- Revenue of $99.3 Million, Consistent Year-over-Year or Up 4% on
a Constant Currency Basis
- Net Loss Per Share of $0.10 or Non-GAAP Earnings Per Share of
$0.02
- ARR of $390 Million, an Increase of 1% Year-over-Year or Up 4%
on a Constant Currency Basis
- Customer Count Increased 6% Year-over-Year to Approximately
2,900
- Cash and Cash Equivalents of $162 Million
- Issues Guidance for Q4 Fiscal 2023
Yext, Inc. (NYSE: YEXT), the Answers Company, today announced
its results for the three months ended October 31, 2022, or the
Company's third quarter of fiscal 2023.
This press release features multimedia. View
the full release here:
https://www.businesswire.com/news/home/20221130005986/en/
(Graphic: Yext)
"I'm pleased with our results for the third quarter, which
highlight our continued focus on execution and profitability," said
Michael Walrath, CEO and Chair of the Board at Yext. "Our value
proposition is resonating with customers across a wide variety of
verticals, including financial services, healthcare, government,
e-commerce and hospitality. While we continue to look for ways to
further optimize our efficiency, we are now operating from a
position of improved strength, and are confident in our ability to
deliver responsible, sustainable growth."
Third Quarter Fiscal 2023 Highlights:
Revenue of $99.3 million, compared to $99.5 million
reported in the third quarter fiscal 2022. Third quarter fiscal
2023 revenue included a negative impact of approximately $3.7
million from foreign currency exchange rates, using a constant
currency basis.
Gross Profit of $73.6 million, a 1% decrease, compared to
$74.3 million reported in the third quarter fiscal 2022. Gross
margin of 74.2%, compared to 74.6% reported in the third quarter
fiscal 2022.
Net Loss and Non-GAAP Net Income/Loss:
- Net loss of $12.3 million, compared to the net loss of $24.9
million in the third quarter fiscal 2022.
- Non-GAAP net income of $2.5 million, compared to the non-GAAP
net loss of $5.5 million in the third 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 $0.10 based on 123.5 million weighted average basic
and diluted shares outstanding in the third quarter fiscal 2023,
compared to net loss per share attributable to common stockholders,
basic and diluted, of $0.19 based on 128.6 million weighted average
basic and diluted shares outstanding in the third quarter fiscal
2022.
- 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. This compares to non-GAAP net loss per
share attributable to common stockholders, basic and diluted, of
$0.04 based on 128.6 million weighted average basic and diluted
shares outstanding in the third quarter fiscal 2022.
Balance Sheet: Cash and cash equivalents of $162 million
as of October 31, 2022. Unearned revenue of $153 million as of
October 31, 2022, compared to $151 million as of October 31,
2021.
Remaining Performance Obligations ("RPO"): RPO of $365
million as of October 31, 2022. RPO expected to be recognized over
the next 24 months of $313 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 1%
year-over-year to $390 million as of October 31, 2022, compared to
$387 million as of October 31, 2021. As of October 31, 2022, ARR
included an approximate $12.4 million negative impact from foreign
currency exchange rates, on a constant currency basis.
Cash Flow: Net cash used in operating activities was
$10.8 million for the three months ended October 31, 2022, compared
to net cash used in operating activities of $9.7 million for the
three months ended October 31, 2021.
Share Repurchase Program: As of October 31, 2022, a total
of 12,405,795 shares have been purchased for a total cost of $69.1
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:
- Appointed Tom Nielsen as Yext's Chief Revenue Officer to
accelerate and scale global revenue growth.
- Launched Yext Search in AWS Marketplace to give AWS customers
added flexibility to the software procurement process.
- Announced the availability of Yext's Fall '22 Release for early
access, new features strengthen the Answers Platform and further
develop the Company's best-in-class Listings product.
- Appointed Evan Skorpen as an independent director on Yext's
Board of Directors.
- Announced the addition of new functionality that will allow
restaurant brands to manage pickup and delivery options on their
Google Business Profiles.
- Recognized as an overall winner in the Customer Service
category and won the SaaS Customer Success Award at the 2022
APPEALIE SaaS awards.
- Recognized by KMWorld in its Trend-Setting Products of 2022 and
AI 50 2022: The Companies Empowering Intelligent Knowledge
Management.
- Recognized as one of the 2022 Best Workplaces in Technology™ by
Great Place to Work® and Fortune Magazine, ranking #38 for
large-sized businesses.
Financial Outlook:
Yext is also providing the following guidance for its fourth
fiscal quarter ending January 31, 2023 and the fiscal year ending
January 31, 2023.
- Fourth Quarter Fiscal 2023 Outlook:
- Revenue is projected to be in the range of $100.0 million to
$101.0 million. The fourth quarter revenue guidance does not assume
any additional impact from foreign currency exchange rates.
- Non-GAAP net income per share is projected to be $0.02 to
$0.03, which assumes 123.2 million weighted-average basic shares
outstanding.
- Full Year Fiscal 2023 Outlook:
- Revenue is projected to be in the range of $399.0 million to
$400.0 million. The full year revenue guidance includes an
estimated negative impact of $8.7 million to reflect foreign
currency exchange rate fluctuations since the Company's initial
full year revenue guidance from March 2022.
- Non-GAAP net loss per share is projected to be $0.05 to $0.04,
which assumes 125.5 million weighted-average basic shares
outstanding.
Conference Call
InformationYext 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 3501413.
A replay will be available domestically at (877) 344-7529 or
internationally at (412) 317-0088, passcode 8524472, until midnight
(ET) December 7, 2022.
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) and
shares outstanding for our fourth quarter and full year fiscal 2023
in the paragraphs under "Financial Outlook" above, statements
regarding the impact of the COVID-19 pandemic on our business and
results of operations and other 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, the impact of the
COVID-19 pandemic and its variants on U.S. and global markets, our
business, operations, financial results, cash flow, demand for our
products, sales cycles, and customer acquisition and retention; 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, including with Yext
Answers; 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.
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 loss/income (loss) and non-GAAP
net income (loss) per share in conjunction with net loss and net
loss per share.
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.
YEXT, INC.
Condensed Consolidated Balance
Sheets
(In thousands, except share
and per share data)
(Unaudited)
October 31, 2022
January 31, 2022
Assets
Current assets:
Cash and cash equivalents
$
162,268
$
261,210
Accounts receivable, net of allowances of
$995 and $2,042, respectively
68,027
101,607
Prepaid expenses and other current
assets
14,887
13,538
Costs to obtain revenue contracts,
current
30,368
33,998
Total current assets
275,550
410,353
Property and equipment, net
65,308
74,604
Operating lease right-of-use assets
86,617
97,124
Costs to obtain revenue contracts,
non-current
20,619
27,286
Goodwill
4,235
4,572
Intangible assets, net
199
217
Other long term assets
3,578
6,179
Total assets
$
456,106
$
620,335
Liabilities and stockholders’
equity
Current liabilities:
Accounts payable, accrued expenses and
other current liabilities
$
48,252
$
48,432
Unearned revenue, current
153,267
223,427
Operating lease liabilities, current
17,847
18,845
Total current liabilities
219,366
290,704
Operating lease liabilities,
non-current
102,613
113,776
Other long term liabilities
4,276
3,985
Total liabilities
326,255
408,465
Commitments and contingencies
Stockholders’ equity:
Preferred stock, $0.001 par value per
share; 50,000,000 shares authorized at October 31, 2022 and January
31, 2022; zero shares issued and outstanding at October 31, 2022
and January 31, 2022
—
—
Common stock, $0.001 par value per share;
500,000,000 shares authorized at October 31, 2022 and January 31,
2022; 141,658,521 and 137,662,320 shares issued at October 31, 2022
and January 31, 2022, respectively; 122,747,392 and 131,156,986
shares outstanding at October 31, 2022 and January 31, 2022,
respectively
141
137
Additional paid-in capital
886,185
834,429
Accumulated other comprehensive loss
(6,751
)
(187
)
Accumulated deficit
(668,744
)
(610,604
)
Treasury stock, at cost
(80,980
)
(11,905
)
Total stockholders’ equity
129,851
211,870
Total liabilities and stockholders’
equity
$
456,106
$
620,335
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,
2022
2021
2022
2021
Revenue
$
99,280
$
99,529
$
298,951
$
289,645
Cost of revenue
25,663
25,255
77,473
73,724
Gross profit
73,617
74,274
221,478
215,921
Operating expenses:
Sales and marketing
49,360
58,548
164,244
172,292
Research and development
17,649
17,986
53,770
50,343
General and administrative
18,740
22,094
60,619
61,284
Total operating expenses
85,749
98,628
278,633
283,919
Loss from operations
(12,132
)
(24,354
)
(57,155
)
(67,998
)
Interest income
587
5
797
15
Interest expense
(211
)
(113
)
(483
)
(403
)
Other (expense) income, net
(156
)
(191
)
111
(1,018
)
Loss from operations before income
taxes
(11,912
)
(24,653
)
(56,730
)
(69,404
)
(Provision for) benefit from income
taxes
(398
)
(273
)
(1,410
)
(745
)
Net loss
$
(12,310
)
$
(24,926
)
$
(58,140
)
$
(70,149
)
Net loss per share attributable to common
stockholders, basic and diluted
$
(0.10
)
$
(0.19
)
$
(0.46
)
$
(0.55
)
Weighted-average number of shares used in
computing net loss per share attributable to common stockholders,
basic and diluted
123,500,961
128,570,237
126,239,773
126,967,336
Other comprehensive loss:
Foreign currency translation
adjustment
$
(1,127
)
$
(1,586
)
$
(6,548
)
$
(1,239
)
Unrealized loss on marketable securities,
net
(16
)
—
(16
)
—
Total comprehensive loss
$
(13,453
)
$
(26,512
)
$
(64,704
)
$
(71,388
)
YEXT, INC.
Condensed Consolidated
Statements of Cash Flows
(In thousands)
(Unaudited)
Nine months ended October
31,
2022
2021
Operating activities:
Net loss
$
(58,140
)
$
(70,149
)
Adjustments to reconcile net loss to net
cash used in operating activities:
Depreciation and amortization expense
13,098
12,490
Bad debt expense
381
826
Stock-based compensation expense
48,990
54,455
Amortization of operating lease
right-of-use assets
6,684
6,934
Other, net
1,180
506
Changes in operating assets and
liabilities:
Accounts receivable
30,296
34,317
Prepaid expenses and other current
assets
(1,747
)
965
Costs to obtain revenue contracts
8,173
(8,654
)
Other long term assets
1,232
43
Accounts payable, accrued expenses and
other current liabilities
3,910
3,841
Unearned revenue
(64,786
)
(39,423
)
Operating lease liabilities
(8,158
)
(4,041
)
Other long term liabilities
795
615
Net cash used in operating activities
(18,092
)
(7,275
)
Investing activities:
Capital expenditures
(5,400
)
(12,333
)
Net cash used in investing activities
(5,400
)
(12,333
)
Financing activities:
Proceeds from exercise of stock
options
561
15,869
Repurchase of common stock
(68,695
)
—
Payments for taxes related to net share
settlement of stock-based compensation awards
(1,846
)
—
Payments of deferred financing costs
(284
)
(263
)
Proceeds, net from employee stock purchase
plan withholdings
1,947
4,059
Net cash (used in) provided by financing
activities
(68,317
)
19,665
Effect of exchange rate changes on cash
and cash equivalents
(7,133
)
(942
)
Net decrease in cash and cash
equivalents
(98,942
)
(885
)
Cash and cash equivalents at beginning of
period
261,210
230,411
Cash and cash equivalents at end of
period
$
162,268
$
229,526
YEXT, INC.
Reconciliation of GAAP to
Non-GAAP Financial Measures
(In thousands)
(Unaudited)
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
%
Three months ended October 31,
2021
Costs and
expenses
GAAP
Stock-Based Compensation
Expense
Non-GAAP
Cost of revenue
$
25,255
$
(1,840
)
$
23,415
Sales and marketing
$
58,548
$
(6,757
)
$
51,791
Research and development
$
17,986
$
(5,469
)
$
12,517
General and administrative
$
22,094
$
(5,389
)
$
16,705
Three months ended October 31,
2021
Costs and
expenses as a percentage of revenue
GAAP
Stock-Based Compensation
Expense
Non-GAAP
Cost of revenue
25
%
(2
)%
24
%
Sales and marketing
59
%
(7
)%
52
%
Research and development
18
%
(6
)%
12
%
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)
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
%
Nine months ended October 31,
2021
Costs and
expenses
GAAP
Stock-Based Compensation
Expense
Non-GAAP
Cost of revenue
$
73,724
$
(5,597
)
$
68,127
Sales and marketing
$
172,292
$
(19,635
)
$
152,657
Research and development
$
50,343
$
(15,285
)
$
35,058
General and administrative
$
61,284
$
(13,938
)
$
47,346
Nine months ended October 31,
2021
Costs and
expenses as a percentage of revenue
GAAP
Stock-Based Compensation
Expense
Non-GAAP
Cost of revenue
26
%
(2
)%
24
%
Sales and marketing
60
%
(7
)%
53
%
Research and development
17
%
(5
)%
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 October
31,
Nine months ended October
31,
2022
2021
2022
2021
Gross
profit
GAAP gross profit
$
73,617
$
74,274
$
221,478
$
215,921
Plus: Stock-based compensation expense
1,176
1,840
3,899
5,597
Non-GAAP gross profit
$
74,793
$
76,114
$
225,377
$
221,518
Gross
margin
GAAP gross margin
74.2
%
74.6
%
74.1
%
74.5
%
Plus: Stock-based compensation expense
1.1
%
1.9
%
1.3
%
2.0
%
Non-GAAP gross margin
75.3
%
76.5
%
75.4
%
76.5
%
Operating
expenses
GAAP operating expenses
$
85,749
$
98,628
$
278,633
$
283,919
Less: Stock-based compensation expense
(13,646
)
(17,615
)
(45,091
)
(48,858
)
Non-GAAP operating expenses
$
72,103
$
81,013
$
233,542
$
235,061
Operating
expenses as a percentage of revenue
GAAP operating expenses as a percentage of
revenue
86
%
99
%
93
%
98
%
Less: Stock-based compensation expense
(13
)%
(18
)%
(15
)%
(17
)%
Non-GAAP operating expenses as a
percentage of revenue
73
%
81
%
78
%
81
%
Loss from
operations
GAAP loss from operations
$
(12,132
)
$
(24,354
)
$
(57,155
)
$
(67,998
)
Plus: Stock-based compensation expense
14,822
19,455
48,990
54,455
Non-GAAP income (loss) from operations
$
2,690
$
(4,899
)
$
(8,165
)
$
(13,543
)
Operating margin
(Income/loss from operations as a percentage of
revenue)
GAAP operating margin
(12
)%
(24
)%
(19
)%
(24
)%
Plus: Stock-based compensation expense
15
%
19
%
16
%
19
%
Non-GAAP operating margin
3
%
(5
)%
(3
)%
(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)
Three months ended October
31,
2022
2021
GAAP net loss
$
(12,310
)
$
(24,926
)
Plus: Stock-based compensation expense
14,822
19,455
Non-GAAP net income (loss)
$
2,512
$
(5,471
)
GAAP net loss per share attributable to
common stockholders, basic and diluted
$
(0.10
)
$
(0.19
)
Stock-based compensation expense per
share
0.12
0.15
Non-GAAP net income (loss) per share
attributable to common stockholders, basic and diluted (1)
$
0.02
$
(0.04
)
Weighted-average number of shares used in
computing GAAP net loss per share attributable to common
stockholders, basic and diluted
123,500,961
128,570,237
Weighted-average number of shares used in
computing non-GAAP net income (loss) per share attributable to
common stockholders
Basic
123,500,961
128,570,237
Diluted
124,131,014
128,570,237
(1) - For the three months ended October
31, 2022, non-GAAP net income per share attributable to common
stockholders was $0.02 on both a basic and diluted basis, as
calculated based on 123,500,961 weighted-average basic shares
outstanding and 124,131,014 weighted-average diluted shares
outstanding.
Three months ended October
31,
2022
2021
GAAP net loss as a percentage of
revenue
(12.4
)%
(25.0
)%
Plus: Stock-based compensation expense
14.9
%
19.5
%
Non-GAAP net income (loss) as a percentage
of revenue
2.5
%
(5.5
)%
Nine months ended October
31,
2022
2021
GAAP net loss
$
(58,140
)
$
(70,149
)
Plus: Stock-based compensation expense
48,990
54,455
Non-GAAP net loss
$
(9,150
)
$
(15,694
)
GAAP net loss per share attributable to
common stockholders, basic and diluted
$
(0.46
)
$
(0.55
)
Stock-based compensation expense per
share
0.39
0.43
Non-GAAP net loss per share attributable
to common stockholders, basic and diluted
$
(0.07
)
$
(0.12
)
Weighted-average number of shares used in
computing net loss per share attributable to common stockholders,
basic and diluted
126,239,773
126,967,336
Nine months ended October
31,
2022
2021
GAAP net loss as a percentage of
revenue
(19.4
)%
(24.2
)%
Plus: Stock-based compensation expense
16.3
%
18.8
%
Non-GAAP net loss as a percentage of
revenue
(3.1
)%
(5.4
)%
_______________
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,
Constant Currency
Revenue
2022
2021
Growth Rates
Revenue (GAAP)
$
99,280
$
99,529
—
%
Effects of foreign currency rate
fluctuations
3,738
Revenue on a constant currency basis
(Non-GAAP)
$
103,018
4
%
Nine months ended October
31,
2022
2021
Growth Rates
Revenue (GAAP)
$
298,951
$
289,645
3
%
Effects of foreign currency rate
fluctuations
7,906
Revenue on a constant currency basis
(Non-GAAP)
$
306,857
6
%
_______________
Note: Numbers rounded for presentation
purposes and may not sum.
YEXT, INC.
Supplemental
Information
(In thousands)
(Unaudited)
October 31,
Variance
2022
2021
Dollars
Percent
Annual Recurring
Revenue
Direct Customers
$
317,280
$
308,197
$
9,083
3
%
Third-Party Reseller Customers
72,258
78,457
(6,199
)
(8
)%
Total Annual Recurring Revenue
$
389,538
$
386,654
$
2,884
1
%
Oct. 31, 2022
Jul. 31, 2022
Apr. 30, 2022
Jan. 31, 2022
Oct. 31, 2021
Annual Recurring
Revenue Trend
Direct Customers
$
317,280
$
312,129
$
310,312
$
312,132
$
308,197
Third-Party Reseller Customers
72,258
74,857
76,671
78,353
78,457
Total Annual Recurring Revenue
$
389,538
$
386,986
$
386,983
$
390,485
$
386,654
_______________
Note: Numbers rounded for presentation
purposes and may not sum.
SOURCE Yext, Inc.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20221130005986/en/
Investor Relations: IR@yext.com Public Relations:
PR@yext.com
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