Yext, Inc. Announces Third Quarter Fiscal 2022 Results

– Customer Count Increased 20% Year-over-Year to Over 2,700

– Third Quarter Revenue Increased 12% Year-over-Year to $99.5 Million

– Unearned Revenue Increased 18% Year-over-Year to $151 Million

– ARR Increased 12% Year-over-Year to $387 Million

– Cash and Cash Equivalents of $230 Million

– Issues Guidance for Fourth Quarter Fiscal 2022

– Raises Guidance for Full Year Fiscal 2022

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

“We are on the road to recovery,” said Howard Lerman, Founder and CEO of Yext. “The solid results we delivered in the third quarter reflect strong execution against our growth plans. Answers is growing quickly, our Listings business is recovering, and our land-and-expand sales strategy is working. That, coupled with new growth vectors yet to tap, make us optimistic about the future.”

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Third Quarter Fiscal 2022 Highlights:

  • Revenue of $99.5 million, a 12% increase, compared to $89.1 million reported in the third quarter fiscal 2021.
  • Gross Profit of $74.3 million, a 10% increase, compared to $67.4 million reported in the third quarter fiscal 2021. Gross margin of 74.6%, compared to 75.7% reported in the third quarter fiscal 2021.
  • Net Loss and Non-GAAP Net Loss:
    • Net loss of $24.9 million, compared to the net loss of $22.0 million in the third quarter fiscal 2021.
    • Non-GAAP net loss of $5.5 million, compared to the non-GAAP net loss of $2.8 million in the third quarter fiscal 2021.
  • Net Loss Per Share and Non-GAAP Net Loss Per Share:
    • Net loss per share of $0.19 in the third quarter fiscal 2022, compared to net loss per share of $0.18 in the third quarter fiscal 2021.
    • Non-GAAP net loss per share of $0.04 in the third quarter fiscal 2022, compared to non-GAAP net loss per share of $0.02 in the third quarter fiscal 2021.
    • Net loss per share and non-GAAP net loss per share were each based on 128.6 million and 120.7 million weighted-average basic shares outstanding for the third quarter fiscal 2022 and for the third quarter fiscal 2021, respectively.
  • Balance Sheet: Cash and cash equivalents of $230 million as of October 31, 2021. Unearned revenue of $151 million as of October 31, 2021, compared to $129 million as of October 31, 2020.
  • Remaining Performance Obligations (“RPO”): RPO of $337 million as of October 31, 2021. RPO expected to be recognized over the next 24 months of $315 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 $9.7 million for the three months ended October 31, 2021, compared to net cash used in operating activities of $7.4 million for the three months ended October 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:

  • Announced that Samsung’s Net Promoter Score increased after optimizing its help site with Yext Support Answers.
  • Announced that People’s United Bank experienced ROI from Answers site search integration between Yext, Virtusa, and Adobe.
  • Announced collaboration with Acquia, enabling businesses to seamlessly implement AI-powered search experiences on websites built with Acquia Drupal Cloud.
  • Announced expansion of public sector efforts with new AI search solutions and team hires, building on successful work with the World Health Organization and State of New Jersey.
  • Launched Financial Services Cloud, highlighted by guided AI-powered search solution.
  • Announced that Yext continued to climb in the enterprise search software category on the Fall 2021 G2 Grid® Report by G2.com, Inc., a leading software review platform.
  • Launched AI-Powered “Find-a-Doc” solution to improve the pre-appointment patient experience when searching for healthcare providers.
  • Announced that Yext’s AI search-powered website won a 2021 WebAward for Outstanding Website.
  • Customer count, which excludes our small business and third-party reseller customers, increased 20% year-over-year to over 2,700 as of October 31, 2021.
  • Annual recurring revenue, or ARR, increased 12% year-over-year to $387 million as of October 31, 2021, compared to $346 million as of October 31, 2020.

Financial Outlook:

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

  • Fourth Quarter Fiscal 2022 Outlook:
    • Revenue is projected to be in the range of $100.0 million to $102.0 million.
    • Non-GAAP net loss per share is projected to be $0.10 to $0.08 which assumes 130.3 million weighted-average basic shares outstanding.
  • Full Year Fiscal 2022 Outlook:
    • Revenue is projected to be in the range of $389.7 million to $391.7 million.
    • Non-GAAP net loss per share is projected to be $0.22 to $0.20 which assumes 127.8 million weighted-average basic shares outstanding.

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