AI Research Company Tavus Debuts Hummingbird-0, Ushering in a New Era of Zero-Shot Lip Sync
Once developers get a taste of Hummingbird-0, they want to know more about what our entire family of models can do. Hummingbird-0 barely scratches the surface of our capabilities as we continue developing the human layer of AI. -- Hassaan Raza, Tavus CEO
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'Lip sync technology has been around for years, but until now, it's never really been great — open source or otherwise,' said Effie Goenawan, Head of Product at Tavus. 'With Hummingbird-0, we're giving developers access to a state-of-the-art lip sync model that unlocks an entirely new level of creative potential. It actually emerged as a happy accident while we were developing our full-face replica rendering model, Phoenix-3, and it's a testament to the brilliance and curiosity of our research team.'
Helping Content Creation Take Flight
The Hummingbird model is designed to modify the lip movements in a given video to match the content of a driving audio signal. The guiding principle is to preserve the original identity, expressions, and visual quality of the person in the video while synchronizing their lip movements with the new audio.
Notably, with Hummingbird-0, users can create content much faster because they don't have to train a model. All that's needed is a video of a person speaking–one already in existence or one created using a video generator like Veo or Kling. From making memes talk to instantly localizing thousands of B2B videos, Hummingbird-0 puts high-quality lip sync just an API call away.
'Text-to-video generation models have become enormously popular for content creation, but there is a problem in that the video is muted; there's no voice,' said Hassaan Raza, CEO of Tavus. 'We are adding that voice that can go on top of any video where there is a human. This serves as an enabler not just for more, different, or better content, but for new types of products and experiences altogether. Once developers get a taste of Hummingbird-0, they want to know more about what our entire family of models can do. Hummingbird-0 barely scratches the surface of our capabilities as we continue developing the human layer of AI.'
Hummingbird-0 specifically gives developers the tools to overcome challenges associated with video content creation. For example, it offers:
Scalable Personalization: Transform a single source video into thousands of personalized versions with different audio tracks, dramatically reducing production costs for marketing, educational, and localized content.
Editing Video Dialogue in Post: Build editing workflows into any video app. Users can update or adapt existing footage of dialogue using text or audio—no reshoots, no heavy post-production.
Integrate with Video Generation: Build an AI film studio. Add dialogue, the missing puzzle piece to videos generated by Sora, Veo, Runway, Kling, and more.
Efficient Content Repurposing: Leverage existing footage to generate new videos with updated messaging or corrections without costly reshoots or complex post-production workflows.
Unparalleled Performance
Hummingbird-0 is already demonstrating best-in-class performance in visual quality, lip sync accuracy, and identity preservation— outperforming all other lip sync models on the market. Because it was built using Phoenix-3 components, Hummingbird-0 yields state-of-the-art results. Tavus tested Hummingbird-0 against industry-leading zero-shot lip sync solutions, displaying:
Superior Visual Quality: FID score of 63.92 (37% better than closest competitor)
Strong Lip Synchronization: LSE-D score of 6.74 (7% better than closest competitor)
Exceptional Identity Preservation: Arcface score of 0.84 (7% better than closest competitor).
'The Tavus team was able to take an existing product and transform it into a complementary solution. By being nimble, knowledgeable, and committed to pushing the envelope through research, Tavus now enables developers to quickly and easily add native-quality voice to any video, unlocking limitless video editing possibilities,' added Goenawan.
Learn more about how Hummingbird-0 works here and find Hummingbird-0 on Tavus or FAL today.
About Tavus
Tavus is a market-leading generative AI video research company building foundational models and operating systems for human-AI interaction. Inspired by the human brain, Tavus' cognitive architecture enables developers to build hyper-realistic AI video agents that see, listen, and respond, bringing the human touch to digital experiences at scale. Its AI models and APIs power virtual humans for real-time conversations and lifelike video generation, transforming industries like education, healthcare, recruiting, marketing, sales, financial services, and more. Tavus' technology is used by Fortune 500 companies and innovative startups alike to create AI-driven experiences that feel truly engaging and interactive. Headquartered in San Francisco, Tavus is backed by Sequoia Capital, Scale Venture Partners, Y Combinator, HubSpot, and other leading investors.
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Semrush Announces Second Quarter 2025 Financial Results
BOSTON--(BUSINESS WIRE)--Semrush Holdings, Inc. (NYSE: SEMR), a leading online visibility management SaaS platform, today reported financial results for the second quarter ended June 30, 2025. 'We posted strong revenue growth in the second quarter and were especially pleased by the accelerated adoption of our AI and Enterprise products,' said Bill Wagner, CEO. 'We are very excited about our leadership position in the market and our long-term growth opportunities. To underscore this conviction, we are announcing a $150 million share repurchase program.' Second Quarter 2025 Financial Highlights Second quarter revenue of $108.9 million, up 20% year-over-year. Loss from operations of ($4.3) million for the second quarter, compared to income from operations of $3.4 million in the prior year's quarter. Second quarter operating margin of (4.0%), compared to 3.7% in the prior year period. Non-GAAP income from operations of $12.0 million for the second quarter for a non-GAAP operating margin of 11.0%, compared to non-GAAP income from operations of $12.2 million in the prior year period for a non-GAAP operating margin of 13.4%. Cash flow from operations was $0.7 million in the second quarter, representing a cash flow from operations margin of 0.6%. ARR of $435.3 million as of June 30, 2025, up 15% year-over-year. Approximately 116,000 paying customers as of June 30, 2025. Dollar-based net revenue retention of 105%, as of June 30, 2025. See 'Non-GAAP Financial Measures & Definitions of Key Metrics' below for how Semrush defines ARR, dollar-based net revenue retention, non-GAAP income from operations, non-GAAP operating margin, free cash flow, and free cash flow margin, and the financial tables that accompany this release for reconciliations of each non-GAAP financial measure to its closest comparable GAAP financial measure. Second Quarter 2025 Business Highlights We are committed to empowering our customers with a best-in-class platform designed to boost their online presence and gain an edge in the market. We advanced and expanded many of our offerings and continued investments in Generative AI to provide enhanced, more efficient content creation and marketing capabilities through Semrush's platform: Announced general availability of AI Optimization (AIO), a Semrush Enterprise Solution, providing businesses with tools to track, control, and optimize brand presence across AI-powered search platforms. Introduced Toolkits, an AI-powered, all-in-one platform that provides businesses with streamlined workflows, centralized marketing tools, and the ability to drive measurable performance. Added SearchGPT as a search engine option within the Position Tracking tool, enabling users to monitor domain visibility on leading AI conversational platforms alongside traditional search engines. Released the AI Traffic dashboard inside the Traffic & Market Toolkit, allowing businesses to track brand visibility across AI tools like ChatGPT, Copilot, Gemini, and Perplexity. Launched a new algorithm update in Semrush .Trends, offering sharper insights, broader domain coverage, and faster delivery of fresh traffic data. Semrush customers who pay more than $10,000 annually grew by 35% year-over-year. Forrester named Semrush as a Leader in SEO Solutions and recognized Semrush's competitive intelligence, robust analytics, and vision for SEO as the 'engine of digital discoverability.' Company strengthens leadership with appointment of Caroline Tsay to Board of Directors. 'Looking ahead, I am energized about our ability to drive durable growth, profitability, and strong cash flow,' said Brian Mulroy, CFO. 'Our share repurchase program demonstrates our strong conviction in the business, reflects the strength of our balance sheet and free cash flow generation, highlights the attractive valuation opportunity and reinforces our commitment to delivering shareholder value.' Share Repurchase Program Today, the Company announces that a special committee composed of independent members of our Board of Directors authorized an inaugural share repurchase program. Share repurchases of our Class A common stock under the $150 million program may be made from time to time on the open market (including pursuant to Rule 10b5-1 trading plans), through privately negotiated transactions, or other legally permissible means. The share repurchase program has no time limit, does not obligate Semrush to acquire a specified number of shares, and may be suspended, modified, or terminated at any time, without prior notice. The number of shares to be repurchased will depend on market conditions and other factors. Based on information as of today, August 4, 2025, we are issuing the following financial guidance: Third Quarter 2025 Financial Outlook For the third quarter, we expect revenue in a range of $111.1 million to $112.1 million, which at the mid-point would represent growth of approximately 15% year-over-year. We expect third quarter non-GAAP operating margin to be approximately 11.5%. Full-Year 2025 Financial Outlook The company is revising its annual revenue outlook to reflect softer demand at the lower end of the market, impacted by an increase in paid-search cost per click. For the full year, we expect revenue in a range of $443.0 to $446.0 million, which at the mid-point would represent growth of approximately 18% year-over-year. We expect full year non-GAAP operating margin to be approximately 12%. We expect the full year free cash flow margin to be approximately 12%. Reconciliations of non-GAAP operating margin and free cash flow margin guidance to the most directly comparable GAAP measures are not available without unreasonable efforts on a forward-looking basis due to the high variability, complexity and low visibility with respect to the charges excluded from these non-GAAP measures, in particular the measures and effects of share-based compensation expense, employer taxes and tax deductions specific to equity compensation awards that are directly impacted by future hiring, turnover and retention needs. We expect the variability of the above charges to have a significant, and potentially unpredictable, impact on our future GAAP financial results. Conference Call and Webcast Details Semrush will host a conference call and webcast to discuss its financial results, business highlights, outlook and other matters, the details for which are provided below. Date: Tuesday, August 5th, 2025 Time: 8:30 a.m. ET Hosts: Bill Wagner, CEO, and Brian Mulroy, CFO Conference ID: 978610 Participant Toll Free Dial-In Number: +1 833 470 1428 Participant International Dial-In Number: +1 929 526 1599 The live webcast of the conference call as well as the replay can be accessed for a limited time from the Semrush investor relations website at About Semrush Semrush is a leading online visibility management SaaS platform that enables businesses globally to run search engine optimization, advertising, content, social media and competitive research campaigns and get measurable results from online marketing. Semrush offers insights and solutions for companies to build, manage, and measure campaigns across various marketing channels. Semrush is headquartered in Boston and has offices in Austin, Dallas, Amsterdam, Barcelona, Belgrade, Berlin, Munich, Limassol, Prague, Warsaw, and Yerevan. Forward-looking Statements This press release contains forward-looking statements within the meaning of the federal securities laws, which are statements that involve substantial risks and uncertainties. Forward-looking statements generally relate to future events or our future financial or operating performance. In some cases, you can identify forward-looking statements because they contain words such as 'may,' 'will,' 'shall,' 'should,' 'expects,' 'plans,' 'positioning,' 'anticipates,' 'could,' 'intends,' 'target,' 'projects,' 'contemplates,' 'believes,' 'estimates,' 'predicts,' 'potential' or 'continue' or the negative of these words or other similar terms or expressions that concern our expectations, strategy, plans or intentions. Forward-looking statements include, but are not limited to, guidance on financial results for the third quarter and full fiscal year of 2025 (including revenue, non-GAAP operating margin, and free cash flow margin); statements regarding the expectations of demand for our products and cash flow generation; statements about improvements to and expansion of our products and platform, and launching new products; statements about future operating results, including revenue, growth opportunities, variability of expenses, ability to realize efficiencies, future spending and incremental investments, business trends, our ability to deliver profits, and growth and value for shareholders; assumptions regarding foreign exchange rates; and plans, expectations and statements regarding our share repurchase program. The forward-looking statements contained in this release are also subject to other risks and uncertainties, including those more fully described in our filings with the Securities and Exchange Commission ('SEC'), including in the sections entitled 'Risk Factors' and 'Management's Discussion and Analysis of Financial Condition and Results of Operations'' in our filings with the SEC, including our most recent annual report on form 10-K, and our subsequently filed quarterly reports and other SEC filings. Although we believe that our plans, intentions, expectations, strategies and prospects as reflected in or suggested by those forward-looking statements are reasonable, we can give no assurance that the plans, intentions, expectations or strategies will be attained or achieved. The forward-looking statements in this release are based on information available to us as of the date hereof, and we disclaim any obligation to update any forward-looking statements, except as required by law. These forward-looking statements should not be relied upon as representing our views as of any date subsequent to the date of this press release. Additional information regarding these and other factors that could affect our results is included in our SEC filings, which may be obtained by visiting our Investor Relations page on its website at or the SEC's website at Non-GAAP Financial Measures & Definitions of Key Metrics We believe that providing non-GAAP information to investors, in addition to the GAAP presentation, allows investors to view the financial results in the way management views the operating results. We further believe that providing this information allows investors to not only better understand our financial performance, but also to evaluate the efficacy of the methodology and information used by management to evaluate and measure such performance. We also believe that the use of non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing our financial results with other companies in our industry, many of which present similar non-GAAP financial measures to investors. We also believe free cash flow margin is useful to investors as we monitor it as a measure of our overall business performance, which enables us to analyze our future performance without the effects of non-cash items and allows us to better understand the cash needs of our business. The non-GAAP information included in this press release should not be considered superior to, or a substitute for, financial statements prepared in accordance with GAAP and may be different from non-GAAP financial measures presented by other companies. Investors are encouraged to review the reconciliation of non-GAAP financial measures to their most directly comparable GAAP financial measures provided in the financial statement tables included below in this press release. Annual Recurring Revenue (ARR) is defined as the total subscription revenue as of a given date that we expect to contractually receive over the subsequent 12 months from customers on an annualized basis, assuming no increases, reductions or cancellations. This ARR definition was updated in our Annual Report on Form 10-K for the period ended December 31, 2024 to simplify the explanation of our calculation around the treatment of monthly and longer-term contracts, and to be more consistent with other SaaS businesses, which we believe improves the ability for investors to compare our metric against other businesses. Additionally, our definition was updated to note that we do not assume there will be any increases, reductions, or cancellations. Given our efforts to retain and win back customers, and our belief that we will be successful in many of those retention efforts, we believe the updated definition is more accurate. We did not recast ARR results to conform ARR under the prior definition to the updated definition as there is no variance between the two definitions for the periods presented. Dollar-based net revenue retention is defined as (a) the revenue from our customers during the twelve-month period ending one year prior to such period as the denominator and (b) the revenue from those same customers during the twelve months ending as of the end of such period as the numerator. This calculation excludes revenue from new customers and any non-recurring revenue. Free cash flow and free cash flow margin. We define free cash flow, a non-GAAP financial measure, as net cash provided by (used in) operating activities less purchases of property and equipment and capitalized software development costs. We define free cash flow margin as free cash flow divided by GAAP revenue. Non-GAAP income (loss) from operations, and non-GAAP operating margin. We define non-GAAP income (loss) from operations as GAAP income (loss) from operations, excluding Stock Based Compensation, Amortization of Acquired Intangible Assets, Acquisition Related Costs, Restructuring Costs and other one-time expenses outside the ordinary course of business (for example, our Exit Costs incurred primarily in 2022). We define non-GAAP operating margin as non-GAAP income (loss) from operations divided by GAAP revenue. We believe investors may want to consider our results with and without the effects of these items in order to compare our financial performance with that of other companies that exclude such items and to compare our results to prior periods. Stock-based compensation. Stock-based compensation is a non-cash expense accounted for in accordance with FASB ASC Topic 718. We believe that the exclusion of stock-based compensation expense allows for financial results that are more indicative of our operational performance and provide for a useful comparison of our operating results to prior periods and to our peer companies because stock-based compensation expense varies from period to period and company to company due to such things as differing valuation methodologies, timing of awards and changes in stock price. Amortization of acquired intangible assets. Excluding amortization of acquired intangible assets from non-GAAP expense and income measures allows management and investors to evaluate results 'as-if' the acquired intangible assets had been developed internally rather than acquired and, therefore, provides a supplemental measure of performance in which our acquired intellectual property is treated in a comparable manner to our internally developed intellectual property. These amounts are inconsistent in amount and frequency and are significantly impacted by the timing and size of acquisitions. Although we exclude amortization of acquired intangible assets from our non-GAAP expenses, we believe that it is important for investors to understand that such intangible assets contribute to revenue generation. Restructuring and other costs. Restructuring and other costs include restructuring expenses as well as other charges that are unusual in nature, are the result of unplanned events, and arise outside the ordinary course of our business. Restructuring expenses consist of employee severance costs, charges for the closure of excess facilities and other contract termination costs. Other costs include litigation contingency reserves, asset impairment charges, relocation expenses associated with the migration of employees in 2022 that occurred throughout 2022 and early 2023, and gains or losses on the sale or disposition of certain non-strategic assets or product lines. Acquisition-related costs. In recent years, we have completed a number of acquisitions, which result in transition, integration and other acquisition-related expense which would not otherwise have been incurred, are unpredictable and dependent on a significant number of factors that are deal-specific or outside of our control, are not indicative of our operational performance (or that of the acquired businesses or assets) and are likely to fluctuate as our acquisition activity increases or decreases in future periods. By excluding acquisition-related costs and adjustments from our non-GAAP measures, management is better able to evaluate our ability to utilize our existing assets and estimate the long-term value that acquired assets will generate for us. ¹ includes stock-based compensation expense as follows: Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Cost of revenue $ 116 $ 59 $ 160 $ 98 Sales and marketing 2,260 1,209 3,887 1,979 Research and development 3,917 1,371 6,383 2,007 General and administrative 7,143 4,527 12,118 8,197 Total stock-based compensation $ 13,436 $ 7,166 $ 22,548 $ 12,281 Expand The following table sets forth a reconciliation of our (loss) income from operations and operating margin to non-GAAP income from operations and non-GAAP operating margin, respectively (percentage amounts may not sum due to rounding): The following table sets forth a reconciliation of our net cash provided by operating activities and net cash provided by operating activities (as a percentage of revenue) to free cash flow and free cash flow margin, respectively (percentage amounts may not sum due to rounding): Semrush Holdings, Inc. UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands) As of December 31, 2024 Assets Current assets Cash and cash equivalents $ 54,322 $ 48,875 Short-term investments 204,225 186,693 Accounts receivable 14,243 8,955 Deferred contract costs, current portion 10,178 10,044 Prepaid expenses and other current assets 18,138 21,617 Total current assets 301,106 276,184 Property and equipment, net 6,673 6,534 Operating lease right-of-use assets 11,551 11,126 Intangible assets, net 35,317 32,055 Goodwill 59,924 56,139 Deferred contract costs, net of current portion 3,495 3,080 Other long-term assets 6,883 5,825 Total assets $ 424,949 $ 390,943 Liabilities, noncontrolling interest, and stockholders' equity Current liabilities Accounts payable $ 13,505 $ 10,463 Accrued expenses 20,627 20,216 Deferred revenue 81,730 71,827 Current portion of operating lease liabilities 4,966 4,669 Other current liabilities 4,853 6,913 Total current liabilities 125,681 114,088 Deferred revenue, net of current portion 235 235 Deferred tax liability 1,798 1,621 Operating lease liabilities, net of current portion 7,852 7,602 Other long-term liabilities 1,216 1,045 Total liabilities 136,782 124,591 Commitments and contingencies Stockholders' equity Class A common stock 1 1 Class B common stock — — Additional paid-in capital 345,664 322,586 Accumulated other comprehensive income (loss) 2,862 (2,221 ) Accumulated deficit (69,480 ) (63,762 ) Total stockholders' equity attributable to Semrush Holdings, Inc. 279,047 256,604 Noncontrolling interest in consolidated subsidiaries 9,120 9,748 Total stockholders' equity 288,167 266,352 Total liabilities, noncontrolling interest and stockholders' equity $ 424,949 $ 390,943 Expand Semrush Holdings, Inc. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) Six Months Ended June 30, 2025 2024 Operating Activities Net (loss) income $ (6,122 ) $ 3,364 Adjustments to reconcile net (loss) income to net cash provided by operating activities Depreciation and amortization expense 6,313 4,269 Amortization of deferred contract costs 7,043 6,054 Amortization (accretion) of premiums and discounts on investments (1,400 ) (2,023 ) Non-cash lease expense 2,451 2,233 Stock-based compensation expense 22,548 12,281 Change in fair value included in other income, net (1,271 ) — Deferred taxes 39 (217 ) Other non-cash items 1,255 1,400 Changes in operating assets and liabilities Accounts receivable (5,427 ) (774 ) Deferred contract costs (7,591 ) (6,129 ) Prepaid expenses and other current assets (4,166 ) (4,017 ) Accounts payable 2,630 1,906 Accrued expenses 104 2,917 Other current liabilities (233 ) 360 Deferred revenue 9,358 7,353 Other long-term liabilities 162 92 Change in operating lease liability (2,900 ) (2,147 ) Net cash provided by operating activities 22,793 26,922 Investing Activities Purchases of property and equipment (1,329 ) (2,906 ) Capitalization of internal-use software costs (6,532 ) (4,369 ) Purchases of short-term investments (61,524 ) (83,605 ) Proceeds from sales and maturities of short-term investments 46,000 102,500 Purchases of convertible debt securities — (650 ) Funding of investment loan receivables — (7,000 ) Proceeds from repayment of investment loan receivables 7,676 — Cash paid for acquisition of assets and businesses, net of cash acquired (1,097 ) (10,026 ) Purchases of noncontrolling interest (223 ) — Purchases of other investments — (131 ) Net cash used in investing activities (17,029 ) (6,187 ) Financing Activities Proceeds from exercise of stock options 648 3,053 Taxes paid related to net share settlement of equity awards (426 ) — Repayment of acquired debt (1,088 ) — Payment of finance leases (211 ) (493 ) Net cash (used in) provided by financing activities (1,077 ) 2,560 Effect of exchange rate changes on cash and cash equivalents 760 (614 ) Increase (decrease) in cash, cash equivalents and restricted cash 5,447 22,681 Cash, cash equivalents and restricted cash, beginning of period 49,060 58,848 Cash, cash equivalents and restricted cash, end of period $ 54,507 $ 81,529 Expand
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The presentation of non-GAAP financial information should not be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. Business Outlook: Based on information available as of August 4, 2025, ZoomInfo is providing guidance for the third quarter and full year 2025 as follows: Conference Call and Webcast Information: ZoomInfo will host a conference call today, August 4, 2025, to review its results at 4:30 p.m. Eastern Time, 1:30 p.m. Pacific Time. To participate in the live conference call via telephone, please register here. Upon registering, a dial-in number and unique PIN will be provided to join the conference call. The call will also be webcast live on the Company's investor relations website at where related presentation materials will be posted prior to the conference call. Following the conference call, an archived webcast of the call will be available for one year on ZoomInfo's Investor Relations website. Upcoming Events: ZoomInfo executives expect to participate in the following investor events: KeyBanc Technology Leadership Forum, Aug. 11, 2025 Canaccord Growth Conference, Aug. 12, 2025 Stifel Technology Executive Summit, Aug. 25, 2025 Deutsche Bank Technology Conference, Aug. 28, 2025 Goldman Sachs Communacopia and Technology Conference, Sep. 9, 2025 Piper Sandler Growth Frontiers Conference, Sep. 11, 2025 For more information on specific events, presentation times, and webcast details (if available), visit the 'News & Events' section of the Company's investor relations website at Conferences with presentations that are webcast, will be webcast live, and the replay will be available for a limited time. Non-GAAP Financial Measures and Other Metrics: To supplement our consolidated financial statements presented in accordance with GAAP, this press release contains non-GAAP financial measures, including Adjusted Operating Income, Adjusted Operating Income Margin, Adjusted Net Income, Adjusted Net Income Per Share, and Unlevered Free Cash Flow. We believe these non-GAAP measures are useful to investors in evaluating our operating performance because they eliminate certain items that affect period-over-period comparability and provide consistency with past financial performance and additional information about our underlying results and trends by excluding certain items that may not be indicative of our business, results of operations, or outlook. Non-GAAP financial measures are not meant to be considered in isolation or as a substitute for the comparable GAAP measures, but rather as supplemental information to our business results. This information should be read only in conjunction with our consolidated financial statements prepared in accordance with GAAP. There are limitations to these non-GAAP financial measures because they are not prepared in accordance with GAAP and may not be comparable to similarly titled measures of other companies due to potential differences in methods of calculation and items or events being adjusted. In addition, other companies may use different measures to evaluate their performance, all of which could reduce the usefulness of our non-GAAP financial measures as tools for comparison. A reconciliation is provided at the end of this press release for each historical non-GAAP financial measure to the most directly comparable financial measure stated in accordance with GAAP. We do not provide a quantitative reconciliation of the forward-looking non-GAAP financial measures included in this press release to the most directly comparable GAAP measures due to the high variability and difficulty to predict certain items excluded from these non-GAAP financial measures; in particular, the effects of stock-based compensation expense, taxes and amounts under the exchange tax receivable agreement, deferred tax assets and deferred tax liabilities, and restructuring and transaction expenses. We expect the variability of these excluded items may have a significant, and potentially unpredictable, impact on our future GAAP financial results. We define Adjusted Operating Income as income (loss) from operations adjusted for, as applicable, (i) amortization of acquired technology and other acquired intangibles, (ii) equity-based compensation expense, (iii) restructuring and transaction-related expenses, (iv) integration costs and acquisition-related expenses, (v) and legal settlement. We define Adjusted Operating Income Margin as Adjusted Operating Income divided by revenue. We define Adjusted Net Income as net income (loss) adjusted for, as applicable, (i) loss on debt modification and extinguishment, (ii) amortization of acquired technology and other acquired intangibles, (iii) equity-based compensation expense, (iv) restructuring and transaction-related expenses, (v) integration costs and acquisition-related expenses, (vi) legal settlement, (vii) TRA liability remeasurement (benefit) expense, (viii) other (income) loss, net and (ix) tax impacts of adjustments to net income (loss). We define Adjusted Net Income Per Share as Adjusted Net Income divided by diluted weighted average shares outstanding used for adjusted net income per share. We define Unlevered Free Cash Flow as net cash provided by (used in) operating activities less (i) purchases of property and equipment and other assets, plus (ii) cash interest expense, (iii) cash payments related to restructuring and transaction-related expenses, (iv) cash payments related to integration costs and acquisition-related compensation, and (v) legal settlement payments. Unlevered Free Cash Flow does not represent residual cash flow available for discretionary expenditures since, among other things, we have mandatory debt service requirements. Net revenue retention is a metric that we calculate based on customers of ZoomInfo at the beginning of the twelve-month period, and is calculated as: (a) the total ACV for those customers at the end of the twelve-month period, divided by (b) the total ACV for those customers at the beginning of the twelve-month period. Cautionary Statement Regarding Forward-Looking Information This press release contains '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. Any statements in this press release regarding future revenue, earnings, margins, financial performance, expenses, estimates, cash flow, growth in free cash flow, results of changes in operational procedures, liquidity, or results of operations (including, but not limited to, the guidance provided under 'Business Outlook'), and any other statements that are not historical facts are forward-looking statements. We have based our forward-looking statements on beliefs and assumptions based on information available to us 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. Factors that could cause actual results to differ from those expressed or implied by our forward-looking statements include, among other things: future economic, competitive, and regulatory conditions, potential future uses of cash, the successful integration of acquired businesses, and future decisions made by us and our competitors. All of these factors are difficult or impossible to predict accurately and many of them are beyond our control. For a further list and description of these and other important risks and uncertainties that may affect our future operations, see Part I, Item 1A - Risk Factors in our most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission, which we may update in Part II, Item 1A - Risk Factors in Quarterly Reports on Form 10-Q we have filed or will file hereafter. 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. Each forward-looking statement contained in this presentation speaks only as of the date of this press release, 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. About ZoomInfo ZoomInfo (NASDAQ: GTM) is the Go-To-Market Intelligence Platform that empowers businesses to grow faster with AI-ready insights, trusted data, and advanced automation. Its solutions provide more than 35,000 companies worldwide with a complete view of their customers, making every seller their best seller. ZoomInfo is a recognized leader in data privacy, with industry-leading GDPR and CCPA compliance and numerous data security and privacy certifications. For more information about how ZoomInfo can help businesses with go-to-market intelligence that accelerates revenue growth, please visit Website Disclosure ZoomInfo 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 Accordingly, you should monitor the investor relations portion of our website at in addition to following our press releases, SEC filings, and public conference calls and webcasts. In addition, you may automatically receive email alerts and other information about ZoomInfo when you enroll your email address by visiting the 'Email Alerts' section of our investor relations page at ZoomInfo Technologies Inc. Consolidated Statements of Operations (in millions, except per share amounts; unaudited) Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Revenue $ 306.7 $ 291.5 $ 612.4 $ 601.6 Cost of revenue: Cost of service (1) 40.1 36.3 77.9 70.2 Amortization of acquired technology 9.4 9.6 18.9 19.1 Gross profit $ 257.2 $ 245.6 $ 515.6 $ 512.3 Operating expenses: Sales and marketing (1) 106.3 100.5 212.3 200.1 Research and development (1) 44.6 48.3 95.7 92.0 General and administrative (1) 47.3 111.3 93.1 186.4 Amortization of other acquired intangibles 5.3 5.5 10.5 10.8 Total operating expenses $ 203.5 $ 265.6 $ 411.6 $ 489.3 Income (Loss) from operations $ 53.7 $ (20.0 ) $ 104.0 $ 23.0 Interest expense, net 10.7 9.8 20.5 19.9 Loss on debt modification and extinguishment — 0.7 — 0.7 Other income, net (14.0 ) (5.9 ) (13.1 ) (2.5 ) Income (Loss) before income taxes $ 57.0 $ (24.6 ) $ 96.6 $ 4.9 Provision for (Benefit from) income taxes 33.0 (0.2 ) 45.8 14.2 Net income (loss) $ 24.0 $ (24.4 ) $ 50.8 $ (9.3 ) Net income (loss) per share of common stock: Basic $ 0.07 $ (0.07 ) $ 0.15 $ (0.02 ) Diluted 0.07 (0.07 ) 0.15 (0.02 ) Expand ________________ (1) Amounts include equity-based compensation expense, as follows: Expand Three Months Ended June 30, Six Months Ended June 30, (in millions) 2025 2024 2025 2024 Cost of service $ 2.8 $ 2.7 $ 5.6 $ 5.2 Sales and marketing 11.4 14.0 22.8 25.8 Research and development 8.4 10.2 17.0 19.0 General and administrative 7.1 9.5 13.9 17.6 Total equity-based compensation expense $ 29.7 $ 36.4 $ 59.3 $ 67.6 Expand ZoomInfo Technologies Inc. Consolidated Statements of Cash Flows (in millions; unaudited) Six Months Ended June 30, 2025 2024 Operating activities: Net income (loss) $ 50.8 $ (9.3 ) Adjustments to reconcile net income (loss) to net cash provided by operating activities: Depreciation and amortization 43.4 40.9 Amortization of debt discounts and issuance costs 1.2 1.1 Amortization of deferred commissions costs 43.4 33.6 Asset impairments and lease abandonment charges — 48.7 Loss on debt modification and extinguishment — 0.7 Equity-based compensation expense 59.3 67.6 Deferred income taxes 42.6 8.3 Tax receivable agreement remeasurement (13.4 ) 9.2 Provision for bad debt expense 9.9 32.5 Changes in operating assets and liabilities, net of acquisitions: Accounts receivable, net 44.2 49.6 Prepaid expenses and other current assets (7.5 ) (4.7 ) Deferred costs and other assets, net of current portion (37.6 ) (35.5 ) Income tax receivable (3.0 ) (2.3 ) Accounts payable (0.8 ) (15.1 ) Accrued expenses and other liabilities 1.2 18.3 Unearned revenue (5.6 ) (1.4 ) Net cash provided by operating activities $ 228.1 $ 242.2 Investing activities: Purchases of investments $ (7.0 ) $ — Maturities of investments 0.5 69.0 Purchases of property and equipment and other assets (36.8 ) (23.9 ) Cash paid for acquisitions, net of cash acquired — (0.5 ) Net cash provided by (used in) investing activities $ (43.3 ) $ 44.6 Financing activities: Payments of deferred consideration $ — $ (0.7 ) Repayment of debt (3.0 ) (3.0 ) Payments of debt issuance and modification costs — (1.9 ) Proceeds from revolving credit loans 100.0 — Taxes paid related to net share settlement of equity awards (6.0 ) (14.6 ) Proceeds from issuance of common stock under the ESPP — 2.8 Tax receivable agreement payments — (31.6 ) Repurchase of common stock (244.3 ) (299.2 ) Net cash used in financing activities $ (153.3 ) $ (348.2 ) Net increase (decrease) in cash, cash equivalents, and restricted cash $ 31.5 $ (61.4 ) Cash, cash equivalents, and restricted cash at beginning of period 149.0 456.2 Cash, cash equivalents, and restricted cash at end of period $ 180.5 $ 394.8 Cash, cash equivalents, and restricted cash at end of period: Cash and cash equivalents $ 171.0 $ 385.9 Restricted cash, non-current 9.5 8.9 Total cash, cash equivalents, and restricted cash $ 180.5 $ 394.8 Supplemental disclosures of cash flow information: Interest paid in cash $ 21.8 $ 20.3 Cash paid for taxes 5.4 7.9 Supplemental disclosures of non-cash investing activities: Property and equipment included in accounts payable and accrued expenses and other current liabilities $ 4.4 $ 5.0 Equity-based compensation included in capitalized software 2.8 2.9 Expand ZoomInfo Technologies Inc. Reconciliation of GAAP Cash Flow from Operations to Non-GAAP Unlevered Free Cash Flow (in millions; unaudited) Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Net cash provided by operating activities (GAAP) $ 108.9 $ 126.3 $ 228.1 $ 242.2 Purchases of property and equipment and other assets (22.0 ) (11.1 ) (36.8 ) (23.9 ) Interest paid in cash 5.0 2.6 21.8 20.3 Restructuring and transaction-related expenses paid in cash 7.5 1.7 9.6 2.1 Integration costs and acquisition-related compensation paid in cash — — — 1.3 Litigation settlement payments (1) 0.5 0.5 1.7 0.7 Unlevered Free Cash Flow (Non-GAAP) $ 99.9 $ 120.0 $ 224.4 $ 242.7 Expand __________________ (1) Represents cash payments for legal fees associated with legal settlements. Expand ZoomInfo Technologies Inc. Reconciliation from GAAP Income (Loss) from Operations to Non-GAAP Adjusted Operating Income (in millions; unaudited) Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Income (Loss) from operations (GAAP) $ 53.7 $ (20.0 ) $ 104.0 $ 23.0 Amortization of acquired technology 9.4 9.6 18.9 19.1 Amortization of other acquired intangibles 5.3 5.5 10.5 10.8 Equity-based compensation expense 29.7 36.4 59.3 67.6 Restructuring and transaction-related expenses (1) 5.1 50.0 10.5 50.2 Litigation settlement (2) 1.5 — 2.4 30.2 Adjusted Operating Income (Non-GAAP) $ 104.7 $ 81.6 $ 205.6 $ 200.9 Revenue (GAAP) $ 306.7 $ 291.5 $ 612.4 $ 601.6 Operating Income Margin (GAAP) 18 % (7 )% 17 % 4 % Adjusted Operating Income Margin (Non-GAAP) 34 % 28 % 34 % 33 % Expand __________________ (1) Represents costs directly associated with acquisition or disposal activities, including employee severance and termination benefits, contract termination fees and penalties, and other exit or disposal costs. For the three and six months ended June 30, 2025, this expense is primarily related to employee severance and termination benefits and lease restructuring activities. For the three and six months ended June 30, 2024, this expense is primarily related to lease impairment and abandonment charges. (2) Represents charges associated with certain legal settlements. For the three and six months ended June 30, 2024, these charges are related to costs incurred due to the Class Actions. Expand ZoomInfo Technologies Inc. Reconciliation of GAAP Net Income to Non-GAAP Adjusted Net Income (in millions, except per share amounts; unaudited) Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Net income (loss) (GAAP) $ 24.0 $ (24.4 ) $ 50.8 $ (9.3 ) Loss on debt modification and extinguishment — 0.7 — 0.7 Amortization of acquired technology 9.4 9.6 18.9 19.1 Amortization of other acquired intangibles 5.3 5.5 10.5 10.8 Equity-based compensation expense 29.7 36.4 59.3 67.6 Restructuring and transaction-related expenses (1) 5.1 50.0 10.5 50.2 Litigation settlement (2) 1.5 — 2.4 30.2 TRA liability remeasurement expense (benefit) (14.6 ) (0.2 ) (13.4 ) 9.2 Other income, net — (2.6 ) — (2.6 ) Tax impacts of adjustments to net income (loss) (3) 25.8 (9.0 ) 29.0 (9.4 ) Adjusted Net Income (Non-GAAP) $ 86.1 $ 66.0 $ 168.0 $ 166.4 Diluted Net Income (Loss) Per Share (GAAP) $ 0.07 $ (0.07 ) $ 0.15 $ (0.02 ) Amortization of acquired technology per diluted share 0.03 0.02 0.05 0.04 Amortization of other acquired intangibles per diluted share 0.01 0.01 0.03 0.03 Equity-based compensation expense per diluted share 0.09 0.10 0.17 0.17 Restructuring and transaction-related expenses per diluted share 0.01 0.13 0.03 0.13 Litigation settlement per diluted share — — 0.01 0.08 TRA liability remeasurement expense (benefit) per diluted share (0.04 ) — (0.04 ) 0.02 Other income, net per diluted share — — — — Tax impacts of adjustments to net income (loss) per diluted share 0.08 (0.02 ) 0.08 (0.02 ) Adjusted Net Income Per Share (Non-GAAP) $ 0.25 $ 0.17 $ 0.48 $ 0.43 Shares for Adjusted Net Income Per Share (4) 343 387 349 389 Expand __________________ (1) Represents costs directly associated with acquisition or disposal activities, including employee severance and termination benefits, contract termination fees and penalties, and other exit or disposal costs. For the three and six months ended June 30, 2025, this expense is primarily related to employee severance and termination benefits and lease restructuring activities. For the three and six months ended June 30, 2024, this expense is primarily related to lease impairment and abandonment charges. (2) Represents charges associated with certain legal settlements. For the three and six months ended June 30, 2024, these charges are related to costs incurred due to the Class Actions. (3) Represents tax expense associated with Net income (GAAP) excluded from Adjusted Net Income (Non-GAAP). The Company calculates the tax impacts of adjustments to net income (loss) by taking the total gross value of the adjustments and multiplying it by the Company's U.S. federal and state statutory tax rate. We then recalculate the tax impact of book-tax differences related to equity compensation, the tax receivable agreements, restructuring and transaction-related expenses, and items that are deemed to be unrelated to current year operating income or are one-time in nature, such as provision to return true-ups. For the three months ended June 30, 2025, these primarily relate to recognizing $15.2 million of tax benefit related to the amortization of costs associated with corporate structure simplification, adjusting out $14.6 million of tax expense from the effects of changes in state tax law and apportionment, and adjusting out $4.0 million of tax expense from non-deductible stock-based compensation. For three months ended June 30, 2024, these primarily relate to recognizing $9.9 million of tax benefit related to the amortization of costs associated with corporate structure simplification, adjusting out $3.3 million of tax expense from non-deductible stock-based compensation, and adjusting out $1.3 million of tax expense from the effects of changes in state tax law and apportionment. We believe the exclusion of these adjustments provides investors with useful information about the Company's underlying results and trends, allowing them to better understand and compare net income (loss) related to ongoing operations and the related current and deferred income tax expense. For the six months ended June 30, 2025, these primarily relate to recognizing $28.8 million of tax benefit related to the amortization of costs associated with corporate structure simplification, adjusting out $13.4 million of tax expense from the effects of changes in state tax law and apportionment, and adjusting out $7.0 million of tax expense from non-deductible stock-based compensation. For six months ended June 30, 2024, these primarily relate to recognizing $24.5 million of tax benefit related to the amortization of costs associated with corporate structure simplification, and adjusting out $8.3 million of tax expense from non-deductible stock-based compensation, and adjusting out $1.5 million of tax expense from the effects of changes in state tax law and apportionment . We believe the exclusion of these adjustments provides investors with useful information about the Company's underlying results and trends, allowing them to better understand and compare net income (loss) related to ongoing operations and the related current and deferred income tax expense. (4) Diluted earnings per share is computed by giving effect to all potential weighted average Common Stock, and any securities that are convertible into Common Stock, including options and restricted stock units. The dilutive effect of outstanding awards and convertible securities is reflected in diluted earnings per share by application of the treasury stock method, excluding deemed repurchases assuming proceeds from unrecognized compensation as required by GAAP. Expand
