps. Chorus brings with it a great team, best-in-class technology, and a privacy-first mindset. Both our companies are delivering technology solutions to go-to-market professionals that are easy to use, scalable, and deliver quick time to value, and extremely high ROI. Chorus features industry-leading transcription services and AI-driven analytics with a robust patent portfolio that's more than seven times the size of its closest competitor. Those AI insights are reinforced from over 52 million recorded and transcribed calls. It is consistently ranked as one of the most loved and highest-rated software products. It was recently named the number one provider in conversation intelligence by TrustRadius. Combining Chorus' leading conversation intelligence solution within the ZoomInfo platform will deliver comprehensive revenue, sales, and conversation intelligence capabilities to sales teams right where they operate every day. This combination cements our vision to build a modern go-to-market platform that begins with a world-class data foundation and expands with an application layer of engagement and workflow software built on top of that. That seamless integration from data to application has meaningful strategic advantages, including a built-in flywheel effect between the two layers. Investment in the data layer makes the application layer more powerful, and when the application layer expands, the data layer becomes more actionable. For example, data signals are the triggering points to build workflow around, and those signals can come from all over. Intent from research on the B2B web, executive changes, funding alerts, website chats, emails, and now, thanks to Chorus, from voice and video calls. We capture those signals, separate them from the noise, derive analytics, and then trigger workflows, automation, and engagement through our application layer. We can then take the success metrics and all of the engagement from those interactions and maintain a feedback mechanism, making the system smarter and recommending next best actions. By integrating Chorus into ZoomInfo's application layer, customers can combine insights from every prospect and customer interaction, like tracked phrases, engagement types, sentiment, and keywords mentioned with ZoomInfo's core data asset of contacts, company firmographics and technographics, Scoops, and intent signals. A sales manager will be able to instantly pull up every closed lost opportunity where a missing feature or a competitive gap was discussed, and then instantly identify the decision-makers at those accounts to re-engage with through an email or call campaign using our Engage functionality. What gets really transformational is the combination of this integrated audience building functionality with our workflow suite to give sales teams the ability to automate these motions around any number of keywords mentioned across any company a sales team has interacted with. Essentially, a robust if-this-then-that engine that can key off key phrases mentioned in calls, filter by company attributes, and automate engagement through dozens of different channels, from display ads to sales calling campaigns. This combination of software and data is much more powerful than software alone and is a big reason why we have so much confidence in our ability to continue to meaningfully expand net retention rates across our customer base. All of this functionality, combined with analytics and workflows, will be available on the core ZoomInfo platform, as well as in ZoomInfo Chat and ZoomInfo Engage during the first half of 2022. Between now and then, we will begin releasing our data and insights into the Chorus platform and integrating the Chorus application directly into ZoomInfo. With the addition of conversation intelligence, we now see line of sight to an additional $18 billion of market opportunity, growing our total addressable market to $70 billion. On the go-to-market side, the buyer for conversation intelligence is the same buyer as the sales intelligence buyer we target and have relationships with today. The solution enjoys the same horizontal applicability across any industry as ZoomInfo's current tech stack does. As a result, we share customers and relationships at many of the world's fastest-growing and most sophisticated companies, like DocuSign, Zoom Video, MongoDB, Qualtrics, and Adobe. In this way, Chorus reminds me of ZoomInfo in its earliest days when leading-edge companies were adopting a technology that was equally applicable to every B2B company. TOPO has validated this perspective, recommending conversation intelligence for every B2B company with more than four sales reps. I have very high confidence that nearly every one of ZoomInfo's 20,000+ customers, as well as the hundreds of thousands of other B2B companies who are not yet customers, will benefit from conversation intelligence. As we begin going to market together, it's worth noting that our companies share nearly identical sales motions and deal cycles, and our entire go-to-market organization knows and understands the value of Chorus. This allows us to have an accelerated timeline to enable our teams to sell both Chorus and ZoomInfo's core intelligence platforms within the quarter, activating the industry's largest distribution engine for conversation intelligence. We are confident that conversation intelligence will be a critical application in every company's go-to-market motion, and we believe that Chorus has built the world's best technology to deliver just that. To wrap up, this is an acquisition that significantly expands our addressable market with a high-value, high net- retention solution that is core to go-to-market teams, that our sellers can quickly and easily bring to market, and that becomes meaningfully advantaged through the integration of our data asset while expanding ZoomInfo's platform from the top to the middle of the sales funnel. With that, let me pass it over to Cameron. Thanks, Henry. As Henry discussed, we are very excited about this acquisition because first, it dramatically expands our total addressable market. Second, it is a solution sold to the same buyers, a solution that our team knows and our sellers will easily be able to bring to market, both to new customers as well as a cross-sell opportunity to existing customers. Third, it is accretive to our growth. Chorus.ai has more than doubled revenue over the past year. We expect to continue to invest in the solution. While continued investment implies that it will be initially dilutive to cash flow in the short term, we expect to apply our financial discipline and focus on efficiency to generate profitability within 12 months and make the transaction accretive to cash flow in the second half of 2022 while accelerating their top-line growth rate. Finally, as Henry highlighted, this strengthens our competitive moat and creates amazing value for customers. ZoomInfo will acquire the assets and specified liabilities of Chorus.ai for approximately $575 million in an all-cash transaction. The purchase price includes a cash tax benefit of over $100 million related to the asset purchase that we will realize over time. This transaction is accretive to ZoomInfo's growth and also accretive to ZoomInfo's enterprise value to revenue multiple based on 2021 consensus estimates. It will generate positive adjusted operating income in 12 months and be accretive to cash flow by the second half of 2022. We are funding the acquisition purchase price with cash on hand and a drawdown on our revolving credit facility. We anticipate launching $500 million in additional debt financing, which we'll use to repay the revolver. Chorus.ai has approximately 170 employees and is currently not profitable, but will be as part of ZoomInfo within 12 months. As we look at the potential impact to our financials for this year, after adjustments associated with purchase price accounting, we expect Chorus.ai to contribute less than $10 million to GAAP revenue in 2021. With our continued investments to drive growth, we expect Chorus.ai to contribute less than $10 million net expense to our expected 2021 adjusted operating income. We anticipate sharing more details with respect to guidance for this year on our upcoming financial results conference call on August 2nd. With that, let me turn it over to the operator to open up the call for questions. Thank you. As a reminder, to ask a question, you will need to press star one on your telephone. To withdraw your question, press the pound key. Please stand by while we compile the Q&A roster. Our first question comes from Raimo Lenschow with Barclays. Your line is open. Hey. Congratulations. That's a really interesting transaction. Henry, can you talk a little bit about the greater vision that comes with it? You're going, as you said, from the front of the funnel to the middle of the funnel. It's just one aspect that you're addressing now. Should we think about a slightly broader ZoomInfo in the future? Thanks. Thanks, Raimo. Yeah. We've been talking about how we want to build a modern go-to-market platform, and you saw that with our release of the Engage platform that moved us into engagement. You saw that with the release and the acquisition of Insent for website chat, and now you see that with our expansion into conversation intelligence. I think what we're focused on today is there are a number of tools that go-to-market teams are using every day in their go-to-market motions that make them convert better, find customers faster, convert website visitors in a more streamlined way. When data can plug into those applications and make them meaningfully strategically differentiated, we're going to play in that. When we have the opportunity to take those solutions, significantly expand the growth of them by leveraging our best-in-class go-to-market engine, and make them accretive in the short term, building or acquiring those types of solutions to build that modern go-to-market platform is a compelling vision for us. It's a compelling vision that our customers are excited about, and we're excited to continue building it. Perfect. Thank you. Then Cameron, one quick one. In terms of how Chorus sells, what's an ASP for them? Is it similar to yours? Is it bigger to yours? How do we have to think about that? Their ASP is similar to ours overall. Okay. Perfect. Thank you. Congrats. Thanks. Our next question comes from Alex Zukin with Wolfe Research. Your line is open. You may be on mute still, Alex. Okay, sorry about that. Thanks for taking the question there. Two quick ones. Maybe first, I think a lot of people understand the value proposition of Chorus.ai and the competitor. Can you help us unpack why it makes sense to have this workflow and all of these workflows in one system versus how a lot of clients today are doing a lot of these integrations themselves when they buy specific point solutions? Yeah. Let me give one example and then also just talk about a mutual customer. We have a mutual customer that's in the telecom space that uses ZoomInfo across 90% of their sales teams, and they use it at the top of the funnel to enrich and append their inbound leads and as their core prospect intelligence platform. They use Chorus as well. Within months of deploying Chorus, they realized that when they tell their founding story in a sales cycle, that their win rates increase 10%. Through best practices playlist they've created in Chorus, they've reduced new hire ramp time by 50%. You can see, as we've historically helped them at the top of the funnel, generate those leads, generate those opportunities, and then left them to their own selves to convert those opportunities into demos and then closed won business, we now have this opportunity to optimize that next stage of the funnel to really make an impact on those leads and opportunities that we're generating for them and helping them generate at the top of the funnel. There becomes a whole workflow motion that's underneath that. Imagine, the example I mentioned, we have a bunch of closed lost opportunities or unengaged opportunities that we were never able to close. Well, now I can bring that data directly. I have that data natively, directly inside of ZoomInfo. I can easily click two buttons to see all of those companies and then see my buying committee at those companies to then launch another re-engagement campaign to those companies who were interested at one moment but sort of fell off the radar at some point. That's a motion that companies are running every day. They're keying off of key pieces of data that come from conversations they're having with customers, and then they're trying to marry it with a data asset like ZoomInfo's. We're integrating that now in one place so they can run that end-to-end motion inside of ZoomInfo. Additionally, embedding Chorus directly inside of ZoomInfo so that every time I'm prospecting an account or I'm calling into a potential customer, I can see every time our companies talk to that individual or talk to that company. I can hear their voice directly inside of the ZoomInfo platform, so I understand what their sentiment was the last time I engaged with them. Finally, this is a solution that every sales leader uses. When you think about uniformity across tools and solutions that sales reps and sales managers are using, every company has to prospect to generate new business. Every company has to train and onboard and improve their reps. We're touching that entire sales process now. Perfect. That's super helpful. Then maybe just one quick one for Cameron. You mentioned net retention a couple of times and how this could help net retention. Maybe, Cameron, can you remind us where are you from a dollar-based net expansion or retention characteristic and how the inclusion of a solution like Chorus could accrete there? Sure. For 2020, our net retention was 108%. As mentioned before, that spans a wide range of different customers, for our enterprise customers were well over 120%. I think the Chorus net retention is strong as well. Their net retention was 125% looking over the TTM period. We feel that not only is this a solution that salespeople really enjoy using and continue to use and want more of, therefore, driving their net retention. By providing more value to our customers across the chain that they are using, we feel that that'll actually boost net retention overall and be a situation where one plus one equals three. Makes sense. Congratulations on getting this deal done, guys. Thank you. Our next question comes from Terry Tillman with Truist. Your line is open. Yeah. Hey, Henry and Cameron. Congrats as well from me. Just two quick questions. Cameron, I think you gave us some color on the stub period that you're going to own at $10 million of revenue and maybe $10 million of expenses. Could you give us a sense on, actually, I think you said the business doubled in 2020, but just a sense on what the GAAP revenue looked like. Secondly, what is the cash flow impact? I had a follow-up with Henry. Yeah. We're not going to disclose the historical financials, you can obviously back into them based on the growth rates. In terms of the cash flow impact, the cash flow impact will be somewhat less impactful given their subscription model and the fact that most of their customers pay upfront and they're quickly growing. We'll still contribute a cash flow loss for the year, obviously less than that high single-digit million loss that we're expecting from an adjusted operating income perspective. Okay, great. Henry, kind of a big picture question in terms of, it feels like a wild west right now in terms of there's lots of great tools that sales and go-to-market teams can be leveraging these days. How do you see this actually shaking out with conversational intelligence, do they tend to buy this separately, or do you see them actually buying this as a bundle with chat, Inbox AI, and Engage all together? How do you see the actual consumption model over the next 12 to 24 months? Thank you. First, I think, when you listen to the analysts in this space, they say that, TOPO says this should be one of the first purchases. Conversation intelligence should be one of the first purchases that a company makes. We believe that prospect data and customer data and account data and intent data should be the first purchase you make. You can't do a whole lot in your sales motion without that type of data and insight. The next motion, once you have your sales reps out in the market selling and demoing your product and service is really to optimize that motion. We think these two things can be sold together, can be sold side by side, that they make up the foundational part of how companies go to market. We're going to sell this across our customer base of over 20,000+ customers. We think that every one of our customers have a need for conversation intelligence. We're going to leverage our retention and growth and account management teams to sell into that customer base. We're also going to sell it on the new sales side as well. Thank you. Our next question comes from McGinnis with UBS. Your line is open. Hi. Thanks so much for taking my call. I know that this technology is what some of the CRM players provide, and I think even as well as the communication players. Can you just talk about the competitive overlaps and, I guess, how much of this would be greenfield versus companies having to consolidate functionality to the ZoomInfo platform? Yeah. Look, I think first that we're in the very early stages of conversation intelligence. It's a big market. We think of it similarly to the way we think of ZoomInfo in that there's a tremendous amount of white space out there for companies to be leveraging this type of technology. We expect in the analysis that we've done, we find that our motion will be by and large white space into our customers in the B2B marketplace. Awesome. Thank you. Thank you. Our next question comes from Parker Lane with Stifel. Your line is open. Yeah, thanks for taking my question. This is Parker on for Tom Roderick. Henry, when you think about the conversation intelligence tools that Chorus brings to the table, it strikes me that there could be applications outside of sales and marketing intel or sales and marketing as well, maybe customer success and support. Was that something that was on Chorus' own roadmap? What are your thoughts on that as a potential area of expansion over time? Yeah. I do think we obviously do believe that this technology has broad applicability across go-to-market teams, customer success managers, account managers, product marketers to get messaging right and see how messaging is resonating with the end customer. We also think that this as a tool has potential within our ZoomInfo Recruiter platform for talent acquisition professionals to be able to manage the message that is being delivered by their recruiters in interviews and conversations with potential candidates. I think lots of applicability. Out of the gates, we think across the go-to-market teams, we have the ability to sell this across sales development reps, account managers, CSMs, and really expand the use case across them. Yeah. Cameron, maybe on the revenue contribution side, is there any meaningful difference in the percentage of revenue coming from international markets at Chorus, relative to ZoomInfo's international exposure today? Yeah. Chorus is on an earlier part of the path that ZoomInfo's already traveled. They also started largely in the U.S. Their percentage of revenue in the U.S. is higher than what we see at ZoomInfo. Part of the strategy here is that we've already traveled down this path. We've identified where the next building blocks are and who the next customers are once you have attacked those really early adopters. Part of that obviously is continuing to move international as well as ZoomInfo has done. We'll be able to drag Chorus along in terms of continuing to broaden their scope in terms of customers and continue to roll it out internationally as well. Got it. Thank you. Thank you. Our next question comes from Brian Peterson with Raymond James. Thanks, gentlemen, congrats on the acquisition. Just one from me. Cameron, you just kind of identified that some of the targets you were aware of and kind of how to identify some potential customers. I'm curious, what kind of role does your go-to-market motion play in potentially generating synergies with incremental acquisitions? I'm just curious how well you can integrate this into the go-to-market motion, and are the synergies potentially different as you're looking at this asset? Thank you. That is certainly one of the reasons that we're really excited about this acquisition is because it is a very similar sales cycle. It sells to the same buyer, and that our salespeople know the solution well. Therefore, they'll be able to articulate the value as they're moving forward. In any acquisition that we look for, one of the key things that we're focused on is being able to leverage our world-class go-to-market motion in order to accelerate the growth from, in this case, a very interesting technology that brings a lot of value to the customer. Thank you. Thank you. I'm showing no further questions at this time. I'd like to turn the call back over to Henry Schuck for closing remarks. Great. Thanks for everyone for joining us on such short notice this morning. It's certainly been an exciting few weeks for us. We announced the acquisition of Insent and launched ZoomInfo Chat, hosted our first-ever Analyst Day, hosted our first-ever user conference, launched our recruiter offering, and today announced the acquisition of Chorus.ai, which we think is truly going to be a game changer for ZoomInfo. We've literally built one of the best go-to-market engines in the world, and our sellers cannot wait to get their hands on Chorus. We're building a modern go-to-market platform and are excited to have you join us on this ride as we invent the future of go-to-market. We look forward to speaking with you again in a few weeks as we report our Q2 financial results on Monday, August 2nd, and following that as we participate in a number of investor conferences and events over the course of the quarter. Thank you. This concludes today's conference call. Thank you for participating. You may now disconnect.