Why ZoomInfo’s $900M IPO and Dun & Bradstreet’s $1.7B IPO Both Spell Opportunity For Data-Driven Leaders
A milestone moment occurred in the B2B industry on June 4th, as data provider ZoomInfo Technologies (NASDAQ: ZI) completed its initial public offering, raising $900 million and increasing it’s stock price by more than 60% within 24-hours, bringing the company’s valuation to $13.4 billion. Just weeks later, 180-year old data institution Dun & Bradstreet (NYSE: DNB) also launched it’s second IPO, raising $1.7B in day-one and exceeding high-end forecasts by 14%. These two massive financial successes represent strong market validation for the B2B data industry overall. We congratulate ZoomInfo and Dun & Bradstreet, and we celebrate along with them as their success is a reminder that data itself is a foundational element of success for B2B companies.
The data market is expected to be worth $275 billion by 2023. With longstanding players like Dun & Bradstreet and Experian coexisting with technology-centric newcomers, our market is evolving rapidly. As more providers enter the space, the competition will increase and buyers will have more choices. More vendors to choose from can be a double-edged sword, as this means there will be increased attention given to — and increased effort required for — evaluating, comparing, and onboarding new data in an effective way.
These recent IPOs also mark new opportunities for product innovation, as elevated levels of competition foster new feature developments and enhancements. Data buyers will find an increased emphasis on solutions that help optimize the full spectrum of needs across sales, marketing, operations, risk, and credit.
Craig Rosenberg, Co-Founder & Chief Analyst for TOPO Research, shared how these large IPOs pique the interest of CEOs and transformational influencers. “Now that two giant data providers have [gone public], this signals great news for the overall space. There are some core things you have to have and one of those is data. You just can’t do anything without it.”
Microsoft CEO, Satya Nadella keenly described the rapid pace we’re all experiencing technology change, noting that we’re seeing “two years’ worth of digital transformation in two months.” As is evident in TOPO’s 2020 Data Market Guide, gone are the days when vendors could survive as solely a contact or intent provider with partial market coverage — the market instead now requires diverse and connected datasets at high-quality levels in order to stay competitive. Seamless integration and high-performance data matching will also continue to be key success factors, prioritizing not only data reliability but also accessibility.
This points to considerable opportunity in the market and significant customer benefits to come, not just with new product developments, but with better customer service and support. Survival in such a rapidly evolving data market means that vendors will face heightened pressure to make customers happy and truly successful. We are likely to see increased demand for strategic, consultative support teams, and more clear buyer expectations about target performance levels.
When it comes to business data, the things that matter most are coverage, accuracy, depth, and the ability to use data in a seamless way. Providers that consistently deliver on this combination will undoubtedly stand out from the pack.
We are excited about what the future holds for the B2B data market, and we are pleased to see data finally receiving a level of market attention commensurate with its critical importance.