ZoomInfo Technologies Inc. (GTM) Earnings Call Transcript & Summary

Yes. Well, what a delight. It doesn't feel like one of the last sessions of the day. It feels like the first session of the day.

Speak for yourself. Meeting the [indiscernible].

But looking at -- I mean, this is incredible. This is the best. This is going to be the best meeting of your day. I guarantee it.

That's why we made it the end.

Because every good question asked by our investors who drinks on me at 6:00 [indiscernible] on Goldman's tab. Henry, welcome to the conference. So glad you could make it. It's been an incredible conference. It's day 2, and we're not even halfway done. Record number of registrations. I believe it's the largest investor conference hosted by Goldman. So we owe you a big thank you for coming, and that's why our clients are here to hear the story.

Tell us about the -- for people that may not fully appreciate where this is all coming from. I really enjoyed your YouTube video where you've talked about how you got this idea a long time back, say, 15, 20 years back or so. You talk about Micro fish. Because I think there is -- this disbelief that this is real, this is for real. How can you actually build a $1 billion business with these margins growing nicely? So I want you to tell us the idea behind ZoomInfo? How you came with this?

Sure. So we've found the business in 2007. And the idea at the time was, it seems remarkable. But inside of any company does not just organically exist an up-to-date, accurate database of who their customers are, who their customers should be, who the people at those companies are who are making buying decisions for their products and services, it just doesn't exist. And so sales and marketers in 2007 were kind of piecing together data. They were outsourcing the collection of some data. They're buying lists from a number of different people. They were going to events and ball games to push the flash and meet their potential clients with this very inefficient motion. And that data, data about who the decision-makers were, what companies were in market for their products and services, which companies are even in their total addressable market, that just didn't exist anywhere inside the company. And so what we ventured to go out and do was build that asset for companies to take advantage of as they go to market. Now I didn't like hit my head on something and then have a great big idea for this. Between 2001 and 2005, I worked out an early entrant in the SaaS space that did something largely similar. And we grew the business from kind of $300,000 in revenue when I got there in '01 to kind of $5 million in revenue when I left there in '05. But it was like $5 million in revenue, $4.6 million in EBITDA because the CEO was like not investing in the business. So I left and I went to law school thinking I wanted to be a lawyer. And then 1 year in decided to start something that was similar, but wasn't directly competitive. If you fast forward kind of 8 years, we ended up acquiring that business that I worked at. And college and kind of building a platform to do this not only for sales and marketing and not only on company and contact data but data that told you when companies were in market, insights that would drive emotion. And then ultimately, today, software that sits on top of that data asset that lets you activate that data in your go-to-market motion. I think maybe most interestingly, though, is if you think about the last 20 years of investment into a number of different spaces, lot of money went behind cybersecurity, information technology, developer tools, engineering tools. We were the only game in town that was investing in innovation around the sales motion. What the sales reps did on a day-to-day, how to make them most efficient? And so we've been uniquely focused for most of our existence on how to be the window pain that a sales rep uses every day to run their motion and then most recently have expanded that to marketers and talent acquisitions, professionals and ops professionals.

Got it. So you've gone from data platform to an end-to-end digital go-to-market platform. Let's see come back to the Goldman Sachs conference 2027, what are we going to be talking about at that time? And what are the problems that you see yourself solving for your customers that you don't do it? Because clearly, you're doing something today that you didn't think was not apparent to us that you would be doing, even 3 to 4 years back at the time of the IPO.

Yes. So I think first, if you look back -- if you look at what we're doing, we are actually changing 100-plus years of how companies have gone to market. For 100-plus years, the way that you went to market was you went to events, you took people to ball games, you took them out to steak dinners, you shook people's hands, you build relationships, you go up with them and then you build business. In fact, a big part of enterprise selling, the way it worked was you went and sold for IBM and then you left and you made friends with all the CIOs and then you went to Microsoft, and you sold them the same thing. And then you went to the next company, you sold the same guy, something a little bit different. And you have this Rolodex that was the most valuable thing in your -- the most valuable part of how you found new customers. That's like 100-plus years of how people sold. What we believe and what it's hard to not believe is that the future of the way companies identify their next best customer, engage with their next best customer, no one a company is in market for their products and services, get in front of them and drive them to decision is all digital. And it's going to be insights and data driven. There will be an element that's relationship building. But in a big pie, that's going to be a much smaller slice. And so we want to own and what we work every day to own is what is that activation motion, how do you identify those companies, how do you activate them, how do you be a system that every go-to-market professional sales and marketing wakes up every day goes into to figure out how they're activating their go-to-market motion? I think that's what we're really focused on. And we really believe that, that's going to be driven by data and insights, engagement information to really point you at the right targets at the right time. And it's going to be much less about who you know, and it's going to be much more about what you know.

Got it. I want to get the fundamental thesis of the company and the questions around it out of the way because I just believe that this data is being volunteered, but at some point, there could be some regulation and that poses a threat to the treasure trove that you've built up. I know that you went to law school. And so...

I'm a lawyer.

You're a lawyer. I mean, so you've thought through this, I would imagine, just a little bit. Help us understand how comfortable we should be with the legality of building up this contact base?

So first, what is -- to start that analysis, what you have to really wrap your mind around is which part of the data that we collect is potentially subject to regulation. And number one, it's not company data, right. Nobody really cares if you know how fast the company is growing or how big they are, what they're going to buy. It's not from technographic data, what technologies use. We're talking about the contact data. And the contact data that we collect is information that can be found on a business card or a resume. And if you just like forget about regulation and you just take a step back and you think about the sensitivity of the information on your business card. You're okay. Any of you were walking over here, you sat down in your seat and you realize, so you actually dropped your business card outside on the way over here. I'm sure that none of you would immediately hop out of your seat, run outside to grab that business card out to fear that your sensitive data was going to be expressed. Just conceptually, that information is not viewed as sensitive. Now then let's talk about the regulation. Every regulation that's been written from a data privacy perspective, all carve out business contact information or information used in a professional context from those regulations. Canada's PIPEDA carved out 1 type of information called it nonsensitive data. And that's business contact information used for business purposes. So when I was telling the business card story, if you were like, "Oh, no, like, that's ridiculous. It is sensitive data, regulators all across the world have carved this data out as nonsensitive data." Their data privacy was in California, Utah, Connecticut, Virginia, every single one carves out business contact information or information used -- connected to a professional contact as nonsensitive information. The GDPR has 7 legitimate interests to collect information. Legitimate 6 is to collect information for direct marketing purposes. These regulations, they require different things if you're collecting 1 of the types of data that's covered and the GDPR specifically, it requires a notice. And so about 1.5 years before the GDPR was rolled out, we went out and started giving notice to everybody in Europe who we collected information on, told them how we collected the information, who we sold it to, and then gave them an automated ability to have that -- to review that information, update that information or remove that information from our platform. After we did that, we said, you know what, let's just do it to everybody, not required by any regulation, but let's just go out and give everybody notice that we've collected that information and then an opportunity to update or remove that information. We're the only company in our industry that, #1, gives notice, #2, the only company in the industry that lets you update, remove or review your information regardless of which jurisdiction you're in. These jurisdictions that carved out business contact information or every data privacy regulation, what that means for us is that if somebody from Virginia or California comes to ZoomInfo and said, "Hey, you've collected my business contact information, please remove it from our platform." The regulations tell us that we can just go, "You know what, unfortunately, the information we collect on you is nonsensitive information, it's not covered by your data privacy law." So we're not going to remove it from our platform. We don't take that position at all. We remove any information that anybody would like to, regardless of what jurisdiction they come to us from.

Would you tell them do not ever drop your business card, don't lose it?

And look, I think this type of information, it runs every business-to-business organization in the world. You just cannot find an organization that does not go to market without identifying individuals who are good fits for their products and services and reaching out to them to buy their products and services. And if you think about, sort of, when I think about the long arc of regulation, what I think about is what companies collect the most sensitive information on consumers. And it's very clearly the credit reporting agencies. They collect the most sensitive information and then that information comes to bear at the most impactful moments in a consumer's life. And in the '90s, the Congress decided, hey, this is super sensitive information, let's regulate it, and they wrote something called the FCRA. What the FCRA requires of the most sensitive information is that those companies give you free access to your -- to the information they collect on you once a year, they create a forum for you to object the information that they collect. And that they respond to those objections of inaccurate information within 45 days. We already do that on what is carved out as the least sensitive information. So it's hard to imagine a regulatory environment that somehow regulates what is regularly called by regulated nonsensitive data more severely than what is very clearly very sensitive data. So we invest a lot around this. We lead the industry in it. We recently hired as our new Chief Compliance -- at the beginning of the year, our Chief Compliance Officer, is a guy named Simon McDougall, who is the Deputy Enforcement Officer for the GDPR across the U.K. and Ireland. It's a Prime Minister appointed position. It term limits out after 2 years. He now runs privacy and compliance for us. We have a great team of privacy professionals to make sure that we're upfront and transparent about the way we collect data and then we give people the choice to have their information on our platform. So we feel really good about our investments there.

Got it.

Thanks, Kash. [indiscernible]

Please jump in. Anisha Narayan, who is first time being on stage with us. A member of the software team.

[ Good ] question. I never forget the first question.

Thank you. All right. Okay. I think this is perfect segue to move it from privacy and regulation to competition, so I'll tie in the 2 loop. So we spoke about third-party data collection. So Twilio recently acquired Segment a couple of years ago, and a lot of their data comes from first-party data from their communication platform. So do you view that, one, they don't have a regulatory hang on them? And second, they also have a product called Engage, which then allows them to, again, automate sales, marketing, all of that. Do you view that as a competitive set in the future? Or that is a fit in for ZoomInfo?

I mean there are a number of people in our competitive set. Twilio is not one that I would characterize as a competitor here. I do think first-party data is super valuable. I think it becomes extra valuable when you can marry it with third-party data. So let me give you an example of how our customers do that inside of ZoomInfo. Inside ZoomInfo today, you can bring in data from your CRM system, data from your marketing automation system, data from Chorus, our conversation intelligence platform. You can marry that together with ZoomInfo data and then activate a motion. And so I can come in and say, "Hey, show me all of the calls that we've had over the last year that have resulted in a closed lost opportunity." I'm sorry, all of the calls that we've had in the last year where a competitor was mentioned. Of those, show me all the ones that were a closed lost opportunity using my CRM data. Of those show me all the ones that have visited my website in the last 30 days. And that universe of companies show me all the decision-makers that we would be regularly in contact with and now run a display ad campaign, a social media campaign, a marketing automation campaign and tell the seller who is responsible for those accounts that we're running this motion for them. And so the ability to bring your first-party data to bear into a sort of a third-party universe system, I think, is really important because what do you not get with your first-party data, what you don't get is the companies who visited your website, the key buyers at those companies, whether they're spiking on a certain topic of intent, whether they have a project that they're working on that's coming up. And so the ability to take that first-party data and marry it to a third-party data platform and then launch a go-to-market motion, we think that's what everybody should be doing. And over the next 5 years, we expect every company of any sophistication to be running that type of motion.

It's going to be similar to how sales force HubSpot in your ecosystem. You were excited this also to be part of the ecosystem?

The first party data?

Yes.

Yes, absolutely. Yes.

So which brings me to my favorite question that you hear all the time on...

You're [ going to add ] CRM.

Yes, you're going to be a CRM company. Are you a CRM company? What is ZoomInfo really mean it? When you look at what you've built on top of the data platform, it's clear you're going someplace, but you don't want to be a system of record, clearly. You want to be a system of engagement. Help us understand in this -- a couple of companies that she mentioned, one of which I cannot mention. And Twilio and you guys, how does it all play out? When you look at the CRM industry, there's sales force and there's a long gap and there's a long tail of -- how do you see the CRM industry unfold over the next 4 to 5 years? And what is going to be your position in that changing landscape?

Yes. I mean I think, look, there's -- we run our business on Salesforce. They're a key partner of ours. We could run ZoomInfo without Salesforce as our CRM system. We also don't run any of our go-to-market motions out of Salesforce. We do go into Salesforce to build an audience, to build a campaign, to marry data together, to understand our customers. We do all of that outside of Salesforce. And so what I really believe is that there are a number of activities that happen in a go-to-market motion that really don't have much to do with the CRM system, whether that's building a targeted sales campaign, building an audience for a marketing campaign, building an audience for a display out or connected TV campaign, launching a social media campaign, getting a work that goes to the sales rep, building a workflow around the play, none of that initiates inside of the CRM. And I don't think CRM is trying to initiate those motions either. Everything -- all of that happens outside. And today, it actually happens across a myriad of different systems. You might get technographic data from one place and intent data from another place. You get sales automation from one thing, you have an ABM vendor for another thing. You have your conversation intelligence in another place. And those systems are really hard to get to talk together. What we want to do and we're doing in our platform is, #1, bringing all of those systems together in one platform and then allowing you to activate insights that come from all of those systems with that third-party data asset that we have and really go to market. We're not a system of record, and we're happy for CRM and any CRM to be that. What we want to be is the activation engine for go-to-market teams. And I think when you talk to our customers, that's what they're telling you they're using us for. And that's the vision for the future.

Sure. Just on that track, and you've done a lot of M&A in the past couple of years to fit in the missing blocks in your platform. Again, tying back to Kash's question about your long-term vision. So what do you see is missing in the platform? And would you build by? And what's that basically?

Yes. Look, right now, not a lot. We've done a good amount of M&A over the last year. We feel really good about the decisions that we made from an M&A perspective, whether that be around conversation intelligence or chat or data orchestration. Our focus today is to build a fully integrated platform that where all of these different pieces of software are integrated into the core SalesOS or MarketingOS platform that the platforms talk to one and other and that it feels like an end-to-end platform. I log in once, get access to all the platforms, I provision once across all the different platforms, I set up CRM once across all the different platforms, set up e-mail once across all the different platforms. And so it would be a monster failure if we finish this year and the platform do not feel like that. It's our thing -- one of our -- if you think about how we spend our time, kind of 50% of the time is being spent making sure all of these assets come together and are powered by the data asset because we think that creates real differentiation in the market. Like sales automation is a really interesting example. If you're familiar with sales automation, first way to think about it is just marketing automation for salespeople. It takes your -- the people you should be reaching out to put them into a sequence of communications so they get an e-mail on day 1, it waits for a day, it tells you to connect with them on LinkedIn. A day later, a phone call. A day later, an e-mail. A day later, a phone call. Whatever that sequence is, you can build it for different types of communications. That system just doesn't work without data. It just is nothing. It's just an empty box. In order for those systems to work really well, data has to go into them. And then for them to get smarter, you have to use some underlying data to get smarter. So for example, let's say, I have a sequence set up. I send out a bunch of e-mails and it turns out the directors of IT at pharmaceutical companies with over 100 employees, reply the most to that e-mail. I need to know that. Can I get that level of intelligence from a stand-alone point solution? No, I can't. Even if I could, then where do I get the next 500 people that look like that? You're always kind of going back to ZoomInfo to run a sales automation motion. And so instead of having those 2 systems disconnected, for us, it made a lot of sense to just build that above the data stack and have it be an application layer above it. And there are a number of pieces of software and data and pieces of platform that we've built that take that same model to take the data asset and they leverage it across the software layer.

So Henry, I had a question, from your IPO days to now, the TAM you've been layering on new markets and new products that play into those markets. How should we think about your ability to monetize these different markets? Is it a combined suite? Or do you feel like at some point you might need a specialized GTM engine that are specific to each of these markets that comprise your $100 billion-plus TAM?

Yes. So a couple of ways. I think, first, one of the things that we did this year is we broke out our platform, and we built sort of additions to the core SalesOS platform. When we IPO-ed, it was just SalesOS, and it was SalesOS without sales automation, without conversation intelligence, without B2B chat. Since then, we've added MarketingOS, TalentOS and OperationsOS. And so the way we think about the universe that we serve is across those different personas. Who's the SalesOS buyer, it's the head of sales. Who's the MarketingOS buyer, it's the head of marketing or demand. TalentOS buyer, it's the head of talent acquisition or the head of HR. And OperationsOS buyer, it's the -- like sales operations, revenue operations, data operations professional in the company. And so we think about how we align resources around those personas. When we're talking to a marketer, it's a marketing specialist. When we're talking to an ops professional, it's an ops professional specialist. When we go to market, whether we use like a specialist or not depends across those platforms. In SalesOS, we can sell the SalesOS seller, which is the flagship product and where the majority of the revenue today is, that seller can sell Engage, they can sell Chorus directly into the customer base for SalesOS. But if I'm selling MarketingOS or TalentOS or OperationsOS, the overlay sellers who come in and aid the account manager and the customer base when they're selling this.

Can you give us an update on Chorus?

Yes. So Chorus is our conversation intelligence platform. Where we bought it last year, July of 2021, it was growing 100% year-over-year. In our last quarter we announced its growing now close to 300% year-over-year.

What drove the acceleration?

Well, first, it's really easy to sell like it's not hard to understand why you need conversation intelligence like the idea that your sellers are out there on calls with your customers, and you actually have no visibility into any of it. Like none of it. And they're like, I tell people when they buy Chorus, if you want to ruin your weekend, listen to some Chorus calls right before you leave. And some people have taken me up on that. They always call me going like, "Oh, my god, it did ruin my weekend." And all that means there is a tremendous opportunity to really up-level your sales teams and your go-to-market motion that you just don't have the ability to do because you have no insight into what's happening on a customer call. You have no insight into how competitors are being talked about, whether an enablement motion that you rolled out is actually being rolled out, whether you're account executive that's ramped is actually ramped. And what Chorus allows you to do is, one, get a video recording an analysis of every call that your sales reps are on, a transcription of that, and then it gives you an analytics layer and a searchable interface over that. So for me, if the sales rep comes in to me and says, "Hey, Twilio, it's just coming up all the time, Henry, we're getting crushed by Twilio Engage." I can go like, "Oh, my god, Twilio is coming after us or I can go into Chorus and say, show me how many times Twilio comes up on call and what's the trend line over the last year." And then I can get actual data on customer calls and really understand whether that's something I should be focused on or not at the executive level. At the manager level, I can listen to calls and go directly to key moments and say, hey, John, this is not how you answer that question, this is or great job, John, this was a great way to answer that question, and then I can share it with the entire go-to-market team. When I'm onboarding new account executives, I can build best practices playlists. But I think one of the key things that we've been building is also anomaly detection because you're on every call, you get this tremendous amount of insight into what's going on in the sales process. And so what we're able to do today is say, hey, look, this doesn't really look like one of your -- this is a committed deal, they haven't responded to you in 8 days. They usually respond faster. On your last call, they said that legal and procurement would take 6 weeks. This is committed to close this month. You don't have power on this call. You don't have any VPs. You always have a VP on the call when you close deals. Here are the VPs that you should be engaging with. And so it's just an incredibly powerful platform that all of our sellers use so they know it. And so enablement was really easy. When we think about M&A at ZoomInfo, that's a key thing that I think about. How do I enable? Can I, first of all, enable all of our sellers to go -- to take this to market? Or do I need a technical sales overlay or an SE to do it and it just makes the cost of sale more expensive? Chorus is one of those unique acquisitions then not only do I not need a specialized seller to take the market, but it also sells to the Fortune 10 and the small mom-and-pop customer of ours and all the way through. Those are the best types of acquisitions that we look for.

I think your TAM expanded by a few software companies, which need conversational intelligence with their investors. And I think, of course, of voice assess margins, margins. So I think the...

That's right.

We got the message.

We have [ opt-in ] market.

I didn't say which one. I mean there's a couple. It's not just one. But we did have Jeff Lawson presented yesterday.

Yes, we're a Twilio customer.

I did ask him this question. And he had a very similar vision that he sees Twilio as a platform that brings a signal and Segment...

A great vision.

Segment...

That's a vision.

Have the core messaging and of course [indiscernible] got some capabilities there. Flex has got some capabilities. So that is -- and I asked him the same, how does it all come together? And there's no unanimous conclusion, unanimous consensus on how it all comes together, but it's going to be really interesting. I wanted to switch gears to the macroeconomic environment. You had a good quarter. And like many of the software companies, you didn't raise the guidance, which we completely appreciate.

We did raise the guidance.

You did buy a little bit, yes. But not by...

A raise is a raise.

Raise is a raise, okay. Yes.

[indiscernible]

I know, I know, I know. You guys did. I think, Datadog did as well, but nobody trusts the increase in guidance. And even if you -- I didn't raise the guidance and left where it is. MongoDB went down quite a bit. So it's damned if, damned if you don't. And then we had inflation report today that didn't make it any easier. But I'm curious, what are customers saying when you speak with them today?

Yes. Look, I think one of the things that we've seen is just the rate of change has normalized. So in Q2, I think what you saw was people were pretty like confused about what was going to happen, and so they were sitting on their hands. What you have seen is a lot of that normalize so that they're understanding now a little bit more, what the go-forward universe is going to look like. I don't think this in Q3, we're any better than we are in Q2, but we're not any worse. And then what I am seeing a lot is a lot of those deals that push out of Q2 are coming in, in Q3 and in a lot of places coming in higher than they came in, in Q2. So you are seeing some normalization happen.

And the thing that we hear the most is more signatures needed...

More signatures needed, more rounds of approval. Oftentimes, you have to go to the CFO, it slows down a deal. So you are seeing that, yes.

So my solution is just have more sign here tabs, I'm talking...

Yes, yes. I think we have a lot of...

Just sign here -- yes, done. I wanted at this point in time, make good on my promise to offer drinks on me if you ask some really good questions. Now it can be any questions, does not to be a good question. [ Yugo ]?

So a little more of a long-term kind of focused question, but what are the dynamics that facing specific to the data assets? So I think the answer to this might be the factor you're doing enablement more, but are there instances where there may be essential returns because folks using competitive tools, may end up reaching out to the same sort of professionals with the B2B network over time [indiscernible] like if first because some of the similar data sets having like...

Not really. The underlying assumption to that is that people are going to execute against the data perfectly. And it just doesn't really -- early on in our journey, people would tell me, well, -- if I have access to your day and my competitor does, then like it doesn't really give me an advantage. It's like, okay, what your competitor does? So what are you going to do? Are you not going to contact the CIOs at Fortune 1000 company? No, of course, you are. And so either you have the efficiency advantage and you take advantage of it or you don't. But I don't see a universe where 15 people contact a 1 person and therefore, the value of the network degrades. I haven't seen that ever manifest.

Any other question here, please?

Can you talk about why you think that could be a multibillion-dollar business over time? What gives you a conviction on that? And then if and when it does become that large, isn't that a business that grows not as correlated to kind of build more media. And after that, incremental margin on that type of business would also be much -- I mean you already have high margin, but they could potentially be higher for a media-type business.

Yes. So let me talk about the MarketingOS platform for 1 second because I think it's super interesting. How much time do we have, Kash?

We've got another 6 minutes.

6 minutes, okay. so MarketingOS is a platform that we've built that basically took the data asset that we had built for sales reps and all of the sort of surrounding information, intent data, website data and then brought it over for a marketing use case, built a marketing user interface around it. But one of the key components that you can do with MarketingOS is that you could build a B2B buyer persona and audience and go target that on the open web. Why is that unique? Today, if you want to go build a buyer -- a B2B buyer persona and then target that audience, there's only one place to do that, and it's on LinkedIn. And so you can go to LinkedIn and you can say, "Hey, I'm looking for CMOs of health care companies that have over 100 employees that you -- well, they have over 100 employees, give me that audience, let me start putting ads in front of them." LinkedIn is the only place you can do that. And where LinkedIn place ads? It places them on LinkedIn, of course, because that's the inventory that they monetize against. I don't think anybody would argue that ads on LinkedIn are the best place to target a business-to-business buyer, but they are the only place. And so that business is growing dramatically because that's the only place of business-to-business CMO or how to marketing can go build that type of unique audience and put advertisements against them. What MarketingOS does is it gives you that capability on the open Internet outside of just on LinkedIn, I can now come build that same audience and target them on social media platforms, on connected TV, on the open Internet. And that's incredibly powerful because markers haven't had that capability before. And so we're bringing that to bear for business-to-business marketers. And then on top of that, we -- and that's leveraged because of our data asset. But then on top of that, what we're able to do for them is tell them like not only are we going to target this universe. But when someone new comes into that universe, when a company starts spiking on a certain topic, so they're doing more research on your products and services. When they hire a new CMO or new VP of Marketing, those are dynamically created and then they integrate back to the sales platform. So when I'm a marketer and I'm doing marketing to these 20 companies and they start engaging and alert automatically goes over to the sales rep who's on the SalesOS platform and said, here's the person who's engaging or the company that's engaging and you should run a sales motion behind them. So it's aligning sales and marketing, it's letting you build B2B buyer persona and target that on the open Internet. And then, yes, so there's a platform fee for that, and then there's media spend on top of that. So a customer comes in, they pay the platform fee, SaaS annual subscription, recurring fee. And then they have a media spend aspect of it. And so then there's spending on media. And on the media, we take a margin on the media. Media can also grow at financially. So as they see results, they invest more and more and more and more in media spend and then we get a margin on that media spend as well.

It's very helpful to your perspective on regulation holding story. Do you mind [Technical Difficulty]

Yes. So we collect data in a variety of different ways. For the contact information, we have 2 contributory networks. One contributory network is customers share data from their CRM or marketing automation systems with us through a contributory network that we cleanse, validate and then feed back to them. That creates a very large set of raw data that we're able to sort of triangulate and publish where it makes sense. All of the data runs through sort of a middle layer of machine learning algorithms that make sense of when to publish something and when not. We can't just take our customer CRM data and then publish it. 50% of the data in a CRM is bad. And so there's this unique machine learning interface that's making sense of what's right and what's wrong. On the other side, there's a premium network. And premium networks are people get limited free access to ZoomInfo and exchange for the contacts in the email system. All of that processing happens on the users and machine. We only see the business contact information that they share with us, and we see nothing else in their e-mail. It's just business contact information that exists in their e-mail system, their contact books, those sorts of things. And so contact books or an e-mail signature and e-mail [Audio Gap] we processed on the user's machine and then just the business contact information will get shared with us.

[Technical Difficulty]

I don't know what regulation that would be. I mean all of the regulations around data privacy cover both collection and sales. So it would be the same regulations that cover data collection.

I think we've wrapped up 40 minutes. It didn't sound like your 12th meeting. It sounded like your first meeting, I think...

I'm trying to do my best.

And clarity you guys are showing up...

Thank you.

Thank you so much. Thanks, Henry.