Core Insights - Yext reported quarterly earnings of $0.12 per share, missing the Zacks Consensus Estimate of $0.14 per share, but showing an increase from $0.10 per share a year ago, resulting in an earnings surprise of -14.29% [1] - The company posted revenues of $113.09 million for the quarter ended January 2025, surpassing the Zacks Consensus Estimate by 0.24% and increasing from $101.11 million year-over-year [2] - Yext shares have increased by approximately 3.9% since the beginning of the year, contrasting with the S&P 500's decline of -1.8% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.14 on revenues of $111.05 million, and for the current fiscal year, it is $0.57 on revenues of $451.06 million [7] - The estimate revisions trend for Yext is currently unfavorable, leading to a Zacks Rank 5 (Strong Sell), indicating expected underperformance in the near future [6] Industry Context - The Technology Services industry, to which Yext belongs, is currently in the top 28% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [8] - Another company in the same industry, Bitfarms Ltd., is expected to report a quarterly loss of $0.04 per share, reflecting a year-over-year change of +33.3%, with revenues projected at $53.82 million, up 16.4% from the previous year [9]

Financial Performance - Q4 fiscal 2025 revenue reached $113.1 million, a 12% year-over-year increase, with a GAAP net loss of $7.3 million or $0.06 per basic share[1]. - For the full fiscal year 2025, total revenue was $421.0 million, with a GAAP net loss of $27.9 million or $0.22 per basic share, and Adjusted EBITDA of $67.0 million[2]. - Q4 revenue was $113.1 million, a 12% increase compared to $101.1 million in Q4 fiscal 2024[30]. - Full year fiscal 2025 revenue was $421.0 million, a 4% increase from $404.3 million in the previous fiscal year[35]. - Revenue for the three months ended January 31, 2025, was $113.1 million, a 11.7% increase from $101.1 million in the same period of 2024[78]. - The company projects Q1 fiscal 2026 revenue to be between $107.3 million and $107.8 million[46]. Profitability Metrics - The company achieved a record Adjusted EBITDA of $24.6 million in Q4, with an Adjusted EBITDA margin of 22%[4]. - Non-GAAP net income for fiscal 2025 was $45.0 million, compared to $42.3 million in fiscal 2024[39]. - Adjusted EBITDA for the fiscal year ended January 31, 2025, was $67.0 million, up from $54.6 million in 2024, indicating improved operational efficiency[83]. - Non-GAAP EPS for fiscal 2026 is projected to be in the range of $0.50 to $0.53, assuming 129.9 million weighted-average basic shares outstanding[46]. - Non-GAAP operating margin improved to 19% in Q1 2025, compared to 12% in Q1 2024[89]. Cash Flow and Liquidity - Cash and cash equivalents were $138.7 million as of January 31, 2025, down from $210.2 million a year earlier, primarily due to the acquisition of Hearsay[41]. - Free cash flow for Q1 2025 was $38,030,000, an increase from $27,612,000 in Q1 2024, marking a growth of 37%[100]. - Cash, cash equivalents, and restricted cash at the end of the period were $138.7 million, down from $210.2 million at the beginning of the period[81]. - Cash and cash equivalents decreased to $123,133,000 from $210,184,000, a decline of approximately 41% year-over-year[75]. Annual Recurring Revenue (ARR) - Total ARR as of January 31, 2025, was $442.7 million, with Direct ARR at $368.2 million, impacted by a $2.9 million negative effect from foreign exchange[19]. - Annual recurring revenue (ARR) was $442.7 million as of January 31, 2025, a 13% year-over-year increase[39]. - Total Annual Recurring Revenue (ARR) increased to $442,662,000 in January 2025, up 13% from $392,182,000 in January 2024[103]. - The dollar-based net retention rate for total customers increased to 93% as of January 31, 2025, up from 92% in the previous quarter[106]. Operational Efficiency - The integration of Hearsay Systems is nearing completion, leading to cost reductions and improved operational efficiency[8]. - Total operating expenses for the three months ended January 31, 2025, were $95.9 million, an increase from $78.4 million in the same period of 2024[78]. - Research and development expenses for the fiscal year ended January 31, 2025, were $77.2 million, compared to $72.0 million in 2024, reflecting continued investment in innovation[87]. Product Development and Market Strategy - The launch of Yext Scout is expected to drive accelerated organic growth, with strong customer engagement noted during previews[7]. - Yext Social has gained traction with 19 direct customers and 30 reseller customers licensing the product since its launch in September[9]. - Yext has shifted towards usage-based pricing in its Reseller partnerships, which is expected to drive overall growth in this channel[110]. - The acquisition of Places Scout is being integrated into Yext's offerings, merging AI visibility with traditional search capabilities[114]. - Yext's platform aims to help businesses manage their digital presence across diverse channels amid the challenges of search fragmentation[111]. Future Outlook - The company plans to achieve full year Adjusted EBITDA between $100 million and $103 million for fiscal year 2026[27]. - The company will no longer provide full year revenue guidance but will continue to offer guidance for quarterly revenue and profitability metrics[26]. - The company anticipates growth in ARR for fiscal year 2026, influenced by the adoption rate of new products and macroeconomic conditions[107]. - The company expects a sequential decrease in revenue in Q1 FY26 due to three fewer calendar days compared to Q4 FY25[108].

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Financial Performance - Revenue for the three months ended October 31, 2024, was $113.989 million, an increase of 12.4% compared to $101.164 million for the same period in 2023[21]. - Gross profit for the three months ended October 31, 2024, was $87.742 million, up from $79.098 million in the prior year, reflecting a gross margin improvement[21]. - The net loss for the three months ended October 31, 2024, was $12.799 million, compared to a net loss of $468,000 for the same period in 2023[21]. - Total revenue for the nine months ended October 31, 2024, was $307.9 million, compared to $303.2 million for the same period in 2023, reflecting a growth of approximately 1.1%[49]. - The net loss for the nine months ended October 31, 2024, was $20.673 million, compared to a net loss of $4.317 million for the same period in 2023, representing a significant increase in losses[33]. Expenses and Costs - Operating expenses increased to $98.110 million for the three months ended October 31, 2024, compared to $80.879 million in the same period last year, primarily due to higher general and administrative costs[21]. - Research and development expenses rose to $21.070 million for the three months ended October 31, 2024, compared to $18.291 million in the prior year, indicating a focus on innovation[21]. - Stock-based compensation expense increased to $37.091 million for the nine months ended October 31, 2024, compared to $34.335 million for the same period in 2023, marking an increase of approximately 8.1%[33]. - The company reported a depreciation and amortization expense of $12.101 million for the nine months ended October 31, 2024, slightly down from $12.625 million in the prior year[33]. Cash and Liquidity - Cash and cash equivalents as of October 31, 2024, were $159.962 million, reflecting a decrease from $162.803 million at the end of the previous quarter[25]. - Cash, cash equivalents, and restricted cash at the end of the period were $118.005 million, down from $182.156 million at the end of the same period in 2023, reflecting a decrease of about 35.3%[33]. - Net cash provided by operating activities for the nine months ended October 31, 2024, was $11.865 million, down from $18.137 million in the same period of 2023, a decrease of approximately 34.5%[33]. - The company experienced a net decrease in cash of $92.179 million during the nine months ended October 31, 2024[33]. Acquisition and Growth Strategy - Yext recently completed the acquisition of Hearsay Social, Inc., which is expected to enhance its product offerings and market position[9]. - The acquisition of Hearsay on August 1, 2024, involved total consideration of $180.342 million, including cash consideration of $132.462 million and contingent consideration of $39.5 million[54]. - The Company plans to invest in international expansion and research and development to drive future growth[9]. - The acquisition is expected to create an end-to-end digital presence platform, combining Yext's capabilities with Hearsay's compliant engagement solutions[54]. Stockholder Equity and Shares - Total stockholders' equity as of October 31, 2024, was $159.962 million, up from $136.346 million as of October 31, 2023, indicating a year-over-year increase of approximately 17.4%[33]. - The weighted-average number of shares used in computing net loss per share for the three months ended October 31, 2024, was 128,036,993, compared to 124,239,180 for the same period in 2023[21]. - The Company had approximately 3.8 million shares available for future awards under the Hearsay Plan as of October 31, 2024[77]. Liabilities and Obligations - The Company has contractual obligations totaling $118.976 million for leases and $49.119 million for other obligations, with various expiry dates between fiscal years 2025 and 2035[87]. - The Company may be required to pay up to $75.0 million to former holders of Hearsay's equity interests, contingent on achieving certain ARR milestones over a two-year period[91]. - The Company is required to maintain a minimum liquidity of $35 million and a consolidated total leverage ratio of no greater than 3.00 to 1.00, tested quarterly[84]. Tax and Compliance - The Company recorded a provision for income taxes of $3.0 million for the three months ended October 31, 2024, compared to $0.4 million for the same period in 2023, reflecting a significant increase[86]. - The effective tax rate differs from the U.S. federal statutory tax rate primarily due to full valuation allowances related to net deferred tax assets in the U.S. and certain foreign jurisdictions[86]. - The Company was in compliance with all debt covenants as of October 31, 2024[84].

Financial Performance - Revenue for Q3 fiscal 2025 was $114.0 million, with an Adjusted EBITDA of $23.1 million and a non-GAAP EPS of $0.12, while GAAP net loss was $12.8 million or $(0.10) per share [2]. - Revenue for Q3 Fiscal 2025 was $114.0 million, a 13% increase from $101.2 million in Q3 Fiscal 2024 [40]. - Gross profit was $87.7 million, an 11% increase year-over-year, with a gross margin of 77.0% [41]. - Adjusted EBITDA for Q3 Fiscal 2025 was $23.1 million, compared to $13.5 million in Q3 Fiscal 2024 [46]. - Revenue for the three months ended October 31, 2023, was $113.989 million, a 12.8% increase from $101.164 million in the same period last year [98]. - GAAP net loss for the three months ended October 31, 2023, was $(12,799,000), compared to a net loss of $(468,000) in the same period last year [118]. - Non-GAAP net income for the three months ended October 31, 2023, was $15,615,000, compared to $11,290,000 for the same period last year, representing an increase of 38.5% [118]. - GAAP net loss for the nine months ended October 31, 2024, was $20,673,000, compared to a loss of $4,317,000 for the same period in 2023 [123]. - Non-GAAP net income for the nine months ended October 31, 2024, was $28,717,000, down from $30,018,000 in 2023, representing a decrease of 4.3% [123]. Annual Recurring Revenue (ARR) - Annual Recurring Revenue (ARR) grew to $441.8 million, including contributions from the integration of Hearsay Systems [4]. - Annual Recurring Revenue (ARR) reached $441.8 million, an 11% increase year-over-year, with direct customers contributing 85% of total ARR [47]. - Total Annual Recurring Revenue (ARR) increased to $441,795,000 as of October 31, 2024, up 11% from $396,826,000 in 2023 [132]. - Direct Customers ARR rose by 15% to $374,502,000 from $326,625,000 year-over-year [132]. Customer Retention and Growth - Slight sequential increases in gross and net retention rates were reported, driven by upsells and customer optimization efforts [6]. - Dollar-Based Net Retention Rate (NRR) for total customers was 91%, with direct customers also at 91% [48]. - Dollar-Based Net Retention Rate for Direct Customers was 91% as of October 31, 2024, down from 97% in the previous year [132]. Cash Flow and Financial Position - Free cash flow generated over the trailing twelve months amounting to $37.7 million [3]. - Cash and cash equivalents were $118.0 million, down from $182.2 million a year earlier, primarily due to the acquisition of Hearsay [52]. - Cash and cash equivalents at the end of the period were $100.484 million, down from $182.156 million at the end of the same period last year [101]. - The company reported a net cash provided by operating activities of $11.865 million for the nine months ended October 31, 2023, compared to $18.137 million in the prior year [101]. Guidance and Future Outlook - Full year revenue guidance remains consistent with previous estimates, with expectations for further Adjusted EBITDA margin expansion in Q4 [32]. - Expected FY25 results indicate an 8% revenue growth compared to FY22, with Adjusted EBITDA increasing 220-fold, demonstrating effective management of shareholder dilution [37]. - Fourth Quarter Fiscal 2025 revenue is projected to be between $112.4 million and $112.9 million [55]. - Full Year Fiscal 2025 revenue is projected to be between $420.3 million and $420.8 million [56]. Operating Expenses and Profitability - Operating expenses for the three months ended October 31, 2023, totaled $98.110 million, up from $80.879 million in the prior year, representing a 21.3% increase [98]. - GAAP operating expenses for the three months ended October 31, 2023, were $98,110,000, compared to $80,879,000 in the prior year, reflecting a year-over-year increase of 21.2% [114]. - Non-GAAP operating expenses for the nine months ended October 31, 2023, were $208,137,000, slightly down from $212,466,000 year-over-year, indicating a decrease of 2.0% [114]. - The company emphasizes the importance of non-GAAP financial measures alongside GAAP measures for a comprehensive assessment of performance [74]. Market and Strategic Initiatives - Yext Social was launched in mid-September, enhancing the digital presence platform and leveraging generative AI for content creation [13][14]. - The company is focused on driving top-line growth through M&A opportunities, supported by a strong balance sheet and cash flow profile [12]. - The macroeconomic environment remains complex, but there are signs of improvement in customer interest and deal acceleration related to digital transformation [31].

Yext (YEXT) could be a solid addition to your portfolio given its recent upgrade to a Zacks Rank #2 (Buy). This upgrade primarily reflects an upward trend in earnings estimates, which is one of the most powerful forces impacting stock prices.The sole determinant of the Zacks rating is a company's changing earnings picture. The Zacks Consensus Estimate -- the consensus of EPS estimates from the sell-side analysts covering the stock -- for the current and following years is tracked by the system.The power of ...

Core Viewpoint - Yext (YEXT) is recognized as a strong buy with a focus on digital media technology services, offering various solutions for advertising, monetization, and reputation management [1] Company Overview - Yext provides a cloud-based digital knowledge platform that enables businesses to manage their digital information and sync it across multiple applications such as Google, Facebook, and Yelp [2] - The company offers a subscription-based Yext Knowledge Engine package, which includes features like Listings, Pages, and Reviews to enhance digital presence and customer engagement [2] - Founded in 2006 and headquartered in New York, Yext was established by Howard Lerman, Brent Metz, and Brian Distelburger [2] Earnings Performance - Yext has demonstrated a solid earnings history, surpassing the Zacks Consensus in three of the last four quarters [3] - The average positive earnings surprise over the last four quarters is 48% [4] Earnings Estimates - Annual earnings estimates for Yext are trending upward, with the fiscal 2025 estimate increasing from $0.40 to $0.41, while the next year's estimate has slightly decreased from $0.66 to $0.64 [4] Growth Projections - For fiscal 2025, Yext is expected to achieve 4% growth with projected sales of $420 million, increasing to $463 million in the following year, representing a 10.2% growth [5] Valuation Metrics - Yext's forward earnings multiple is 17x, aligning with the historical market multiple, while the current market multiple stands at 23x [6] - The price to book multiple is 5.4x, indicating potential for growth given the company's asset-light model, and the price to sales ratio is 2.2x, expected to improve as revenue growth accelerates [6]

Yext (YEXT) could be a solid addition to your portfolio given its recent upgrade to a Zacks Rank #1 (Strong Buy). An upward trend in earnings estimates -- one of the most powerful forces impacting stock prices -- has triggered this rating change. The sole determinant of the Zacks rating is a company's changing earnings picture. The Zacks Consensus Estimate -- the consensus of EPS estimates from the sell-side analysts covering the stock -- for the current and following years is tracked by the system. The pow ...