Yext, Inc. Announces Third Quarter Fiscal 2023 Results
Yext, Inc. reported revenue of $99.3 million for Q3 FY2023, a slight decrease from $99.5 million in Q3 FY2022. Adjusted for currency fluctuations, revenue grew by 4%. The company narrowed its net loss to $12.3 million or $0.10 per share, an improvement from $24.9 million last year. ARR increased by 1% to $390 million, with a customer count rise of 6% to 2,900. Yext aims for Q4 FY2023 revenue between $100-$101 million and anticipates a non-GAAP net income per share of $0.02-$0.03.
- Improved net loss per share from $0.19 to $0.10 year-over-year.
- Growth in annual recurring revenue (ARR) by 1% to $390 million.
- Customer count increased by 6% year-over-year to approximately 2,900.
- Revenue declined slightly from $99.5 million to $99.3 million year-over-year.
- Gross profit decreased by 1% from $74.3 million to $73.6 million.
-
Revenue of
$99.3 Million 4% on a Constant Currency Basis -
Net Loss Per Share of
$0.10 $0.02 -
ARR of
$390 Million 1% Year-over-Year or Up4% on a Constant Currency Basis -
Customer Count Increased
6% Year-over-Year to Approximately 2,900 -
Cash and Cash Equivalents of
$162 Million - Issues Guidance for Q4 Fiscal 2023
(Graphic:
"I'm pleased with our results for the third quarter, which highlight our continued focus on execution and profitability," said
Third Quarter Fiscal 2023 Highlights:
Revenue of
Gross Profit of
Net Loss and Non-GAAP Net Income/Loss:
-
Net loss of
$12.3 million $24.9 million -
Non-GAAP net income of
$2.5 million $5.5 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
$0.10 $0.19 -
Non-GAAP net income per share attributable to common stockholders, basic and diluted, of
$0.02 $0.04
Balance Sheet: Cash and cash equivalents of
Remaining Performance Obligations ("RPO"): RPO of
Annual Recurring Revenue ("ARR"): ARR increased
Cash Flow: Net cash used in operating activities was
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:
-
Appointed
Tom Nielsen asYext's Chief Revenue Officer to accelerate and scale global revenue growth. -
Launched Yext Search in
AWS Marketplace to give AWS customers added flexibility to the software procurement process. -
Announced the availability of
Yext's Fall '22 Release for early access, new features strengthen the Answers Platform and further develop the Company's best-in-class Listings product. -
Appointed
Evan Skorpen as an independent director onYext's Board of Directors. -
Announced the addition of new functionality that will allow restaurant brands to manage pickup and delivery options on their
Google Business Profiles. - Recognized as an overall winner in the Customer Service category and won the SaaS Customer Success Award at the 2022 APPEALIE SaaS awards.
- Recognized by KMWorld in its Trend-Setting Products of 2022 and AI 50 2022: The Companies Empowering Intelligent Knowledge Management.
-
Recognized as one of the 2022 Best Workplaces in Technology™ by
Great Place to Work® andFortune Magazine , ranking #38 for large-sized businesses.
Financial Outlook:
-
Fourth Quarter Fiscal 2023 Outlook:
-
Revenue is projected to be in the range of
$100.0 million $101.0 million -
Non-GAAP net income per share is projected to be
$0.02 $0.03
-
Revenue is projected to be in the range of
-
Full Year Fiscal 2023 Outlook:
-
Revenue is projected to be in the range of
$399.0 million $400.0 million $8.7 million March 2022 . -
Non-GAAP net loss per share is projected to be
$0.05 $0.04
-
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) and shares outstanding for our fourth 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
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.
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 loss/income (loss) and non-GAAP net income (loss) 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
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.
Condensed Consolidated Balance Sheets (In thousands, except share and per share data) (Unaudited) |
|||||||
|
|
|
|
||||
Assets |
|
|
|
||||
Current assets: |
|
|
|
||||
Cash and cash equivalents |
$ |
162,268 |
|
|
$ |
261,210 |
|
Accounts receivable, net of allowances of |
|
68,027 |
|
|
|
101,607 |
|
Prepaid expenses and other current assets |
|
14,887 |
|
|
|
13,538 |
|
Costs to obtain revenue contracts, current |
|
30,368 |
|
|
|
33,998 |
|
Total current assets |
|
275,550 |
|
|
|
410,353 |
|
Property and equipment, net |
|
65,308 |
|
|
|
74,604 |
|
Operating lease right-of-use assets |
|
86,617 |
|
|
|
97,124 |
|
Costs to obtain revenue contracts, non-current |
|
20,619 |
|
|
|
27,286 |
|
|
|
4,235 |
|
|
|
4,572 |
|
Intangible assets, net |
|
199 |
|
|
|
217 |
|
Other long term assets |
|
3,578 |
|
|
|
6,179 |
|
Total assets |
$ |
456,106 |
|
|
$ |
620,335 |
|
Liabilities and stockholders’ equity |
|
|
|
||||
Current liabilities: |
|
|
|
||||
Accounts payable, accrued expenses and other current liabilities |
$ |
48,252 |
|
|
$ |
48,432 |
|
Unearned revenue, current |
|
153,267 |
|
|
|
223,427 |
|
Operating lease liabilities, current |
|
17,847 |
|
|
|
18,845 |
|
Total current liabilities |
|
219,366 |
|
|
|
290,704 |
|
Operating lease liabilities, non-current |
|
102,613 |
|
|
|
113,776 |
|
Other long term liabilities |
|
4,276 |
|
|
|
3,985 |
|
Total liabilities |
|
326,255 |
|
|
|
408,465 |
|
Commitments and contingencies |
|
|
|
||||
Stockholders’ equity: |
|
|
|
||||
Preferred stock, |
|
— |
|
|
|
— |
|
Common stock, |
|
141 |
|
|
|
137 |
|
Additional paid-in capital |
|
886,185 |
|
|
|
834,429 |
|
Accumulated other comprehensive loss |
|
(6,751 |
) |
|
|
(187 |
) |
Accumulated deficit |
|
(668,744 |
) |
|
|
(610,604 |
) |
|
|
(80,980 |
) |
|
|
(11,905 |
) |
Total stockholders’ equity |
|
129,851 |
|
|
|
211,870 |
|
Total liabilities and stockholders’ equity |
$ |
456,106 |
|
|
$ |
620,335 |
|
Condensed Consolidated Statements of Operations and Comprehensive Loss (In thousands, except share and per share data) (Unaudited) |
|||||||||||||||
|
Three months ended |
|
Nine months ended |
||||||||||||
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
Revenue |
$ |
99,280 |
|
|
$ |
99,529 |
|
|
$ |
298,951 |
|
|
$ |
289,645 |
|
Cost of revenue |
|
25,663 |
|
|
|
25,255 |
|
|
|
77,473 |
|
|
|
73,724 |
|
Gross profit |
|
73,617 |
|
|
|
74,274 |
|
|
|
221,478 |
|
|
|
215,921 |
|
Operating expenses: |
|
|
|
|
|
|
|
||||||||
Sales and marketing |
|
49,360 |
|
|
|
58,548 |
|
|
|
164,244 |
|
|
|
172,292 |
|
Research and development |
|
17,649 |
|
|
|
17,986 |
|
|
|
53,770 |
|
|
|
50,343 |
|
General and administrative |
|
18,740 |
|
|
|
22,094 |
|
|
|
60,619 |
|
|
|
61,284 |
|
Total operating expenses |
|
85,749 |
|
|
|
98,628 |
|
|
|
278,633 |
|
|
|
283,919 |
|
Loss from operations |
|
(12,132 |
) |
|
|
(24,354 |
) |
|
|
(57,155 |
) |
|
|
(67,998 |
) |
Interest income |
|
587 |
|
|
|
5 |
|
|
|
797 |
|
|
|
15 |
|
Interest expense |
|
(211 |
) |
|
|
(113 |
) |
|
|
(483 |
) |
|
|
(403 |
) |
Other (expense) income, net |
|
(156 |
) |
|
|
(191 |
) |
|
|
111 |
|
|
|
(1,018 |
) |
Loss from operations before income taxes |
|
(11,912 |
) |
|
|
(24,653 |
) |
|
|
(56,730 |
) |
|
|
(69,404 |
) |
(Provision for) benefit from income taxes |
|
(398 |
) |
|
|
(273 |
) |
|
|
(1,410 |
) |
|
|
(745 |
) |
Net loss |
$ |
(12,310 |
) |
|
$ |
(24,926 |
) |
|
$ |
(58,140 |
) |
|
$ |
(70,149 |
) |
|
|
|
|
|
|
|
|
||||||||
Net loss per share attributable to common stockholders, basic and diluted |
$ |
(0.10 |
) |
|
$ |
(0.19 |
) |
|
$ |
(0.46 |
) |
|
$ |
(0.55 |
) |
Weighted-average number of shares used in computing net loss per share attributable to common stockholders, basic and diluted |
|
123,500,961 |
|
|
|
128,570,237 |
|
|
|
126,239,773 |
|
|
|
126,967,336 |
|
|
|
|
|
|
|
|
|
||||||||
Other comprehensive loss: |
|
|
|
|
|
|
|
||||||||
Foreign currency translation adjustment |
$ |
(1,127 |
) |
|
$ |
(1,586 |
) |
|
$ |
(6,548 |
) |
|
$ |
(1,239 |
) |
Unrealized loss on marketable securities, net |
|
(16 |
) |
|
|
— |
|
|
|
(16 |
) |
|
|
— |
|
Total comprehensive loss |
$ |
(13,453 |
) |
|
$ |
(26,512 |
) |
|
$ |
(64,704 |
) |
|
$ |
(71,388 |
) |
Condensed Consolidated Statements of Cash Flows (In thousands) (Unaudited) |
|||||||
|
Nine months ended |
||||||
|
|
2022 |
|
|
|
2021 |
|
Operating activities: |
|
|
|
||||
Net loss |
$ |
(58,140 |
) |
|
$ |
(70,149 |
) |
Adjustments to reconcile net loss to net cash used in operating activities: |
|
|
|
||||
Depreciation and amortization expense |
|
13,098 |
|
|
|
12,490 |
|
Bad debt expense |
|
381 |
|
|
|
826 |
|
Stock-based compensation expense |
|
48,990 |
|
|
|
54,455 |
|
Amortization of operating lease right-of-use assets |
|
6,684 |
|
|
|
6,934 |
|
Other, net |
|
1,180 |
|
|
|
506 |
|
Changes in operating assets and liabilities: |
|
|
|
||||
Accounts receivable |
|
30,296 |
|
|
|
34,317 |
|
Prepaid expenses and other current assets |
|
(1,747 |
) |
|
|
965 |
|
Costs to obtain revenue contracts |
|
8,173 |
|
|
|
(8,654 |
) |
Other long term assets |
|
1,232 |
|
|
|
43 |
|
Accounts payable, accrued expenses and other current liabilities |
|
3,910 |
|
|
|
3,841 |
|
Unearned revenue |
|
(64,786 |
) |
|
|
(39,423 |
) |
Operating lease liabilities |
|
(8,158 |
) |
|
|
(4,041 |
) |
Other long term liabilities |
|
795 |
|
|
|
615 |
|
Net cash used in operating activities |
|
(18,092 |
) |
|
|
(7,275 |
) |
Investing activities: |
|
|
|
||||
Capital expenditures |
|
(5,400 |
) |
|
|
(12,333 |
) |
Net cash used in investing activities |
|
(5,400 |
) |
|
|
(12,333 |
) |
Financing activities: |
|
|
|
||||
Proceeds from exercise of stock options |
|
561 |
|
|
|
15,869 |
|
Repurchase of common stock |
|
(68,695 |
) |
|
|
— |
|
Payments for taxes related to net share settlement of stock-based compensation awards |
|
(1,846 |
) |
|
|
— |
|
Payments of deferred financing costs |
|
(284 |
) |
|
|
(263 |
) |
Proceeds, net from employee stock purchase plan withholdings |
|
1,947 |
|
|
|
4,059 |
|
Net cash (used in) provided by financing activities |
|
(68,317 |
) |
|
|
19,665 |
|
Effect of exchange rate changes on cash and cash equivalents |
|
(7,133 |
) |
|
|
(942 |
) |
Net decrease in cash and cash equivalents |
|
(98,942 |
) |
|
|
(885 |
) |
Cash and cash equivalents at beginning of period |
|
261,210 |
|
|
|
230,411 |
|
Cash and cash equivalents at end of period |
$ |
162,268 |
|
|
$ |
229,526 |
|
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 |
$ |
25,663 |
|
$ |
(1,176 |
) |
|
$ |
24,487 |
Sales and marketing |
$ |
49,360 |
|
$ |
(5,432 |
) |
|
$ |
43,928 |
Research and development |
$ |
17,649 |
|
$ |
(3,946 |
) |
|
$ |
13,703 |
General and administrative |
$ |
18,740 |
|
$ |
(4,268 |
) |
|
$ |
14,472 |
|
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 |
50 |
% |
|
(6 |
)% |
|
44 |
% |
Research and development |
17 |
% |
|
(3 |
)% |
|
14 |
% |
General and administrative |
19 |
% |
|
(4 |
)% |
|
15 |
% |
|
Three months ended |
||||||||
Costs and expenses |
GAAP |
|
Stock-Based Compensation Expense |
|
Non-GAAP |
||||
Cost of revenue |
$ |
25,255 |
|
$ |
(1,840 |
) |
|
$ |
23,415 |
Sales and marketing |
$ |
58,548 |
|
$ |
(6,757 |
) |
|
$ |
51,791 |
Research and development |
$ |
17,986 |
|
$ |
(5,469 |
) |
|
$ |
12,517 |
General and administrative |
$ |
22,094 |
|
$ |
(5,389 |
) |
|
$ |
16,705 |
|
Three months ended |
|||||||
Costs and expenses as a percentage of revenue |
GAAP |
|
Stock-Based Compensation Expense |
|
Non-GAAP |
|||
Cost of revenue |
25 |
% |
|
(2 |
)% |
|
24 |
% |
Sales and marketing |
59 |
% |
|
(7 |
)% |
|
52 |
% |
Research and development |
18 |
% |
|
(6 |
)% |
|
12 |
% |
General and administrative |
22 |
% |
|
(5 |
)% |
|
17 |
% |
| _______________ | ||||||||
Note: Numbers rounded for presentation purposes and may not sum. |
||||||||
Reconciliation of GAAP to Non-GAAP Financial Measures (In thousands) (Unaudited) |
|||||||||
|
Nine months ended |
||||||||
Costs and expenses |
GAAP |
|
Stock-Based Compensation Expense |
|
Non-GAAP |
||||
Cost of revenue |
$ |
77,473 |
|
$ |
(3,899 |
) |
|
$ |
73,574 |
Sales and marketing |
$ |
164,244 |
|
$ |
(17,957 |
) |
|
$ |
146,287 |
Research and development |
$ |
53,770 |
|
$ |
(12,668 |
) |
|
$ |
41,102 |
General and administrative |
$ |
60,619 |
|
$ |
(14,466 |
) |
|
$ |
46,153 |
|
Nine 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 |
55 |
% |
|
(6 |
)% |
|
49 |
% |
Research and development |
18 |
% |
|
(4 |
)% |
|
14 |
% |
General and administrative |
20 |
% |
|
(5 |
)% |
|
15 |
% |
|
Nine months ended |
||||||||
Costs and expenses |
GAAP |
|
Stock-Based Compensation Expense |
|
Non-GAAP |
||||
Cost of revenue |
$ |
73,724 |
|
$ |
(5,597 |
) |
|
$ |
68,127 |
Sales and marketing |
$ |
172,292 |
|
$ |
(19,635 |
) |
|
$ |
152,657 |
Research and development |
$ |
50,343 |
|
$ |
(15,285 |
) |
|
$ |
35,058 |
General and administrative |
$ |
61,284 |
|
$ |
(13,938 |
) |
|
$ |
47,346 |
|
Nine months ended |
|||||||
Costs and expenses as a percentage of revenue |
GAAP |
|
Stock-Based Compensation Expense |
|
Non-GAAP |
|||
Cost of revenue |
26 |
% |
|
(2 |
)% |
|
24 |
% |
Sales and marketing |
60 |
% |
|
(7 |
)% |
|
53 |
% |
Research and development |
17 |
% |
|
(5 |
)% |
|
12 |
% |
General and administrative |
21 |
% |
|
(5 |
)% |
|
16 |
% |
| _______________ | ||||||||
Note: Numbers rounded for presentation purposes and may not sum. |
||||||||
Reconciliation of GAAP to Non-GAAP Financial Measures (In thousands) (Unaudited) |
|||||||||||||||
|
Three months ended |
|
Nine months ended |
||||||||||||
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
Gross profit |
|
|
|
|
|
|
|
||||||||
GAAP gross profit |
$ |
73,617 |
|
|
$ |
74,274 |
|
|
$ |
221,478 |
|
|
$ |
215,921 |
|
Plus: Stock-based compensation expense |
|
1,176 |
|
|
|
1,840 |
|
|
|
3,899 |
|
|
|
5,597 |
|
Non-GAAP gross profit |
$ |
74,793 |
|
|
$ |
76,114 |
|
|
$ |
225,377 |
|
|
$ |
221,518 |
|
|
|
|
|
|
|
|
|
||||||||
Gross margin |
|
|
|
|
|
|
|
||||||||
GAAP gross margin |
|
74.2 |
% |
|
|
74.6 |
% |
|
|
74.1 |
% |
|
|
74.5 |
% |
Plus: Stock-based compensation expense |
|
1.1 |
% |
|
|
1.9 |
% |
|
|
1.3 |
% |
|
|
2.0 |
% |
Non-GAAP gross margin |
|
75.3 |
% |
|
|
76.5 |
% |
|
|
75.4 |
% |
|
|
76.5 |
% |
|
|
|
|
|
|
|
|
||||||||
Operating expenses |
|
|
|
|
|
|
|
||||||||
GAAP operating expenses |
$ |
85,749 |
|
|
$ |
98,628 |
|
|
$ |
278,633 |
|
|
$ |
283,919 |
|
Less: Stock-based compensation expense |
|
(13,646 |
) |
|
|
(17,615 |
) |
|
|
(45,091 |
) |
|
|
(48,858 |
) |
Non-GAAP operating expenses |
$ |
72,103 |
|
|
$ |
81,013 |
|
|
$ |
233,542 |
|
|
$ |
235,061 |
|
|
|
|
|
|
|
|
|
||||||||
Operating expenses as a percentage of revenue |
|
|
|
|
|
|
|||||||||
GAAP operating expenses as a percentage of revenue |
|
86 |
% |
|
|
99 |
% |
|
|
93 |
% |
|
|
98 |
% |
Less: Stock-based compensation expense |
|
(13 |
)% |
|
|
(18 |
)% |
|
|
(15 |
)% |
|
|
(17 |
)% |
Non-GAAP operating expenses as a percentage of revenue |
|
73 |
% |
|
|
81 |
% |
|
|
78 |
% |
|
|
81 |
% |
|
|
|
|
|
|
|
|
||||||||
Loss from operations |
|
|
|
|
|
|
|
||||||||
GAAP loss from operations |
$ |
(12,132 |
) |
|
$ |
(24,354 |
) |
|
$ |
(57,155 |
) |
|
$ |
(67,998 |
) |
Plus: Stock-based compensation expense |
|
14,822 |
|
|
|
19,455 |
|
|
|
48,990 |
|
|
|
54,455 |
|
Non-GAAP income (loss) from operations |
$ |
2,690 |
|
|
$ |
(4,899 |
) |
|
$ |
(8,165 |
) |
|
$ |
(13,543 |
) |
|
|
|
|
|
|
|
|
||||||||
Operating margin (Income/loss from operations as a percentage of revenue) |
|
|
|
|
|||||||||||
GAAP operating margin |
|
(12 |
)% |
|
|
(24 |
)% |
|
|
(19 |
)% |
|
|
(24 |
)% |
Plus: Stock-based compensation expense |
|
15 |
% |
|
|
19 |
% |
|
|
16 |
% |
|
|
19 |
% |
Non-GAAP operating margin |
|
3 |
% |
|
|
(5 |
)% |
|
|
(3 |
)% |
|
|
(5 |
)% |
_______________ |
|
|
|
|
|
|
|
||||||||
Note: Numbers rounded for presentation purposes and may not sum. |
|||||||||||||||
Reconciliation of GAAP to Non-GAAP Financial Measures (In thousands, except share and per share data) (Unaudited) |
|||||||
|
Three months ended |
||||||
|
|
2022 |
|
|
|
2021 |
|
GAAP net loss |
$ |
(12,310 |
) |
|
$ |
(24,926 |
) |
Plus: Stock-based compensation expense |
|
14,822 |
|
|
|
19,455 |
|
Non-GAAP net income (loss) |
$ |
2,512 |
|
|
$ |
(5,471 |
) |
|
|
|
|
||||
GAAP net loss per share attributable to common stockholders, basic and diluted |
$ |
(0.10 |
) |
|
$ |
(0.19 |
) |
Stock-based compensation expense per share |
|
0.12 |
|
|
|
0.15 |
|
Non-GAAP net income (loss) per share attributable to common stockholders, basic and diluted (1) |
$ |
0.02 |
|
|
$ |
(0.04 |
) |
|
|
|
|
||||
Weighted-average number of shares used in computing GAAP net loss per share attributable to common stockholders, basic and diluted |
|
123,500,961 |
|
|
|
128,570,237 |
|
Weighted-average number of shares used in computing non-GAAP net income (loss) per share attributable to common stockholders |
|
|
|
||||
Basic |
|
123,500,961 |
|
|
|
128,570,237 |
|
Diluted |
|
124,131,014 |
|
|
|
128,570,237 |
|
(1) - For the three months ended |
|||||||
|
Three months ended |
||||
|
2022 |
|
2021 |
||
GAAP net loss as a percentage of revenue |
(12.4 |
)% |
|
(25.0 |
)% |
Plus: Stock-based compensation expense |
14.9 |
% |
|
19.5 |
% |
Non-GAAP net income (loss) as a percentage of revenue |
2.5 |
% |
|
(5.5 |
)% |
|
Nine months ended |
||||||
|
|
2022 |
|
|
|
2021 |
|
GAAP net loss |
$ |
(58,140 |
) |
|
$ |
(70,149 |
) |
Plus: Stock-based compensation expense |
|
48,990 |
|
|
|
54,455 |
|
Non-GAAP net loss |
$ |
(9,150 |
) |
|
$ |
(15,694 |
) |
|
|
|
|
||||
GAAP net loss per share attributable to common stockholders, basic and diluted |
$ |
(0.46 |
) |
|
$ |
(0.55 |
) |
Stock-based compensation expense per share |
|
0.39 |
|
|
|
0.43 |
|
Non-GAAP net loss per share attributable to common stockholders, basic and diluted |
$ |
(0.07 |
) |
|
$ |
(0.12 |
) |
|
|
|
|
||||
Weighted-average number of shares used in computing net loss per share attributable to common stockholders, basic and diluted |
|
126,239,773 |
|
|
|
126,967,336 |
|
|
Nine months ended |
||||
|
2022 |
|
2021 |
||
GAAP net loss as a percentage of revenue |
(19.4 |
)% |
|
(24.2 |
)% |
Plus: Stock-based compensation expense |
16.3 |
% |
|
18.8 |
% |
Non-GAAP net loss as a percentage of revenue |
(3.1 |
)% |
|
(5.4 |
)% |
| _______________ | |||||
Note: Numbers rounded for presentation purposes and may not sum. |
|||||
Reconciliation of GAAP to Non-GAAP Financial Measures (In thousands) (Unaudited) |
||||||||
|
Three months ended |
|
|
|||||
Constant Currency Revenue |
2022 |
|
2021 |
|
Growth Rates |
|||
Revenue (GAAP) |
$ |
99,280 |
|
$ |
99,529 |
|
— |
% |
Effects of foreign currency rate fluctuations |
|
3,738 |
|
|
|
|
||
Revenue on a constant currency basis (Non-GAAP) |
$ |
103,018 |
|
|
|
4 |
% |
|
|
|
|
|
|
|
|||
|
Nine months ended |
|
|
|||||
|
2022 |
|
2021 |
|
Growth Rates |
|||
Revenue (GAAP) |
$ |
298,951 |
|
$ |
289,645 |
|
3 |
% |
Effects of foreign currency rate fluctuations |
|
7,906 |
|
|
|
|
||
Revenue on a constant currency basis (Non-GAAP) |
$ |
306,857 |
|
|
|
6 |
% |
|
| _______________ | ||||||||
Note: Numbers rounded for presentation purposes and may not sum. |
||||||||
Supplemental Information (In thousands) (Unaudited) |
||||||||||||
|
|
|
Variance |
|||||||||
|
2022 |
2021 |
|
Dollars |
Percent |
|||||||
Annual Recurring Revenue |
|
|
|
|
|
|||||||
Direct Customers |
$ |
317,280 |
$ |
308,197 |
|
$ |
9,083 |
|
3 |
% |
||
Third-Party Reseller Customers |
|
72,258 |
|
78,457 |
|
|
(6,199 |
) |
(8 |
)% |
||
Total Annual Recurring Revenue |
$ |
389,538 |
$ |
386,654 |
|
$ |
2,884 |
|
1 |
% |
||
|
|
|
|
|||||||||||
|
|
|
|
|
|
|||||||||
Annual Recurring Revenue Trend |
|
|
|
|
|
|||||||||
Direct Customers |
$ |
317,280 |
$ |
312,129 |
$ |
310,312 |
$ |
312,132 |
$ |
308,197 |
||||
Third-Party Reseller Customers |
|
72,258 |
|
74,857 |
|
76,671 |
|
78,353 |
|
78,457 |
||||
Total Annual Recurring Revenue |
$ |
389,538 |
$ |
386,986 |
$ |
386,983 |
$ |
390,485 |
$ |
386,654 |
||||
| _______________ | ||||||||||||||
Note: Numbers rounded for presentation purposes and may not sum. |
||||||||||||||
SOURCE
View source version on businesswire.com: https://www.businesswire.com/news/home/20221130005986/en/
Investor Relations:
IR@yext.com
Public Relations:
PR@yext.com
Source:
FAQ
What is Yext's revenue for Q3 FY2023?
What was Yext's net loss per share in Q3 FY2023?
How did Yext's annual recurring revenue (ARR) change?
What is Yext's guidance for Q4 FY2023?
