Ladies and gentlemen, thank you for standing by, and welcome to the ZoomInfo Third Quarter 2020 Financial Results Conference Call. At this time all participants lines are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised that today’s conference is being recorded. [Operator Instructions] I would now like to hand the conference over to your speaker today, Jerry Sisitsky. Thank you. Please go ahead, sir.

Thanks, Gigi. Welcome to ZoomInfo's financial results conference call highlighting our results for the third quarter of 2020. With me on the call today are Henry Schuck, CEO and Founder of ZoomInfo; and Cameron Hyzer, our Chief Financial Officer. After their remarks, we will open the call to a question-and-answer session. I'd like to remind all participants that during this conference 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 section 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 welcome everyone. This quarter more customers than ever stepped up to modernized their go-to-market motions by adopting ZoomInfo's data and insights platform. In Q3, our team has delivered 41% organic growth over the last year, up 40% from last quarter. Out of 47% adjusted operating margin, we achieved the most adjusted operating income ever in a quarter and year-to-date we have delivered $167 million in unlevered free cash flow. Because of the strength that we're seeing across all areas of the business, including record quarterly new sales, record engagement levels and a new high watermark for our customers spending over $100,000 a year with us, we are raising our financial guidance for the full year. As we've continued to enhance our offerings and capabilities, we saw customers of all types engage with our data and insights platform at record levels. In the quarter, we experienced record high engagement rates, including a 33% increase in adoption of our FormComplete product, a 67% increase in adoption of our intent product and a 40% increase in adoption of our InboxAI product. The move from analog single channel to digital multi-channel motion that started in the last few years continues to transform business to business selling. Our teams are focused on consistently executing on our vision where ZoomInfo powers a closed loop go-to-market cycle from data to decision and action. One that's less reliant on heroic unpredictable outlier performances and more dependent on a scalable predictable platform approach with data-driven orchestration. The ZoomInfo platform seamlessly delivers data and insights to drive the day-to-day go-to-market activities of thousands of leading organization. By using our platform, sellers and marketers are able to identify prospects, ranked their target – their best target companies, monitor end market buying signals in real-time, get direct…

Thanks Henry. We are driving a high-growth subscription business at scale, and we operate profitably, which allows us to reinvest operating leverage to drive durable long-term growth. In Q3, we posted organic growth of 41%, acceleration relative to what we achieved in Q2. And we did so with an adjusted operating margin of 47%. GAAP revenue in Q3 was $123 million, up 56% year-over-year. Organic growth based on allocated combined receipts was 41% compared to Q3 2019, driven by strength in new customer additions and expansions of existing customers. While GAAP revenue and allocated combined receipts have converged in 2020, the difference in growth rates is due to the fair value adjustments of acquired unearned revenue; the impact of the comparative figure in 2019. Both new sales activity and existing client net expansion improved relative to Q2 and last year. We continued to build momentum and increased win rates throughout the quarter, and this combination of strength in new sales and expansion activity helped drive sequential revenue growth of 10% adjusted for the relative days in each quarter. Our land and expand motion continues to underpin our success, particularly in the enterprise. Customers spending $100,000 or greater in ACV increased by about 70 to more than 720, which is our strongest quarterly increase ever. As we move to expenses, adjusted gross profit in the quarter was $109 million yielding an adjusted gross margin of 88% in line with the margin we delivered in Q3 2019. Adjusted sales and marketing expense was $30 million or 24% of revenue, up from 22% a year-ago. We continue to drive an LTV-to-CAC that is well above 10x, reflecting our go-to-market efficiency and success this quarter. And we will continue to invest in expanding capacity to drive sustainable growth. Adjusted R&D expense was $8 million…

[Operator Instructions] Our first question comes from the line of Brad Zelnick from Credit Suisse. Your line is now open.

Excellent. Thank you so much and congrats on a great quarter. Henry, I listened very carefully to some of what you said today. You talked about becoming the de facto operating system for go-to-market teams, and as I contemplate what you said around ZoomInfo Engage and totally appreciate that this expands your market opportunity. I'm just trying to understand was this something that customers were asking for versus your vision of where this market is heading. And how should we think about the lines blurring between ZoomInfo and core CRM platforms?

Yes. Hi, Brad. Thanks for the question. I think first with Engaged, well, we saw as an opportunity to have a closed loop system where customers can live inside of ZoomInfo. They have an opportunity to find the data on their customers and prospects, and then actually have a method to engage with those prospects. So we've heard from a lot of customers that having the data and insights was incredibly powerful, but activating it was a struggle for them. And so building Engage into the core part of our platform allows our customers not only to have access to our best-in-class data and insights, but also to be able to engage and activate that insight – that data and that insight against their customers and prospects. And I actually think that theme, the idea of having access to data and actually activating it and having access to insights and actually activating it is the same theme we see with the Clickagy acquisition, where TOPO, who is the sales and marketing arm of Gardner talks about how companies are continuing to invest in intent data, but they don't have a way to activate it. And so bringing that underneath the umbrella of ZoomInfo and then creating automated ways for customers to activate against that data, I think is going to be a core focus of ours going forward.

Excellent, thanks. And if I could just ask one follow-up, clearly there is tremendous opportunity for you here right here at home in the U.S., but any update on international investments that you're making. Thanks.

Yes, absolutely, Brad. So international was – this quarter we spent a lot of time on international. It was – actually Q3 was very strong internationally. We grew revenue 60% year-over-year against that segment of customers. The pandemic did make us rework our strategy to open local offices in the short-term. And we adjusted by aligning a segment of our East coast sales account management and customer support team to European hours that shift in alignment is working very well for us. And then we spent some time on the current data set internationally. We focused on increasing our coverage on companies and contacts in the UK and Ireland where we're beginning our international focus. And in the quarter, we increased contact coverage over 50% in those countries. We increased contact coverage across Europe 168% year-to-date, direct dial numbers across Europe 35% in the quarter. And then our acquisition of EverString also significantly expands our company coverage internationally that data asset includes over 5 million companies in the UK and Ireland and 13 million companies across Europe. So we feel like we're in a stronger position than ever to be the single source of truth for company and contact information for any multinational enterprise.

That's awesome. Thanks, Henry, and congrats to the entire team.

Thanks, Brad.

Thank you. Our next question comes from the line of Raimo Lenschow from Barclays. Your line is now open

Hi, congrats from me as well. Henry on EverString, just kind of because you're not public that long, just how difficult is it to bring these two datasets together and just kind of get like one coherent AI on it and just kind of combine like how you clean it, how they clean it and just have like one integrated set and then kind of what does it mean like from a customer – actually you've touched already on it, but it seems like it's changing your B2B quite a lot in theory.

Yes. Hi, Raimo. Thanks for the question. The good news is we have a lot of experience with this, starting with our acquisition of iProfile in 2015, where we went through that same motion; the acquisition of Ranking, where we combined datasets, and then the acquisition of ZoomInfo, where we combined our datasets and processes and systems together. So we've seen the movie a few times. We have learnings from those experiences that we're bringing to bear. And in the run up to – and during diligence in the run-up to announcing the acquisition, our teams go through a pretty rigorous planning and integration process where we're identifying exactly where the merging of those datasets is going to happen, how it's going to happen in the short-term, how that evolves to the medium and long-term. And so we're already integrating that data today. We're already in a place where we can deliver to customers a superset of that data that we'll continue to refine over time.

Okay, perfect. Thank you. Congrats.

Thanks very much.

Thank you. Our next question comes from the line of Jennifer Lowe from UBS. Your line is now open.

Great. Thank you. And maybe just following up on Brad's question a bit. You've mentioned some of the challenges that that your customers have had kind of figuring out how to take action on things like intent data. And maybe just even asking a level higher, how many of your customers are really of the level that they understand the intent data and the AI insights and are taking advantage of those at this point versus customers who maybe are still a bit earlier in the adoption curve and really more focused on contact data at this point.

Yes. Thanks, Jen. This is super interesting question. Our customers come from a variety of different places when it comes to sophistication and using our data sophistication and going to market. There are some customers large and small today who just – who use our platform as a prospecting tool. And as you move up the sophistication curve, we find clients who use our data and insights to drive complicated propensity to buy models to drive territory mapping for thousands of sellers. I think the thing that we realize is regardless of where our customer is on that maturity curve, our solutions can drive quick value in their customer acquisition efforts. And then an interesting thing that we're seeing – that I've seen in every customer call that I've had this quarter, we found companies asking us how they turn their CRM system from a system of record to a system of insights. Literally every single customer is having this conversation with us today. And they're getting value from CRM as a hub. They're just not seeing their users adopt it, or get real value out of those systems because on their own, they just provide no insights. And so, they're looking to us to help them make that transformation. And so again, those are companies really early in their go-to-market maturity to companies that are really sophisticated about the way they go-to-market.

Okay, great. Thank you.

Thank you. Our next question comes from the line of David Hynes from Canaccord. Your line is now open.

Hi, thanks very much guys. Henry, you made an interesting comment in your prepared remarks that expansion dynamics are even better on the new platform and I realized it's early cohort data, but maybe you could talk about why you think that's the case and if there's any way to quantify it.

Yes, I think it's a couple of things, DJ. First, the coverage is broader. So our customers who are migrating from legacy DiscoverOrg to ZoomInfo find somewhere in the neighborhood of 10x the amount of data in our new platform than what they were accustomed to. And so, they're coming into our platform. They're seeing significantly more coverage. And so, they're adding additional seats with their sellers, who couldn't get the value out of our legacy platform because they didn't have enough coverage. And then in the last year, year and a half, we spent all of our R&D efforts on the new platform. So we built new functionality, new features from things like FormComplete to InboxAI to advanced intent products. And so you see customers stepping up and adding new features and functionality that they didn't have before inside of the new platform as well.

And DJ, it's worth noting it is still early days on those core cohorts. But based on our analysis, we are really excited about the fact that not only our new customers that signed up with the new platform expanding at a higher rate than kind of new customers have historically, but also customers that migrated over to the new platform are expanding at a higher rate than when they migrated.

Yes, okay. And then one very quick follow-up for you, Cameron, while I have you. So current RPO is up 60%, thanks for the year-over-year disclosure there in the slides. Is there anything in there that muddies that year-over-year comp? Or is that a pretty good leading indicator of growth?

Thanks for including me on the questions. I appreciate that. I do think that those are our metrics that we need to be careful with. And I would advise the investors to be careful with. It does depend on a number of factors and we do have less consistency in the seasonality of when contracts expire. A big part of that is, you know, as part of our land and expand motion, a lot of our upsells are done off cycle, which creates a little bit of noise with respect to that RPO metric. So, I very much focused on the sequential revenue growth, which obviously you could annualize out and does show that we're continuing to do very well and be somewhat careful with those bookings and billings.

Yes, okay, very good. Thanks guys.

Thank you. Our next question comes from the line of Mark Murphy from J.P. Morgan. Your line is now open.

Yes, thank you. Congrats on a very strong performance. So Cameron, I also had a question for you. As we kind of think through the 40%-ish trajectory for ZoomInfo right now, and if we tried to overlay the effects of the pandemic and the recession for Q3, would you say that that's a net headwind now, would you say it's neutral, would you say it's become a net tailwind? And just given you're reporting on the day coincidentally that the Pfizer vaccine news came out, how do you see the imprint of the pandemic going forward in terms of ZoomInfo's ability to kind of benefit from reopenings next year and the year after?

Yes, so, I think we've always said that the pandemic and the resulting economic uncertainty present both headwinds and tailwinds for us. I think from a headwind perspective, we continue to have customers that are at least partially impacted by the pandemic and also just buying patterns obviously change. I think over the course of the year as customers and – particularly larger customers became more acclimated to the environment. I think we have seen kind of benefits as people are looking to improve their sales and marketing activities. Overall, with respect to where we are, the trend of people looking to improve their go-to-market activities achieve better efficiency and effectiveness started well before the pandemic and we have seen this, it's become more important, but post-pandemic we expect that that trend will continue for a very long period of time. And that secular trend will actually help us as economic uncertainty continues to win.

I would add some, Mark. There is a study by McKinsey that came out in the quarter that found that only 20% of B2B buyers say they hope to return to in-person sales and they're getting that even in sectors where field sales models have traditionally dominated like pharma and medical products. And once you make a shift from analog to digital, I can't think of an example where you go back.

Yes, that's a very good point I think we can all relate to. And so Henry, one other question I had for you. If you think through your typical customer, that's maybe been with you for a couple of years, and if you go back and try to look at their own headcount trend for their sales teams and for their marketing teams, I think that's a lever that can drive some dollar retention for you through seat expansion. Do you have any feel for how that's trending in recent weeks? Or have you seen any indication that your customer base is kind of beginning to re-engage and it starts to just kind of expand their sales teams more rapidly?

Yes. Mark, maybe I'll jump in and then Henry can add color, but we certainly see within our enterprise cohort that has improved in terms of our net expansion and upsell capabilities. While there has been some volatility in terms of overall headcount, we are still so materially underpenetrated that there's a lot of opportunity for us to continue to grow. And as we've looked through our customer base while we do have some customers where we operate wall to wall or provide real benefits to them wall to wall, the vast majority of our customers were very underpenetrated and within the – in the enterprise cohort, we believe we have at least $1 billion of incremental revenue just from the customers we have today.

Excellent. Thank you very much.

Thank you, Mark.

Thank you. Our next question comes from the line of Michael Turrin from Wells Fargo Securities. Your line is now open.

Hi, there. Thanks and good afternoon. Cameron, maybe going back to those points on the macro you just laid out and the mix of potential impacts, can you just spend some time following up there on some of the assumptions that went into Q4 guidance? And is there anything else given this is your – just your second quarter as a public company for us to be aware of from a seasonal perspective as we head towards the end of the year?

Sure. That's a great question. We look at our business and we're still very positive on the secular trends that are impacting us and continue to see great execution. That being said, this has been a year where a lot of things have happened whether it's economic uncertainty, there's potential for election fallout. At the end of the day, we really don't know what we don't know. So we've taken a prudent approach to how we've set our guidance to make sure that we're providing guidance that's achievable and realistic. From a seasonal perspective, I think we've – as a kind of completely subscription-based company, obviously the revenue and expenses, the only seasonality that you really get is based on a revenue recognition where you get days in the quarter and obviously Q4 has a similar number as Q3. We will see as you move into Q1, which has fewer days that could have an impact and we adjust for that in our sequential growth thought process, but also have a small impact on margins as well. And so, overall, I think those are the kind of seasonal aspects that we tend to focus on when looking at our reported results.

Got it. Thanks for taking the question. Nice job on the results.

Thanks.

Thank you. Our next question comes from the line of Alex Zukin from RBC Capital Markets. Your line is now open.

Hi, guys. Thanks for taking the question, so maybe Henry first for you. When you look at your early stage pipelines, your late stage pipelines, the sales cycles at close rates, how do they look and compared to maybe earlier this year to your expectations during the pandemic to Mark's question around the pandemic serving as this forcing function or a change agent for you? Where are we today and kind of how does that look on a go-forward basis? And I got a quick follow-up for Cameron.

Yes. I think, if you look at this kind of every month coming out of March all of those metrics conversion rates demos, opportunities, close rates, sales cycles, everything has improved coming out of March. And it's come – and every month we've seen improvement against the month before. And so, we're getting very close to our pre-COVID time period.

Got it. And then, I guess, Cameron, if I look at some of the metrics pretty much across the board whether it's in revenue growth, whether it's in billings growth, whether it's in current RPO or even current RPO bookings on a year-over-year basis sequentially you're seeing acceleration. Are there any adjustments that you would – particularly on the billings number, on the one hand your billings number is also very different and you talked about why it's not a good number to look at, but across all three of those numbers, is there any adjustment that kind of sticks out that that we should keep in mind or pay attention to, to take us away from that acceleration narrative?

And, once again I think that particularly those bookings and billings numbers do tend to have a lot of variability in them. So, you look at billings in Q2 that was a 17% growth, so you look at billings in Q3 that's a 55% growth. It's going to go back and forth. I think when you look forward it will likely be in the middle of those numbers. I wouldn't expect it to kind of continue to grow because there is variability. And, realistically when you look back at Q3 of last year, there's always adjustments that you could consider. Overall, it's just – there are so many adjustments in terms of whether it's payment terms or the seasonality of when we've sold by our periods that are – that pause that variability and what reasons why it'd be careful of.

Got it. Okay, perfect. Thank you guys.

Thank you. Our next question comes from the line of Terry Tillman from Truist Securities. Your line is now open.

Hi, guys. This is Nick on for Terry. Thanks for taking my question. So I just wanted to talk about intent data a little bit. So, it certainly seems like your intent data solutions are seeing a nice uptick in terms of adoption. And again, that's a 67% increase in adoption of the intent product. Just wanted to know if you guys could talk about the importance of intend data when selling the overall platform. And this has led to an increasing number of enterprise customer wins are potentially larger lands. And just as a follow, how's the recently introduced streaming intent solution resonated with customers for so far? Thanks.

I didn't catch the last part, Nick. What did you say at the end?

Just as a follow-up I wanted to know how the streaming intent solution has resonated with customers so far. Sorry about that.

Got it. No, no problem. Yes, so, look we think customers – well, I think two things. One companies want to engage with their potential buyers at the time that they're interested in their products and services. And the B2C world has done an incredible job from a digital advertising and marketing perspective of being in front of their buyers when they're thinking about the products and services that they provide and sell. And the B2B world has been far, far behind B2B sophistication around that. And we believe the biggest reason for that is the fact that these – that the B2B companies have not had a way to take offline intent data and then activate it through their go-to-market system. And so there were two things – there are two kind of important things when we think about intent. One, we want to have the best intent solution on the market. We want to be able to predict when customers and prospects are in market to buy any number of different products or services. We want to deliver that in real-time to our customers, so they can take advantage of that data immediately, moments after their customers are crossing thresholds for engagement on certain topics or products. And then we want to make it seamless for them to activate that data across their go-to-market system. And so that the activation of that buying intent happens simultaneously without giving them the signal, and I think bringing that together gives B2B companies the opportunity to be truly as sophisticated as B2C companies are in their go-to-market efforts.

Got it. That's helpful. Thanks guys.

Thank you. Our next question comes from the line of Brent Bracelin from Piper Sandler. Your line is now open.

Thank you, and good afternoon. I had one for Cameron, a quick follow-up for Henry. Cameron. I wanted to drill down to the growth metrics. I appreciate the caution reading in RPO and billing metrics here given the volatility. But if I look at just like sequential growth, 11% was the highest in three years, year-over-year growth accelerated. As you think about just the quarter in what drove the momentum. Was it broad base? Was it all enterprise? Just help us give us a little more color on why you reported the highest sequential revenue growth rate in three years. And was there kind of a one-time benefit in there as well?

Yes. Thanks. That's a great question, Brent. It was broad-based across the Board. We saw really strong new business sales and that's with enterprises and mid-market and SMB customers. I think one thing to make sure to think about is that, all of our customers are selling to other businesses. So, at the end of the day they were probably less impacted by some of the COVID headwinds that you might see then say restaurant or other folks. And many of them are pivoting and finding ways to succeed, which happen to be many of the more agile and forward leaning go-to-market teams in the world. So I think our system really helped people to continue to perform. And, I think one of the things that that we continued to see throughout was that the tension or expansion among our customers continue to accelerate month-over-month, throughout the year. So you know, again, broad-based on both new sales and retention and across all of the different segments of customers.

Great. Good to hear. And then Henry, just a quick follow-up with the recovery you're seeing in and mid-market and SMB; how should we think about the EverString acquisition? I know it adds a broad swath of SNB contact data. Does this strengthen your cheer game capability in the mid-market and SMB, or is this more of a product play? Just trying to understand the logic of EverString. Is it really storing up a SMB mid-market and opportunity for you there to gain, share, or is it more of a product extension?

Yes. So first EverString expands the firmographic information we provide on small businesses that ends up being a key need for our enterprise customers. Our sophisticated mid-market clients and our SMB clients who sell to other SMBs. And we talked about every client that somewhere on the go-to-market market maturity curve and this type of data and insights that are delivered – and this type of data and the insights that are delivered from it, is used for everything from simple prospecting activities to complex lead in predictive analytics scoring. But one of the places we're especially excited that EverString helps us accelerate the success we're seeing in the enterprise. It allows us to provide a data and insights to solve, go-to-market challenges that exist across an organization and some largely focused on that enterprise space with customers like FedEx and iHeartMedia and Snowflake that they call their own. And so we're excited about infesting enterprise it, because we think it helps us solve complex problems across the enterprise, but also has value to our sophisticated mid-market clients and our SMB clients to stop the other SMB.

Helpful color, thanks.

Thanks, Brent.

Thank you. Our next question comes from the line of Stan Zlotsky from Morgan Stanley. Your line is now open.

Perfect. Thank you so much, guys. And thank you. Congratulations on a good quarter. Thank you for taking my questions. From my end, Henry maybe one for you. Obviously very strong quarter of what it seems like new customer acquisition, maybe just qualitatively, right? Who are these customers who are coming on board now and adopting ZoomInfo to really help their go-to-market activities? And how did they frankly survive through the first seven months of the pandemic? And then a quick follow-up for Cameron on, the on the, on the metrics, thank you for giving us our current RPO. And as much as current RPO, obviously, you know, controls for some of the billing term issues that also inflected very, very strongly versus the momentum that we were seeing in Q2? Was CRPO simply a function of very, very strong customer acquisition that you guys saw in Q3. That's it for me? Thank you guys.

Well, thanks, Stan. I'll start. Look, I think what we're seeing on the new business side is really strength across industries and across customer cohorts and everything from a plastics distributor to commercial and residential restoration Services Company came on in the quarter. And so we see continued strength across industries. Think what, what, where you really see is companies are looking for digital ways to go-to-market. Some of them, because they're just coming up to sort of making the transition and some of them, because they've been forced to make necessary changes because of the pandemic. What you see often is companies that have that have historically had a field salesforce and have gone to market through expensive sort of field sales sellers coming to us and saying, walking and sales team productive from home? How do I give them the insights that they would otherwise be getting by walking the floors inside of companies and shaking hands with their decision makers and warning that way, how do I provide them a set of insights and data that they can use to continue to be productive when they're not in a customer's office? And so we hear that often, we hear companies accelerating their motion to digitally transform. And then again, we see a lot of companies who are making transitions from salesforce instances are doing deployments of salesforce. And as they're making those deployments, they're coming to us and saying, look our sellers don't adopt them. They don't love salesforce. It tends to be – it tends to be a tool that they feel like they're obligated to go into, to enter data into. And we want to transform that into a system of insights for them; a tool that they're excited to go into because they know they're going to get a unique piece of insight from logging in and going into the tool. Can you help us drive that insights driven motion? And so that's what we're saying. I'll pass the Cameron.

Yes. And then in terms of the RPO question, current RPO question, certainly as Brent pointed out, we did have probably the best quarter that we've seen in years in terms of sequential revenue growth. And that certainly was driven by both angles. One, new sales that we were able to execute against in the quarter; and also the net expansion that we drove with existing customers as well. And certainly that plays into an inflection point around fillings and calculated bookings as well. But again, I would caution people from putting too much weight on the bookings and calculated billings metrics, just because those do have other variables that will drive different answers at different times than just looking at sequential growth.

Got it. Thank you.

Thank you. Our next question comes from the line of Tom Roderick from Stifel. Your line is now open.

Yes. Hi, everybody. Thank you for taking my questions. Great to hear from you. So Henry, you noted in one of your remarks that there's potentially $1 billion opportunity or just full opportunity. I think just in the customers that you have and the ability to expand their footprint. I look at that number of customers over 100,000 that spend over 100,000 with and that jumped up pretty meaningfully this quarter, but still against the overall install base. So pretty low percentage. So I guess it's kind of a two-part question, and Cameron, perhaps you could jump in with some of the financial metrics behind it. The first part of this is, how are you getting these customers to make that jump? In other words of that 720, when you landed another 70 this quarter, was that predominantly back to the installed base, are you seeing that new customers come in at that level? And then the second more functional part of that is, what are you doing with the go-to-market motion either hiring new sales reps or changing the way that your go-to-market to attract more enterprise customers? That's it for me? Thank you. Nice job.

Yes. Got it. So first, we run a pretty sophisticated land and expand motion. And so we are driving existing customers from sort of bloke sort of low entry points in the enterprise to much larger subscriptions with us. And I think you're seeing sort of most of the growth in the customer cohort and the 100,000 customer cohort coming from that expansion motion. And again, really, because the way we sell is we can go into a large enterprise. So sell up $50,000 contract to small division there to, or a small set of sellers there and then grow from there by showing value against that, that group of sellers by expanding to other divisions at the company. And that is a motion that we're running and investing into. We do continue to invest in and refine the go-to-market approach in the enterprise as well. One of the things that we released in the quarter is auto-provisioning of free trials that allows us to target specific users within our enterprise customer base, give them free access to ZoomInfo for a period of time. Gather in product feedback. And then take that feedback up to Senior Executives at those companies to increase seats and that capability we've deployed now across more than 2300 of our accounts. We expect that to continue to, to drive incremental growth within the enterprise. And we've continued to hire Rex and the enterprise space as well. One of our key hires in the quarter as the Vice President of Enterprise sales that we hired from salesforce. Who's running that enterprise sales team? And so we continue to put make investments behind that team.

Excellent. Thank you so much for the detail. Appreciate it.

And I guess, Tom, just to follow-up on the numbers super fast. Henry is right that most of the customers are expansions, but Q3 was one of our best quarters ever in terms of landing new customers over 100,000. So we are starting to see some good traction in customers coming in at slightly higher levels to begin with.

Excellent. Thanks for the follow-up. Appreciate it, Cameron. Thanks Henry.

Thanks, Tom.

Thank you. Our next question comes from the line of Siti Panigrahi from Mizuho. Your line is now open.

Hey, this is a Michael Berg for Siti Panigrahi. Congrats on a great quarter. I wanted to quickly follow-up on Clickagy and EverString. And I guess where are you in terms of integration? And how much longer do you have to go? And have you had any early customer feedback, whether it's from their existing customers using your platform or from existing domain customers using some of the new feature sets and any commentary and color around that? Thank you.

EverString, we closed on third-day, so we've had 72-ish hour – work hours of customer conversations. Now I will tell you what EverString has done for us in a big way as we were involved in enterprise conversation where enterprises are looking to what, to solve their go-to-market data needs across the organization. And a lot of that comes down to our ability to enhance and enrich the data that already exists across their enterprise and our ability to match and fill and enrich a broad set of that data. The broadest set of that data with a go-to-market focus data asset, we're already having those conversations. We're already seeing traction from the enterprise and excitement around our ability to do more with them. We really are in a position from an EverString perspective where we don't need to create demand within the customer environment for these data enrichment solutions, thousands of our customers today use our data enrichment solution and the integration of the asset is going to instantly provide them value as we'll be able to enrich more records and monetize for those records across what they're already enriching from us. And then on the Clickagy side, which there's been a little bit more room between the acquisition and now. We're releasing our Streaming Intent data, our Streaming Intent product this month, we've already had customers signed up and ready to go on that. Lots of excited customers who want to get access to that as soon as it comes out. And we continue to build an enterprise grade product that will allow us to pipe intent level data directly into the enterprise into data science and machine learning organizations in the enterprise as well. And so we're working for those outcomes right now.

Perfect. Thank you. And a quick follow-up. As you notice that about $2 million of impact to Q4, is that correct?

Yes. That's our expected revenue from the two acquisitions combined.

So it's about, if my math is correct about $10 million run rate yourself, if you include write-offs.

Yes. Certainly it's not going to be material to our financials next year as well, and that will be the math.

Okay. Thank you.

Thank you. Our next question comes from the line of Brian Peterson for Raymond James. Your line is now open.

Okay. Thanks guys. Kevin [ph] here on for Brian. You've mentioned before seeing an uptick in leads and brand awareness surrounding the IPO. And I'm curious if there's anything specific you'd point to indicating that that is sustained. And how do you think that may be impacting pipeline generation or that 40% new ACV mix across some of your verticals with lower penetration rates?

Yes. I mean, I think the best thing to look at there is what our marketing teams look at and, and the staff that they track most closely as marketing qualified leads. And those are leads that marketing generates primarily from the website. Those leads reach an all time record, both in number of MQL, as well as ACV over MQL. Q3 was 65% higher than Q3 of 2019; and so that's a metric we tracked very closely and it is really what drives the overall conversion rate to close one opportunities. And so we continue to see really great momentum across that metric from a website and marketing perspective.

That's a good color. Thank you.

Thank you. Our next question comes from the line of Pat Walravens from JMP. Your line is now open.

Great. Thank you. And let me add my congratulations. So Henry, if I'm, dividing this up wrong, let me know, but, but it seems to me, we kind of have firmographic technographic and intent data is your big areas. And I'm just wondering, where do you see the most white space for you guys in terms of more organic product development or more acquisitions?

Yes. That's a great question. I think Pat, it's more like firmographic and you could put technographic as an element of firmographic. And from a graphic is like account data than professional data or contact data and then intent data. I think those are all in like unique places from an adoption perspective, from a graphic data is the type of data that every enterprise knows that they need. And we often find them kind of using a BPO solution to fill in some blanks. And it's a pretty broken process inside of the enterprise to gather and maintain and keep that data up to date. But it has been around the longest dead professional data. I think we're actually still in a really early stage of companies leveraging professional data for ideal buyer profile to engage the right buyers at the right time. I think we're pretty early there. And then on the intent data side, that's still like a, a pretty, like a largely evangelistic sale. And you're seeing customers totally understand the value of it because they seen it's used in the B2C world. And so they're familiar with why this would work for them in a B2B context as well. But we're probably in the earliest stages of that from a data perspective into go -to-market. Okay, great. That's really helpful. Thank you. Thank you.

Thank you. At this time, I'm showing no further questions. I would like to turn the call back over to Henry Schuck for closing remarks.

Great. Thank you. Look, we continue to be extremely excited about the near and long-term growth prospects for the company. We're focused on delivering value to our customers, increasing engagement with our platform, investing in technology to further expand our competitive moat, building out a world-class team and executing against value, creating M and a opportunities. As I said last quarter, this is the starting line for us. We have a very active calendar for the fourth quarter, and I invite you to join us at one of the many conferences or events that we'll be participating in for more information on where we'll be in when please reach out or visit our investor relations website. I appreciate you all joining us today. Thank you. Good afternoon, or good evening,

Ladies and gentlemen, this concludes today's conference call. Thank you for participating. You may now disconnect.