ZoomInfo Files for $500M IPO

The Vancouver, Washington-based company, which operates a cloud market intelligence platform for sales and marketing teams, is seeking to raise up to $500 million in the offering. If it hits or exceeds that number, the offering would rank as one of bigger software debuts in recent months…

As one would expect for one of the bigger planned IPOs, ZoomInfo has rather large revenue for a public-market newcomer. For 2019, the company had revenue of $293 million, up from $144 million the prior year. (Some of that increase is due to a major acquisition last year, which we’ll detail below.)

But like most software companies on the IPO path, ZoomInfo is also unprofitable. The company posted a net loss of $78 million in 2019, up from $28.6 million in 2018. That loss was accompanied by a more than doubling in sales and marketing expenditures, combined with an even sharper rise in research and development spending.

ZoomInfo hasn’t been around long in its current organizational structure. The company, formerly known as DiscoverOrg, was co-founded in 2007 by its present CEO, Henry Schuck. In February, 2019 it acquired  Zoom Information (ZoomInfo), a Waltham, Massachusetts-based company best known as a provider of contact information for business users. Then, in September, DiscoverOrg announced it changed its name to ZoomInfo.

Prior to the acquisition, both DiscoverOrg and ZoomInfo had private equity backing. DiscoverOrg sold a minority stake to private equity investor Carlyle Group in 2018. ZoomInfo was previously acquired by private equity firm Great Hill Partners in 2017.

Today, ZoomInfo estimates that approximately…

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