Press release

Yext Announces Third Quarter Fiscal 2024 Results

0
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Yext, Inc. (NYSE: YEXT), a leading digital experience platform, today announced its results for the three months ended October 31, 2023, or the Company’s third quarter of fiscal year 2024.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20231205134206/en/

(Graphic: Yext)

(Graphic: Yext)

“Our record non-GAAP profitability and strong Q3 adjusted EBITDA illustrate our commitment to driving profitable growth, even in a challenging macroeconomic environment,” said Yext CEO and Chair of the Board, Michael Walrath. “We are focused on delivering innovation across our products that will help enterprises increase customer engagement across all channels. We will continue to execute on improving productivity and efficiency with a keen focus on our customers’ success as the driver of our future growth.”

Third Quarter Fiscal 2024 Highlights:

Revenue of $101.2 million, a 2% increase, compared to $99.3 million reported in the third quarter fiscal 2023. Third quarter fiscal 2024 revenue included a positive impact of approximately $1.4 million from foreign currency exchange rates on a constant currency basis.

Gross Profit of $79.1 million, a 7% increase, compared to $73.6 million reported in the third quarter fiscal 2023. Gross margin of 78.2%, compared to 74.2% reported in the third quarter fiscal 2023.

Net Loss and Non-GAAP Net Income:

  • Net loss of $0.5 million, compared to a net loss of $12.3 million in the third quarter fiscal 2023.

  • Non-GAAP net income of $11.3 million, compared to non-GAAP net income of $2.5 million in the third quarter fiscal 2023.

Net Loss Per Share and Non-GAAP Net Income Per Share:

  • Net loss per share attributable to common stockholders, basic and diluted, was $0.00 based on 124.2 million weighted average basic and diluted shares outstanding. This compares to net loss per share attributable to common stockholders, basic and diluted, of $0.10 based on 123.5 million weighted average basic and diluted shares outstanding in the third quarter fiscal 2023.

  • Non-GAAP net income per share attributable to common stockholders, basic and diluted, was $0.09 based on 124.2 million weighted average basic shares outstanding and 126.7 million weighted average diluted shares outstanding, respectively. This compares to non-GAAP net income per share attributable to common stockholders, basic and diluted, of $0.02 based on 123.5 million weighted average basic shares outstanding and 124.1 million weighted average diluted shares outstanding, respectively, in the third quarter fiscal 2023.

Adjusted EBITDA was $13.5 million, compared to $7.1 million in the third quarter fiscal 2023.

Balance Sheet: Cash and cash equivalents of $182.2 million as of October 31, 2023. Unearned revenue of $144.5 million as of October 31, 2023, compared to $153.3 million as of October 31, 2022.

Remaining Performance Obligations (“RPO”): RPO of $423.3 million as of October 31, 2023. RPO expected to be recognized over the next 24 months of $358.4 million with the remaining balance expected to be recognized thereafter. RPO does not include amounts under contract subject to certain accounting exclusions.

Annual Recurring Revenue (“ARR”): ARR increased 2% year-over-year to $396.8 million as of October 31, 2023, compared to $389.5 million as of October 31, 2022. As of October 31, 2023, ARR included a positive impact of approximately $4.1 million from foreign currency exchange rates on a constant currency basis.

Cash Flow: Net cash used in operating activities was $1.6 million for the three months ended October 31, 2023, compared to net cash used in operating activities of $10.8 million for the three months ended October 31, 2022.

Share Repurchase Program: As of October 31, 2023, a total of 16,824,920 shares have been purchased for a total cost of $100.3 million since the commencement of the share repurchase program.

Readers are encouraged to review the tables labeled “Reconciliation of GAAP to Non-GAAP Financial Measures” at the end of this release.

Financial Outlook:

Yext is also providing the following guidance for its fourth fiscal quarter ending January 31, 2024 and fiscal year ending January 31, 2024.

  • Fourth Quarter Fiscal 2024 Outlook:

    • Revenue is projected to be in the range of $100.0 to $100.5 million;

    • Adjusted EBITDA is projected to be in the range of $12.0 million to $13.0 million; and

    • Non-GAAP net income per share is projected to be in the range of $0.07 to $0.08, which assumes 124.4 million weighted-average basic shares outstanding.

  • Full Year Fiscal 2024 Outlook:

    • Revenue is projected to be in the range of $403.2 million to $403.7 million;

    • Adjusted EBITDA is projected to be in the range of $51.7 million to $52.7 million; and

    • Non-GAAP net income per share is projected to be in the range of $0.31 to $0.32, which assumes 124.1 million weighted-average basic shares outstanding.

Conference Call Information

Yext will host a conference call today at 5:00 P.M. Eastern Time (2:00 P.M. Pacific Time) to discuss its financial results with the investment community. A live webcast of the call will be available on the Yext Investor Relations website at http://investors.yext.com. A live dial-in is available domestically at (877) 883-0383 and internationally at (412) 902-6506, passcode 8929509.

A replay will be available domestically at (877) 344-7529 or internationally at (412) 317-0088, passcode 4919671, until midnight (ET) December 12, 2023.

About Yext

Yext (NYSE: YEXT) helps organizations build digital experiences across any channel on our open and composable platform. The Yext Digital Experience Platform collects and organizes content to deliver AI-led experiences for any organization’s customers, employees, or partners. For more than 15 years, thousands of companies worldwide have trusted Yext to create seamless customer experiences at scale across search engines, websites, mobile apps, and hundreds of other digital touchpoints.

Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995

This release and the related conference call include forward-looking statements including, but not limited to, statements regarding our revenue, non-GAAP net income (loss), shares outstanding and Adjusted EBITDA (loss) for our fourth quarter and full year fiscal 2024 in the paragraphs under “Financial Outlook” above, statements regarding our expectations regarding the growth of our company, our market opportunity, product roadmap, sales efficiency efforts and our industry. In some cases, you can identify forward-looking statements by terminology such as “may,” “will,” “should,” “could,” “expect,” “plan,” “anticipate,” “believe,” “estimate,” “predict,” “intend,” “potential,” “might,” “would,” “continue,” or the negative of these terms or other comparable terminology. Actual events or results may differ from those expressed in these forward-looking statements, and these differences may be material and adverse.

We have based the forward-looking statements contained in this release and discussed on the call primarily on our current expectations and projections about future events and trends that we believe may affect our business, financial condition, results of operations, strategy, short- and long-term business operations, prospects, business strategy and financial needs. Our actual results could differ materially from those stated or implied in forward-looking statements due to a number of factors, including, but not limited to, our ability to renew and expand subscriptions with existing customers especially enterprise customers and attract new customers generally; our ability to successfully expand and compete in new geographies and industry verticals; our ability to expand and scale our sales force; our ability to expand our service and application provider network; our ability to develop new product and platform offerings to expand our market opportunity, our ability to release new products and updates that are adopted by our customers; our ability to manage our growth effectively; weakened or changing global economic conditions, downturns, or uncertainty, including higher inflation, higher interest rates, and fluctuations or volatility in capital markets or foreign currency exchange rates; the number of options exercised by our employees and former employees; and the accuracy of the assumptions and estimates underlying our financial projections. Moreover, we operate in a very competitive and rapidly changing environment. New risks and uncertainties emerge from time to time, and it is not possible for us to predict all risks and uncertainties that could have an impact on the forward-looking statements contained in this release. We cannot assure you that the results, events and circumstances reflected in the forward-looking statements will be achieved or occur, and actual results, events or circumstances could differ materially from those described in the forward-looking statements. All written and oral forward-looking statements attributable to us, or persons acting on our behalf, are expressly qualified in their entirety by these cautionary statements as well as other cautionary statements that are made from time to time in our SEC filings and public communications, including, without limitation, in the sections titled, “Special Note Regarding Forward Looking Statements” and “Risk Factors” in our most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q, which are available at http://investors.yext.com and on the SEC’s website at https://www.sec.gov.

The forward-looking statements made in this release relate only to events as of the date on which such statements are made. We undertake no obligation to update any forward-looking statements after the date hereof or to conform such statements to actual results or revised expectations, except as required by law.

Non-GAAP Measurements

In addition to disclosing financial measures prepared in accordance with U.S. generally accepted accounting principles (“GAAP”), this press release and the accompanying tables include non-GAAP cost of revenue, non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses (sales and marketing, research and development, general and administrative), non-GAAP operating expenses (sales and marketing, research and development, general and administrative) as a percentage of revenue, non-GAAP income (loss) from operations, non-GAAP operating margin, non-GAAP net income (loss), non-GAAP net income (loss) per share, and non-GAAP net income (loss) as a percentage of revenue, which are referred to as non-GAAP financial measures.

These non-GAAP financial measures are not calculated in accordance with GAAP as they have been adjusted to exclude the effects of stock-based compensation expenses. Non-GAAP gross margin, non-GAAP operating expenses (sales and marketing, research and development, general and administrative) as a percentage of revenue, non-GAAP operating margin, and non-GAAP net income (loss) as a percentage of revenue are calculated by dividing the applicable non-GAAP financial measure by revenue. Non-GAAP net income (loss) per share is defined as non-GAAP net income (loss) on a per share basis. See the tables labeled “Reconciliation of GAAP to Non-GAAP Financial Measures” for detail on the applicable weighted-average shares outstanding.

We believe these non-GAAP financial measures provide investors and other users of our financial information consistency and comparability with our past financial performance and facilitate period-to-period comparisons of our results of operations. With respect to non-GAAP gross margin, non-GAAP operating expenses (sales and marketing, research and development, general and administrative) as a percentage of revenue, non-GAAP operating margin and non-GAAP net income (loss) as a percentage of revenue, we believe these non-GAAP financial measures are useful in evaluating our profitability relative to the amount of revenue generated, excluding the impact of stock-based compensation expense. We also believe non-GAAP financial measures are useful in evaluating our operating performance compared to that of other companies in our industry, as these metrics eliminate the effects of stock-based compensation, which may vary for reasons unrelated to overall operating performance.

We also discuss Adjusted EBITDA (loss), a non-GAAP financial measure that we believe offers a useful view of overall operations used to assess the performance of core business operations and for planning purposes. We define Adjusted EBITDA (loss) as net income (loss) before (1) interest income (expense), net, (2) provision for income taxes, (3) depreciation and amortization, (4) other income (expense), net, and (5) stock-based compensation expense. The most directly comparable GAAP financial measure to Adjusted EBITDA (loss) is GAAP net income (loss). Users should consider the limitations of using Adjusted EBITDA (loss), including the fact that this measure does not provide a complete measure of our operating performance. Adjusted EBITDA (loss) is not intended to purport to be an alternate to GAAP net income (loss) as a measure of operating performance.

In addition, we present non-GAAP constant currency measures of revenue. Constant currency as it relates to revenue provides a framework for assessing Company performance which excludes the effect of foreign currency rate fluctuations. Current period results for entities reporting in currencies other than U.S. Dollars (“USD”) are converted into USD at the average monthly exchange rates in effect during the comparative period, as opposed to the average monthly exchange rates in effect during the current period.

We use these non-GAAP financial measures in conjunction with traditional GAAP measures as part of our overall assessment of our performance, including the preparation of our annual operating budget and quarterly forecasts, and to evaluate the effectiveness of our business strategies. Our definition may differ from the definitions used by other companies and therefore comparability may be limited. In addition, other companies may not publish these or similar metrics. Thus, our non-GAAP financial measures should be considered in addition to, not as a substitute for, nor superior to or in isolation from, measures prepared in accordance with GAAP.

These non-GAAP financial measures may be limited in their usefulness because they do not present the full economic effect of our use of stock-based compensation. We compensate for these limitations by providing investors and other users of our financial information a reconciliation of the non-GAAP financial measure to the most closely related GAAP financial measures. However, we have not reconciled the non-GAAP guidance measures disclosed under “Financial Outlook” to their corresponding GAAP measures because certain reconciling items such as stock-based compensation and the corresponding provision for income taxes depend on factors such as the stock price at the time of award of future grants and thus cannot be reasonably predicted. Accordingly, reconciliations to the non-GAAP guidance measures is not available without unreasonable effort. We encourage investors and others to review our financial information in its entirety, not to rely on any single financial measure and to view non-GAAP net income (loss) and non-GAAP net income (loss) per share in conjunction with GAAP net income (loss) and net income (loss) per share.

We have not reconciled our forward-looking Adjusted EBITDA (loss) to its most directly comparable GAAP financial measure of net income (loss). Information on which this reconciliation would be based on is not available without unreasonable efforts due to the uncertainty and inherent difficulty of predicting within a reasonable range, the timing, occurrence and financial impact of when such items may be recognized. In particular, Adjusted EBITDA (loss) excludes certain items including interest income (expense), net, provision for income taxes, depreciation and amortization, other income (expense), net, and stock-based compensation expense.

Operating Metrics

This press release and the related conference call also include certain operating metrics that we believe are useful in providing additional information in assessing the overall performance of our business.

Customer count is defined as the total number of customers with contracts executed as of the last day of the reporting period and a unique administrative account identifier on the Answers platform. Generally, we assign unique administrative accounts to each separate and distinct entity (such as a company or government institution) or a business unit of a large corporation, that has its own separate contract with us to access the Answers platform. We believe that customer count provides insight into our ability to grow our enterprise and mid-size customer base. As such, customer count excludes third-party reseller customers and small business customers as well as customers only receiving free trials. From time to time, some customers previously characterized as small business customers may transition to mid-size customers, and customer count includes these changes resulting from any recharacterization.

Annual recurring revenue, or ARR, for Direct customers is defined as the annualized recurring amount of all contracts in our enterprise, mid-size and small business customer base as of the last day of the reporting period. The recurring amount of a contract is determined based upon the terms of a contract and is calculated by dividing the amount of a contract by the term of the contract and then annualizing such amount. The calculation assumes no subsequent changes to the existing subscription. Contracts include portions of professional services contracts that are recurring in nature.

ARR for Third-party Reseller customers is defined as the annualized recurring amount of all contracts with Third-party Reseller customers as of the last day of the reporting period. The recurring amount of a contract is determined based upon the terms of a contract and is calculated by dividing the amount of a contract by the term of the contract and then annualizing such amount. The calculation assumes no subsequent changes to the existing subscription. The calculation includes the annualized contractual minimum commitment and excludes amounts related to overages above the contractual minimum commitment. Contracts include portions of professional services contracts that are recurring in nature.

Total ARR is defined as the annualized recurring amount of all contracts executed as of the last day of the reporting period. The recurring amount of a contract is determined based upon the terms of a contract and is calculated by dividing the amount of a contract by the term of the contract and then annualizing such amount. The calculation assumes no subsequent changes to the existing subscription, and where relevant, includes the annualized contractual minimum commitment and excludes amounts related to overages above the contractual minimum commitment. Contracts include portions of professional services contracts that are recurring in nature.

ARR is independent of historical revenue, unearned revenue, remaining performance obligations or any other GAAP financial measure over any period. It should be considered in addition to, not as a substitute for, nor superior to or in isolation from, these measures and other measures prepared in accordance with GAAP. We believe ARR-based metrics provides insight into the performance of our recurring revenue business model while mitigating fluctuations in billing and contract terms.

In addition, we present ARR on a constant currency basis. Constant currency as it relates to ARR provides a framework for assessing Company performance which excludes the effect of foreign currency rate fluctuations. Contracts included in the determination of ARR in the current period are converted into USD at the exchange rates in effect at the end of the comparative period, as opposed to the exchange rates in effect at the end of the current period.

Dollar-based net retention rate is a metric we use to assess our ability to retain our customers and expand the ARR they generate for us. We calculate dollar-based net retention rate by first determining the ARR generated 12 months prior to the end of the current period for a cohort of customers who had active contracts at that time. We then calculate ARR from the same cohort of customers at the end of the current period, which includes customer expansion, contraction and churn. The current period ARR is then divided by the prior period ARR to arrive at our dollar-based net retention rate. The cohorts of customers that we present dollar-based net retention rate for include direct, third-party reseller, and total customers. Direct customers include enterprise, mid-size and small business customers.

 

YEXT, INC.

Condensed Consolidated Balance Sheets

(In thousands, except share and per share data)

(Unaudited)

 

 

October 31, 2023

 

January 31, 2023

Assets

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

$

182,156

 

 

$

190,214

 

Accounts receivable, net of allowances of $829 and $868, respectively

 

51,387

 

 

 

109,727

 

Prepaid expenses and other current assets

 

18,280

 

 

 

15,629

 

Costs to obtain revenue contracts, current

 

27,109

 

 

 

31,023

 

Total current assets

 

278,932

 

 

 

346,593

 

Property and equipment, net

 

51,344

 

 

 

62,071

 

Operating lease right-of-use assets

 

77,799

 

 

 

85,463

 

Costs to obtain revenue contracts, non-current

 

15,644

 

 

 

21,037

 

Goodwill

 

4,434

 

 

 

4,477

 

Intangible assets, net

 

175

 

 

 

193

 

Other long term assets

 

3,312

 

 

 

3,927

 

Total assets

$

431,640

 

 

$

523,761

 

Liabilities and stockholders’ equity

 

 

 

Current liabilities:

 

 

 

Accounts payable, accrued expenses and other current liabilities

$

38,027

 

 

$

49,017

 

Unearned revenue, current

 

144,451

 

 

 

223,706

 

Operating lease liabilities, current

 

16,644

 

 

 

18,155

 

Total current liabilities

 

199,122

 

 

 

290,878

 

Operating lease liabilities, non-current

 

92,205

 

 

 

100,534

 

Other long term liabilities

 

3,967

 

 

 

4,326

 

Total liabilities

 

295,294

 

 

 

395,738

 

Commitments and contingencies

 

 

 

Stockholders’ equity:

 

 

 

Preferred stock, $0.001 par value per share; 50,000,000 shares authorized at October 31, 2023 and January 31, 2023; zero shares issued and outstanding at October 31, 2023 and January 31, 2023

 

 

 

 

 

Common stock, $0.001 par value per share; 500,000,000 shares authorized at October 31, 2023 and January 31, 2023; 147,400,372 and 142,684,128 shares issued at October 31, 2023 and January 31, 2023, respectively; 124,070,118 and 122,334,515 shares outstanding at October 31, 2023 and January 31, 2023, respectively

 

147

 

 

 

142

 

Additional paid-in capital

 

933,634

 

 

 

897,368

 

Accumulated other comprehensive loss

 

(4,335

)

 

 

(3,617

)

Accumulated deficit

 

(680,859

)

 

 

(676,542

)

Treasury stock, at cost

 

(112,241

)

 

 

(89,328

)

Total stockholders’ equity

 

136,346

 

 

 

128,023

 

Total liabilities and stockholders’ equity

$

431,640

 

 

$

523,761

 

 

YEXT, INC.

Condensed Consolidated Statements of Operations and Comprehensive Loss

(In thousands, except share and per share data)

(Unaudited)

 

 

Three months ended October 31,

 

Nine months ended October 31,

 

 

2023

 

 

 

2022

 

 

 

2023

 

 

 

2022

 

Revenue

$

101,164

 

 

$

99,280

 

 

$

303,215

 

 

$

298,951

 

Cost of revenue

 

22,066

 

 

 

25,663

 

 

 

65,809

 

 

 

77,473

 

Gross profit

 

79,098

 

 

 

73,617

 

 

 

237,406

 

 

 

221,478

 

Operating expenses:

 

 

 

 

 

 

 

Sales and marketing

 

45,355

 

 

 

49,360

 

 

 

136,942

 

 

 

164,244

 

Research and development

 

18,291

 

 

 

17,649

 

 

 

53,934

 

 

 

53,770

 

General and administrative

 

17,233

 

 

 

18,740

 

 

 

53,774

 

 

 

60,619

 

Total operating expenses

 

80,879

 

 

 

85,749

 

 

 

244,650

 

 

 

278,633

 

Loss from operations

 

(1,781

)

 

 

(12,132

)

 

 

(7,244

)

 

 

(57,155

)

Interest income

 

1,922

 

 

 

587

 

 

 

5,296

 

 

 

797

 

Interest expense

 

(173

)

 

 

(211

)

 

 

(334

)

 

 

(483

)

Other (expense) income, net

 

(70

)

 

 

(156

)

 

 

(687

)

 

 

111

 

Loss from operations before income taxes

 

(102

)

 

 

(11,912

)

 

 

(2,969

)

 

 

(56,730

)

(Provision for) benefit from income taxes

 

(366

)

 

 

(398

)

 

 

(1,348

)

 

 

(1,410

)

Net loss

$

(468

)

 

$

(12,310

)

 

$

(4,317

)

 

$

(58,140

)

 

 

 

 

 

 

 

 

Net loss per share attributable to common stockholders, basic and diluted

$

 

 

$

(0.10

)

 

$

(0.03

)

 

$

(0.46

)

Weighted-average number of shares used in computing net loss per share attributable to common stockholders, basic and diluted

 

124,239,180

 

 

 

123,500,961

 

 

 

123,962,358

 

 

 

126,239,773

 

 

 

 

 

 

 

 

 

Other comprehensive (loss) income:

 

 

 

 

 

 

 

Foreign currency translation adjustment

$

(876

)

 

$

(1,127

)

 

$

(722

)

 

$

(6,548

)

Unrealized gain (loss) on marketable securities, net

 

16

 

 

 

(16

)

 

 

4

 

 

 

(16

)

Total comprehensive loss

$

(1,328

)

 

$

(13,453

)

 

$

(5,035

)

 

$

(64,704

)

 

YEXT, INC.

Condensed Consolidated Statements of Cash Flows

(In thousands)

(Unaudited)

 

 

Nine months ended October 31,

 

 

2023

 

 

 

2022

 

Operating activities:

 

 

 

Net loss

$

(4,317

)

 

$

(58,140

)

Adjustments to reconcile net loss to net cash provided by (used in) operating activities:

 

 

 

Depreciation and amortization expense

 

12,625

 

 

 

13,098

 

Bad debt expense

 

589

 

 

 

381

 

Stock-based compensation expense

 

34,335

 

 

 

48,990

 

Amortization of operating lease right-of-use assets

 

6,739

 

 

 

6,684

 

Other, net

 

351

 

 

 

1,180

 

Changes in operating assets and liabilities:

 

 

 

Accounts receivable

 

57,251

 

 

 

30,296

 

Prepaid expenses and other current assets

 

(2,738

)

 

 

(1,747

)

Costs to obtain revenue contracts

 

9,054

 

 

 

8,173

 

Other long term assets

 

542

 

 

 

1,232

 

Accounts payable, accrued expenses and other current liabilities

 

(9,175

)

 

 

3,910

 

Unearned revenue

 

(78,434

)

 

 

(64,786

)

Operating lease liabilities

 

(8,892

)

 

 

(8,158

)

Other long term liabilities

 

207

 

 

 

795

 

Net cash provided by (used in) operating activities

 

18,137

 

 

 

(18,092

)

Investing activities:

 

 

 

Capital expenditures

 

(2,320

)

 

 

(5,400

)

Net cash used in investing activities

 

(2,320

)

 

 

(5,400

)

Financing activities:

 

 

 

Proceeds from exercise of stock options

 

8,770

 

 

 

561

 

Repurchase of common stock

 

(23,086

)

 

 

(68,695

)

Payments for taxes related to net share settlement of stock-based compensation awards

 

(10,718

)

 

 

(1,846

)

Payments of deferred financing costs

 

(394

)

 

 

(284

)

Proceeds, net from employee stock purchase plan withholdings

 

2,546

 

 

 

1,947

 

Net cash used in financing activities

 

(22,882

)

 

 

(68,317

)

Effect of exchange rate changes on cash and cash equivalents

 

(993

)

 

 

(7,133

)

Net decrease in cash and cash equivalents

 

(8,058

)

 

 

(98,942

)

Cash and cash equivalents at beginning of period

 

190,214

 

 

 

261,210

 

Cash and cash equivalents at end of period

$

182,156

 

 

$

162,268

 

 

YEXT, INC.

Reconciliations of GAAP to Non-GAAP Financial Measures

(In thousands)

(Unaudited)

 

 

Three months ended October 31,

 

Nine months ended October 31,

 

 

2023

 

 

 

2022

 

 

 

2023

 

 

 

2022

 

GAAP net loss to Adjusted EBITDA:

 

 

 

 

 

 

 

GAAP net loss

$

(468

)

 

$

(12,310

)

 

$

(4,317

)

 

$

(58,140

)

Interest (income) expense

 

(1,749

)

 

 

(376

)

 

 

(4,962

)

 

 

(314

)

Provision for income taxes

 

366

 

 

 

398

 

 

 

1,348

 

 

 

1,410

 

Depreciation and amortization

 

3,537

 

 

 

4,395

 

 

 

12,625

 

 

 

13,098

 

Other expense (income)

 

70

 

 

 

156

 

 

 

687

 

 

 

(111

)

Stock-based compensation expense

 

11,758

 

 

 

14,822

 

 

 

34,335

 

 

 

48,990

 

Adjusted EBITDA

$

13,514

 

$

7,085

 

 

$

39,716

 

 

$

4,933

 

                               

Note: Numbers rounded for presentation purposes and may not sum.

 

YEXT, INC.

Reconciliation of GAAP to Non-GAAP Financial Measures

(In thousands)

(Unaudited)

 

 

Three months ended October 31, 2023

Costs and expenses

GAAP

 

Stock-Based

Compensation

Expense

 

Non-GAAP

Cost of revenue

$

22,066

 

 

$

(739

)

 

$

21,327

 

Sales and marketing

$

45,355

 

 

$

(4,336

)

 

$

41,019

 

Research and development

$

18,291

 

 

$

(2,822

)

 

$

15,469

 

General and administrative

$

17,233

 

 

$

(3,861

)

 

$

13,372

 

 

 

Three months ended October 31, 2023

Costs and expenses as a percentage of revenue

GAAP

 

Stock-Based

Compensation

Expense

 

Non-GAAP

Cost of revenue

 

22

%

 

 

(1

)%

 

 

21

%

Sales and marketing

 

45

%

 

 

(4

)%

 

 

41

%

Research and development

 

18

%

 

 

(3

)%

 

 

15

%

General and administrative

 

17

%

 

 

(4

)%

 

 

13

%

 

 

Three months ended October 31, 2022

Costs and expenses

GAAP

 

Stock-Based

Compensation

Expense

 

Non-GAAP

Cost of revenue

$

25,663

 

 

$

(1,176

)

 

$

24,487

 

Sales and marketing

$

49,360

 

 

$

(5,432

)

 

$

43,928

 

Research and development

$

17,649

 

 

$

(3,946

)

 

$

13,703

 

General and administrative

$

18,740

 

 

$

(4,268

)

 

$

14,472

 

 

 

Three months ended October 31, 2022

Costs and expenses as a percentage of revenue

GAAP

 

Stock-Based

Compensation

Expense

 

Non-GAAP

Cost of revenue

 

26

%

 

 

(1

)%

 

 

25

%

Sales and marketing

 

50

%

 

 

(6

)%

 

 

44

%

Research and development

 

17

%

 

 

(3

)%

 

 

14

%

General and administrative

 

19

%

 

 

(4

)%

 

 

15

%

                               

Note: Numbers rounded for presentation purposes and may not sum.

 

YEXT, INC.

Reconciliation of GAAP to Non-GAAP Financial Measures

(In thousands)

(Unaudited)

 

 

Nine months ended October 31, 2023

Costs and expenses

GAAP

 

Stock-Based

Compensation

Expense

 

Non-GAAP

Cost of revenue

$

65,809

 

 

$

(2,151

)

 

$

63,658

 

Sales and marketing

$

136,942

 

 

$

(12,222

)

 

$

124,720

 

Research and development

$

53,934

 

 

$

(8,385

)

 

$

45,549

 

General and administrative

$

53,774

 

 

$

(11,577

)

 

$

42,197

 

 

 

Nine months ended October 31, 2023

Costs and expenses as a percentage of revenue

GAAP

 

Stock-Based

Compensation

Expense

 

Non-GAAP

Cost of revenue

 

22

%

 

 

(1

)%

 

 

21

%

Sales and marketing

 

45

%

 

 

(4

)%

 

 

41

%

Research and development

 

18

%

 

 

(3

)%

 

 

15

%

General and administrative

 

18

%

 

 

(4

)%

 

 

14

%

 

 

Nine months ended October 31, 2022

Costs and expenses

GAAP

 

Stock-Based

Compensation

Expense

 

Non-GAAP

Cost of revenue

$

77,473

 

 

$

(3,899

)

 

$

73,574

 

Sales and marketing

$

164,244

 

 

$

(17,957

)

 

$

146,287

 

Research and development

$

53,770

 

 

$

(12,668

)

 

$

41,102

 

General and administrative

$

60,619

 

 

$

(14,466

)

 

$

46,153

 

 

 

Nine months ended October 31, 2022

Costs and expenses as a percentage of revenue

GAAP

 

Stock-Based

Compensation

Expense

 

Non-GAAP

Cost of revenue

 

26

%

 

 

(1

)%

 

 

25

%

Sales and marketing

 

55

%

 

 

(6

)%

 

 

49

%

Research and development

 

18

%

 

 

(4

)%

 

 

14

%

General and administrative

 

20

%

 

 

(5

)%

 

 

15

%

                               

Note: Numbers rounded for presentation purposes and may not sum.

 

YEXT, INC.

Reconciliation of GAAP to Non-GAAP Financial Measures

(In thousands)

(Unaudited)

 

 

Three months ended October 31,

 

Nine months ended October 31,

 

 

2023

 

 

 

2022

 

 

 

2023

 

 

 

2022

 

Gross profit

 

 

 

 

 

 

 

GAAP gross profit

$

79,098

 

 

$

73,617

 

 

$

237,406

 

 

$

221,478

 

Plus: Stock-based compensation expense

 

739

 

 

 

1,176

 

 

 

2,151

 

 

 

3,899

 

Non-GAAP gross profit

$

79,837

 

 

$

74,793

 

 

$

239,557

 

 

$

225,377

 

 

 

 

 

 

 

 

 

Gross margin

 

 

 

 

 

 

 

GAAP gross margin

 

78.2

%

 

 

74.2

%

 

 

78.3

%

 

 

74.1

%

Plus: Stock-based compensation expense

 

0.7

%

 

 

1.1

%

 

 

0.7

%

 

 

1.3

%

Non-GAAP gross margin

 

78.9

%

 

 

75.3

%

 

 

79.0

%

 

 

75.4

%

 

 

 

 

 

 

 

 

Operating expenses

 

 

 

 

 

 

 

GAAP operating expenses

$

80,879

 

 

$

85,749

 

 

$

244,650

 

 

$

278,633

 

Less: Stock-based compensation expense

 

(11,019

)

 

 

(13,646

)

 

 

(32,184

)

 

 

(45,091

)

Non-GAAP operating expenses

$

69,860

 

 

$

72,103

 

 

$

212,466

 

 

$

233,542

 

 

 

 

 

 

 

 

 

Operating expenses as a percentage of revenue

 

 

 

 

 

 

 

GAAP operating expenses as a percentage of revenue

 

80

%

 

 

86

%

 

 

81

%

 

 

93

%

Less: Stock-based compensation expense

 

(11

)%

 

 

(13

)%

 

 

(11

)%

 

 

(15

)%

Non-GAAP operating expenses as a percentage of revenue

 

69

%

 

 

73

%

 

 

70

%

 

 

78

%

 

 

 

 

 

 

 

 

Income/Loss from operations

 

 

 

 

 

 

 

GAAP loss from operations

$

(1,781

)

 

$

(12,132

)

 

$

(7,244

)

 

$

(57,155

)

Plus: Stock-based compensation expense

 

11,758

 

 

 

14,822

 

 

 

34,335

 

 

 

48,990

 

Non-GAAP income (loss) from operations

$

9,977

 

 

$

2,690

 

 

$

27,091

 

 

$

(8,165

)

 

 

 

 

 

 

 

 

Operating margin (Income/Loss from operations as a percentage of revenue)

 

 

 

 

GAAP operating margin

 

(2

)%

 

 

(12

)%

 

 

(2

)%

 

 

(19

)%

Plus: Stock-based compensation expense

 

12

%

 

 

15

%

 

 

11

%

 

 

16

%

Non-GAAP operating margin

 

10

%

 

 

3

%

 

 

9

%

 

 

(3

)%

                               

Note: Numbers rounded for presentation purposes and may not sum.

 

YEXT, INC.

Reconciliation of GAAP to Non-GAAP Financial Measures

(In thousands, except share and per share data)

(Unaudited)

 

 

Three months ended October 31,

 

 

2023

 

 

 

2022

 

GAAP net loss

$

(468

)

 

$

(12,310

)

Plus: Stock-based compensation expense

 

11,758

 

 

 

14,822

 

Non-GAAP net income

$

11,290

 

 

$

2,512

 

 

 

 

 

GAAP net loss per share attributable to common stockholders, basic

$

 

 

$

(0.10

)

Stock-based compensation expense per share

 

0.09

 

 

 

0.12

 

Non-GAAP net income per share attributable to common stockholders, basic

$

0.09

 

 

$

0.02

 

 

 

 

 

GAAP net loss per share attributable to common stockholders, diluted

$

 

 

$

(0.10

)

Stock-based compensation expense per share

 

0.09

 

 

 

0.12

 

Non-GAAP net income per share attributable to common stockholders, diluted

$

0.09

 

 

$

0.02

 

 

 

 

 

Weighted-average number of shares used in computing GAAP net loss per share attributable to common stockholders, basic and diluted

 

124,239,180

 

 

 

123,500,961

 

Weighted-average number of shares used in computing non-GAAP net income per share attributable to common stockholders

 

 

 

Basic

 

124,239,180

 

 

 

123,500,961

 

Diluted

 

126,733,610

 

 

 

124,131,014

 

 

 

Three months ended October 31,

 

 

2023

 

 

 

2022

 

GAAP net loss as a percentage of revenue

 

(0.5

)%

 

 

(12.4

)%

Plus: Stock-based compensation expense

 

11.7

%

 

 

14.9

%

Non-GAAP net income as a percentage of revenue

 

11.2

%

 

 

2.5

%

                               

Note: Numbers rounded for presentation purposes and may not sum.

 

YEXT, INC.

Reconciliation of GAAP to Non-GAAP Financial Measures

(In thousands, except share and per share data)

(Unaudited)

 

 

Nine months ended October 31,

 

 

2023

 

 

 

2022

 

GAAP net loss

$

(4,317

)

 

$

(58,140

)

Plus: Stock-based compensation expense

 

34,335

 

 

 

48,990

 

Non-GAAP net income (loss)

$

30,018

 

 

$

(9,150

)

 

 

 

 

GAAP net loss per share attributable to common stockholders, basic

$

(0.03

)

 

$

(0.46

)

Stock-based compensation expense per share

 

0.27

 

 

 

0.39

 

Non-GAAP net income (loss) per share attributable to common stockholders, basic

$

0.24

 

 

$

(0.07

)

 

 

 

 

GAAP net loss per share attributable to common stockholders, diluted

$

(0.03

)

 

$

(0.46

)

Stock-based compensation expense per share

 

0.26

 

 

 

0.39

 

Non-GAAP net income (loss) per share attributable to common stockholders, diluted

$

0.23

 

 

$

(0.07

)

 

 

 

 

Weighted-average number of shares used in computing GAAP net loss per share attributable to common stockholders, basic and diluted

 

123,962,358

 

 

 

126,239,773

 

Weighted-average number of shares used in computing non-GAAP net income (loss) per share attributable to common stockholders

 

 

 

Basic

 

123,962,358

 

 

 

126,239,773

 

Diluted

 

127,808,283

 

 

 

126,239,773

 

 

Nine months ended October 31,

 

2023

 

2022

 

GAAP net loss as a percentage of revenue

(1.4

)%

 

(19.4

)%

Plus: Stock-based compensation expense

11.3

%

 

16.3

%

Non-GAAP net income (loss) as a percentage of revenue

9.9

%

 

(3.1

)%

 

 

 

 

Three months ended October 31,

 

 

Constant Currency Revenue

 

2023

 

 

 

2022

 

Growth Rates

Revenue (GAAP)

$

101,164

 

 

$

99,280

 

2

%

Effects of foreign currency rate fluctuations

 

(1,413

)

 

 

 

 

Revenue on a constant currency basis (Non-GAAP)

$

99,751

 

 

 

 

%

 

 

 

 

 

 

 

Nine months ended October 31,

 

 

 

 

2023

 

 

 

2022

 

Growth Rates

Revenue (GAAP)

$

303,215

 

 

$

298,951

 

1

%

Effects of foreign currency rate fluctuations

 

(446

)

 

 

 

 

Revenue on a constant currency basis (Non-GAAP)

$

302,769

 

 

 

 

1

%

                               

Note: Numbers rounded for presentation purposes and may not sum.

 

YEXT, INC.

Supplemental Information

(In thousands)

(Unaudited)

 

 

October 31,

 

Variance

 

 

2023

 

2022

 

Dollars

Percent

Annual Recurring Revenue

 

 

 

 

 

Direct Customers

$

326,625

$

317,280

 

$

9,345

 

3

%

Third-Party Reseller Customers

 

70,201

 

72,258

 

 

(2,057

)

(3

)%

Total Annual Recurring Revenue

$

396,826

$

389,538

 

$

7,288

 

2

%

 

Oct. 31, 2023

Jul. 31, 2023

Apr. 30, 2023

Jan. 31, 2023

Oct. 31, 2022

Annual Recurring Revenue Trend

 

 

 

 

 

Direct Customers

$

326,625

 

$

327,212

 

$

326,058

 

$

327,017

 

$

317,280

 

Third-Party Reseller Customers

 

70,201

 

 

70,502

 

 

72,232

 

 

73,343

 

 

72,258

 

Total Annual Recurring Revenue

$

396,826

 

$

397,714

 

$

398,290

 

$

400,360

 

$

389,538

 

 

 

Oct. 31, 2023

Jul. 31, 2023

Apr. 30, 2023

Jan. 31, 2023

Oct. 31, 2022

Dollar-Based Net Retention Rate

 

 

 

 

 

Direct Customers

 

97

%

 

98

%

 

97

%

 

97

%

 

96

%

Third-Party Reseller Customers

 

95

%

 

92

%

 

92

%

 

92

%

 

89

%

Total Customers

 

96

%

 

97

%

 

96

%

 

96

%

 

94

%

                               

Note: Numbers rounded for presentation purposes and may not sum.