Yext Announces Fourth Quarter and Full Year Fiscal 2023 Results
Yext, Inc. reported its Q4 FY23 results, achieving revenue of $101.9 million, a 1% year-over-year increase. The full-year FY23 revenue reached $400.9 million, up 3%. The company reported a net loss of $7.8 million for Q4, improving from a loss of $23.1 million in Q4 FY22. Non-GAAP net income was $6.3 million versus a loss of $4.1 million a year earlier. Annual Recurring Revenue (ARR) rose 3% to $400 million, with customer count increasing 7% to over 2,960. Yext anticipates Q1 FY24 revenue between $98.0 million and $99.0 million and full-year revenue guidance of $402.0 million to $406.0 million.
- Q4 FY23 revenue of $101.9 million, a 1% increase year-over-year.
- Full-year FY23 revenue of $400.9 million, a 3% increase year-over-year.
- Net loss for Q4 decreased to $7.8 million from $23.1 million in the previous year.
- Non-GAAP net income for Q4 was $6.3 million, compared to a loss of $4.1 million last year.
- ARR increased 3% year-over-year to $400 million.
- Customer count rose 7% to over 2,960.
- Adjusted EBITDA for Q4 was $10.9 million, significantly up from $1.4 million in Q4 FY22.
- Gross profit decreased by 1% year-over-year to $75.4 million.
- Gross margin fell to 74.0% from 75.7% year-over-year.
- Q4 FY23 revenue was negatively impacted by $2.3 million due to foreign currency exchange rates.
-
Q4 FY23 Revenue of
$101.9 Million 1% Year-over-Year or3% on a Constant Currency Basis -
Full Year FY23 Revenue of
$400.9 Million 3% Year-over-Year or5% on a Constant Currency Basis -
Q4 FY23 Net Loss Per Share of
$0.06 $0.05 -
ARR of
$400 Million 3% Year-over-Year or4% on a Constant Currency Basis -
Customer Count Increased
7% Year-over-Year to Over 2,960 -
Cash and Cash Equivalents of
$190 Million
(Graphic:
"We're proud of our performance in the fourth quarter, and we demonstrated continued operating efficiency and our second consecutive quarter of non-GAAP profitability," said
Fourth Quarter Fiscal 2023 Highlights:
Revenue of
Gross Profit of
Net Loss and Non-GAAP Net Income/Loss:
-
Net loss of
$7.8 million $23.1 million -
Non-GAAP net income of
$6.3 million $4.1 million
Net Loss Per Share and Non-GAAP Net Income/Loss Per Share:
-
Net loss per share attributable to common stockholders, basic and diluted, of
$0.06 $0.18 -
Non-GAAP net income per share attributable to common stockholders, basic and diluted, of
$0.05 $0.03
Adjusted EBITDA was
Balance Sheet: Cash and cash equivalents of
Remaining Performance Obligations ("RPO"): RPO of
Annual Recurring Revenue ("ARR"): ARR increased
Cash Flow: Net cash provided by operating activities was
Full Year Fiscal 2023 Highlights:
Revenue of
Gross Profit of
Net Loss and Non-GAAP Net Loss:
-
Net loss of
$65.9 million $93.3 million January 31, 2022 . -
Non-GAAP net loss of
$2.9 million $19.8 million January 31, 2022 .
Net Loss Per Share and Non-GAAP Net Loss Per Share:
-
Net loss per share of
$0.53 $0.73 January 31, 2022 . -
Non-GAAP net loss per share of
$0.02 $0.15 January 31, 2022 . -
Net loss per share and non-GAAP net loss per share were based on 125.3 million and 127.8 million weighted-average basic and diluted shares outstanding for the fiscal years ended
January 31, 2023 and 2022, respectively.
Adjusted EBITDA was
Cash Flow: Cash provided by operating activities of
Share Repurchase Program: As of
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:
- Announced the integration of generative AI into the Yext Knowledge Graph, transforming the product into a content management system (CMS) that generates its own content.
- Announced the launch of Yext Chat, a new product that empowers organizations to create accurate and natural language chat experiences with GPT-3 and other large language models (LLMs).
- Recognized by The Muse, Mogul, and Built In for creating a positive and inclusive work environment.
- Recognized as the best vendor across several software categories in G2's Winter '23 Reports, which measure a company's market presence and performance based on real user ratings.
-
Recognized by
Frost & Sullivan with a 2022 Customer Value Leadership Award for reputation management in the North American financial services industry. -
Announced that
Yvette Martinez-Rea has joinedYext as EVP of Corporate Development to oversee strategic growth initiatives. - Announced an integration with Apple Business Connect, a new, free tool that allows businesses of all sizes to claim their location place cards and customize the way key information appears to more than a billion Apple users across Apple Maps, Messages, Wallet, Siri, and other Apple apps.
- Announced the general availability of its Fall '22 Release, which introduces the Listings Verifier and other features designed to strengthen the company's Answers Platform.
Financial Outlook:
-
First Quarter Fiscal 2024 Outlook:
-
Revenue is projected to be in the range of
$98.0 million $99.0 million -
Adjusted EBITDA is projected to be in the range of
$10.5 million $11.5 million -
Non-GAAP net income per share is projected to be in the range of
$0.05 $0.06
-
Revenue is projected to be in the range of
-
Full Year Fiscal 2024 Outlook:
-
Revenue is projected to be in the range of
$402.0 million $406.0 million -
Adjusted EBITDA is projected to be in the range of
$44.0 million $46.0 million -
Non-GAAP net income per share is projected to be in the range of
$0.22 $0.23
-
Revenue is projected to be in the range of
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About
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), shares outstanding and Adjusted EBITDA for our first quarter and full year fiscal 2024 in the paragraphs under "Financial Outlook" above, 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, 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, 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
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
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.
We also discuss Adjusted EBITDA, a non-GAAP financial measure that we believe offers a useful view of overall operations used to assess the performance of core business operations and for planning purposes. We define Adjusted EBITDA as net income (loss) before (1) interest income (expense), net, (2) provision for income taxes, (3) depreciation and amortization, (4) other income (expense), net, and (5) stock-based compensation expense. The most directly comparable GAAP financial measure to Adjusted EBITDA is net 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 net loss as a measure of 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
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 income (loss) and non-GAAP net income (loss) per share in conjunction with net loss and net loss per share.
We have not reconciled our forward-looking Adjusted EBITDA or non-GAAP net income (loss) per share ranges presented for the periods above, to their most directly comparable GAAP financial measures of net income (loss) and net income (loss) per share. Information on which these reconciliations 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, and stock-based compensation expense, while non-GAAP income (loss) per share excludes stock-based compensation expense.
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
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.
Dollar-based net retention rate is a metric we use to assess our ability to retain 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. 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-market and small business customers.
Condensed Consolidated Balance Sheets (In thousands, except share and per share data) (Unaudited) |
|||||||
|
|
|
|
||||
Assets |
|
|
|
||||
Current assets: |
|
|
|
||||
Cash and cash equivalents |
$ |
190,214 |
|
|
$ |
261,210 |
|
Accounts receivable, net of allowances of |
|
109,727 |
|
|
|
101,607 |
|
Prepaid expenses and other current assets |
|
15,629 |
|
|
|
13,538 |
|
Costs to obtain revenue contracts, current |
|
31,023 |
|
|
|
33,998 |
|
Total current assets |
|
346,593 |
|
|
|
410,353 |
|
Property and equipment, net |
|
62,071 |
|
|
|
74,604 |
|
Operating lease right-of-use assets |
|
85,463 |
|
|
|
97,124 |
|
Costs to obtain revenue contracts, non-current |
|
21,037 |
|
|
|
27,286 |
|
|
|
4,477 |
|
|
|
4,572 |
|
Intangible assets, net |
|
193 |
|
|
|
217 |
|
Other long term assets |
|
3,927 |
|
|
|
6,179 |
|
Total assets |
$ |
523,761 |
|
|
$ |
620,335 |
|
Liabilities and stockholders’ equity |
|
|
|
||||
Current liabilities: |
|
|
|
||||
Accounts payable, accrued expenses and other current liabilities |
$ |
49,017 |
|
|
$ |
48,432 |
|
Unearned revenue, current |
|
223,706 |
|
|
|
223,427 |
|
Operating lease liabilities, current |
|
18,155 |
|
|
|
18,845 |
|
Total current liabilities |
|
290,878 |
|
|
|
290,704 |
|
Operating lease liabilities, non-current |
|
100,534 |
|
|
|
113,776 |
|
Other long term liabilities |
|
4,326 |
|
|
|
3,985 |
|
Total liabilities |
|
395,738 |
|
|
|
408,465 |
|
Commitments and contingencies |
|
|
|
||||
Stockholders’ equity: |
|
|
|
||||
Preferred stock, |
|
— |
|
|
|
— |
|
Common stock, |
|
142 |
|
|
|
137 |
|
Additional paid-in capital |
|
897,368 |
|
|
|
834,429 |
|
Accumulated other comprehensive loss |
|
(3,617 |
) |
|
|
(187 |
) |
Accumulated deficit |
|
(676,542 |
) |
|
|
(610,604 |
) |
|
|
(89,328 |
) |
|
|
(11,905 |
) |
Total stockholders’ equity |
|
128,023 |
|
|
|
211,870 |
|
Total liabilities and stockholders’ equity |
$ |
523,761 |
|
|
$ |
620,335 |
|
Condensed Consolidated Statements of Operations and Comprehensive Loss (In thousands, except share and per share data) (Unaudited) |
|||||||||||||||
|
Three months ended |
|
Fiscal year ended |
||||||||||||
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Revenue |
$ |
101,899 |
|
|
$ |
100,932 |
|
|
$ |
400,850 |
|
|
$ |
390,577 |
|
Cost of revenue |
|
26,487 |
|
|
|
24,575 |
|
|
|
103,960 |
|
|
|
98,299 |
|
Gross profit |
|
75,412 |
|
|
|
76,357 |
|
|
|
296,890 |
|
|
|
292,278 |
|
Operating expenses: |
|
|
|
|
|
|
|
||||||||
Sales and marketing |
|
47,235 |
|
|
|
58,175 |
|
|
|
211,479 |
|
|
|
230,467 |
|
Research and development |
|
17,133 |
|
|
|
18,007 |
|
|
|
70,903 |
|
|
|
68,350 |
|
General and administrative |
|
18,717 |
|
|
|
22,136 |
|
|
|
79,336 |
|
|
|
83,420 |
|
Total operating expenses |
|
83,085 |
|
|
|
98,318 |
|
|
|
361,718 |
|
|
|
382,237 |
|
Loss from operations |
|
(7,673 |
) |
|
|
(21,961 |
) |
|
|
(64,828 |
) |
|
|
(89,959 |
) |
Interest income |
|
887 |
|
|
|
7 |
|
|
|
1,684 |
|
|
|
22 |
|
Interest expense |
|
(106 |
) |
|
|
(141 |
) |
|
|
(589 |
) |
|
|
(544 |
) |
Other expense, net |
|
(236 |
) |
|
|
(483 |
) |
|
|
(125 |
) |
|
|
(1,501 |
) |
Loss from operations before income taxes |
|
(7,128 |
) |
|
|
(22,578 |
) |
|
|
(63,858 |
) |
|
|
(91,982 |
) |
Provision for income taxes |
|
(670 |
) |
|
|
(532 |
) |
|
|
(2,080 |
) |
|
|
(1,277 |
) |
Net loss |
$ |
(7,798 |
) |
|
$ |
(23,110 |
) |
|
$ |
(65,938 |
) |
|
$ |
(93,259 |
) |
|
|
|
|
|
|
|
|
||||||||
Net loss per share attributable to common stockholders, basic and diluted |
$ |
(0.06 |
) |
|
$ |
(0.18 |
) |
|
$ |
(0.53 |
) |
|
$ |
(0.73 |
) |
Weighted-average number of shares used in computing net loss per share attributable to common stockholders, basic and diluted |
|
122,315,825 |
|
|
|
130,328,155 |
|
|
|
125,250,723 |
|
|
|
127,814,447 |
|
|
|
|
|
|
|
|
|
||||||||
Other comprehensive (loss) income: |
|
|
|
|
|
|
|
||||||||
Foreign currency translation adjustment |
$ |
3,127 |
|
|
$ |
(1,370 |
) |
|
$ |
(3,421 |
) |
|
$ |
(2,609 |
) |
Unrealized gain (loss) on marketable securities, net |
|
7 |
|
|
|
— |
|
|
|
(9 |
) |
|
|
— |
|
Total comprehensive loss |
$ |
(4,664 |
) |
|
$ |
(24,480 |
) |
|
$ |
(69,368 |
) |
|
$ |
(95,868 |
) |
Condensed Consolidated Statements of Cash Flows (In thousands) (Unaudited) |
|||||||
|
Fiscal year ended |
||||||
|
|
2023 |
|
|
|
2022 |
|
Operating activities: |
|
|
|
||||
Net loss |
$ |
(65,938 |
) |
|
$ |
(93,259 |
) |
Adjustments to reconcile net loss to net cash provided by operating activities: |
|
|
|
||||
Depreciation and amortization expense |
|
17,583 |
|
|
|
16,783 |
|
Bad debt expense |
|
182 |
|
|
|
1,253 |
|
Stock-based compensation expense |
|
63,078 |
|
|
|
73,480 |
|
Amortization of operating lease right-of-use assets |
|
8,799 |
|
|
|
9,296 |
|
Other, net |
|
1,195 |
|
|
|
582 |
|
Changes in operating assets and liabilities: |
|
|
|
||||
Accounts receivable |
|
(10,056 |
) |
|
|
(6,106 |
) |
Prepaid expenses and other current assets |
|
(2,303 |
) |
|
|
4,238 |
|
Costs to obtain revenue contracts |
|
8,034 |
|
|
|
(9,113 |
) |
Other long term assets |
|
1,140 |
|
|
|
(231 |
) |
Accounts payable, accrued expenses and other current liabilities |
|
2,714 |
|
|
|
(494 |
) |
Unearned revenue |
|
3,538 |
|
|
|
33,262 |
|
Operating lease liabilities |
|
(10,986 |
) |
|
|
(6,644 |
) |
Other long term liabilities |
|
873 |
|
|
|
(1,198 |
) |
Net cash provided by operating activities |
|
17,853 |
|
|
|
21,849 |
|
Investing activities: |
|
|
|
||||
Capital expenditures |
|
(6,193 |
) |
|
|
(13,418 |
) |
Net cash used in investing activities |
|
(6,193 |
) |
|
|
(13,418 |
) |
Financing activities: |
|
|
|
||||
Proceeds from exercise of stock options |
|
714 |
|
|
|
19,228 |
|
Repurchase of common stock |
|
(77,250 |
) |
|
|
— |
|
Payments for taxes related to net share settlement of stock-based compensation awards |
|
(5,129 |
) |
|
|
— |
|
Payments of deferred financing costs |
|
(509 |
) |
|
|
(263 |
) |
Proceeds, net from employee stock purchase plan withholdings |
|
3,153 |
|
|
|
5,652 |
|
Net cash (used in) provided by financing activities |
|
(79,021 |
) |
|
|
24,617 |
|
Effect of exchange rate changes on cash and cash equivalents |
|
(3,635 |
) |
|
|
(2,249 |
) |
Net (decrease) increase in cash and cash equivalents |
|
(70,996 |
) |
|
|
30,799 |
|
Cash and cash equivalents at beginning of period |
|
261,210 |
|
|
|
230,411 |
|
Cash and cash equivalents at end of period |
$ |
190,214 |
|
|
$ |
261,210 |
|
Reconciliations of GAAP to Non-GAAP Financial Measures (In thousands) (Unaudited) |
|||||||||||||||
|
Three months ended |
|
Fiscal year ended |
||||||||||||
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
GAAP net loss to Adjusted EBITDA: |
|
|
|
|
|
|
|
||||||||
GAAP net loss |
$ |
(7,798 |
) |
|
$ |
(23,110 |
) |
|
$ |
(65,938 |
) |
|
$ |
(93,259 |
) |
Interest (income) expense |
|
(781 |
) |
|
|
134 |
|
|
|
(1,095 |
) |
|
|
522 |
|
Provision for income taxes |
|
670 |
|
|
|
532 |
|
|
|
2,080 |
|
|
|
1,277 |
|
Depreciation and amortization |
|
4,486 |
|
|
|
4,292 |
|
|
|
17,583 |
|
|
|
16,783 |
|
Other expense (income) |
|
236 |
|
|
|
483 |
|
|
|
125 |
|
|
|
1,501 |
|
Stock-based compensation expense |
|
14,088 |
|
|
|
19,025 |
|
|
|
63,078 |
|
|
|
73,480 |
|
Adjusted EBITDA |
$ |
10,901 |
|
|
$ |
1,356 |
|
|
$ |
15,833 |
|
|
$ |
304 |
|
Reconciliation of GAAP to Non-GAAP Financial Measures (In thousands) (Unaudited) |
|||||||||
|
Three months ended |
||||||||
Costs and expenses |
GAAP |
|
Stock-Based Compensation Expense |
|
Non-GAAP |
||||
Cost of revenue |
$ |
26,487 |
|
$ |
(1,143 |
) |
|
$ |
25,344 |
Sales and marketing |
$ |
47,235 |
|
$ |
(5,004 |
) |
|
$ |
42,231 |
Research and development |
$ |
17,133 |
|
$ |
(3,733 |
) |
|
$ |
13,400 |
General and administrative |
$ |
18,717 |
|
$ |
(4,208 |
) |
|
$ |
14,509 |
|
Three months ended |
|||||||
Costs and expenses as a percentage of revenue |
GAAP |
|
Stock-Based Compensation Expense |
|
Non-GAAP |
|||
Cost of revenue |
26 |
% |
|
(1 |
)% |
|
25 |
% |
Sales and marketing |
46 |
% |
|
(5 |
)% |
|
41 |
% |
Research and development |
17 |
% |
|
(4 |
)% |
|
13 |
% |
General and administrative |
18 |
% |
|
(4 |
)% |
|
14 |
% |
|
Three months ended |
||||||||
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 |
|||||||
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 |
% |
____________________
|
||||||||
Reconciliation of GAAP to Non-GAAP Financial Measures (In thousands) (Unaudited) |
|||||||||
|
Fiscal year ended |
||||||||
Costs and expenses |
GAAP |
|
Stock-Based Compensation Expense |
|
Non-GAAP |
||||
Cost of revenue |
$ |
103,960 |
|
$ |
(5,042 |
) |
|
$ |
98,918 |
Sales and marketing |
$ |
211,479 |
|
$ |
(22,961 |
) |
|
$ |
188,518 |
Research and development |
$ |
70,903 |
|
$ |
(16,401 |
) |
|
$ |
54,502 |
General and administrative |
$ |
79,336 |
|
$ |
(18,674 |
) |
|
$ |
60,662 |
|
Fiscal year ended |
|||||||
Costs and expenses as a percentage of revenue |
GAAP |
|
Stock-Based Compensation Expense |
|
Non-GAAP |
|||
Cost of revenue |
26 |
% |
|
(1 |
)% |
|
25 |
% |
Sales and marketing |
53 |
% |
|
(6 |
)% |
|
47 |
% |
Research and development |
17 |
% |
|
(3 |
)% |
|
14 |
% |
General and administrative |
20 |
% |
|
(5 |
)% |
|
15 |
% |
|
Fiscal year ended |
||||||||
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 |
|||||||
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 |
% |
____________________
|
||||||||
Reconciliation of GAAP to Non-GAAP Financial Measures (In thousands) (Unaudited) |
|||||||||||||||
|
Three months ended |
|
Fiscal year ended |
||||||||||||
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||||||
Gross profit |
|
|
|
|
|
|
|
||||||||
GAAP gross profit |
$ |
75,412 |
|
|
$ |
76,357 |
|
|
$ |
296,890 |
|
|
$ |
292,278 |
|
Plus: Stock-based compensation expense |
|
1,143 |
|
|
|
1,502 |
|
|
|
5,042 |
|
|
|
7,099 |
|
Non-GAAP gross profit |
$ |
76,555 |
|
|
$ |
77,859 |
|
|
$ |
301,932 |
|
|
$ |
299,377 |
|
|
|
|
|
|
|
|
|
||||||||
Gross margin |
|
|
|
|
|
|
|
||||||||
GAAP gross margin |
|
74.0 |
% |
|
|
75.7 |
% |
|
|
74.1 |
% |
|
|
74.8 |
% |
Plus: Stock-based compensation expense |
|
1.1 |
% |
|
|
1.4 |
% |
|
|
1.2 |
% |
|
|
1.8 |
% |
Non-GAAP gross margin |
|
75.1 |
% |
|
|
77.1 |
% |
|
|
75.3 |
% |
|
|
76.6 |
% |
|
|
|
|
|
|
|
|
||||||||
Operating expenses |
|
|
|
|
|
|
|
||||||||
GAAP operating expenses |
$ |
83,085 |
|
|
$ |
98,318 |
|
|
$ |
361,718 |
|
|
$ |
382,237 |
|
Less: Stock-based compensation expense |
|
(12,945 |
) |
|
|
(17,523 |
) |
|
|
(58,036 |
) |
|
|
(66,381 |
) |
Non-GAAP operating expenses |
$ |
70,140 |
|
|
$ |
80,795 |
|
|
$ |
303,682 |
|
|
$ |
315,856 |
|
|
|
|
|
|
|
|
|
||||||||
Operating expenses as a percentage of revenue |
|
|
|
|
|
|
|||||||||
GAAP operating expenses as a percentage of revenue |
|
82 |
% |
|
|
97 |
% |
|
|
90 |
% |
|
|
98 |
% |
Less: Stock-based compensation expense |
|
(13 |
)% |
|
|
(17 |
)% |
|
|
(14 |
)% |
|
|
(17 |
)% |
Non-GAAP operating expenses as a percentage of revenue |
|
69 |
% |
|
|
80 |
% |
|
|
76 |
% |
|
|
81 |
% |
|
|
|
|
|
|
|
|
||||||||
Loss from operations |
|
|
|
|
|
|
|
||||||||
GAAP loss from operations |
$ |
(7,673 |
) |
|
$ |
(21,961 |
) |
|
$ |
(64,828 |
) |
|
$ |
(89,959 |
) |
Plus: Stock-based compensation expense |
|
14,088 |
|
|
|
19,025 |
|
|
|
63,078 |
|
|
|
73,480 |
|
Non-GAAP income (loss) from operations |
$ |
6,415 |
|
|
$ |
(2,936 |
) |
|
$ |
(1,750 |
) |
|
$ |
(16,479 |
) |
|
|
|
|
|
|
|
|
||||||||
Operating margin (Income/Loss from operations as a percentage of revenue) |
|
|
|
|
|||||||||||
GAAP operating margin |
|
(8 |
)% |
|
|
(22 |
)% |
|
|
(16 |
)% |
|
|
(23 |
)% |
Plus: Stock-based compensation expense |
|
14 |
% |
|
|
19 |
% |
|
|
16 |
% |
|
|
19 |
% |
Non-GAAP operating margin |
|
6 |
% |
|
|
(3 |
)% |
|
|
— |
% |
|
|
(4 |
)% |
____________________
|
|||||||||||||||
Reconciliation of GAAP to Non-GAAP Financial Measures (In thousands, except share and per share data) (Unaudited) |
|||||||
|
Three months ended |
||||||
|
|
2023 |
|
|
|
2022 |
|
GAAP net loss |
$ |
(7,798 |
) |
|
$ |
(23,110 |
) |
Plus: Stock-based compensation expense |
|
14,088 |
|
|
|
19,025 |
|
Non-GAAP net income (loss) |
$ |
6,290 |
|
|
$ |
(4,085 |
) |
|
|
|
|
||||
GAAP net loss per share attributable to common stockholders, basic and diluted |
$ |
(0.06 |
) |
|
$ |
(0.18 |
) |
Stock-based compensation expense per share |
|
0.11 |
|
|
|
0.15 |
|
Non-GAAP net income (loss) per share attributable to common stockholders, basic and diluted (1) |
$ |
0.05 |
|
|
$ |
(0.03 |
) |
|
|
|
|
||||
Weighted-average number of shares used in computing GAAP net loss per share attributable to common stockholders, basic and diluted |
|
122,315,825 |
|
|
|
130,328,155 |
|
Weighted-average number of shares used in computing non-GAAP net income (loss) per share attributable to common stockholders |
|
|
|
||||
Basic |
|
122,315,825 |
|
|
|
130,328,155 |
|
Diluted |
|
124,199,432 |
|
|
|
130,328,155 |
|
(1) For the three months ended |
|||||||
|
Three months ended |
||||
|
2023 |
|
2022 |
||
GAAP net loss as a percentage of revenue |
(7.7 |
)% |
|
(22.9 |
)% |
Plus: Stock-based compensation expense |
13.9 |
% |
|
18.9 |
% |
Non-GAAP net income (loss) as a percentage of revenue |
6.2 |
% |
|
(4.0 |
)% |
|
|
||||
|
Fiscal year ended |
||||||
|
|
2023 |
|
|
|
2022 |
|
GAAP net loss |
$ |
(65,938 |
) |
|
$ |
(93,259 |
) |
Plus: Stock-based compensation expense |
|
63,078 |
|
|
|
73,480 |
|
Non-GAAP net loss |
$ |
(2,860 |
) |
|
$ |
(19,779 |
) |
|
|
|
|
||||
GAAP net loss per share attributable to common stockholders, basic and diluted |
$ |
(0.53 |
) |
|
$ |
(0.73 |
) |
Stock-based compensation expense per share |
|
0.51 |
|
|
|
0.58 |
|
Non-GAAP net loss per share attributable to common stockholders, basic and diluted |
$ |
(0.02 |
) |
|
$ |
(0.15 |
) |
|
|
|
|
||||
Weighted-average number of shares used in computing net loss per share attributable to common stockholders, basic and diluted |
|
125,250,723 |
|
|
|
127,814,447 |
|
|
Fiscal year ended |
||||
|
2023 |
|
2022 |
||
GAAP net loss as a percentage of revenue |
(16.4 |
)% |
|
(23.9 |
)% |
Plus: Stock-based compensation expense |
15.7 |
% |
|
18.8 |
% |
Non-GAAP net loss as a percentage of revenue |
(0.7 |
)% |
|
(5.1 |
)% |
____________________
|
|||||
Reconciliation of GAAP to Non-GAAP Financial Measures (In thousands) (Unaudited) |
||||||||
|
Three months ended |
|
|
|||||
Constant Currency Revenue |
2023 |
|
2022 |
|
Growth Rates |
|||
Revenue (GAAP) |
$ |
101,899 |
|
$ |
100,932 |
|
1 |
% |
Effects of foreign currency rate fluctuations |
|
2,326 |
|
|
|
|
||
Revenue on a constant currency basis (Non-GAAP) |
$ |
104,225 |
|
|
|
3 |
% |
|
|
|
|
|
|
|
|||
|
Fiscal year ended |
|
|
|||||
|
2023 |
|
2022 |
|
Growth Rates |
|||
Revenue (GAAP) |
$ |
400,850 |
|
$ |
390,577 |
|
3 |
% |
Effects of foreign currency rate fluctuations |
|
10,232 |
|
|
|
|
||
Revenue on a constant currency basis (Non-GAAP) |
$ |
411,082 |
|
|
|
5 |
% |
|
____________________
|
||||||||
Supplemental Information (In thousands) (Unaudited) |
||||||||||
|
|
|
Variance |
|||||||
|
2023 |
2022 |
|
Dollars |
Percent |
|||||
Annual Recurring Revenue |
|
|
|
|
|
|||||
Direct Customers |
$ |
327,017 |
$ |
312,132 |
|
$ |
14,885 |
|
5 |
% |
Third-Party Reseller Customers |
|
73,343 |
|
78,353 |
|
|
(5,010 |
) |
(6 |
)% |
Total Annual Recurring Revenue |
$ |
400,360 |
$ |
390,485 |
|
$ |
9,875 |
|
3 |
% |
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|||||||||
Annual Recurring Revenue Trend |
|
|
|
|
|
|||||||||
Direct Customers |
$ |
327,017 |
$ |
317,280 |
$ |
312,129 |
$ |
310,312 |
$ |
312,132 |
||||
Third-Party Reseller Customers |
|
73,343 |
|
72,258 |
|
74,857 |
|
76,671 |
|
78,353 |
||||
Total Annual Recurring Revenue |
$ |
400,360 |
$ |
389,538 |
$ |
386,986 |
$ |
386,983 |
$ |
390,485 |
||||
|
2023 |
2022 |
2022 |
2022 |
2022 |
2021 |
2021 |
2021 |
Dollar-Based Net Retention Rate |
|
|
|
|
|
|
|
|
Direct Customers |
|
|
|
|
|
|
|
|
Third-Party Reseller Customers |
|
|
|
|
|
|
|
|
Total Customers |
|
|
|
|
|
|
|
|
____________________
|
||||||||
SOURCE
View source version on businesswire.com: https://www.businesswire.com/news/home/20230307005908/en/
Investor Relations:
IR@yext.com
Public Relations:
PR@yext.com
Source:
FAQ
What were Yext's Q4 FY23 earnings results?
How did Yext perform in FY23?
What is Yext's revenue projection for Q1 FY24?
What is Yext's ARR as of Q4 FY23?
What is Yext's full-year revenue guidance for FY24?
