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– Customer Count Increased 15% Year-over-Year to Over 2,700
– Fourth Quarter Revenue Increased 9% Year-Over-Year to $100.9 Million
– Full Year Fiscal 2022 Revenue Increased 10% Year-over-Year to $390.6 Million
– Unearned Revenue Increased 16% Year-over-Year to $223 Million
– ARR Increased 10% Year-over-Year to $390 Million
– Cash and Cash Equivalents Increased to $261 Million
– Issues Guidance for First Quarter and Full Year Fiscal 2023
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Mar 08, 2022, 16:15 ET
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NEW YORK, March 8, 2022 /PRNewswire/ — Yext, Inc. (NYSE: YEXT), the AI Search Company, today announced its results for the three months ended January 31, 2022, or the Company’s fourth quarter of fiscal 2022, and the fiscal year ended January 31, 2022.
Fourth Quarter Fiscal 2022 Highlights:
Full Year Fiscal 2022 Highlights:
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:
Financial Outlook:
Yext is also providing the following guidance for its first fiscal quarter ending April 30, 2022 and the fiscal year ending January 31, 2023.
Conference Call Information
Yext will host a conference call today at 4:30 PM Eastern Time (1:30 PM 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 0894305.
A replay will be available domestically at (877) 344-7529 or internationally at (412) 317-0088, passcode 8571442, until March 15, 2022.
About Yext
Yext (NYSE: YEXT) is the AI Search Company and is on a mission to transform the enterprise with AI search.
With the explosion of information and data online, search has never been more important. However, while the world of consumer search has innovated over time, enterprise search has not. In fact, the majority of enterprise search is powered by outdated keyword search technology that only scans for keywords and delivers a list of hyperlinks rather than actually answering questions.
Yext, the AI Search Company, offers a modern, AI-powered Answers Platform that understands natural language so that when people ask questions about a business online they get direct answers – not links.
Brands like Verizon, Vanguard, Subway and Marriott — as well as organizations like the U.S. State Department and World Health Organization — trust Yext to radically improve their business with answers-led AI search.
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 loss and shares outstanding for our first 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 loss from operations, non-GAAP operating margin, non-GAAP net income (loss), non-GAAP net income (loss) per share, 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 loss/ income 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 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 this 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 and non-GAAP net loss/ income 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. 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 businesses customers as well as customers only receiving free trials. 
Annual recurring revenue, or 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 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 provides insight into the performance of our recurring revenue business model while mitigating for fluctuations in billing and contract terms.
For Further Information Contact:
Investor Relations:
Jeff Houston
[email protected]
Public Relations:
Amanda Kontor
[email protected]
YEXT, INC.
Condensed Consolidated Balance Sheets
(In thousands, except share and per share data)
(Unaudited)
January 31, 2022
January 31, 2021
Assets
Current assets:
Cash and cash equivalents
$                   261,210
$                   230,411
Accounts receivable, net of allowances of $2,042 and $2,528, respectively
101,607
97,455
Prepaid expenses and other current assets
13,538
17,993
Costs to obtain revenue contracts, current
33,998
30,325
Total current assets
410,353
376,184
Property and equipment, net
74,604
80,344
Operating lease right-of-use assets
97,124
104,844
Costs to obtain revenue contracts, non-current
27,286
22,692
Goodwill
4,572
4,842
Intangible assets, net
217
767
Other long term assets
6,179
6,316
Total assets
$                   620,335
$                   595,989
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable, accrued expenses and other current liabilities
$                     48,432
$                     54,186
Unearned revenue, current
223,427
191,810
Operating lease liabilities, current
18,845
14,165
Total current liabilities
290,704
260,161
Operating lease liabilities, non-current
113,776
123,584
Other long term liabilities
3,985
5,009
Total liabilities
408,465
388,754
Commitments and contingencies
Stockholders’ equity:
Preferred stock, $0.001 par value per share; 50,000,000 shares authorized at January 31, 2022 and 2021; zero shares issued and outstanding at January 31, 2022 and 2021


Common stock, $0.001 par value per share; 500,000,000 shares authorized at January 31, 2022 and 2021; 137,662,320 and 130,494,513 shares issued at January 31, 2022 and 2021, respectively; 131,156,986 and 123,989,179 shares outstanding at January 31, 2022 and 2021, respectively
137
130
Additional paid-in capital
834,429
733,933
Accumulated other comprehensive (loss) income
(187)
2,422
Accumulated deficit
(610,604)
(517,345)
Treasury stock, at cost
(11,905)
(11,905)
Total stockholders’ equity
211,870
207,235
Total liabilities and stockholders’ equity
$                   620,335
$                   595,989
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,
2022
2021
2022
2021
Revenue
$             100,932
$               92,194
$             390,577
$             354,661
Cost of revenue
24,575
21,597
98,299
86,404
Gross profit
76,357
70,597
292,278
268,257
Operating expenses:
Sales and marketing
58,175
57,202
230,467
228,417
Research and development
18,007
14,505
68,350
58,146
General and administrative
22,136
18,033
83,420
76,026
Total operating expenses
98,318
89,740
382,237
362,589
Loss from operations
(21,961)
(19,143)
(89,959)
(94,332)
Interest income
7
8
22
532
Interest expense
(141)
(139)
(544)
(614)
Other (expense) income, net
(483)
364
(1,501)
(181)
Loss from operations before income taxes
(22,578)
(18,910)
(91,982)
(94,595)
(Provision for) benefit from income taxes
(532)
599
(1,277)
(97)
Net loss
$             (23,110)
$             (18,311)
$             (93,259)
$             (94,692)
Net loss per share attributable to common stockholders, basic and diluted
$                  (0.18)
$                  (0.15)
$                  (0.73)
$                  (0.79)
Weighted-average number of shares used in computing net loss per share attributable to common stockholders, basic and diluted
130,328,155
122,954,330
127,814,447
119,690,378
Other comprehensive (loss) income:
Foreign currency translation adjustment
$                (1,370)
$                 2,362
$                (2,609)
$                 2,782
Total comprehensive loss
$             (24,480)
$             (15,949)
$             (95,868)
$             (91,910)
YEXT, INC.
Condensed Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
Fiscal year ended January 31,
2022
2021
Operating activities:
Net loss
$                  (93,259)
$                  (94,692)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization expense
16,783
10,612
Bad debt expense
1,253
2,547
Stock-based compensation expense
73,480
72,294
Amortization of operating lease right-of-use assets
9,296
12,203
Other, net
582
(489)
Changes in operating assets and liabilities:
Accounts receivable
(6,106)
(17,990)
Prepaid expenses and other current assets
4,238
(5,463)
Costs to obtain revenue contracts
(9,113)
2,429
Other long term assets
(231)
(1,630)
Accounts payable, accrued expenses and other current liabilities
(494)
(1,976)
Unearned revenue
33,262
12,702
Operating lease liabilities
(6,644)
8,937
Other long term liabilities
(1,198)
1,720
Net cash provided by operating activities
21,849
1,204
Investing activities:
Capital expenditures
(13,418)
(65,111)
Net cash used in investing activities
(13,418)
(65,111)
Financing activities:
Proceeds from exercise of stock options
19,228
16,464
Payments of deferred financing costs
(263)
(869)
Proceeds, net from employee stock purchase plan withholdings
5,652
6,953
Net cash provided by financing activities
24,617
22,548
Effect of exchange rate changes on cash and cash equivalents
(2,249)
3,594
Net increase (decrease) in cash and cash equivalents
30,799
(37,765)
Cash and cash equivalents at beginning of period
230,411
268,176
Cash and cash equivalents at end of period
$                 261,210
$                 230,411
YEXT, INC.
Reconciliation of GAAP to Non-GAAP Financial Measures
(In thousands)
(Unaudited)
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%
Three months ended January 31, 2021
Costs and expenses
GAAP
Stock-Based
Compensation
Expense

Non-GAAP
Cost of revenue
$          21,597
$           (1,671)
$          19,926
Sales and marketing
$          57,202
$           (7,430)
$          49,772
Research and development
$          14,505
$           (4,967)
$            9,538
General and administrative
$          18,033
$           (4,337)
$          13,696
Three months ended January 31, 2021
Costs and expenses as a percentage of revenue
GAAP
Stock-Based
Compensation
Expense

Non-GAAP
Cost of revenue
23%
(1)%
22%
Sales and marketing
62%
(8)%
54%
Research and development
16%
(6)%
10%
General and administrative
20%
(5)%
15%
Note: Numbers rounded for presentation purposes. 
YEXT, INC.
Reconciliation of GAAP to Non-GAAP Financial Measures
(In thousands)
(Unaudited)
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%
Fiscal year ended January 31, 2021
Costs and expenses
GAAP
Stock-Based
Compensation
Expense

Non-GAAP
Cost of revenue
$          86,404
$          (5,724)
$          80,680
Sales and marketing
$        228,417
$        (32,581)
$        195,836
Research and development
$          58,146
$        (17,071)
$          41,075
General and administrative
$          76,026
$        (16,918)
$          59,108
Fiscal year ended January 31, 2021
Costs and expenses as a percentage of revenue
GAAP
Stock-Based
Compensation
Expense

Non-GAAP
Cost of revenue
24%
(1)%
23%
Sales and marketing
64%
(9)%
55%
Research and development
16%
(4)%
12%
General and administrative
21%
(4)%
17%
Note: Numbers rounded for presentation purposes.
YEXT, INC.
Reconciliation of GAAP to Non-GAAP Financial Measures
(In thousands)
(Unaudited)
Three months ended January 31,
Fiscal year ended January 31,
2022
2021
2022
2021
Gross profit
GAAP gross profit
$           76,357
$           70,597
$         292,278
$         268,257
Plus: Stock-based compensation expense
1,502
1,671
7,099
5,724
Non-GAAP gross profit
$           77,859
$           72,268
$         299,377
$         273,981
Gross margin
GAAP gross margin
75.7%
76.6%
74.8%
75.6%
Plus: Stock-based compensation expense
1.4%
1.8%
1.8%
1.7%
Non-GAAP gross margin
77.1%
78.4%
76.6%
77.3%
Operating expenses
GAAP operating expenses
$           98,318
$           89,740
$         382,237
$         362,589
Less: Stock-based compensation expense
(17,523)
(16,734)
(66,381)
(66,570)
Non-GAAP operating expenses
$           80,795
$           73,006
$         315,856
$         296,019
Operating expenses as a percentage of revenue
GAAP operating expenses as a percentage of revenue
97%
97%
98%
102%
Less: Stock-based compensation expense
(17)%
(18)%
(17)%
(19)%
Non-GAAP operating expenses as a percentage of revenue
80%
79%
81%
83%
Loss from operations
GAAP loss from operations
$         (21,961)
$         (19,143)
$         (89,959)
$         (94,332)
Plus: Stock-based compensation expense
19,025
18,405
73,480
72,294
Non-GAAP loss from operations
$            (2,936)
$               (738)
$         (16,479)
$         (22,038)
Operating margin (Loss from operations as a percentage of revenue)
GAAP operating margin
(22)%
(21)%
(23)%
(27)%
Plus: Stock-based compensation expense
19%
20%
19%
21%
Non-GAAP operating margin
(3)%
(1)%
(4)%
(6)%
Note: Numbers rounded for presentation purposes.
YEXT, INC.
Reconciliation of GAAP to Non-GAAP Financial Measures
(In thousands, except share and per share data)
(Unaudited)
Three months ended January 31,
2022
2021
GAAP net loss
$                 (23,110)
$                 (18,311)
Plus: Stock-based compensation expense
19,025
18,405
Non-GAAP (net loss) income
$                   (4,085)
$                          94
GAAP net loss per share attributable to common stockholders, basic and diluted
$                     (0.18)
$                     (0.15)
Stock-based compensation expense per share
0.15
0.15
Non-GAAP net (loss) income per share attributable to common stockholders, basic and diluted (1)
$                     (0.03)
$                       0.00
Weighted-average number of shares used in computing net loss per share attributable to common stockholders, basic and diluted
130,328,155
122,954,330
Weighted-average number of shares used in computing non-GAAP net (loss) income per share attributable to common stockholders
Basic
130,328,155
122,954,330
Diluted
130,328,155
129,435,323
(1) – For the three months ended January 31, 2021, non-GAAP net income per share attributable to common stockholders was $0.00 on both a basic and diluted basis, as calculated based on 122,954,330 weighted-average basic shares outstanding and 129,435,323 weighted-average diluted shares outstanding.
Three months ended January 31,
2022
2021
GAAP net loss as a percentage of revenue
(22.9)%
(19.9)%
Plus: Stock-based compensation expense
18.9%
20.0%
Non-GAAP net (loss) income as a percentage of revenue
(4.0)%
0.1%
Fiscal year ended January 31,
2022
2021
GAAP net loss
$                 (93,259)
$                 (94,692)
Plus: Stock-based compensation expense
73,480
72,294
Non-GAAP net loss
$                 (19,779)
$                 (22,398)
GAAP net loss per share attributable to common stockholders, basic and diluted
$                     (0.73)
$                     (0.79)
Stock-based compensation expense per share
0.58
0.60
Non-GAAP net loss per share attributable to common stockholders, basic and diluted
$                     (0.15)
$                     (0.19)
Weighted-average number of shares used in computing net loss per share attributable to common stockholders, basic and diluted
127,814,447
119,690,378
Fiscal year ended January 31,
2022
2021
GAAP net loss as a percentage of revenue
(23.9)%
(26.7)%
Plus: Stock-based compensation expense
18.8%
20.4%
Non-GAAP net loss as a percentage of revenue
(5.1)%
(6.3)%
Note: Numbers rounded for presentation purposes.
SOURCE Yext, Inc.
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