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.

While we acknowledge the potential of GTM as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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