Yext Announces Third Quarter Fiscal 2025 Results

• Revenue of $114.0 million, up 13% year-over-year, driven by the integration of Hearsay Systems
• GAAP Net loss of $12.8 million, or $0.10 per share, basic, and inclusive of costs associated with the completion of the acquisition of Hearsay Systems
• Non-GAAP net income of $15.6 million, or $0.12 per share, basic, and Adjusted EBITDA of $23.1 million
• Total ARR increased to $441.8 million
• Full-year outlook updated to $420.3 million to $420.8 million of Revenue and $67.0 million to $67.5 million of Adjusted EBITDA

Yext, Inc. (NYSE: YEXT), the leading digital presence platform for multi-location brands, today announced its results for the three months ended October 31, 2024, or the Company's third quarter of fiscal year 2025.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20241209740722/en/

(Graphic: Yext)

For more detailed information on the Company's operating and financial results for the third quarter fiscal 2025, as well as the Company's outlook for its fourth quarter and fiscal year 2025, please reference the Letter to Shareholders on its Investor Relations website at investors.yext.com.

“Our fiscal third quarter results demonstrate our continued ability to drive operating efficiencies, make significant margin improvements and generate bottom-line growth,” said Mike Walrath, Yext Chairman and CEO. “We are pleased with our progress in integrating Hearsay Systems and have rolled out enhanced social capabilities to our combined customer base. We are seeing increased interest in our platform in a rapidly evolving environment where fragmented search and generative AI are increasingly top of mind, and we remain confident that our overall top-line growth will accelerate over the long term as we help our customers navigate the complexity of this environment.”

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

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. To participate in the live call by phone, the dial-in is available domestically at [phone] and internationally at [phone], passcode 1137113.

A replay will be available domestically at [phone] or internationally at [phone], passcode 8655569, until midnight (ET) December 16, 2024.

About Yext Yext (NYSE: YEXT) is the leading digital presence platform for multi-location brands, with thousands of customers worldwide. With one central platform, brands can seamlessly deliver consistent, accurate, and engaging experiences and meaningfully connect with customers anywhere in the digital world. Yext’s AI and machine learning technology powers the knowledge behind every customer engagement, automates workflows at scale, and delivers actionable cross-channel insights that enable data-driven decisions. From SEO and websites to social media and reputation management, Yext enables brands to turn their digital presence into a differentiator.

Statement Regarding Forward-Looking Information This release and the related shareholder letter and 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 for our fourth quarter and full year fiscal 2025 and general expectations beyond that fiscal year; statements regarding the expected effects of our acquisition and integration of Hearsay Social, Inc. ("Hearsay"); and statements regarding our expectations regarding the growth of our company, our market opportunity, product roadmap, sales efficiency efforts, cost saving actions, and our industry as well as the same for our acquisition and integration of Hearsay. 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 integrate Hearsay's business with ours; our ability to retain personnel necessary for the success of our acquisition and integration of Hearsay; the quality of our sales pipeline and our ability to convert leads; our ability to expand and scale our sales force; our ability to expand our service and application provider network; our ability to develop or acquire 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 release and the accompanying tables include 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, acquisition-related costs, and amortization of acquired intangibles. Acquisition-related costs include transaction and related costs, subsequent fair value movements in contingent consideration, and compensation arrangements. Non-GAAP net income (loss) as a percentage of revenue is 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. We define non-GAAP net income (loss) per share, basic, as non-GAAP net income (loss) divided by weighted average shares outstanding and non-GAAP net income (loss) per share, diluted, as non-GAAP net income (loss) divided by weighted average diluted shares outstanding, which includes the potentially dilutive effect of the company’s employee equity incentive awards.

In addition, beginning in fiscal 2025, we are utilizing a projected tax rate of 25% in our computation of the non-GAAP income tax provision. Our estimated tax rate on non-GAAP income is determined annually and may be adjusted during the year to take into account events or trends that we believe materially impact the estimated annual rate including, but not limited to, significant changes resulting from tax legislation, material changes in the geographic mix of revenue and expenses and other significant events. Our estimated tax rate on non-GAAP income may differ from our GAAP tax rate and from our actual tax liabilities.

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 net income (loss) as a percentage of revenue, we believe this non-GAAP financial measure is useful in evaluating our profitability relative to the amount of revenue generated, excluding the impact of stock-based compensation expense, acquisition-related costs, and amortization of acquired intangibles. 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 and certain acquisition-related costs, which may vary for reasons unrelated to overall operating performance.

We also discuss Adjusted EBITDA and Adjusted EBITDA margin, non-GAAP financial measures that we believe offer a useful view of overall operations used to assess the performance of core business operations and for planning purposes. We define Adjusted EBITDA as GAAP net income (loss) before (1) interest income (expense), net, (2) benefit from (provision for) income taxes, (3) depreciation and amortization, (4) other income (expense), net, (5) stock-based compensation expense, and (6) acquisition-related costs. The most directly comparable GAAP financial measure to Adjusted EBITDA is GAAP net income (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 GAAP net income (loss) as a measure of operating performance. Adjusted EBITDA margin is calculated by dividing Adjusted EBITDA by revenue.

Beginning with the three months ended July 31, 2024, we revised our definitions of Non-GAAP net income (loss) and Adjusted EBITDA to adjust for the effects of certain acquisition-related costs prompted by our recent acquisition of Hearsay. We believe these changes provide investors with a view of continuing core operations without the effects of unusual activity specific to acquisition-related accounting. These adjustments do not omit or adjust for the inclusion of ongoing operations of acquisitions.

We have recast our results on the same basis for the prior comparative periods presented, although the effects in those periods remain unchanged, as no such acquisition-related activity had occurred.

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 and certain acquisition-related costs. 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 (i.e.,"Financial Outlook") to their corresponding GAAP measures because certain reconciling items such as stock-based compensation, certain acquisition-related costs, and the corresponding provision for income taxes depend on factors such as the stock price at the time of award of future grants, and certain purchase accounting adjustments including subsequent measurements, among others, 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 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 excludes certain items including interest income (expense), net, provision for income taxes, depreciation and amortization, other income (expense), net, stock-based compensation expense, and acquisition-related costs.

Operating Metrics This release also includes certain operating metrics that we believe are useful in providing additional information in assessing the overall performance of our business.

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.

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. Any ARR obtained through merger and acquisition transactions does not affect the dollar-based net retention rate until one year from the date on which the transaction closed. 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, 2024

 

January 31, 2024

Assets

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

$

100,484

 

 

$

210,184

 

Restricted cash, current

 

11,671

 

 

 

—

 

Accounts receivable, net of allowances of $1,468 and $1,013, respectively

 

57,778

 

 

 

108,198

 

Prepaid expenses and other current assets

 

17,353

 

 

 

14,849

 

Costs to obtain revenue contracts, current

 

21,447

 

 

 

26,680

 

Total current assets

 

208,733

 

 

 

359,911

 

Property and equipment, net

 

42,246

 

 

 

48,542

 

Operating lease right-of-use assets

 

70,124

 

 

 

75,989

 

Restricted cash, non-current

 

5,850

 

 

 

—

 

Costs to obtain revenue contracts, non-current

 

11,649

 

 

 

16,710

 

Goodwill

 

105,020

 

 

 

4,478

 

Intangible assets, net

 

87,986

 

 

 

168

 

Other long term assets

 

8,735

 

 

 

3,012

 

Total assets

$

540,343

 

 

$

508,810

 

Liabilities and stockholders’ equity

 

 

 

Current liabilities:

 

 

 

Accounts payable, accrued expenses and other current liabilities

$

62,111

 

 

$

38,766

 

Unearned revenue, current

 

160,855

 

 

 

212,210

 

Operating lease liabilities, current

 

18,380

 

 

 

16,798

 

Total current liabilities

 

241,346

 

 

 

267,774

 

Operating lease liabilities, non-current

 

80,293

 

 

 

89,562

 

Contingent consideration, non-current

 

40,107

 

 

 

—

 

Other long term liabilities

 

18,635

 

 

 

4,300

 

Total liabilities

 

380,381

 

 

 

361,636

 

Commitments and contingencies

 

 

 

Stockholders’ equity:

 

 

 

Preferred stock, $0.001 par value per share; 50,000,000 shares authorized at October 31, 2024 and January 31, 2024; zero shares issued and outstanding at October 31, 2024 and January 31, 2024

 

—

 

 

 

—

 

Common stock, $0.001 par value per share; 500,000,000 shares authorized at October 31, 2024 and January 31, 2024; 152,424,199 and 148,197,347 shares issued at October 31, 2024 and January 31, 2024, respectively; 128,010,487 and 124,867,093 shares outstanding at October 31, 2024 and January 31, 2024, respectively

 

152

 

 

 

148

 

Additional paid-in capital

 

983,358

 

 

 

942,622

 

Accumulated other comprehensive loss

 

(4,501

)

 

 

(4,183

)

Accumulated deficit

 

(699,845

)

 

 

(679,172

)

Treasury stock, at cost

 

(119,202

)

 

 

(112,241

)

Total stockholders’ equity

 

159,962

 

 

 

147,174

 

Total liabilities and stockholders’ equity

$

540,343

 

 

$

508,810

 

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,

 

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

Revenue

$

113,989

 

 

$

101,164

 

 

$

307,866

 

 

$

303,215

 

Cost of revenue

 

26,247

 

 

 

22,066

 

 

 

70,086

 

 

 

65,809

 

Gross profit

 

87,742

 

 

 

79,098

 

 

 

237,780

 

 

 

237,406

 

Operating expenses:

 

 

 

 

 

 

 

Sales and marketing

 

43,667

 

 

 

45,355

 

 

 

128,878

 

 

 

136,942

 

Research and development

 

21,070

 

 

 

18,291

 

 

 

56,709

 

 

 

53,934

 

General and administrative

 

33,373

 

 

 

17,233

 

 

 

75,553

 

 

 

53,774

 

Total operating expenses

 

98,110

 

 

 

80,879

 

 

 

261,140

 

 

 

244,650

 

Loss from operations

 

(10,368

)

 

 

(1,781

)

 

 

(23,360

)

 

 

(7,244

)

Interest income

 

823

 

 

 

1,922

 

 

 

5,578

 

 

 

5,296

 

Interest expense

 

(222

)

 

 

(173

)

 

 

(738

)

 

 

(334

)

Other expense, net

 

(55

)

 

 

(70

)

 

 

(397

)

 

 

(687

)

Loss from operations before income taxes

 

(9,822

)

 

 

(102

)

 

 

(18,917

)

 

 

(2,969

)

Provision for income taxes

 

(2,977

)

 

 

(366

)

 

 

(1,756

)

 

 

(1,348

)

Net loss

$

(12,799

)

 

$

(468

)

 

$

(20,673

)

 

$

(4,317

)

 

 

 

 

 

 

 

 

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

$

(0.10

)

 

$

—

 

 

$

(0.16

)

 

$

(0.03

)

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

 

128,036,993

 

 

 

124,239,180

 

 

 

126,668,394

 

 

 

123,962,358

 

 

 

 

 

 

 

 

 

Other comprehensive (loss) income:

 

 

 

 

 

 

 

Foreign currency translation adjustment

$

(144

)

 

$

(876

)

 

$

(324

)

 

$

(722

)

Unrealized gain on marketable securities, net

 

2

 

 

 

16

 

 

 

6

 

 

 

4

 

Total comprehensive loss

$

(12,941

)

 

$

(1,328

)

 

$

(20,991

)

 

$

(5,035

)

YEXT, INC.

Condensed Consolidated Statements of Cash Flows

(In thousands)

(Unaudited)

 

Nine months ended October 31,

 

 

2024

 

 

 

2023

 

Operating activities:

 

 

 

Net loss

$

(20,673

)

 

$

(4,317

)

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

 

 

 

Depreciation and amortization expense

 

12,101

 

 

 

12,625

 

Bad debt expense

 

1,017

 

 

 

589

 

Stock-based compensation expense

 

37,091

 

 

 

34,335

 

Amortization of operating lease right-of-use assets

 

6,471

 

 

 

6,739

 

Adjustments to contingent consideration

 

607

 

 

 

—

 

Other, net

 

(751

)

 

 

351

 

Changes in operating assets and liabilities, net of assets acquired and liabilities assumed in a business acquisition:

 

 

 

Accounts receivable

 

55,285

 

 

 

57,251

 

Prepaid expenses and other current assets

 

(74

)

 

 

(2,738

)

Costs to obtain revenue contracts

 

10,476

 

 

 

9,054

 

Other long term assets

 

256

 

 

 

542

 

Accounts payable, accrued expenses and other current liabilities

 

7,181

 

 

 

(9,175

)

Unearned revenue

 

(89,117

)

 

 

(78,434

)

Operating lease liabilities

 

(8,312

)

 

 

(8,892

)

Other long term liabilities

 

307

 

 

 

207

 

Net cash provided by operating activities

 

11,865

 

 

 

18,137

 

Investing activities:

 

 

 

Capital expenditures

 

(1,769

)

 

 

(2,320

)

Cash paid in acquisition, net of cash acquired

 

(89,407

)

 

 

—

 

Net cash used in investing activities

 

(91,176

)

 

 

(2,320

)

Financing activities:

 

 

 

Proceeds from exercise of stock options

 

1,137

 

 

 

8,770

 

Repurchase of common stock

 

(6,760

)

 

 

(23,086

)

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

 

(9,031

)

 

 

(10,718

)

Payments of deferred financing costs

 

(777

)

 

 

(394

)

Proceeds, net from employee stock purchase plan withholdings

 

2,218

 

 

 

2,546

 

Net cash used in financing activities

 

(13,213

)

 

 

(22,882

)

Effect of exchange rate changes on cash, cash equivalents and restricted cash

 

345

 

 

 

(993

)

Net decrease in cash, cash equivalents and restricted cash

 

(92,179

)

 

 

(8,058

)

Cash, cash equivalents and restricted cash at beginning of period

 

210,184

 

 

 

190,214

 

Cash, cash equivalents and restricted cash at end of period

$

118,005

 

 

$

182,156

 

Supplemental reconciliation of cash, cash equivalents and restricted cash reported within the condensed consolidated balance sheets:

 

Nine months ended October 31,

(in thousands)

2024

 

2023

Cash and cash equivalents

$

100,484

 

$

182,156

Restricted cash, current and non-current

 

17,521

 

 

—

Total cash, cash equivalents and restricted cash

$

118,005

 

$

182,156

YEXT, INC.

Reconciliations of GAAP to Non-GAAP Financial Measures

(In thousands)

(Unaudited)

 

Three months ended October 31,

 

Nine months ended October 31,

 

2024

 

2023

 

2024

 

2023

GAAP net loss to Adjusted EBITDA:

 

 

 

 

 

 

 

GAAP net loss

$

(12,799

)

 

$

(468

)

 

$

(20,673

)

 

$

(4,317

)

Interest (income) expense, net

 

(601

)

 

 

(1,749

)

 

 

(4,840

)

 

 

(4,962

)

Provision for income taxes

 

2,977

 

 

 

366

 

 

 

1,756

 

 

 

1,348

 

Depreciation and amortization

 

6,287

 

 

 

3,537

 

 

 

12,101

 

 

 

12,625

 

Other expense (income), net

 

55

 

 

 

70

 

 

 

397

 

 

 

687

 

Stock-based compensation expense

 

12,693

 

 

 

11,758

 

 

 

37,091

 

 

 

34,335

 

Acquisition-related costs

 

14,482

 

 

 

—

 

 

 

16,650

 

 

 

—

 

Adjusted EBITDA

$

23,094

 

 

$

13,514

 

 

$

42,482

 

 

$

39,716

 

 

 

 

 

 

 

 

 

GAAP net loss as a percentage of revenue

 

(11.2

)%

 

 

(0.5

)%

 

 

(6.7

)%

 

 

(1.4

)%

Adjusted EBITDA margin

 

20.3

%

 

 

13.4

%

 

 

13.8

%

 

 

13.1

%

__________________ 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,

 

2024

 

2023

GAAP net loss

$

(12,799

)

 

$

(468

)

Plus: Stock-based compensation expense

 

12,693

 

 

 

11,758

 

Plus: Acquisition-related costs

 

14,482

 

 

 

—

 

Plus: Amortization of acquired intangibles

 

3,465

 

 

 

—

 

Less: Tax adjustment(1)

 

(2,226

)

 

 

—

 

Non-GAAP net income

$

15,615

 

 

$

11,290

 

GAAP net loss as a percentage of revenue

 

(11.2

)%

 

 

(0.5

)%

Non-GAAP net income as a percentage of revenue

 

13.7

%

 

 

11.2

%

 

 

 

 

GAAP net loss per share attributable to common stockholders, basic

$

(0.10

)

 

$

—

 

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

$

0.12

 

 

$

0.09

 

 

 

 

 

GAAP net loss per share attributable to common stockholders, diluted

$

(0.10

)

 

$

—

 

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

$

0.12

 

 

$

0.09

 

 

 

 

 

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

 

 

 

Basic

 

128,036,993

 

 

 

124,239,180

 

Diluted

 

128,036,993

 

 

 

124,239,180

 

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

 

 

 

Basic

 

128,036,993

 

 

 

124,239,180

 

Diluted

 

130,351,066

 

 

 

126,733,610

 

(1) Beginning in fiscal 2025, we are utilizing a projected tax rate of 25% in our computation of the non-GAAP income tax provision. Our estimated tax rate on non-GAAP income is determined annually and may be adjusted during the year to take into account events or trends that we believe materially impact the estimated annual rate including, but not limited to, significant changes resulting from tax legislation, material changes in the geographic mix of revenue and expenses and other significant events. Our estimated tax rate on non-GAAP income may differ from our GAAP tax rate and from our actual tax liabilities.

____________________ 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,

 

2024

 

2023

GAAP net loss

$

(20,673

)

 

$

(4,317

)

Plus: Stock-based compensation expense

 

37,091

 

 

 

34,335

 

Plus: Acquisition-related costs

 

16,650

 

 

 

—

 

Plus: Amortization of acquired intangibles

 

3,465

 

 

 

—

 

Less: Tax adjustment(1)

 

(7,816

)

 

 

—

 

Non-GAAP net income

$

28,717

 

 

$

30,018

 

GAAP net loss as a percentage of revenue

 

(6.7

)%

 

 

(1.4

)%

Non-GAAP net income as a percentage of revenue

 

9.3

%

 

 

9.9

%

 

 

 

 

GAAP net loss per share attributable to common stockholders, basic

$

(0.16

)

 

$

(0.03

)

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

$

0.23

 

 

$

0.24

 

 

 

 

 

GAAP net loss per share attributable to common stockholders, diluted

$

(0.16

)

 

$

(0.03

)

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

$

0.22

 

 

$

0.23

 

 

 

 

 

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

 

 

 

Basic

 

126,668,394

 

 

 

123,962,358

 

Diluted

 

126,668,394

 

 

 

123,962,358

 

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

 

 

 

Basic

 

126,668,394

 

 

 

123,962,358

 

Diluted

 

127,976,060

 

 

 

127,808,283

 

(1) Beginning in fiscal 2025, we are utilizing a projected tax rate of 25% in our computation of the non-GAAP income tax provision. Our estimated tax rate on non-GAAP income is determined annually and may be adjusted during the year to take into account events or trends that we believe materially impact the estimated annual rate including, but not limited to, significant changes resulting from tax legislation, material changes in the geographic mix of revenue and expenses and other significant events. Our estimated tax rate on non-GAAP income may differ from our GAAP tax rate and from our actual tax liabilities.

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

YEXT, INC.

Supplemental Information

(In thousands)

(Unaudited)

 

October 31,

 

Variance

 

2024

2023

 

Dollars

Percent

Annual Recurring Revenue

 

 

 

 

 

Direct Customers

$

374,502

$

326,625

 

$

47,877

 

15

%

Third-Party Reseller Customers

 

67,293

 

70,201

 

 

(2,908

)

(4

)%

Total Annual Recurring Revenue

$

441,795

$

396,826

 

$

44,969

 

11

%

 

 

 

 

 

 

 

Oct. 31, 2024

Jul. 31, 2024

Apr. 30, 2024

Jan. 31, 2024

Oct. 31, 2023

Annual Recurring Revenue Trend

 

 

 

 

 

Direct Customers

$

374,502

$

313,392

$

312,060

$

315,594

$

326,625

Third-Party Reseller Customers

 

67,293

 

68,361

 

70,528

 

71,784

 

70,201

Total Annual Recurring Revenue

$

441,795

$

381,753

$

382,588

$

387,378

$

396,826

 

Oct. 31, 2024

Jul. 31, 2024

Apr. 30, 2024

Jan. 31, 2024

Oct. 31, 2023

Dollar-Based Net Retention Rate

 

 

 

 

 

Direct Customers

91%

91%

91%

91%

97%

Third-Party Reseller Customers

93%

94%

94%

95%

95%

Total Customers

91%

91%

91%

92%

96%

 


___________________

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

 

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