Yext Announces Fourth Quarter and Full Year Fiscal 2023 Results

  • Q4 FY23 Revenue of $101.9 Million, Increased 1% Year-over-Year or 3% on a Constant Currency Basis
  • Full Year FY23 Revenue of $400.9 Million, Increased 3% Year-over-Year or 5% on a Constant Currency Basis
  • Q4 FY23 Net Loss Per Share of $0.06 or Non-GAAP Earnings Per Share of $0.05
  • ARR of $400 Million, Increased 3% Year-over-Year or 4% on a Constant Currency Basis
  • Customer Count Increased 7% Year-over-Year to Over 2,960
  • Cash and Cash Equivalents of $190 Million

NEW YORK--()--Yext, Inc. (NYSE: YEXT), the Answers Company, today announced its results for the three months ended January 31, 2023, or the Company's fourth quarter and fiscal year ended January 31, 2023.

"We're proud of our performance in the fourth quarter, and we demonstrated continued operating efficiency and our second consecutive quarter of non-GAAP profitability," said Michael Walrath, CEO and Chair of the Board. "Throughout fiscal year 2023, we drove transformation across our business through continued product innovation, focused execution, and improved productivity. We strengthened our commitment to solving customer pain points and drove increased adoption of our platform. Our focus remains on building for the long term, and we are now in an excellent position to deliver increasing value to our customers, partners, and shareholders."

Fourth Quarter Fiscal 2023 Highlights:

Revenue of $101.9 million, a 1% increase, compared to $100.9 million reported in the fourth quarter fiscal 2022. Fourth quarter fiscal 2023 revenue included a negative impact of approximately $2.3 million from foreign currency exchange rates on a constant currency basis.

Gross Profit of $75.4 million, a 1% decrease, compared to $76.4 million reported in the fourth quarter fiscal 2022. Gross margin of 74.0%, compared to 75.7% reported in the fourth quarter fiscal 2022.

Net Loss and Non-GAAP Net Income/Loss:

  • Net loss of $7.8 million, compared to the net loss of $23.1 million in the fourth quarter fiscal 2022.
  • Non-GAAP net income of $6.3 million, compared to the non-GAAP net loss of $4.1 million in the fourth quarter fiscal 2022.

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

  • Net loss per share attributable to common stockholders, basic and diluted, of $0.06 based on 122.3 million weighted average basic and diluted shares outstanding, compared to net loss per share attributable to common stockholders, basic and diluted, of $0.18 based on 130.3 million weighted average basic and diluted shares outstanding in the fourth quarter fiscal 2022.
  • Non-GAAP net income per share attributable to common stockholders, basic and diluted, of $0.05 based on 122.3 million weighted average basic shares outstanding and 124.2 million weighted average diluted shares outstanding, respectively. This compares to non-GAAP net loss per share attributable to common stockholders, basic and diluted, of $0.03 based on 130.3 million weighted average basic and diluted shares outstanding in the fourth quarter fiscal 2022.

Adjusted EBITDA was $10.9 million, compared to $1.4 million in the fourth quarter fiscal 2022.

Balance Sheet: Cash and cash equivalents of $190 million as of January 31, 2023. Unearned revenue of $224 million as of January 31, 2023, compared to $223 million as of January 31, 2022.

Remaining Performance Obligations ("RPO"): RPO of $448 million as of January 31, 2023. RPO expected to be recognized over the next 24 months of $388 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 3% year-over-year to $400 million as of January 31, 2023, compared to $390 million as of January 31, 2022. As of January 31, 2023, ARR included an approximate $4.8 million negative impact from foreign currency exchange rates, on a constant currency basis.

Cash Flow: Net cash provided by operating activities was $35.9 million for the three months ended January 31, 2023, compared to net cash provided by operating activities of $29.1 million for the three months ended January 31, 2022.

Full Year Fiscal 2023 Highlights:

Revenue of $400.9 million, a 3% increase, compared to $390.6 million reported in the fiscal year ended January 31, 2022. Fiscal year 2023 revenue included a negative impact of approximately $10.2 million from foreign currency exchange rates on a constant currency basis.

Gross Profit of $296.9 million, a 2% increase, compared to $292.3 million reported in the fiscal year ended January 31, 2022. Gross margin of 74.1%, compared to 74.8% reported in the fiscal year ended January 31, 2022.

Net Loss and Non-GAAP Net Loss:

  • Net loss of $65.9 million, compared to the net loss of $93.3 million in the fiscal year ended January 31, 2022.
  • Non-GAAP net loss of $2.9 million, compared to the non-GAAP net loss of $19.8 million in the fiscal year ended January 31, 2022.

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

  • Net loss per share of $0.53, compared to net loss per share of $0.73 in the fiscal year ended January 31, 2022.
  • Non-GAAP net loss per share of $0.02, compared to non-GAAP net loss per share of $0.15 in the fiscal year ended January 31, 2022.
  • Net loss per share and non-GAAP net loss per share were based on 125.3 million and 127.8 million weighted-average basic and diluted shares outstanding for the fiscal years ended January 31, 2023 and 2022, respectively.

Adjusted EBITDA was $15.8 million, compared to $0.3 million in the fiscal year ended January 31, 2022.

Cash Flow: Cash provided by operating activities of $17.9 million for the fiscal year ended January 31, 2023, compared to cash provided by operating activities of $21.8 million for the fiscal year ended January 31, 2022.

Share Repurchase Program: As of January 31, 2023, a total of 13.8 million shares have been purchased for a total cost of $77.4 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.

Recent Business Highlights:

  • Announced the integration of generative AI into the Yext Knowledge Graph, transforming the product into a content management system (CMS) that generates its own content.
  • Announced the launch of Yext Chat, a new product that empowers organizations to create accurate and natural language chat experiences with GPT-3 and other large language models (LLMs).
  • Recognized by The Muse, Mogul, and Built In for creating a positive and inclusive work environment.
  • Recognized as the best vendor across several software categories in G2's Winter '23 Reports, which measure a company's market presence and performance based on real user ratings.
  • Recognized by Frost & Sullivan with a 2022 Customer Value Leadership Award for reputation management in the North American financial services industry.
  • Announced that Yvette Martinez-Rea has joined Yext as EVP of Corporate Development to oversee strategic growth initiatives.
  • Announced an integration with Apple Business Connect, a new, free tool that allows businesses of all sizes to claim their location place cards and customize the way key information appears to more than a billion Apple users across Apple Maps, Messages, Wallet, Siri, and other Apple apps.
  • Announced the general availability of its Fall '22 Release, which introduces the Listings Verifier and other features designed to strengthen the company's Answers Platform.

Financial Outlook:

Yext is also providing the following guidance for its first fiscal quarter ending April 30, 2023 and the fiscal year ending January 31, 2024.

  • First Quarter Fiscal 2024 Outlook:
    • Revenue is projected to be in the range of $98.0 million to $99.0 million;
    • Adjusted EBITDA is projected to be in the range of $10.5 million to $11.5 million; and
    • Non-GAAP net income per share is projected to be in the range of $0.05 to $0.06, which assumes 122.9 million weighted-average basic shares outstanding.
  • Full Year Fiscal 2024 Outlook:
    • Revenue is projected to be in the range of $402.0 million to $406.0 million;
    • Adjusted EBITDA is projected to be in the range of $44.0 million to $46.0 million; and
    • Non-GAAP net income per share is projected to be in the range of $0.22 to $0.23, which assumes 124.5 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 6862748.

A replay will be available domestically at (877) 344-7529 or internationally at (412) 317-0088, passcode 7074649, until midnight (ET) March 14, 2023.

About Yext
Yext (NYSE: YEXT) helps organizations answer every question about their business. Yext’s Answers Platform collects and organizes content into a Knowledge Graph, then leverages a complementary set of products — including Listings, Pages, Reviews, and Search — to deliver relevant, actionable answers wherever customers, employees, and partners look for information. For over 15 years, thousands of companies worldwide have trusted Yext to create seamless content-driven experiences at scale across search engines, websites, mobile apps, and hundreds of other digital touchpoints. Learn more at yext.com.

Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995
This release includes forward-looking statements including, but not limited to, statements regarding our revenue, non-GAAP net income (loss), shares outstanding and Adjusted EBITDA for our first 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 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; the number of options exercised by our employees and former employees; and the accuracy of the assumptions and estimates underlying our financial projections. For a detailed discussion of these and other risk factors, please refer to the risks detailed in our filings with the Securities and Exchange Commission, including, without limitation, our most recent Quarterly Report on Form 10-Q and Annual Report on Form 10-K, which are available at http://investors.yext.com and on the SEC's website at https://www.sec.gov. Further information on potential risks that could affect actual results will be included in other filings we make with the SEC from time to time. 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.

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 "Reconciliation of GAAP to Non-GAAP Financial Measures" for a discussion of 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, 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 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 is net loss. Users should consider the limitations of using Adjusted EBITDA, including the fact that this measure does not provide a complete measure of our operating performance. Adjusted EBITDA is not intended to purport to be an alternate to net 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 exclude 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 net loss and net loss per share.

We have not reconciled our forward-looking Adjusted EBITDA or non-GAAP net income (loss) per share ranges presented for the periods above, to their most directly comparable GAAP financial measures of net income (loss) and net income (loss) per share. Information on which these reconciliations 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 excludes certain items including interest income (expense), net, provision for income taxes, depreciation and amortization, other income (expense), net, and stock-based compensation expense, while non-GAAP income (loss) per share excludes stock-based compensation expense.

Operating Metrics
This press release also includes 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 Yext 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 Yext platform. We believe that customer count provides insight into our ability to grow our enterprise and mid-market customer base. As such, customer count excludes third-party reseller customers and small business customers as well as customers only receiving free trials.

Annual recurring revenue, or ARR, for Direct customers is defined as the annualized recurring amount of all contracts in our enterprise, mid-market 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 for 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 exclude 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 end of the period exchange rates in effect during the current period.

Dollar-based net retention rate is a metric we use to assess our ability to retain 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-market and small business customers.

 

YEXT, INC.

Condensed Consolidated Balance Sheets

(In thousands, except share and per share data)

(Unaudited)

 

 

January 31, 2023

 

January 31, 2022

Assets

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

$

190,214

 

 

$

261,210

 

Accounts receivable, net of allowances of $868 and $2,042, respectively

 

109,727

 

 

 

101,607

 

Prepaid expenses and other current assets

 

15,629

 

 

 

13,538

 

Costs to obtain revenue contracts, current

 

31,023

 

 

 

33,998

 

Total current assets

 

346,593

 

 

 

410,353

 

Property and equipment, net

 

62,071

 

 

 

74,604

 

Operating lease right-of-use assets

 

85,463

 

 

 

97,124

 

Costs to obtain revenue contracts, non-current

 

21,037

 

 

 

27,286

 

Goodwill

 

4,477

 

 

 

4,572

 

Intangible assets, net

 

193

 

 

 

217

 

Other long term assets

 

3,927

 

 

 

6,179

 

Total assets

$

523,761

 

 

$

620,335

 

Liabilities and stockholders’ equity

 

 

 

Current liabilities:

 

 

 

Accounts payable, accrued expenses and other current liabilities

$

49,017

 

 

$

48,432

 

Unearned revenue, current

 

223,706

 

 

 

223,427

 

Operating lease liabilities, current

 

18,155

 

 

 

18,845

 

Total current liabilities

 

290,878

 

 

 

290,704

 

Operating lease liabilities, non-current

 

100,534

 

 

 

113,776

 

Other long term liabilities

 

4,326

 

 

 

3,985

 

Total liabilities

 

395,738

 

 

 

408,465

 

Commitments and contingencies

 

 

 

Stockholders’ equity:

 

 

 

Preferred stock, $0.001 par value per share; 50,000,000 shares authorized at January 31, 2023 and January 31, 2022; zero shares issued and outstanding at January 31, 2023 and January 31, 2022

 

 

 

 

 

Common stock, $0.001 par value per share; 500,000,000 shares authorized at January 31, 2023 and January 31, 2022; 142,684,128 and 137,662,320 shares issued at January 31, 2023 and January 31, 2022, respectively; 122,334,515 and 131,156,986 shares outstanding at January 31, 2023 and January 31, 2022, respectively

 

142

 

 

 

137

 

Additional paid-in capital

 

897,368

 

 

 

834,429

 

Accumulated other comprehensive loss

 

(3,617

)

 

 

(187

)

Accumulated deficit

 

(676,542

)

 

 

(610,604

)

Treasury stock, at cost

 

(89,328

)

 

 

(11,905

)

Total stockholders’ equity

 

128,023

 

 

 

211,870

 

Total liabilities and stockholders’ equity

$

523,761

 

 

$

620,335

 

 

YEXT, INC.

Condensed Consolidated Statements of Operations and Comprehensive Loss

(In thousands, except share and per share data)

(Unaudited)

 

 

Three months ended January 31,

 

Fiscal year ended January 31,

 

 

2023

 

 

 

2022

 

 

 

2023

 

 

 

2022

 

Revenue

$

101,899

 

 

$

100,932

 

 

$

400,850

 

 

$

390,577

 

Cost of revenue

 

26,487

 

 

 

24,575

 

 

 

103,960

 

 

 

98,299

 

Gross profit

 

75,412

 

 

 

76,357

 

 

 

296,890

 

 

 

292,278

 

Operating expenses:

 

 

 

 

 

 

 

Sales and marketing

 

47,235

 

 

 

58,175

 

 

 

211,479

 

 

 

230,467

 

Research and development

 

17,133

 

 

 

18,007

 

 

 

70,903

 

 

 

68,350

 

General and administrative

 

18,717

 

 

 

22,136

 

 

 

79,336

 

 

 

83,420

 

Total operating expenses

 

83,085

 

 

 

98,318

 

 

 

361,718

 

 

 

382,237

 

Loss from operations

 

(7,673

)

 

 

(21,961

)

 

 

(64,828

)

 

 

(89,959

)

Interest income

 

887

 

 

 

7

 

 

 

1,684

 

 

 

22

 

Interest expense

 

(106

)

 

 

(141

)

 

 

(589

)

 

 

(544

)

Other expense, net

 

(236

)

 

 

(483

)

 

 

(125

)

 

 

(1,501

)

Loss from operations before income taxes

 

(7,128

)

 

 

(22,578

)

 

 

(63,858

)

 

 

(91,982

)

Provision for income taxes

 

(670

)

 

 

(532

)

 

 

(2,080

)

 

 

(1,277

)

Net loss

$

(7,798

)

 

$

(23,110

)

 

$

(65,938

)

 

$

(93,259

)

 

 

 

 

 

 

 

 

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

$

(0.06

)

 

$

(0.18

)

 

$

(0.53

)

 

$

(0.73

)

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

 

122,315,825

 

 

 

130,328,155

 

 

 

125,250,723

 

 

 

127,814,447

 

 

 

 

 

 

 

 

 

Other comprehensive (loss) income:

 

 

 

 

 

 

 

Foreign currency translation adjustment

$

3,127

 

 

$

(1,370

)

 

$

(3,421

)

 

$

(2,609

)

Unrealized gain (loss) on marketable securities, net

 

7

 

 

 

 

 

 

(9

)

 

 

 

Total comprehensive loss

$

(4,664

)

 

$

(24,480

)

 

$

(69,368

)

 

$

(95,868

)

 

YEXT, INC.

Condensed Consolidated Statements of Cash Flows

(In thousands)

(Unaudited)

 

 

Fiscal year ended January 31,

 

 

2023

 

 

 

2022

 

Operating activities:

 

 

 

Net loss

$

(65,938

)

 

$

(93,259

)

Adjustments to reconcile net loss to net cash provided by operating activities:

 

 

 

Depreciation and amortization expense

 

17,583

 

 

 

16,783

 

Bad debt expense

 

182

 

 

 

1,253

 

Stock-based compensation expense

 

63,078

 

 

 

73,480

 

Amortization of operating lease right-of-use assets

 

8,799

 

 

 

9,296

 

Other, net

 

1,195

 

 

 

582

 

Changes in operating assets and liabilities:

 

 

 

Accounts receivable

 

(10,056

)

 

 

(6,106

)

Prepaid expenses and other current assets

 

(2,303

)

 

 

4,238

 

Costs to obtain revenue contracts

 

8,034

 

 

 

(9,113

)

Other long term assets

 

1,140

 

 

 

(231

)

Accounts payable, accrued expenses and other current liabilities

 

2,714

 

 

 

(494

)

Unearned revenue

 

3,538

 

 

 

33,262

 

Operating lease liabilities

 

(10,986

)

 

 

(6,644

)

Other long term liabilities

 

873

 

 

 

(1,198

)

Net cash provided by operating activities

 

17,853

 

 

 

21,849

 

Investing activities:

 

 

 

Capital expenditures

 

(6,193

)

 

 

(13,418

)

Net cash used in investing activities

 

(6,193

)

 

 

(13,418

)

Financing activities:

 

 

 

Proceeds from exercise of stock options

 

714

 

 

 

19,228

 

Repurchase of common stock

 

(77,250

)

 

 

 

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

 

(5,129

)

 

 

 

Payments of deferred financing costs

 

(509

)

 

 

(263

)

Proceeds, net from employee stock purchase plan withholdings

 

3,153

 

 

 

5,652

 

Net cash (used in) provided by financing activities

 

(79,021

)

 

 

24,617

 

Effect of exchange rate changes on cash and cash equivalents

 

(3,635

)

 

 

(2,249

)

Net (decrease) increase in cash and cash equivalents

 

(70,996

)

 

 

30,799

 

Cash and cash equivalents at beginning of period

 

261,210

 

 

 

230,411

 

Cash and cash equivalents at end of period

$

190,214

 

 

$

261,210

 

 

YEXT, INC.

Reconciliations of GAAP to Non-GAAP Financial Measures

(In thousands)

(Unaudited)

 

 

Three months ended January 31,

 

Fiscal year ended January 31,

 

 

2023

 

 

 

2022

 

 

 

2023

 

 

 

2022

 

GAAP net loss to Adjusted EBITDA:

 

 

 

 

 

 

 

GAAP net loss

$

(7,798

)

 

$

(23,110

)

 

$

(65,938

)

 

$

(93,259

)

Interest (income) expense

 

(781

)

 

 

134

 

 

 

(1,095

)

 

 

522

 

Provision for income taxes

 

670

 

 

 

532

 

 

 

2,080

 

 

 

1,277

 

Depreciation and amortization

 

4,486

 

 

 

4,292

 

 

 

17,583

 

 

 

16,783

 

Other expense (income)

 

236

 

 

 

483

 

 

 

125

 

 

 

1,501

 

Stock-based compensation expense

 

14,088

 

 

 

19,025

 

 

 

63,078

 

 

 

73,480

 

Adjusted EBITDA

$

10,901

 

 

$

1,356

 

 

$

15,833

 

 

$

304

 

 

YEXT, INC.

Reconciliation of GAAP to Non-GAAP Financial Measures

(In thousands)

(Unaudited)

 

 

Three months ended January 31, 2023

Costs and expenses

GAAP

 

Stock-Based

Compensation

Expense

 

Non-GAAP

Cost of revenue

$

26,487

 

$

(1,143

)

 

$

25,344

Sales and marketing

$

47,235

 

$

(5,004

)

 

$

42,231

Research and development

$

17,133

 

$

(3,733

)

 

$

13,400

General and administrative

$

18,717

 

$

(4,208

)

 

$

14,509

 

Three months ended January 31, 2023

Costs and expenses as a percentage of revenue

GAAP

 

Stock-Based

Compensation

Expense

 

Non-GAAP

Cost of revenue

26

%

 

(1

)%

 

25

%

Sales and marketing

46

%

 

(5

)%

 

41

%

Research and development

17

%

 

(4

)%

 

13

%

General and administrative

18

%

 

(4

)%

 

14

%

 

Three months ended January 31, 2022

Costs and expenses

GAAP

 

Stock-Based

Compensation

Expense

 

Non-GAAP

Cost of revenue

$

24,575

 

$

(1,502

)

 

$

23,073

Sales and marketing

$

58,175

 

$

(6,861

)

 

$

51,314

Research and development

$

18,007

 

$

(5,369

)

 

$

12,638

General and administrative

$

22,136

 

$

(5,293

)

 

$

16,843

 

Three months ended January 31, 2022

Costs and expenses as a percentage of revenue

GAAP

 

Stock-Based Compensation Expense

 

Non-GAAP

Cost of revenue

24

%

 

(1

)%

 

23

%

Sales and marketing

58

%

 

(7

)%

 

51

%

Research and development

18

%

 

(5

)%

 

13

%

General and administrative

22

%

 

(5

)%

 

17

%

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

 

YEXT, INC.

Reconciliation of GAAP to Non-GAAP Financial Measures

(In thousands)

(Unaudited)

 

 

Fiscal year ended January 31, 2023

Costs and expenses

GAAP

 

Stock-Based

Compensation

Expense

 

Non-GAAP

Cost of revenue

$

103,960

 

$

(5,042

)

 

$

98,918

Sales and marketing

$

211,479

 

$

(22,961

)

 

$

188,518

Research and development

$

70,903

 

$

(16,401

)

 

$

54,502

General and administrative

$

79,336

 

$

(18,674

)

 

$

60,662

 

Fiscal year ended January 31, 2023

Costs and expenses as a percentage of revenue

GAAP

 

Stock-Based

Compensation

Expense

 

Non-GAAP

Cost of revenue

26

%

 

(1

)%

 

25

%

Sales and marketing

53

%

 

(6

)%

 

47

%

Research and development

17

%

 

(3

)%

 

14

%

General and administrative

20

%

 

(5

)%

 

15

%

 

Fiscal year ended January 31, 2022

Costs and expenses

GAAP

 

Stock-Based

Compensation

Expense

 

Non-GAAP

Cost of revenue

$

98,299

 

$

(7,099

)

 

$

91,200

Sales and marketing

$

230,467

 

$

(26,496

)

 

$

203,971

Research and development

$

68,350

 

$

(20,654

)

 

$

47,696

General and administrative

$

83,420

 

$

(19,231

)

 

$

64,189

 

Fiscal year ended January 31, 2022

Costs and expenses as a percentage of revenue

GAAP

 

Stock-Based

Compensation

Expense

 

Non-GAAP

Cost of revenue

25

%

 

(2

)%

 

23

%

Sales and marketing

59

%

 

(7

)%

 

52

%

Research and development

18

%

 

(6

)%

 

12

%

General and administrative

21

%

 

(5

)%

 

16

%

____________________
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 January 31,

 

Fiscal year ended January 31,

 

 2023

 

2022 

 

 2023

 

2022 

Gross profit

 

 

 

 

 

 

 

GAAP gross profit

$

75,412

 

 

$

76,357

 

 

$

296,890

 

 

$

292,278

 

Plus: Stock-based compensation expense

 

1,143

 

 

 

1,502

 

 

 

5,042

 

 

 

7,099

 

Non-GAAP gross profit

$

76,555

 

 

$

77,859

 

 

$

301,932

 

 

$

299,377

 

 

 

 

 

 

 

 

 

Gross margin

 

 

 

 

 

 

 

GAAP gross margin

 

74.0

%

 

 

75.7

%

 

 

74.1

%

 

 

74.8

%

Plus: Stock-based compensation expense

 

1.1

%

 

 

1.4

%

 

 

1.2

%

 

 

1.8

%

Non-GAAP gross margin

 

75.1

%

 

 

77.1

%

 

 

75.3

%

 

 

76.6

%

 

 

 

 

 

 

 

 

Operating expenses

 

 

 

 

 

 

 

GAAP operating expenses

$

83,085

 

 

$

98,318

 

 

$

361,718

 

 

$

382,237

 

Less: Stock-based compensation expense

 

(12,945

)

 

 

(17,523

)

 

 

(58,036

)

 

 

(66,381

)

Non-GAAP operating expenses

$

70,140

 

 

$

80,795

 

 

$

303,682

 

 

$

315,856

 

 

 

 

 

 

 

 

 

Operating expenses as a percentage of revenue

 

 

 

 

 

 

GAAP operating expenses as a percentage of revenue

 

82

%

 

 

97

%

 

 

90

%

 

 

98

%

Less: Stock-based compensation expense

 

(13

)%

 

 

(17

)%

 

 

(14

)%

 

 

(17

)%

Non-GAAP operating expenses as a percentage of revenue

 

69

%

 

 

80

%

 

 

76

%

 

 

81

%

 

 

 

 

 

 

 

 

Loss from operations

 

 

 

 

 

 

 

GAAP loss from operations

$

(7,673

)

 

$

(21,961

)

 

$

(64,828

)

 

$

(89,959

)

Plus: Stock-based compensation expense

 

14,088

 

 

 

19,025

 

 

 

63,078

 

 

 

73,480

 

Non-GAAP income (loss) from operations

$

6,415

 

 

$

(2,936

)

 

$

(1,750

)

 

$

(16,479

)

 

 

 

 

 

 

 

 

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

 

 

 

 

GAAP operating margin

 

(8

)%

 

 

(22

)%

 

 

(16

)%

 

 

(23

)%

Plus: Stock-based compensation expense

 

14

%

 

 

19

%

 

 

16

%

 

 

19

%

Non-GAAP operating margin

 

6

%

 

 

(3

)%

 

 

%

 

 

(4

)%

____________________
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 January 31,

 

 

2023

 

 

 

2022

 

GAAP net loss

$

(7,798

)

 

$

(23,110

)

Plus: Stock-based compensation expense

 

14,088

 

 

 

19,025

 

Non-GAAP net income (loss)

$

6,290

 

 

$

(4,085

)

 

 

 

 

GAAP net loss per share attributable to common stockholders, basic and diluted

$

(0.06

)

 

$

(0.18

)

Stock-based compensation expense per share

 

0.11

 

 

 

0.15

 

Non-GAAP net income (loss) per share attributable to common stockholders, basic and diluted (1)

$

0.05

 

 

$

(0.03

)

 

 

 

 

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

 

122,315,825

 

 

 

130,328,155

 

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

 

 

 

 Basic

 

122,315,825

 

 

 

130,328,155

 

 Diluted

 

124,199,432

 

 

 

130,328,155

 

(1) For the three months ended January 31, 2023, non-GAAP net income per share attributable to common stockholders was $0.05 on both a basic and diluted basis, as calculated based on 122,315,825 weighted-average basic shares outstanding and 124,199,432 weighted-average diluted shares outstanding.

 

Three months ended January 31,

 

2023

 

2022

GAAP net loss as a percentage of revenue

(7.7

)%

 

(22.9

)%

Plus: Stock-based compensation expense

13.9

%

 

18.9

%

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

6.2

%

 

(4.0

)%

 

 

 

Fiscal year ended January 31,

 

 

2023

 

 

 

2022

 

GAAP net loss

$

(65,938

)

 

$

(93,259

)

Plus: Stock-based compensation expense

 

63,078

 

 

 

73,480

 

Non-GAAP net loss

$

(2,860

)

 

$

(19,779

)

 

 

 

 

GAAP net loss per share attributable to common stockholders, basic and diluted

$

(0.53

)

 

$

(0.73

)

Stock-based compensation expense per share

 

0.51

 

 

 

0.58

 

Non-GAAP net loss per share attributable to common stockholders, basic and diluted

$

(0.02

)

 

$

(0.15

)

 

 

 

 

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

 

125,250,723

 

 

 

127,814,447

 

 

Fiscal year ended January 31,

 

2023

 

2022

GAAP net loss as a percentage of revenue

(16.4

)%

 

(23.9

)%

Plus: Stock-based compensation expense

15.7

%

 

18.8

%

Non-GAAP net loss as a percentage of revenue

(0.7

)%

 

(5.1

)%

____________________
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 January 31,

 

 

Constant Currency Revenue

2023

 

2022

 

Growth Rates

Revenue (GAAP)

$

101,899

 

$

100,932

 

1

%

Effects of foreign currency rate fluctuations

 

2,326

 

 

 

 

Revenue on a constant currency basis (Non-GAAP)

$

104,225

 

 

 

3

%

 

 

 

 

 

 

 

Fiscal year ended January 31,

 

 

 

2023

 

2022

 

Growth Rates

Revenue (GAAP)

$

400,850

 

$

390,577

 

3

%

Effects of foreign currency rate fluctuations

 

10,232

 

 

 

 

Revenue on a constant currency basis (Non-GAAP)

$

411,082

 

 

 

5

%

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

 

YEXT, INC.

Supplemental Information

(In thousands)

(Unaudited)

 

 

January 31,

 

Variance

 

2023

2022

 

Dollars

Percent

Annual Recurring Revenue

 

 

 

 

 

Direct Customers

$

327,017

$

312,132

 

$

14,885

 

5

%

Third-Party Reseller Customers

 

73,343

 

78,353

 

 

(5,010

)

(6

)%

Total Annual Recurring Revenue

$

400,360

$

390,485

 

$

9,875

 

3

%

 

 

 

 

 

 

Jan. 31, 2023

Oct. 31, 2022

Jul. 31, 2022

Apr. 30, 2022

Jan. 31, 2022

Annual Recurring Revenue Trend

 

 

 

 

 

Direct Customers

$

327,017

$

317,280

$

312,129

$

310,312

$

312,132

Third-Party Reseller Customers

 

73,343

 

72,258

 

74,857

 

76,671

 

78,353

Total Annual Recurring Revenue

$

400,360

$

389,538

$

386,986

$

386,983

$

390,485

 

Jan. 31,

2023

Oct. 31,

2022

Jul. 31,

2022

Apr. 30,

2022

Jan. 31,

2022

Oct. 31,

2021

Jul. 31,

2021

Apr. 30,

2021

Dollar-Based Net Retention Rate

 

 

 

 

 

 

 

 

Direct Customers

97%

96%

98%

98%

101%

101%

100%

103%

Third-Party Reseller Customers

92%

89%

90%

94%

101%

103%

98%

97%

Total Customers

96%

94%

96%

97%

101%

101%

100%

101%

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

SOURCE Yext, Inc.

Contacts

Investor Relations:
IR@yext.com

Public Relations:
PR@yext.com

Release Summary

Yext announced its results for the three months ended January 31, 2023, or the Company's fourth quarter and fiscal year ended January 31, 2023.

Social Media Profiles

Contacts

Investor Relations:
IR@yext.com

Public Relations:
PR@yext.com