ZoomInfo (GTM) Drives Profitability Through Upmarket Strategy and AI Innovation

ZoomInfo Technologies Inc. (NASDAQ:GTM) is one of the best small cap tech stocks with high upside potential. On February 9, ZoomInfo concluded 2025 with a quarterly revenue of $319 million and an annual total of $1.25 billion, representing a 3% year-over-year increase. The company maintained high profitability, reporting a 38% adjusted operating income margin for Q4. A key driver of this performance was the company’s upmarket strategy, which now accounts for 74% of the business and grew 6%.

The company faced some headwinds, including a net revenue retention rate of 90% and challenges in the downmarket segment. Guidance for 2026 suggests a potential deceleration with ~1% GAAP revenue growth, as management adopted a conservative outlook that excludes revenue contributions from new products while accounting for development costs. Additionally, the rollout of AI-integrated products put some pressure on gross margins.

ZoomInfo Technologies Inc. (NASDAQ:GTM) is betting heavily on AI innovation and its Copilot platform, which has already reached 20% penetration of total annual contract value. The company plans to use a consumption-based monetization model for its AI solutions and has authorized an additional $1 billion for share repurchases.

ZoomInfo Technologies Inc. (NASDAQ:GTM), together with its subsidiaries, provides a go-to-market intelligence and engagement platform for sales, marketing, operations, and recruiting professionals in the US and internationally.