Yext, Inc. Announces Second Quarter Fiscal 2022 Results

– Customer Count Increased 23% Year-over-Year to Over 2,600

– Second Quarter Revenue Increased 11% Year-over-Year to $98.1 Million

– Unearned Revenue Increased 12% Year-over-Year to $165 Million

– ARR Increased 12% Year-over-Year to $378 Million

– Cash and Cash Equivalents of $240 Million

– Issues Guidance for Third Quarter Fiscal 2022

– Updates Guidance for Full Year Fiscal 2022

Yext, Inc., the AI Search Company, today announced its results for the three months ended July 31, 2021, or the Company’s second quarter of fiscal 2022.

“We had a solid second quarter, driven by new customers and upsells,” said Howard Lerman, Founder and CEO of Yext. “Yext continues to be a critical partner for businesses by driving operational efficiencies, especially within marketing and support. From pre-purchase information discovery to post-purchase troubleshooting, our innovative, AI-powered search platform helps create a seamless online experience at every stop in the customer journey.”

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Second Quarter Fiscal 2022 Highlights:

  • Revenue of $98.1 million, an 11% increase, compared to $88.1 million reported in the second quarter fiscal 2021.
  • Gross Profit of $71.5 million, an 8% increase, compared to $66.1 million reported in the second quarter fiscal 2021. Gross margin of 72.9%, compared to 75.0% reported in the second quarter fiscal 2021.
  • Net Loss and Non-GAAP Net Loss:
    • Net loss of $27.6 million, compared to the net loss of $25.1 million in the second quarter fiscal 2021.
    • Non-GAAP net loss of $7.2 million, compared to the non-GAAP net loss of $7.9 million in the second quarter fiscal 2021.
  • Net Loss Per Share and Non-GAAP Net Loss Per Share:
    • Net loss per share of $0.22 in the second quarter fiscal 2022, compared to net loss per share of $0.21 in the second quarter fiscal 2021.
    • Non-GAAP net loss per share of $0.06 in the second quarter fiscal 2022, compared to non-GAAP net loss per share of $0.07 in the second quarter fiscal 2021.
    • Net loss per share and non-GAAP net loss per share were based on 126.9 million and 118.4 million weighted-average basic shares outstanding for the second quarter fiscal 2022 and for the second quarter fiscal 2021, respectively.
  • Balance Sheet: Cash and cash equivalents of $240 million as of July 31, 2021. Unearned revenue of $165 million as of July 31, 2021, compared to $147 million as of July 31, 2020.
  • Remaining Performance Obligations (“RPO”): RPO of $342 million as of July 31, 2021. RPO expected to be recognized over the next 24 months of $324 million with the remaining balance expected to be recognized thereafter. RPO does not include amounts under contract subject to certain accounting exclusions.
  • Cash Flow: Net cash used in operating activities was $32.6 million for the three months ended July 31, 2021, compared to net cash used in operating activities of $15.6 million for the three months ended July 31, 2020.

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

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Recent Business Highlights:

  • Launched Yext AI Search on Salesforce AppExchange, enabling clients to augment their existing Salesforce Service Cloud-powered help sites, agent consoles, and support form with Support Answers.
  • Announced new integrations with Zendesk, Inc., further empowering customer support teams.
  • Announced the availability of its Summer ’21 Release.
  • Announced its participation in Visa’s 2021 She’s Next Grant Program. The initiative aims to address the disproportionate barriers Black women entrepreneurs face when founding and running businesses.
  • Announced its first-place ranking and “leader” designation across several categories in the Summer 2021 G2 Grid® from G2.com, Inc., a leading software review platform.
  • Announced that Shane Battier, Vice President of Basketball Development and Analytics of the Miami Heat has been appointed to its Board of Directors, effective June 30, 2021.
  • Announced Laurie “LC” Cook as its first-ever Vice President of Public Sector, effective August 2, 2021.
  • Announced Joe Jorczak as its first-ever Head of Industry for Service and Support, effective June 1, 2021.
  • Customer count, which excludes our small business and third-party reseller customers, increased 23% year-over-year to over 2,600 as of July 31, 2021.
  • Annual recurring revenue, or ARR, increased 12% year-over-year to $378 million as of July 31, 2021, compared to $338 million as of July 31, 2020.

Financial Outlook:

Yext is also providing the following guidance for its third fiscal quarter ending October 31, 2021 and the fiscal year ending January 31, 2022.

  • Third Quarter Fiscal 2022 Outlook:
    • Revenue is projected to be in the range of $97.5 million to $98.5 million.
    • Non-GAAP net loss per share is projected to be $0.08 to $0.06 which assumes 128.6 million weighted-average basic shares outstanding.
  • Full Year Fiscal 2022 Outlook:
    • Revenue is projected to be in the range of $386 million to $388 million.
    • Non-GAAP net loss per share is projected to be $0.24 to $0.20 which assumes 127.9 million weighted-average basic shares outstanding.

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