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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q

    QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 2024
or
    TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from               to               
Commission File Number 001-39310               
ZoomInfo Technologies Inc.
(Exact name of registrant as specified in its charter)
Delaware
87-3037521
(State or other jurisdiction of
incorporation or organization)
(I.R.S. Employer
Identification No.)
805 Broadway Street, Suite 900
Vancouver, Washington
98660
(Address of principal executive offices)(Zip Code)
(800) 914-1220
(Registrant’s telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act:
Title of Each Class
Trading Symbol(s)
Name of each exchange on which registered
Common stock, par value $0.01 per share
ZIThe Nasdaq Stock Market LLC
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes    No
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes    No
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer
Accelerated filer
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As of April 30, 2024, there were 373,918,562 shares of the registrant's common stock outstanding.





ZoomInfo Technologies Inc.
Quarterly Report on Form 10-Q
For the Quarterly Period Ended March 31, 2024

TABLE OF CONTENTS
Page
i

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS
From time to time we make statements concerning our expectations, beliefs, plans, objectives, goals, strategies, future events or performance and underlying assumptions and other statements that are not historical facts. These statements are “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.
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.
The following are some of the factors that could cause actual results to differ from those expressed or implied by our forward-looking statements, including forward-looking statements contained in this Quarterly Report on Form 10-Q, other factors described under “Risk Factors” in Part I, Item 1A of our Annual Report on Form 10-K of ZoomInfo Technologies Inc. for the fiscal year ended December 31, 2023 as filed with the Securities and Exchange Commission (“SEC”) on February 15, 2024 (“2023 Form 10-K”), and in other reports we file from time to time with the SEC:
Risks Related to Our Business and Industry
Our current and potential customers may reduce spending on sales, marketing, recruiting and other technology and information as a result of weaker economic conditions, which could harm our revenue, results of operations, and cash flows;
We may be unable to attract new customers, renew existing subscriptions, or expand existing subscriptions, which could harm our revenue growth and profitability;
If we are not able to obtain and maintain accurate, comprehensive, or reliable data, we could experience reduced demand for our products and services and have an adverse effect on our business, results of operations, and financial condition;
Larger, well-funded companies with significant resources may shift their existing business models to become more competitive with us;
We experience competition from other companies and technologies that allow companies to gather and aggregate sales, marketing, recruiting, and other data, and competing products and services could provide greater appeal to customers;
The markets in which we compete are rapidly evolving, which make it difficult to forecast demand for our services;
Our platform integrates or otherwise works with third-party systems that we do not control;
Our business could be negatively affected by changes in search engine algorithms and dynamics or other traffic-generating arrangements;
We depend on our executive officers and other key employees, and the loss of or inability to attract, integrate and retain these and other highly skilled employees could harm our business;
If we fail to maintain, upgrade, or implement adequate operational and financial resources, including our IT systems, we may be unable to execute our business plan; and
We may be unable to successfully integrate acquired businesses, services, databases, and technologies into our operations, which could have an adverse effect on our business.
ii

Risks Related to Privacy, Technology, and Security
Changes in laws, regulations, and public perception concerning data privacy, or changes in the patterns of enforcement of existing laws and regulations, could impact our ability to efficiently gather, process, update, and/or provide some or all of the information we currently provide or the ability of our customers and users to use some or all of our products or services;
We may be subject to litigation for any of a variety of claims, which could harm our reputation and adversely affect our business, results of operations, and financial condition;
New or changing laws and regulations may diminish the demand for our platform, restrict access to our platform, constrain the range of services we can provide, or require us to disclose or provide access to information in our possession, which could harm our business, results of operations, and financial condition;
We may not be able to adequately protect or enforce our proprietary and intellectual property rights in our data or technology;
Investing in our artificial intelligence (“AI”) capability introduces risks, which, if realized, could adversely impact our business;
Third-parties could use our products and services in a manner that is unlawful or contrary to our values or applicable law;
Cyber-attacks and security vulnerabilities could result in serious harm to our reputation, business, and financial condition; and
Technical problems or disruptions that affect either our customers’ ability to access our services could damage our reputation and brands and lead to reduced demand for our products and services, lower revenues, and increased costs.
Risks Related to Credit and Financial Factors
We generate revenue from sales of subscriptions to our platform and data, and any decline in demand for the types of products and services we offer would negatively impact our business;
Our failure to raise additional capital or generate cash flows necessary to expand our operations and invest in new technologies in the future could reduce our ability to compete successfully and harm our results of operations;
Downturns or upturns in new sales and renewals are not immediately reflected in full within our results of operations;
We anticipate increasing operating expenses in the future, and we may not be able to maintain profitability;
Our indebtedness could adversely affect our financial position and our ability to raise additional capital and prevent us from fulfilling our obligations;
We may not be able to generate sufficient cash to service all of our indebtedness;
Interest rate fluctuations may affect our results of operations and financial condition;
Changes in our credit and other ratings could adversely impact our operations and lower our profitability;
Global tax developments applicable to multinational businesses may have a material impact to our business, cash flows, or financial results. The Organization for Economic Co-operation and Development has proposed significant changes to the international tax law framework in the form of the Pillar Two model rules which seek to implement a global minimum tax. The potential effects of Pillar Two may vary depending on the specific provisions and rules implemented by each country that adopts Pillar Two;
Unanticipated changes in our effective tax rate and additional tax liabilities may impact our financial results; and
Changes in tax laws or regulations in the various tax jurisdictions we are subject to that are applied adversely to us or our paying customers could increase the costs of our products and services and harm our business.
iii

Risks Related to Geopolitical Factors
Operations and sales outside the United States expose us to risks inherent in international operations; and
Global economic uncertainty and catastrophic events, including global pandemics, continued hostilities such as those between Russia and Ukraine, and Israel and Hamas, and other conflicts in the Middle East, have and may disrupt our business and adversely impact our business and future results of operations and financial condition.
Risks Related to Our Organizational Structure and Ownership of Our Common Stock
Our corporate structure and our tax receivable agreements may restrict our ability to make certain payments, increase the costs to consummate certain transactions, and limit our ability to realize the value of certain tax attributes; and
The parties to our stockholders agreement have special rights and interests that may conflict with ours or yours in the future.
These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in this Form 10-Q and our other filings with the SEC. Should one or more of these risks or uncertainties materialize, or should any of our assumptions prove incorrect, our actual results may vary in material respects from those projected in our forward-looking statements. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. 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.
You should not place undue reliance on our forward-looking statements. Each forward-looking statement speaks only as of the date of the particular statement, 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.
Website Disclosure
The Company 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 https://ir.zoominfo.com. Accordingly, you should monitor the investor relations portion of our website at https://ir.zoominfo.com in addition to following our press releases, SEC filings, and public conference calls and webcasts (which are not incorporated herein or otherwise a part of this Form 10-Q). In addition, you may automatically receive email alerts and other information about the Company when you enroll your email address by visiting the “Email Alerts” section of our investor relations page at https://ir.zoominfo.com. The information on our website is not incorporated herein or otherwise a part of this Form 10-Q.
iv


PART I - FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS

INDEX TO FINANCIAL STATEMENTS

1

ZoomInfo Technologies Inc.
Consolidated Balance Sheets
(in millions, except share data)
March 31,December 31,
20242023
(unaudited)
Assets
Current assets:
Cash and cash equivalents$405.9 $447.1 
Short-term investments34.3 82.2 
Restricted cash, current 0.2 
Accounts receivable, net223.5 272.0 
Prepaid expenses and other current assets72.1 59.6 
Income tax receivable4.4 3.2 
Total current assets$740.2 $864.3 
Restricted cash, non-current8.9 8.9 
Property and equipment, net74.6 65.1 
Operating lease right-of-use assets, net106.8 80.7 
Intangible assets, net319.8 334.6 
Goodwill1,692.7 1,692.7 
Deferred tax assets3,694.3 3,707.1 
Deferred costs and other assets, net of current portion116.6 114.9 
Total assets$6,753.9 $6,868.3 
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable$18.0 $34.4 
Accrued expenses and other current liabilities123.1 113.8 
Unearned revenue, current portion443.0 439.6 
Income taxes payable1.5 2.0 
Current portion of tax receivable agreements liability60.4 31.4 
Current portion of operating lease liabilities12.1 11.2 
Current portion of long-term debt6.0 6.0 
Total current liabilities$664.1 $638.4 
Unearned revenue, net of current portion1.3 2.3 
Tax receivable agreements liability, net of current portion2,735.6 2,786.6 
Operating lease liabilities, net of current portion115.4 89.9 
Long-term debt, net of current portion1,225.4 1,226.4 
Deferred tax liabilities2.1 1.9 
Other long-term liabilities4.1 3.5 
Total liabilities$4,748.0 $4,749.0 
Commitments and Contingencies (Note 9)
Stockholders' Equity:
Common stock, par value $0.01; 3,300,000,000 shares authorized as of March 31, 2024 and December 31, 2023; 376,156,650 and 384,830,529 issued and outstanding as of March 31, 2024 and December 31, 2023, respectively
$3.7 $3.8 
Preferred stock, par value $0.01; 200,000,000 shares authorized as of March 31, 2024 and December 31, 2023; zero issued and outstanding as of March 31, 2024 and December 31, 2023
  
Additional paid-in capital1,676.3 1,804.9 
Accumulated other comprehensive income27.5 27.3 
Retained earnings298.4 283.3 
Total stockholders' equity2,005.9 2,119.3 
Total liabilities and stockholders' equity$6,753.9 $6,868.3 
See accompanying Notes to Consolidated Financial Statements.


2

ZoomInfo Technologies Inc.
Consolidated Statements of Operations
(in millions, except per share amounts; unaudited)
Three Months Ended March 31,
20242023
Revenue$310.1 $300.7 
Cost of service:
Cost of service(1)
33.9 35.0 
Amortization of acquired technology9.5 10.5 
Gross profit$266.7 $255.2 
Operating expenses:
Sales and marketing(1)
99.4 103.2 
Research and development(1)
43.7 42.3 
General and administrative(1)
75.1 37.7 
Amortization of other acquired intangibles
5.3 5.6 
Restructuring and transaction-related expenses
0.2 0.1 
Total operating expenses
$223.7 $188.9 
Income from operations
$43.0 $66.3 
Interest expense, net
10.1 9.9 
Loss on debt modification and extinguishment
 2.2 
Other loss (income), net
3.4 (14.0)
Income before income taxes
$29.5 $68.2 
Provision for income taxes
14.4 23.7 
Net income$15.1 $44.5 
Net income per share of common stock:
Basic
$0.04 $0.11 
Diluted
0.04 0.11 
________________
(1)Amounts include equity-based compensation expense, as follows:
Three Months Ended March 31,
20242023
Cost of service$2.5 $4.1 
Sales and marketing11.8 19.5 
Research and development8.8 6.9 
General and administrative8.1 7.2 
Total equity-based compensation expense$31.2 $37.7 
See accompanying Notes to Consolidated Financial Statements.


3

ZoomInfo Technologies Inc.
Consolidated Statements of Comprehensive Income
(in millions; unaudited)
Three Months Ended March 31,
20242023
Net income$15.1 $44.5 
Other comprehensive income (loss), net of tax:
Unrealized gain (loss) on cash flow hedges6.9 (3.4)
Realized gain on settlement of cash flow hedges(6.7)(5.4)
Amortization of deferred losses related to the dedesignated Interest Rate Swap0.1 0.1 
Other comprehensive income (loss) before tax$0.3 $(8.7)
Tax effect(0.1)2.2 
Other comprehensive income (loss), net of tax0.2 (6.5)
Comprehensive income$15.3 $38.0 
See accompanying Notes to Consolidated Financial Statements.


4

ZoomInfo Technologies Inc.
Consolidated Statements of Changes in Equity
(in millions, except share data; unaudited)
Three Months Ended March 31, 2024
Common StockAdditional paid-in capitalAccumulated other comprehensive incomeRetained earningsTotal stockholders' equity
SharesAmount
Balance, December 31, 2023384,830,529$3.8 $1,804.9 $27.3 $283.3 $2,119.3 
Issuance of common stock upon vesting of RSUs1,359,913 — — — — 
Shares withheld related to net share settlement(410,537)— (7.0)— — (7.0)
Repurchase of common stock(9,623,255)(0.1)(154.3)— — (154.4)
Net income— — — — 15.1 15.1
Other comprehensive income— —  0.2 — 0.2
Equity-based compensation— — 32.7 — — 32.7
Balance at March 31, 2024376,156,650$3.7 $1,676.3 $27.5 $298.4 $2,005.9 
ZoomInfo Technologies Inc.
Consolidated Statements of Changes in Equity
(in millions, except share data; unaudited)
Three Months Ended March 31, 2023
Common Stock
Additional paid-in capitalAccumulated other comprehensive incomeRetained earningsTotal stockholders' equity
SharesAmount
Balance, December 31, 2022404,083,262$4.0 $2,052.1 $39.7 $176.0 $2,271.8 
Issuance of common stock upon vesting of RSUs648,570 — — — — 
Shares withheld related to net share settlement and other(163,965)— (4.1)— — (4.1)
Exercise of stock options11,236 — 0.2 — — 0.2
Forfeitures / cancellations(6,733)— — — — 
Repurchase of common stock(1,058,291)— (24.3)— — (24.3)
Net income— — — — 44.5 44.5
Other comprehensive loss— — — (6.5)— (6.5)
Equity-based compensation— — 37.7 — — 37.7
Balance at March 31, 2023403,514,079$4.0 $2,061.6 $33.2 $220.5 $2,319.3 
See accompanying Notes to Consolidated Financial Statements.


5

ZoomInfo Technologies Inc.
Consolidated Statements of Cash Flows
(in millions; unaudited)
Three Months Ended March 31,
20242023
Operating activities:
Net income$15.1 $44.5 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization20.0 20.9 
Amortization of debt discounts and issuance costs0.5 0.7 
Amortization of deferred commissions costs17.4 18.8 
Loss on debt modification and extinguishment 2.2 
Equity-based compensation expense31.2 37.7 
Deferred income taxes13.2 27.9 
Tax receivable agreement remeasurement9.6 (10.1)
Provision for bad debt expense9.2 6.1 
Changes in operating assets and liabilities, net of acquisitions:
Accounts receivable, net39.3 1.3 
Prepaid expenses and other current assets(11.9)(9.9)
Deferred costs and other assets, net of current portion(17.6)(16.4)
Income tax receivable(1.2)(2.3)
Accounts payable(16.9)(10.3)
Accrued expenses and other liabilities5.5 (34.0)
Unearned revenue2.5 31.5 
Net cash provided by operating activities$115.9 $108.6 
Investing activities:
Purchases of short-term investments$ $(63.6)
Maturities of short-term investments48.2 50.4 
Purchases of property and equipment and other assets(12.8)(6.4)
Net cash provided by (used in) investing activities$35.4 $(19.6)
Financing activities:
Payments of deferred consideration$(0.7)$ 
Repayment of debt(1.5)(1.5)
Payments of debt issuance and modification costs(0.8)(2.0)
Proceeds from exercise of stock options 0.2 
Taxes paid related to net share settlement of equity awards(7.1)(4.1)
Tax receivable agreement payments(31.6) 
Repurchase of common stock(151.0)(21.9)
Net cash used in financing activities$(192.7)$(29.3)
Net increase (decrease) in cash, cash equivalents, and restricted cash$(41.4)$59.7 
Cash, cash equivalents, and restricted cash at beginning of period456.2 424.1 
Cash, cash equivalents, and restricted cash at end of period$414.8 $483.8 


6

ZoomInfo Technologies Inc.
Consolidated Statements of Cash Flows
(in millions; unaudited) (continued)
Three Months Ended March 31,
20242023
Cash, cash equivalents, and restricted cash at end of period:
Cash and cash equivalents$405.9 $474.0 
Restricted cash, non-current8.9 9.8 
Total cash, cash equivalents, and restricted cash$414.8 $483.8 
Supplemental disclosures of cash flow information
Interest paid in cash$17.7 $18.7 
Cash paid for taxes3.3 1.7 
Supplemental disclosures of non-cash investing and financing activities:
Property and equipment included in accounts payable and accrued expenses and other current liabilities$2.1 $0.8 
Equity-based compensation included in capitalized software1.5  
See accompanying Notes to Consolidated Financial Statements.


7

ZoomInfo Technologies Inc.
Notes to Unaudited Consolidated Financial Statements (Unaudited)
(In millions, except share/unit data and per share/unit amounts, unless otherwise noted)


8

Note 1 - Business, Basis of Presentation, and Summary of Significant Accounting Policies
Business
ZoomInfo Technologies Inc., through its operating subsidiaries, (the “Company”, “we”, “us”, “our”, and “ZoomInfo”) provides a go-to-market intelligence and engagement platform for sales and marketing teams. The Company’s cloud-based platform provides workflow tools with integrated, accurate, and comprehensive information on organizations and professionals to help users identify target customers and decision makers, obtain continually updated predictive lead and company scoring, monitor buying signals and other attributes of target companies, craft messages, engage via automated sales tools, and track progress through the deal cycle.
Basis of Presentation
The accompanying unaudited consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”) pertaining to interim financial information. Certain information in footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) has been condensed or omitted pursuant to those rules and regulations. The financial statements included in this report should be read in conjunction with the Company’s 2023 Form 10-K.
The results of operations for the three months ended March 31, 2024 are not necessarily indicative of the operating results that may be expected for the full fiscal year ending December 31, 2024 or any future period.
The accompanying unaudited consolidated financial statements contain all adjustments necessary for a fair statement of financial position as of March 31, 2024, and results of operations for the three months ended March 31, 2024 and 2023, and cash flows for the three months ended March 31, 2024 and 2023.
Use of Estimates
The preparation of consolidated financial statements in conformity with U.S. GAAP requires us to make certain estimates, judgments, and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the consolidated financial statements, as well as the reported amounts of revenue and expenses during the reporting period. We base these estimates on historical and anticipated results, trends, and other assumptions with respect to future events that we believe are reasonable and evaluate our estimates on an ongoing basis. Given that estimates and judgments are required, actual results may differ from our estimates and such differences could be material to our consolidated financial position and results of operations.
Principles of Consolidation
The consolidated financial statements include the accounts of ZoomInfo Technologies Inc. and its subsidiaries. All significant intercompany transactions and balances have been eliminated in consolidation.
Revenue Recognition
The Company derives revenue primarily from subscription services. Our subscription services consist of our SaaS applications and related access to our platform. Subscription contracts are generally based on the number of users that access our applications, the level of functionality that they can access, and the amount of data that a customer integrates with their systems. Our subscription contracts typically have a term of one to three years and are non-cancelable. We typically bill for services annually, semi-annually, or quarterly in advance of delivery.


9

Note 1 - Business, Basis of Presentation, and Summary of Significant Accounting Policies (continued)
The Company accounts for revenue contracts with customers through the following steps:
(1)Identify the contract with a customer;
(2)Identify the performance obligations in the contract;
(3)Determine the transaction price;
(4)Allocate the transaction price; and
(5)Recognize revenue when or as the Company satisfies a performance obligation.
We recognize revenue for subscription contracts on a ratable basis over the contract term based on the number of calendar days in each period, beginning on the date that our service is made available to the customer. Unearned revenue results from revenue amounts billed to customers in advance or cash received from customers in advance of the satisfaction of performance obligations. Determining the transaction price often involves judgment and making estimates that can have a significant impact on the timing and amount of revenue reported. At times, the Company may adjust billing under a contract based on the addition of services or other circumstances, which are accounted for as variable consideration. The Company estimates these amounts based on historical experience and adjusts revenue recognized.
Cash, Cash Equivalents, and Short-term Investments
Cash equivalents consist of highly liquid marketable debt securities with remaining maturities of three months or less at the date of purchase. We classify our investments in marketable securities as “available-for-sale.” We carry these investments at fair value, based on quoted market prices or other readily available market information. Unrealized gains and losses, net of taxes, are included in Accumulated other comprehensive income, which is reflected as a separate component of stockholders’ equity on our Consolidated Balance Sheets. Gains and losses are determined using the specific identification method and recognized when realized on our Consolidated Statements of Operations. If we were to determine that an other-than-temporary decline in fair value has occurred, the amount of the decline related to a credit loss will be recognized in income.
Fair Value Measurements
The Company measures assets and liabilities at fair value based on an expected exit price, which represents the amount that would be received on the sale of an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value may be based on assumptions that market participants would use in pricing an asset or liability. The authoritative guidance on fair value measurements establishes a consistent framework for measuring fair value on either a recurring or nonrecurring basis whereby inputs, used in valuation techniques, are assigned a hierarchical level. The following are the hierarchical levels of inputs to measure fair value:
Level 1 - Observable inputs that reflect unadjusted quoted prices in active markets for identical assets or liabilities
Level 2 - Other inputs that are directly or indirectly observable in the marketplace
Level 3 - Unobservable inputs that are supported by little or no market activity, including the Company’s own assumptions in determining fair value
The inputs or methodology used for valuing financial assets and liabilities are not necessarily an indication of the risk associated with investing in them.


10

Note 1 - Business, Basis of Presentation, and Summary of Significant Accounting Policies (continued)
Concentrations of Credit Risk and Significant Customers
Financial instruments that potentially subject us to concentrations of credit risk consist principally of cash and cash equivalents, short-term investments, and accounts receivable. The Company holds cash at major financial institutions that often exceed Federal Deposit Insurance Corporation (“FDIC”) insured limits. The Company manages its credit risk associated with cash concentrations by concentrating its cash deposits in high-quality financial institutions and by periodically evaluating the credit quality of the primary financial institutions holding such deposits. The carrying value of cash approximates fair value. Our investment portfolio is comprised of highly rated securities with a weighted-average maturity of less than 12 months in accordance with our investment policy which seeks to preserve principal and maintain a high degree of liquidity. Historically, the Company has not experienced any losses due to such cash concentrations. The Company does not have any off-balance-sheet credit exposure related to its customers. Concentrations of credit risk with respect to accounts receivable and revenue are limited due to a large, diverse customer base. We do not require collateral from clients. We maintain an allowance for credit losses based upon the expected collectability of accounts receivable. The Company performs ongoing credit evaluations of its customers and maintains allowances for possible losses, which, when realized, have been within the range of management’s expectations. No single customer accounted for 10% or more of our revenue for the three months ended March 31, 2024 and 2023, or accounted for more than 10% of accounts receivable as of March 31, 2024 and December 31, 2023.
Accounts Receivable and Contract Assets
Accounts receivable is comprised of invoices of revenue, net of allowance for expected credit losses, and does not bear interest. We consider receivables past due based on the contractual payment terms. Management’s evaluation of the adequacy of the allowance for credit losses considers historical collection experience, changes in customer payment profiles, the aging of receivable balances, as well as current economic conditions, all of which may impact a customer’s ability to pay. Account balances are written-off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. As of March 31, 2024 and December 31, 2023, the allowance for expected credit losses was not significant to the accompanying consolidated financial statements.
The assessment of variable consideration to be constrained is based on estimates, and actual consideration may vary from current estimates. As adjustments to these estimates become necessary, they are reported in earnings in the periods in which they become known. Changes in variable consideration are recorded as a component of net revenue.
Contract assets represent a contractual right to consideration in the future. Contract assets are generated when contractual billing schedules differ from revenue recognition timing.
Property and Equipment, Net
Property and equipment is stated at cost, net of accumulated depreciation and amortization. All repairs and maintenance costs are expensed as incurred. Depreciation and amortization costs are expensed on a straight-line basis over the lesser of the estimated useful life of the asset or the remainder of the lease term for leasehold improvements. Qualifying internal use software costs incurred during the application development stage, which consist primarily of internal product development costs, outside services, personnel costs (including equity-based compensation), and purchased software license costs, are capitalized and amortized over the estimated useful life of the asset. Estimated useful lives range from three to ten years.


11

Note 1 - Business, Basis of Presentation, and Summary of Significant Accounting Policies (continued)
Deferred Commissions
Certain sales commissions earned by our sales force are considered incremental and recoverable costs of obtaining a contract with a customer. These sales commissions for initial contracts are capitalized and included in Deferred costs and other assets, net of current portion on our Consolidated Balance Sheets. Deferred sales commissions are amortized on a straight-line basis over the estimated period of benefit from the customer relationship which we have determined to be one and three years for renewals and new clients, respectively. We determined the period of benefit by taking into consideration our customer contracts, our technology, and other factors. Amortization expense related to these capitalized commissions is included in Sales and marketing on our Consolidated Statements of Operations.
Commissions payable at March 31, 2024 were $32.3 million, of which the current portion of $29.0 million was included in Accrued expenses and other current liabilities on our Consolidated Balance Sheets, and the long-term portion of $3.3 million was included in Other long-term liabilities on our Consolidated Balance Sheets. Commissions payable at December 31, 2023 were $37.7 million, of which the current portion of $34.4 million was included in Accrued expenses and other current liabilities on our Consolidated Balance Sheets, and the long-term portion of $3.3 million was included in Other long-term liabilities on our Consolidated Balance Sheets.
Certain commissions are not capitalized as they do not represent incremental costs of obtaining a contract. Such commissions are expensed as incurred.
Advertising and Promotional Expenses
The Company expenses advertising costs as incurred. Advertising expenses of $10.4 million and $8.5 million were recorded for the three months ended March 31, 2024 and 2023, respectively. Advertising expenses are included in Sales and marketing on our Consolidated Statements of Operations.
Research and Development
Research and development expenses consist primarily of compensation expense for our employees, including employee benefits, certain IT program expenses, facilities and related overhead costs. We continue to focus our research and development efforts on developing new products, adding new features and services, integrating acquired technologies, and increasing functionality. Expenditures for software developed or obtained for internal use are capitalized and amortized over a four-year period on a straight-line basis.
Restructuring and Transaction-Related Expenses
The Company defines restructuring and transaction-related expenses as costs directly associated with restructuring, acquisition, or disposal activities. Such costs include employee severance and termination benefits, contract termination fees and penalties, and other exit or disposal costs. In general, the Company records involuntary employee-related exit and disposal costs when there is a substantive plan for employee severance and related costs that are probable and estimable. For one-time termination benefits for key members of management (i.e., no substantive plan) expense is recorded when the employees are entitled to receive such benefits and the amount can be reasonably estimated. Transaction-related bonuses and related employee retention costs are recognized over the relevant service period. Contract termination fees and penalties and other exit and disposal costs are generally recorded when incurred.


12

Note 1 - Business, Basis of Presentation, and Summary of Significant Accounting Policies (continued)
Business Combinations
We allocate purchase consideration to the tangible assets acquired, liabilities assumed, and intangible assets acquired based on their estimated fair values. The purchase price is determined based on the fair value of the assets transferred, liabilities assumed and equity interests issued, after considering any transactions that are separate from the business combination. The fair value of equity issued as part of a business combination is determined based on grant date stock price of the Company. The excess of fair value of purchase consideration over the fair values of the identifiable assets and liabilities is recorded as goodwill. Such valuations require management to make significant estimates and assumptions, especially with respect to intangible assets and contingent liabilities. Significant estimates in valuing certain intangible assets include, but are not limited to, future expected cash flows from acquired customer bases, acquired technology and acquired trade names, useful lives, royalty rates, and discount rates.
The estimates are inherently uncertain and subject to revision as additional information is obtained during the measurement period for an acquisition, which may last up to one year from the acquisition date. During the measurement period, we may record adjustments to the fair value of tangible and intangible assets acquired and liabilities assumed, with a corresponding offset to goodwill. After the conclusion of the measurement period or the final determination of the fair value of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are recorded to earnings.
In addition, uncertain tax positions and tax-related valuation allowances assumed in connection with a business combination are initially estimated as of the acquisition date. We re-evaluate these items based upon the facts and circumstances that existed as of the acquisition date, with any revisions to our preliminary estimates being recorded to goodwill, provided that the timing is within the measurement period. Subsequent to the measurement period, changes to uncertain tax positions and tax-related valuation allowances will be recorded to earnings.
Goodwill and Acquired Intangible Assets
Goodwill is calculated as the excess of the purchase consideration paid in a business combination over the fair value of the assets acquired less liabilities assumed. Goodwill is not amortized and is tested for impairment at least annually during the fourth quarter of our fiscal year or when events and circumstances indicate that the fair value of a reporting unit may be below its carrying value. The company has one reporting unit.
We first assess qualitative factors to evaluate whether it is more likely than not that the fair value of a reporting unit is less than the carrying amount or elect to bypass such assessment. If it is determined that it is more likely than not that the fair value of the reporting unit is less than its carrying value, or we elect to bypass the qualitative assessment, we perform a quantitative test by determining the fair value of the reporting unit. If the carrying value of the reporting unit exceeds the fair value, then an impairment loss is recognized for the difference.
Acquired technology, customer relationships, trade names or brand portfolios, and other intangible assets are related to historical acquisitions (refer to Note 5 - Goodwill and Acquired Intangible Assets). Acquired intangible assets are amortized on a straight-line basis over the estimated period over which we expect to realize economic value related to the intangible asset. The amortization periods range from 2 years to 15 years. Any costs incurred to renew or extend the life of an intangible or long-lived asset are reviewed for capitalization.
Indefinite-lived intangible assets consist of brand portfolios acquired from Pre-Acquisition ZI and represent costs paid to legally register phrases and graphic designs that identify and distinguish products sold by the Company. Indefinite-lived intangible assets are not subject to amortization. Instead, they are subject to an annual assessment for potential impairment, or more frequently upon the occurrence of a triggering event when circumstances indicate that the book value is greater than its fair value. The Company first assesses qualitative factors to determine whether it is more likely than not that the fair value of the indefinite-lived intangible asset is less than the carrying value as a basis to determine whether further impairment testing is necessary. The Company conducts its impairment assessment during the fourth quarter of each fiscal year. No impairment charges relating to acquired goodwill or indefinite lived intangible assets were recorded for the three month periods ended March 31, 2024 and 2023.


13

Note 1 - Business, Basis of Presentation, and Summary of Significant Accounting Policies (continued)
Impairment of Long-lived Assets
Long-lived assets, such as property and equipment, acquired intangible assets, and right-of-use assets, are reviewed for impairment whenever events or circumstances indicate that the carrying value of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to the undiscounted future cash flows expected to be generated by the asset or group of assets. If the carrying amount of the asset exceeds the estimated future cash flows, an impairment charge is recognized in the amount by which the carrying amount of the asset exceeds the estimated future cash flows of the asset. The estimated future cash flows associated with the right-of-use assets under Accounting Standards Codification (“ASC”) 842 were developed by incorporating current market data and forecasts provided by reputable external real estate brokers and data sources. These projections consider prevailing rental rates, anticipated lease renewals, expected vacancy periods, and other relevant market factors that contribute to the estimation of recoverable cash flows for the impaired office spaces we do not intend to occupy. No impairment charges were recorded for the three month periods ended March 31, 2024 and 2023.
Long-lived Assets
Long-lived assets by geographical region are based on the location of the legal entity that owns the assets, which includes property and equipment, net and operating lease right-of-use assets, net. As of March 31, 2024, long-lived assets held in the United States and Israel were $151.5 million and $24.1 million, respectively, representing approximately 97% of the consolidated total. As of December 31, 2023, long-lived assets held in the United States and Israel were $120.2 million and $20.2 million, respectively, representing approximately 96% of the consolidated total.
Leases
We determine if an arrangement is or contains a lease at contract inception. For these arrangements, primarily those related to our data center arrangements, there is judgment in evaluating if the arrangement involves an identified asset that is physically distinct or whether we have the right to substantially all of the capacity of an identified asset that is not physically distinct. In arrangements that involve an identified asset, there is also judgment in evaluating if we have the right to direct the use of that asset.
We do not have any finance leases. Operating leases are recorded on our Consolidated Balance Sheets. Right-of-use assets and lease liabilities are measured at the lease commencement date based on the present value of the fixed minimum remaining lease payments over the lease term, determined using the discount rate for the lease at the commencement date. Because the rates implicit in our leases are not readily determinable, we use our incremental borrowing rate as the discount rate for each respective lease, which approximates the interest rate at which we could borrow on a collateralized basis with similar terms and payments and in similar economic environments. Some leases include options to extend or options to terminate the lease prior to the stated lease expiration. Optional periods to extend a lease, including by not exercising a termination option, are included in the lease term when it is reasonably certain that the option will be exercised (or not exercised in the case of termination options). Operating lease expense is recognized on a straight-line basis over the lease term. We account for lease and non-lease components, principally common area maintenance and related taxes for our facilities leases, as a single lease component. Short-term leases, defined as leases having an original lease term less than or equal to one year, are excluded from our right-of-use assets and lease liabilities.


14

Note 1 - Business, Basis of Presentation, and Summary of Significant Accounting Policies (continued)
Derivative Instruments and Hedging Activities
FASB’s ASC 815—Derivatives and Hedging (“ASC 815”), provides the disclosure requirements for derivatives and hedging activities with the intent to provide users of financial statements with an enhanced understanding of: (a) how and why an entity uses derivative instruments, (b) how the entity accounts for derivative instruments and related hedged items, and (c) how derivative instruments and related hedged items affect an entity’s financial position, financial performance, and cash flows. Further, qualitative disclosures are required that explain the Company’s objectives and strategies for using derivatives, as well as quantitative disclosures about the fair value of and gains and losses on derivative instruments, and disclosures about credit-risk-related contingent features in derivative instruments.
As required by ASC 815, the Company records all derivatives as either assets or liabilities on our Consolidated Balance Sheets and measures them at fair value. The accounting for changes in the fair value of derivatives depends on the intended use of the derivative, whether the Company has elected to designate a derivative in a hedging relationship and apply hedge accounting, and whether the hedging relationship has satisfied the criteria necessary to apply hedge accounting. Derivatives designated and qualifying as a hedge of the exposure to changes in the fair value of an asset, liability, or firm commitment attributable to a particular risk, such as interest rate risk, are considered fair value hedges. Derivatives designated and qualifying as a hedge of the exposure to variability in expected future cash flows, or other types of forecasted transactions, are considered cash flow hedges. Derivatives may also be designated as hedges of the foreign currency exposure of a net investment in a foreign operation. Hedge accounting generally provides for the matching of the timing of gain or loss recognition on the hedging instrument with the recognition of the changes in the fair value of the hedged asset or liability that are attributable to the hedged risk in a fair value hedge or the earnings effect of the hedged forecasted transactions in a cash flow hedge. The Company may enter into derivative contracts that are intended to economically hedge certain of its risk, even though hedge accounting does not apply or the Company elects not to apply hedge accounting. To receive hedge accounting treatment, all hedging relationships are formally documented at the inception of the hedge, and the hedges must be highly effective in offsetting changes to future cash flows on hedged transactions.
Unearned Revenue
Unearned revenue consists of customer payments and billings in advance of revenue being recognized from our subscription services. Unearned revenue that is anticipated to be recognized within the next 12 months is recorded as Unearned revenue, current portion and the remaining portion is included in Unearned revenue, net of current portion on our Consolidated Balance Sheets.
Debt Issuance Costs
Costs incurred in connection with the issuance of long-term debt are deferred and amortized as interest expense over the terms of the related debt using the effective interest method for term debt and on a straight-line basis for revolving debt. Debt issuance costs are generally presented on our Consolidated Balance Sheets as a direct deduction from the carrying amount of the outstanding borrowings, consistent with debt discounts. However, the Company classifies the debt issuance costs related to its first lien revolving credit facility within Deferred costs and other assets, net of current portion on our Consolidated Balance Sheets regardless of whether the Company has any outstanding borrowings on our first lien revolving credit facility. Upon a refinancing or amendment, the Company evaluates the modified debt instrument in accordance with ASC 470-50-40-10. When the present value of the cash flows under the modified debt instrument has changed by greater than 10 percent from the present value of the remaining cash flows under the terms of the original debt instrument, the Company accounts for the amendment as a debt extinguishment and all previously-capitalized debt issuance costs are expensed and included in Loss on debt modification and extinguishment. If the change in the present value of cash flows is less than 10 percent, any previously-capitalized debt issuance costs are amortized as interest expense over the term of the new debt instrument. The Company performs assessments of debt modifications at a lender-specific level for all syndicated financing arrangements.


15

Note 1 - Business, Basis of Presentation, and Summary of Significant Accounting Policies (continued)
Tax Receivable Agreements
In connection with our initial public offering, we entered into two Tax Receivable Agreements ("TRA" or “TRAs”) with certain non-controlling interest owners (the “TRA Holders”). The TRAs generally provide for payment by the Company to the TRA Holders of 85% of the net cash savings, if any, in U.S. federal, state and local income tax or franchise tax that the Company actually realizes or is deemed to realize in certain circumstances. The Company will retain the benefit of the remaining 15% of these net cash savings.
We account for amounts payable under the TRA in accordance with ASC Topic 450, Contingencies. Amounts payable under the TRA are accrued by a charge to income when it is probable that a liability has been incurred and the amount is estimable. TRA related liabilities are classified as current or noncurrent based on the expected date of payment and are included on our Consolidated Balance Sheets under the captions Current portion of tax receivable agreements liability and Tax receivable agreements liability, net of current portion, respectively. Subsequent changes to the measurement of the TRA liability are recognized on our Consolidated Statements of Operations as a component of Other loss (income), net. Refer to Note 13 - Tax Receivable Agreements for further details on the TRA liability.
Income Taxes
The Company recognizes deferred tax assets and liabilities based on temporary differences between the financial statement and tax basis of assets and liabilities. Deferred tax assets and liabilities are measured using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect on deferred tax assets and liabilities of a change in tax law is recognized in the Consolidated Statements of Operations in the period that includes the enactment date.
The need for valuation allowances is regularly evaluated for deferred tax assets for which future realization is uncertain. In assessing the realizability of deferred tax assets, we consider both positive and negative evidence, including scheduled reversals of deferred tax assets and liabilities, projected future taxable income, tax planning strategies and results of recent operations. If, based on the weight of available evidence, it is more likely than not that the deferred tax assets will not be realized, a valuation allowance is recorded.
The Company recognizes the tax benefit of an uncertain tax position only if it is more likely than not that the position is sustainable upon examination by the taxing authority, solely based on its technical merits. The tax benefit recognized is measured as the largest amount of benefit which is greater than 50 percent likely to be realized upon settlement with the taxing authority. The Company recognizes interest accrued and penalties related to unrecognized tax benefits within Provision for income taxes on the Consolidated Statements of Operations.
Equity-Based Compensation Expense
The Company periodically grants incentive awards to employees and non-employees, which generally vest over periods of up to four years. Incentive awards may be in the form of various equity-based awards such as restricted stock and restricted stock units, and common stock options.
Compensation expense for incentive awards is measured at the estimated fair value of the incentive units and is included as compensation expense over the vesting period during which an employee provides service in exchange for the award. Compensation expense for performance-based restricted stock units is measured at the estimated fair value of the units and is recognized using the accelerated attribution method over the service period when it is probable that the performance condition will be satisfied.
The Company uses a Black-Scholes option pricing model to determine the fair value of stock options and profits interests, as profits interests have certain economic similarities to options. The Black-Scholes option pricing model includes various assumptions, including the expected term of incentive units, the expected volatility, and the expected risk-free interest rate. These assumptions reflect the Company’s best estimates, but they involve inherent uncertainties based on market conditions generally outside the control of the Company. As a result, if other assumptions are used, compensation cost could differ.


16

Note 1 - Business, Basis of Presentation, and Summary of Significant Accounting Policies (continued)
Compensation expense related to the Company’s Employee Stock Purchase Plan is measured at the estimated fair value using the Black-Scholes option pricing model using the estimated number of awards as of the beginning of the offering period.
The Company measures employee, non-employee, and board of director equity-based compensation on the grant date fair value basis. Equity-based compensation expense is recognized over the requisite service period of the awards. For equity awards that have a performance condition, the Company recognizes compensation expense based on its assessment of the probability that the performance condition will be achieved. The Company has elected to account for forfeitures as they occur.
The Company classifies equity-based compensation expense on our Consolidated Statements of Operations in the same manner in which the award recipient’s salary and related costs are classified or in which the award recipient’s service payments are classified.
Share Repurchase Program
In March 2023, the Board authorized a program to repurchase the Company’s common stock (the “Share Repurchase Program”). The total authorization in 2023 and 2024 was $600.0 million and $500.0 million, respectively, of which $546.8 million remained available and authorized for repurchases as of March 31, 2024. Shares of common stock may be repurchased under the Share Repurchase Program from time to time through open market purchases, block trades, private transactions or accelerated or other structured share repurchase programs. The extent to which the Company repurchases shares of common stock, and the timing of such purchases, will depend upon a variety of factors, including market conditions, regulatory requirements and other corporate considerations, as determined by the Company. The Share Repurchase Program may be suspended or discontinued at any time.
During the three months ended March 31, 2024, the Company repurchased and subsequently retired 9,623,255 shares of common stock at an average price of $15.90, for an aggregate $153.1 million. During the three months ended March 31, 2023, the Company repurchased and subsequently retired 1,058,291 shares of common stock at an average price of $22.99, for an aggregate $24.3 million.
Recent Accounting Pronouncements
Recently Issued Accounting Pronouncements
In December 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. The amendments in this ASU are intended to increase transparency through improvements to income tax disclosures primarily related to the rate reconciliation and income taxes paid information. This standard is effective for annual periods beginning after December 15, 2024 (i.e., a January 1, 2025 effective date), with early adoption permitted. The Company is currently evaluating the disclosure impacts of ASU 2023-09 on its consolidated financial statements as well as the impacts to its financial reporting process and related internal controls.


17

Note 1 - Business, Basis of Presentation, and Summary of Significant Accounting Policies (continued)
In October 2023, the FASB issued ASU 2023-06, Disclosure Improvements: Codification Amendments in Response to the SEC’s Disclosure Update and Simplification Initiative. The amendments in this ASU incorporate into the FASB’s ASC certain SEC disclosure requirements that were referred to the FASB and overlap with, but require incremental information to, U.S. GAAP. The effective date for each amendment will be the date on which the SEC’s removal of that related disclosure from Regulation S-X or Regulation S-K becomes effective, with early adoption prohibited, and applied prospectively. If by June 30, 2027, the SEC has not removed the applicable requirement from Regulation S-X or Regulation S-K, the pending content of the related amendment will be removed from FASB’s ASC and will not become effective for any entity. The Company does not expect this ASU to have a material impact on its consolidated financial statements.
Recently Adopted Accounting Pronouncements
In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. The amendments in this ASU are intended to improve reportable segment disclosure primarily through enhanced disclosures about significant segment expenses. This standard is effective for fiscal years beginning after December 15, 2023 (i.e., a January 1, 2024 effective date), and interim periods within fiscal years beginning after December 15, 2024 (i.e., the first quarter of 2025). The amendments in this ASU should be applied retrospectively to all prior periods presented in the financial statements. Early adoption is permitted. The Company adopted this standard beginning in 2024 and expects to provide incremental qualitative segment-related disclosures beginning with the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2024. However, there was no impact to the consolidated financial statements upon adoption.
Note 2 - Revenue from Contracts with Customers
Revenue comprised the following service offerings:
Three Months Ended March 31,
(in millions)20242023
Subscription$306.8 $297.4 
Usage-based2.3 2.4 
Other1.0 0.9 
Total revenue$310.1 $300.7 
Go-To-Market business intelligence tools are subscription services that allow customers access to our SaaS tools to support sales and marketing processes, which include data, analytics, and insights to provide accurate and comprehensive intelligence on organizations and professionals. Our customers use our platform to identify target customers and decision makers, obtain continually updated predictive lead and company scoring, monitor buying signals and other attributes of target companies, craft messages, engage via automated sales tools, and track progress through the deal cycle.
Usage-based revenue is comprised largely of email verification and facilitation of online advertisements, which are charged to our customers on a per unit basis based on their usage. We regularly observe that customers integrate our usage-based services into their internal workflows and use our services on an ongoing basis. We recognize usage-based revenue at the point in time the services are consumed by the customer, thereby satisfying our performance obligation.
Other revenue is comprised largely of implementation and professional services fees. We recognize other revenue as services are delivered.
Of the total revenue recognized in the three months ended March 31, 2024, $245.2 million was included in the unearned revenue balance as of December 31, 2023. Of the total revenue recognized in the three months ended March 31, 2023, $213.3 million was included in the unearned revenue balance as of December 31, 2022. Revenue recognized from performance obligations satisfied (or partially satisfied) in previous periods was not material.


18

Note 2 - Revenue from Contracts with Customers (continued)
Revenues derived from customers and partners located outside the United States, as determined based on the address provided by our customers and partners, accounted for approximately 12% and 13% of our total revenues for the three months ended March 31, 2024 and 2023, respectively. Contracts denominated in currencies other than U.S. Dollar were not material for the three months ended March 31, 2024 and 2023.
Contract Assets and Unearned Revenue
The Company’s standard billing terms typically require payment at the beginning of each annual, semi-annual, or quarterly period. Subscription revenue is generally recognized ratably over the contract term starting with when our service is made available to the customer. Usage-based revenue is recognized in the period services are utilized by our customers. The amount of revenue recognized reflects the consideration the Company expects to be entitled to receive in exchange for these services.
The Company records a contract asset when revenue recognized on a contract exceeds the billings to date for that contract. Unearned revenue results from cash received or amounts billed to customers in advance of revenue recognized upon the satisfaction of performance obligations. The unearned revenue balance is influenced by several factors, including seasonality, the compounding effects of renewals, invoice duration, invoice timing, dollar size, and new business timing within the quarter. The unearned revenue balance does not represent the total contract value of annual or multi-year, non-cancelable subscription agreements.
As of March 31, 2024 and December 31, 2023, the Company had contract assets of $9.8 million and $5.9 million, respectively, which are recorded within Prepaid expenses and other current assets on our Consolidated Balance Sheets. As of March 31, 2024 and December 31, 2023, the Company had unearned revenue of $444.3 million and $441.9 million, respectively.
ASC 606 requires the allocation of the transaction price to the remaining performance obligations of a contract. Transaction price allocated to remaining performance obligations represents contracted revenue that has not yet been recognized, which includes unearned revenue and unbilled amounts that will be recognized as revenue in future periods. Transaction price allocated to remaining performance obligations is influenced by several factors, including seasonality, the timing of renewals, and disparate contract terms. Revenue allocated to remaining performance obligations represents contracted revenue that has not yet been recognized, which includes unearned revenue and backlog. The Company's backlog represents installment billings for periods beyond the current billing cycle. The majority of the Company’s noncurrent remaining performance obligations will be recognized in the next 13 to 36 months.
The remaining performance obligations consisted of the following:
(in millions)
Recognized within one year
NoncurrentTotal
As of March 31, 2024$837.8 $295.6 $1,133.4 
As of December 31, 2023856.4 296.5 1,152.9 


19

Note 3 - Cash, Cash Equivalents, and Short-term Investments
Cash, cash equivalents, and short-term investments consisted of the following as of March 31, 2024:
(in millions)Amortized CostUnrealized GainsUnrealized LossesEstimated Fair Value
Cash$153.0 $— $— $153.0 
Cash equivalents:
Money market mutual funds252.9 —  252.9 
Total cash and cash equivalents$405.9 $— $ $405.9 
Short-term investments:
Corporate debt securities$18.4 $ $ $18.4 
Securities guaranteed by U.S. government4.7   4.7 
Certificates of deposit11.2   11.2 
Total short-term investments$34.3 $ $ $34.3 
Total cash, cash equivalents, and short-term investments$440.2 $ $ $440.2 
Cash, cash equivalents, and short-term investments consisted of the following as of December 31, 2023:
(in millions)Amortized CostUnrealized GainsUnrealized LossesEstimated Fair Value
Cash$201.9 $— $— $201.9 
Cash equivalents:
Money market mutual funds245.2 —  245.2 
Total cash and cash equivalents$447.1 $— $ $447.1 
Short-term investments:
Corporate debt securities$37.4 $ $ $37.4 
Securities guaranteed by U.S. government26.7   26.7 
Other government securities18.1   18.1 
Total short-term investments$82.2 $ $ $82.2 
Total cash, cash equivalents, and short-term investments$529.3 $ $ $529.3 
Refer to Note 8 - Fair Value for further information regarding the fair value of our financial instruments.
Gross unrealized losses on our available-for sale securities were immaterial at March 31, 2024 and December 31, 2023.
The following table summarizes the cost and estimated fair value of the securities classified as short-term investments based on stated effective maturities as of March 31, 2024 and December 31, 2023:
March 31, 2024
December 31, 2023
(in millions)Amortized CostEstimated Fair ValueAmortized CostEstimated Fair Value
Due within one year$34.3 $34.3 $82.2 $82.2 
Total$34.3 $34.3 $82.2 $82.2 


20

Note 4 - Property and Equipment
The Company’s property and equipment consist of the following:
March 31,December 31,
(in millions)20242023
Computer equipment$15.1 $17.1 
Furniture and fixtures3.7 3.7 
Leasehold improvements20.4 13.1 
Internal use developed software90.5 84.0 
Construction in progress11.0 7.8 
Property and equipment, gross$140.7 $125.7 
Less: accumulated depreciation(66.1)(60.6)
Property and equipment, net$74.6 $65.1 
Depreciation expense was $5.2 million and $4.8 million for the three months ended March 31, 2024 and 2023, respectively.
Note 5 - Goodwill and Acquired Intangible Assets
Intangible assets, other than goodwill, consisted of the following as of March 31, 2024 and December 31, 2023, respectively:
(in millions)Gross Carrying AmountAccumulated AmortizationNetWeighted Average Amortization Period in Years
Intangible assets subject to amortization:
Customer relationships$287.6 $(117.5)$170.1 14.5
Acquired technology330.8 (217.9)112.9 6.3
Brand portfolio11.5 (7.7)3.8 7.8
Total intangible assets subject to amortization$629.9 $(343.1)$286.8 
Intangible assets not subject to amortization
Pre-Acquisition ZI brand portfolio$33.0 $— $33.0 
Total intangible assets not subject to amortization$33.0 $— $33.0 
Total intangible assets$662.9 $(343.1)$319.8 


21



Note 5 - Goodwill and Acquired Intangible Assets (continued)
(in millions)Gross Carrying AmountAccumulated AmortizationNetWeighted Average Amortization Period in Years
Intangible assets subject to amortization:
Customer relationships$287.6 $(112.5)$175.1 14.5
Acquired technology330.8 (208.4)122.4 6.3
Brand portfolio11.5 (7.4)4.1 7.9
Total intangible assets subject to amortization
$629.9 $(328.3)$301.6 
Intangible assets not subject to amortization:
Pre-Acquisition ZI brand portfolio$33.0 $— $33.0 
Total intangible assets not subject to amortization
$33.0 $— $33.0 
Total intangible assets$662.9 $(328.3)$334.6 
Amortization expense was $14.8 million and $16.1 million for the three months ended March 31, 2024 and 2023, respectively.
Goodwill was $1,692.7 million as of March 31, 2024 and December 31, 2023.
There were no events or circumstances indicating that goodwill might be impaired as of March 31, 2024.
Note 6 - Financing Arrangements
As of March 31, 2024 and December 31, 2023, the carrying values of the Company’s borrowings were as follows (in millions):
InstrumentDate of IssuanceMaturity DateElected Interest RateMarch 31, 2024December 31, 2023
First Lien Term LoanFebruary 1, 2019February 28, 2030
SOFR + 2.25%
$589.4 $590.7 
First Lien RevolverFebruary 1, 2019February 28, 2028
SOFR + 2.10%
  
Senior NotesFebruary 2, 2021February 1, 20293.875%642.0 641.7 
Total Debt$1,231.4 $1,232.4 
Less: current portion(6.0)(6.0)
Total Long-term debt, net of current portion$1,225.4 $1,226.4 
First Lien Credit Agreement
Performance of obligations under the First Lien Credit Agreement is secured by substantially all the productive assets of the Company. The First Lien Credit Agreement contains a number of covenants that restrict, subject to certain exceptions, the Company’s ability to, among other things:
Incur additional indebtedness;
Create or incur liens;
Engage in certain fundamental changes, including mergers or consolidations;
Sell or transfer assets;


22

Note 6 - Financing Arrangements (continued)
Pay dividends and distributions on our subsidiaries’ capital stock;
Make acquisitions, investments, loans or advances;
Engage in certain transactions with affiliates; and
Enter into negative pledge clauses and clauses restricting subsidiary distributions.
If the Company draws more than $87.5 million of the revolving credit loan, the revolving credit loan is subject to a springing financial covenant pursuant to which the consolidated first lien net leverage ratio must not exceed 5.00 to 1.00. The credit agreements also contain certain customary affirmative covenants and events of default, including a change of control. If an event of default occurs, the lenders under the credit agreements will be entitled to take various actions, including the acceleration of amounts due under the credit agreements and all actions permitted to be taken by a secured creditor.
First Lien Term Loan
In December 2023, we entered into an amendment to our existing First Lien Credit Agreement (the "Sixth Amendment"), pursuant to which the Company completed a repricing of its First Lien Term Loan Facility, which decreased the applicable rate for Base Rate loans from 1.75% to 1.25% and SOFR based loans from 2.85% to 2.25%, and included the removal of the 0.1% credit spread adjustment.
In February 2023, we entered into an amendment to our existing First Lien Credit Agreement (the “Fifth Amendment”), pursuant to which the Company completed a repricing of its First Lien Term Loan Facility, which provided for an extension of the maturity date to February 28, 2030. The first lien term debt had a variable interest rate whereby the Company can elect to use a Base Rate or SOFR plus an applicable rate. Pursuant to the Fifth Amendment, the applicable rate decreased for Base Rate loans from 2.00% to 1.75% and from 3.10% to 2.85% for SOFR based loans. Under the terms of the Fifth Amendment, the Company is obligated to make principal payments in the amount of 0.25% of the aggregate initial outstanding amount.
The Company recognized an immaterial loss in connection with the repricing in the fiscal year ending December 31, 2023 within Loss on debt modification and extinguishment on the Consolidated Statements of Operations.
The effective interest rate on the first lien debt was 7.81% and 7.83% as of March 31, 2024 and December 31, 2023, respectively.
First Lien Revolving Credit Facility
Pursuant to the Fifth Amendment, the Company also extended the maturity date of $213.0 million of our $250.0 million existing commitments of the first lien revolving credit facility to February 28, 2028. Pursuant to the Sixth Amendment, $26.0 million of the non-extended commitments were extended to February 28, 2028. With respect to the $11.0 million commitments which were not extended, the maturity date is November 2, 2025. Debt issuance costs were incurred in connection with the repricing of the revolving credit facility. These debt issuance costs are amortized into interest expense over the expected life of the arrangement. Unamortized debt issuance costs are immaterial and included in Deferred costs and other assets, net of current portion on our Consolidated Balance Sheets.
The first lien revolving debt has a variable interest rate whereby the Company can elect to use a Base Rate or SOFR, plus an applicable rate. The applicable margin is 1.00% to 1.25% for Base Rate loans. The applicable margin for SOFR loans is 2.10% to 2.35%, which includes the credit spread adjustment of 0.1%, depending on the Company’s Consolidated First Lien Net Leverage Ratio.


23

Note 7 - Derivatives and Hedging Activities
Interest Rate Hedges
We are exposed to risks from changes in interest rates related to the first lien term loan (See Note 6 - Financing Arrangements). The Company uses derivative financial instruments, specifically, interest rate swap contracts, in order to manage its exposure to interest rate movements. Interest rate swaps designated as cash flow hedges involve the receipt of variable amounts from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. Our primary objective in holding derivatives is to reduce the volatility of cash flows associated with changes in interest rates. The Company does not enter into derivative transactions for speculative or trading purposes.
As of March 31, 2024, the Company had the following outstanding interest rate derivatives that were designated as cash flow hedges of interest rate risk (in millions):
Interest Rate Derivatives (Level 2)Number of InstrumentsNotional Aggregate Principal AmountInterest Cap / Swap RateMaturity Date
Interest rate cap contractOne$100.0 3.500 %April 30, 2024
Interest rate swap contractsTwo500.0 0.370 %January 30, 2026
The derivative interest rate swaps are designated and qualify as cash flow hedges. Consequently, the change in the estimated fair value of the effective portion of the derivative is recognized in Accumulated other comprehensive income on our Consolidated Balance Sheets and reclassified to Interest expense, net, when the underlying transaction has an impact on earnings. The Company expects to recognize approximately $22.5 million of net pre-tax gains from accumulated other comprehensive income as a reduction of interest expense in the next twelve months associated with its interest rate swap.
Refer to the Company’s Consolidated Statements of Comprehensive Income for amounts reclassified from Accumulated other comprehensive income into earnings related to the Company’s Derivative Instruments designated as cash flow hedging instruments for each of the reporting periods.
Foreign Currency Hedges
We are exposed to changes in currency exchange rates, primarily relating to changes in the Israeli shekel. Consequently, from time to time, we may use foreign exchange forward contracts or other financial instruments to manage our exposure to foreign exchange rate movements. Our primary objective in holding derivatives is to reduce the volatility of cash flows associated with changes in foreign exchange rates. We do not enter into derivative transactions for speculative or trading purposes.
The derivative foreign currency forward contracts are designated and qualify as cash flow hedges. Consequently, the change in the estimated fair value of the effective portion of the derivative is recognized in Accumulated other comprehensive income on our Consolidated Balance Sheets and reclassified to revenue or operating expenses depending on the nature of the underlying transaction, when the underlying transaction has an impact on earnings. Impacts on Cash and cash equivalents are presented as operating cash flows on our Consolidated Statements of Cash Flows in the period contracts are settled. During the three months ended March 31, 2024, the Company did not have any outstanding foreign currency derivatives designated as cash flow hedges.


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Note 7 - Derivatives and Hedging Activities (continued)
The following table summarizes the fair value and presentation on our Consolidated Balance Sheets for derivatives as of March 31, 2024 and December 31, 2023 (in millions):
March 31, 2024December 31, 2023
InstrumentDerivative AssetsDerivative LiabilitiesDerivative AssetsDerivative Liabilities
Derivatives designated as hedging instruments:
Interest rate cap contract(1)
$0.1 $ $0.6 $ 
Interest rate swap contracts(1)
22.5  21.2  
Interest rate swap contracts(2)
14.3  15.0  
Total designated derivative fair value$36.9 $ $36.8 $ 
__________________
(1)Included in Prepaid expenses and other current assets on our Consolidated Balance Sheets.
(2)Included in Deferred costs and other assets, net of current portion on our Consolidated Balance Sheets.
Refer to the Company’s Consolidated Statements of Comprehensive Income for amounts reclassified from Accumulated other comprehensive income into earnings related to the Company’s Derivative Instruments designated as cash flow hedging instruments for each of the reporting periods.
Note 8 - Fair Value
The Company's financial instruments consist principally of cash and cash equivalents, short-term investments, prepaid expenses and other current assets, accounts receivable, and accounts payable, accrued expenses, and long-term debt. The carrying value of cash and cash equivalents, prepaid expenses and other current assets, accounts receivable, accounts payable, and accrued expenses approximate fair value, primarily due to short maturities. We classify our money market mutual funds as Level 1 within the fair value hierarchy. We classify our corporate debt securities, securities guaranteed by the U.S. government and other governmental securities as Level 2 within the fair value hierarchy. The fair value of our first term lien debt and Senior Notes was $591.8 million and $583.4 million as of March 31, 2024, and $595.5 million and $588.3 million as of December 31, 2023, respectively, based on observable market prices in less active markets and categorized as Level 2 within the fair value measurement framework.
The Company has elected to use the income approach to value the interest rate derivatives using observable Level 2 market expectations at measurement date and standard valuation techniques to convert future amounts to a single present amount (discounted) reflecting current market expectations about those future amounts. Level 2 inputs for the derivative valuations are limited to quoted prices for similar assets or liabilities in active markets (specifically futures contracts) and inputs other than quoted prices that are observable for the asset or liability (specifically SOFR cash and swap rates, implied volatility for options, caps and floors, basis swap adjustments, overnight indexed swap (“OIS”) short term rates and OIS swap rates, when applicable, and credit risk at commonly quoted intervals). Mid-market pricing is used as a practical expedient for most fair value measurements. Key inputs, including the cash rates for very short-term, futures rates and swap rates beyond the derivative maturity, are interpolated to provide spot rates at resets specified by each derivative (reset rates are then further adjusted by the basis swap, if necessary). Derivatives are discounted to present value at the measurement date at SOFR rates unless they are fully collateralized. Fully collateralized derivatives are discounted to present value at the measurement date at OIS rates (short-term OIS rates and long-term OIS swap rates).
Inputs are collected from SuperDerivatives, an independent third-party derivative pricing data provider, as of the close on the last day of the period. The valuation of the interest rate swaps also take into consideration estimates of our own, as well as our counterparty’s, risk of non-performance under the contract.


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Note 8 - Fair Value (continued)
We estimate the value of other long-lived assets that are recorded at fair value on a non-recurring basis based on a market valuation approach. We use prices and other relevant information generated primarily by recent market transactions involving similar or comparable assets, as well as our historical experience in divestitures, acquisitions and real estate transactions. Additionally, we may use a cost valuation approach to value long-lived assets when a market valuation approach is unavailable. Under this approach, we determine the cost to replace the service capacity of an asset, adjusted for physical and economic obsolescence. When available, we use valuation inputs from independent valuation experts, such as real estate appraisers and brokers, to corroborate our estimates of fair value. Real estate appraisers’ and brokers’ valuations are typically developed using one or more valuation techniques including market, income, and replacement cost approaches. Because these valuations contain unobservable inputs, we classify the measurement of fair value of long-lived assets as Level 3.
The fair value of our financial assets was determined using the following inputs (in millions):
Fair Value at March 31, 2024Level 1Level 2Level 3
Measured on a recurring basis:
Cash equivalents:
Money market mutual funds$252.9 $ $ 
Short-term investments:
Corporate debt securities$ $18.4 $ 
Securities guaranteed by U.S. government 4.7  
Certificates of deposit 11.2  
Prepaid expenses and other current assets:
Interest rate cap contract$ $0.1 $ 
Interest rate swap contracts 22.5  
Deferred costs and other assets, net of current portion:
Interest rate swap contracts$ $14.3 $ 
Total$252.9 $71.2 $ 
Fair Value at December 31, 2023Level 1Level 2Level 3
Measured on a recurring basis:
Cash equivalents:
Money market mutual funds$245.2 $ $ 
Short-term investments:
Corporate debt securities$ $37.4 $ 
Securities guaranteed by U.S. government 26.7  
Other governmental securities 18.1  
Prepaid expenses and other current assets:
Interest rate cap contract$ $0.6 $ 
Interest rate swap contracts 21.2  
Deferred costs and other assets, net of current portion
Interest rate swap contracts$ $15.0 $ 
Measured on a non-recurring basis:
Impaired lease-related assets$ $ $13.6 
Total$245.2 $119.0 $13.6 
There were no transfers between fair value measurements levels during the three months ended March 31, 2024.


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Note 8 - Fair Value (continued)
Refer to Note 3 - Cash, Cash Equivalents, and Short-term Investments for further information regarding the fair value of our financial instruments. Refer to Note 7 - Derivatives and Hedging Activities for further information regarding the fair value of our derivative instruments.
Note 9 - Commitments and Contingencies
Non-cancelable purchase obligations
For information related to outstanding non-cancelable purchase obligations, refer to the amount disclosed in the audited financial statements in our 2023 Form 10-K. Amounts mainly relate to third-party cloud hosting and software-as-a-service arrangements. For information regarding financing-related obligations, refer to Note 6 - Financing Arrangements. For information regarding lease-related obligations, refer to Note 11 - Leases.
Contingent earnout payments
In connection with the acquisition of Dogpatch Advisors, LLC in April 2022, the Company could be required to issue equity awards up to $2.6 million. As of March 31, 2024, the Company has paid $0.3 million. Refer to Note 4 - Business Combinations in our 2023 Form 10-K for additional information.
Deferred acquisition-related payments
In connection with the acquisition of Insent, the Company paid $2.0 million during the three months ended March 31, 2024 of which $0.7 million represents deferred consideration. Refer to Note 4 - Business Combinations in our 2023 Form 10-K for additional information.
Legal matters
We are subject to various legal proceedings, claims, and governmental inspections, audits, or investigations that arise in the ordinary course of our business. There are inherent uncertainties in these matters, some of which are beyond management’s control, making the ultimate outcomes difficult to predict. Moreover, management’s views and estimates related to these matters may change in the future, as new events and circumstances arise and the matters continue to develop. Based on the information known by the Company as of the date of this filing, except where otherwise indicated, it is not possible to provide an estimated amount of any loss or range of loss that may occur with respect to these matters, including without limitation the matters described below.


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Note 9 - Commitments and Contingencies (continued)
On April 15, 2021, a putative class action lawsuit was filed against ZoomInfo Technologies LLC in the United States District Court for the Northern District of Illinois (Eastern Division) alleging ZoomInfo’s use of Illinois residents’ names in public-facing web pages violates the Illinois Right of Publicity Act, and seeking statutory, compensatory and punitive damages, costs, and attorneys’ fees. Additionally, on September 30, 2021, a putative class action lawsuit was filed against ZoomInfo Technologies Inc. in the United States District Court for the Western District of Washington alleging ZoomInfo’s use of California residents’ names in public-facing web pages violates California statutory and common law regarding the right of publicity as well as misappropriation, and seeking compensatory and punitive damages, restitution, injunctive relief, declaratory relief, costs, and attorneys’ fees. Effective March 27, 2024, ZoomInfo entered into a settlement agreement with plaintiffs in the Illinois class action that, if approved, will resolve the Illinois class action, the California class action and similar, unfiled claims in the states of Indiana and Nevada (the “Class Actions”). Under the terms of settlement, ZoomInfo has agreed to pay an amount equal to 3% of the statutory damages to each eligible class member in the states of California, Illinois, Indiana, and Nevada. The estimated total settlement amount is approximately $29.5 million, based on the estimated size of each state’s settlement class, and the total settlement amount will be finalized based on confirmatory discovery, to be completed on or before May 24, 2024. The proposed settlement is subject to final approval by the Illinois District Court and certain other conditions. If approved, the settlement would release all claims by any class member against ZoomInfo based on the alleged use of such class member’s identity, persona, name, image, likeness, or personal information for any commercial purpose without consent, including any claims alleging a violation of any right of publicity law. The settlement is not an admission of fault or wrongdoing by ZoomInfo. However, it believes that a resolution of these claims at this time is in the best interest of the Company given the costs and risks inherent in litigation. During the three months ended March 31, 2024, the Company incurred charges of $30.2 million, which includes both the estimated settlement amount and other legal costs, of which $0.2 million of legal costs has been paid. The remaining accrual of $30.0 million as of March 31, 2024 is included in Accrued expenses and other current liabilities on our Consolidated Balance Sheets. Subsequent charges to settle the Class Actions, if any, will be recorded during the second quarter of 2024 following the confirmatory discovery. The total charges that the Company expects to incur are subject to a number of assumptions, including the number of class members in each state, and actual expenses may differ materially from the estimates disclosed.
On February 10, 2023, a putative class action lawsuit was filed against Datanyze, LLC, one of the Company’s subsidiaries, in the Circuit Court of Cook County, Illinois alleging Datanyze's use of Illinois residents’ names in a free trial violates the Illinois Right of Publicity Act, and seeking statutory, compensatory and punitive damages, costs, and attorneys’ fees. The case is pending in the United States District Court for the Northern District of Illinois (Eastern Division). The Company intends to vigorously defend against this lawsuit.
On March 8, 2023, a putative class action lawsuit was filed against Datanyze, LLC in the United States District Court for the Northern District of Ohio alleging Datanyze's use of Ohio residents names in a free trial violates the Ohio Right of Publicity Statute, and seeking statutory damages, costs, and attorneys’ fees. On November 17, 2023, the court dismissed the plaintiffs’ claims with prejudice, and the plaintiffs have since appealed the dismissal. The Company intends to continue to vigorously defend against this lawsuit.


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Note 10 - Earnings Per Share
The following table sets forth the computation of basic and diluted net income per share of common stock:
Three Months Ended March 31,
(in millions, except shares and per share amounts)
20242023
Basic net income per share attributable to common stockholders
Numerator:
Net income$15.1 $44.5 
Denominator:
Weighted average number of shares of common stock outstanding378,967,201 403,408,487 
Basic net income per share attributable to common stockholders$0.04 $0.11 
Diluted net income per share attributable to common stockholders
Numerator:
Allocation of undistributed earnings$15.1 $44.5 
Denominator:
Number of shares used in basic computation378,967,201 403,408,487 
Add: weighted-average effect of dilutive securities exchangeable for common stock:
Restricted stock awards145,210 446,843 
Exercise of common stock options 66,687 
Employee Stock Purchase Plan
195,072 195,611 
Weighted average shares of common stock outstanding used to calculate diluted net income per share379,307,483 404,117,628 
Diluted net income per share attributable to common stockholders$0.04 $0.11 
The following weighted-average potentially dilutive securities were evaluated under the treasury stock method for potentially dilutive effects and have been excluded from diluted net income per share in the periods presented due to their anti-dilutive effect:
Three Months Ended March 31,
20242023
Restricted stock units15,474,470 13,267,434 
Exercise of common stock options76,261  
Total anti-dilutive securities15,550,731 13,267,434 
Note 11 - Leases
The Company has operating leases for corporate offices under non-cancelable agreements with various expiration dates. Our leases do not have significant rent escalation, holidays, concessions, material residual value guarantees, material restrictive covenants, or contingent rent provisions. Our leases include both lease (e.g., fixed payments including rent, taxes, and insurance costs) and non-lease components (e.g., common-area or other maintenance costs) which are accounted for as a single lease component. In addition, we have elected the practical expedient to exclude short-term leases, which have an original lease term of one year or less, from our right-of-use assets and lease liabilities as well as the package of practical expedients relating to adoption of Topic 842.


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Note 11 - Leases (continued)
The Company subleases two offices. The subleases have remaining lease terms of less than seven years. Sublease income, which is recorded as a reduction of rent expense and allocated to the appropriate financial statement line items to arrive at Income from operations on our Consolidated Statements of Operations, was immaterial for the three months ended March 31, 2024 and 2023.
The following are additional details related to operating leases recorded on our Consolidated Balance Sheets as of March 31, 2024 and December 31, 2023:
March 31,December 31,
(in millions)20242023
Assets
Operating lease right-of-use assets, net$106.8 $80.7 
Liabilities
Current portion of operating lease liabilities$12.1 $11.2 
Operating lease liabilities, net of current portion115.4 89.9 
Total lease liabilities$127.5 $101.1 
Rent expense was $5.6 million and $4.0 million for the three months ended March 31, 2024 and 2023, respectively.
Other information related to leases was as follows:
Three Months Ended March 31,
(in millions)20242023
Supplemental Cash Flow Information
Cash paid for amounts included in the measurement of operating lease liabilities$2.9 $2.3 
Cash received for tenant incentive reimbursement0.3  
Lease liabilities arising from obtaining right-of-use assets
From new and existing lease agreements and modifications$28.4 $ 
As of
March 31, 2024December 31, 2023
Weighted average remaining lease term (in years)11.710.3
Weighted average discount rate6.6 %6.2 %


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Note 11 - Leases (continued)
The table below reconciles the undiscounted future minimum lease payments under non-cancelable leases to the total lease liabilities recognized as of March 31, 2024 (in millions):
Year Ending December 31,Operating Leases
2024 (excluding three months ended March 31, 2024)
$(8.5)
202521.5 
202628.5 
202719.5 
202818.6 
Thereafter105.5 
Total future minimum lease payments185.1