Needham analyst Ryan MacDonald upgraded Yext, Inc. YEXT to Buy from Hold, with a price forecast of $8. Yext shares are trading higher after the company reported better-than-expected second-quarter adjusted EPS results and issued FY25 revenue guidance above estimates. The analyst notes that the results clarified the business's fundamental trajectory following the recent Hearsay acquisition. MacDonald sees significant potential for margin expansion over the next 12-18 months, despite initial dilution from the ...

Financial Data and Key Metrics Changes - The company has updated its revenue guidance to include two full quarters of revenue from the recently acquired Hearsay Systems, which is expected to contribute approximately $51 million for the full year [7][8]. - The management indicated that the Hearsay acquisition is expected to provide top-line synergies and accelerate growth for both the legacy Hearsay business and Yext's business [7][10]. Business Line Data and Key Metrics Changes - The company is focusing on upselling Hearsay's offerings to Yext's core customer base, identifying opportunities where Yext has customers that Hearsay does not serve [14][15]. - The management noted that organic ARR growth could reach mid-single digits by the end of this year and high-single digits in the first half of next year, despite accounting for risks [13][17]. Market Data and Key Metrics Changes - The management observed a trend of consolidation among software vendors as customers seek to reduce the complexity of their tech stacks, which is creating opportunities for Yext and Hearsay to deliver better analytics and workflows [9][10]. - The company is seeing a positive reaction from shared customers regarding the merger of Yext and Hearsay, as it promises improved data integration and analytics capabilities [9][10]. Company Strategy and Development Direction - The company is committed to a long-term value-driving framework that includes investing in organic growth, exploring inorganic growth opportunities, and share buybacks to create positive antidilution effects for shareholders [11][30]. - The management emphasized the importance of a cohesive data strategy in the context of generative AI, indicating that a well-organized data platform will be crucial for future growth [20][21]. Management's Comments on Operating Environment and Future Outlook - The management expressed a cautious outlook for ARR growth, citing ongoing economic uncertainties and competitive pressures in the market [17][29]. - The company is optimistic about the potential for AI-driven innovations but acknowledges that the adoption of such technologies may take time, with expectations of significant value generation in the long term [19][20]. Other Important Information - The company reported a trend of "Boomerang customers," with nine customers returning in the last quarter, indicating a shift in customer sentiment and a willingness to re-engage with Yext [32][33]. - The management is transitioning from contractual ARR to usage-based models for third-party resellers to provide more flexibility to customers, which may impact reported ARR figures [36][39]. Q&A Session Summary Question: Is the updated revenue guidance solely from Hearsay? - The CFO confirmed that the guidance includes two full quarters of Hearsay revenue and discussed the anticipated synergies from the acquisition [7]. Question: What is the current state of software vendor consolidation? - The CEO noted that customers are overwhelmed by too many software solutions, leading to a demand for consolidation, which Yext is well-positioned to address [9][10]. Question: What are the opportunities for upselling Hearsay? - The CEO highlighted that there are significant opportunities to create value by unifying data platforms and workflows for joint customers [14][15]. Question: What is the outlook for organic ARR growth? - The CEO indicated that organic ARR growth is expected to be stable to modest this year, with potential for improvement next year [17]. Question: How quickly can revenue synergies from Hearsay be recognized? - The CEO mentioned that the sales processes are similar, and there are opportunities to engage Yext customers who are not currently Hearsay customers [23]. Question: What are the implications of moving to usage-based models? - The CEO explained that this shift aims to meet customer needs for flexibility and may affect reported ARR, but revenue trends will remain stable [36][39].

Yext (YEXT) came out with quarterly earnings of $0.05 per share, beating the Zacks Consensus Estimate of $0.02 per share. This compares to earnings of $0.06 per share a year ago. These figures are adjusted for nonrecurring items. This quarterly report represents an earnings surprise of 150%. A quarter ago, it was expected that this software developer would post earnings of $0.07 per share when it actually produced earnings of $0.05, delivering a surprise of -28.57%. Over the last four quarters, the company ...

Yext, Inc. (NYSE:YEXT) Q1 2025 Earnings Conference Call June 10, 2024 5:00 PM ET Company Participants Nils Erdmann - Senior Vice President, Investor Relations Mike Walrath - Chief Executive Officer and Chair of the Board Darryl Bond - Chief Financial Officer Conference Call Participants Tom White – D.A. Davidson Rohit Kulkarni - ROTH Capital Partners Ryan MacDonald - Needham Naved Khan - B. Riley Securities Operator Good afternoon, and welcome to the Yext, Inc. First Quarter Fiscal 2025 Financial Results Co ...

PART I. FINANCIAL INFORMATION [Item 1. Financial Statements](index=6&type=section&id=Item%201.%20Financial%20Statements) This section presents Yext's unaudited condensed consolidated financial statements for the quarter ended April 30, 2024, detailing financial position, performance, and cash flows, including notes on key events [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Condensed Consolidated Balance Sheet Highlights (Unaudited) | Account | April 30, 2024 (in thousands) | January 31, 2024 (in thousands) | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $246,114 | $210,184 | | Total current assets | $339,574 | $359,911 | | Total assets | $481,730 | $508,810 | | **Liabilities & Stockholders' Equity** | | | | Unearned revenue, current | $185,220 | $212,210 | | Total current liabilities | $235,515 | $267,774 | | Total liabilities | $326,056 | $361,636 | | Total stockholders' equity | $155,674 | $147,174 | [Condensed Consolidated Statements of Operations and Comprehensive Loss](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Loss) Condensed Consolidated Statement of Operations (Unaudited) | Account | Three months ended April 30, 2024 (in thousands) | Three months ended April 30, 2023 (in thousands) | | :--- | :--- | :--- | | Revenue | $95,990 | $99,453 | | Gross profit | $74,444 | $78,103 | | Total operating expenses | $79,870 | $79,335 | | Loss from operations | $(5,426) | $(1,232) | | Net loss | $(3,817) | $(412) | | Net loss per share, basic and diluted | $(0.03) | $0.00 | [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Condensed Consolidated Statement of Cash Flows (Unaudited) | Activity | Three months ended April 30, 2024 (in thousands) | Three months ended April 30, 2023 (in thousands) | | :--- | :--- | :--- | | Net cash provided by operating activities | $38,309 | $26,744 | | Net cash used in investing activities | $(647) | $(944) | | Net cash (used in) provided by financing activities | $(1,174) | $312 | | Net increase in cash and cash equivalents | $35,930 | $26,636 | | Cash and cash equivalents at end of period | $246,114 | $216,850 | [Notes to Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) - The company operates as one operating segment, providing a digital presence platform that includes products like Listings, Reviews, Pages, and Search[26](index=26&type=chunk)[32](index=32&type=chunk) Revenue by Geographic Region (in thousands) | Region | Three months ended April 30, 2024 | Three months ended April 30, 2023 | | :--- | :--- | :--- | | North America | $75,357 | $78,500 | | International | $20,633 | $20,953 | | **Total revenue** | **$95,990** | **$99,453** | - As of April 30, 2024, the company had **$431.6 million** of remaining performance obligations, with **$375.2 million** expected to be recognized as revenue over the next twenty-four months[43](index=43&type=chunk) - On June 4, 2024, the company committed to a restructuring plan to reduce its workforce, estimating restructuring charges of approximately **$5 million**, primarily for severance, to be incurred mostly in Q2 fiscal 2025[76](index=76&type=chunk) - On June 10, 2024, Yext entered into an agreement to acquire Hearsay Social, Inc. for **$125 million** in cash, a **$20 million** bonus pool for key employees, and up to **$75 million** in contingent earnout consideration. The acquisition is expected to close in the second half of fiscal year 2025[77](index=77&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=18&type=section&id=Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses a 3% year-over-year revenue decrease, declines in key metrics, and the initiation of a restructuring plan and a significant acquisition, alongside a GAAP net loss and strong operating cash flow - On June 4, 2024, the company initiated a restructuring plan to reduce its workforce by approximately **12%** compared to January 31, 2024 levels, expecting to incur about **$5 million** in charges, mostly in Q2 fiscal 2025[84](index=84&type=chunk) - The company agreed to acquire Hearsay Social, Inc. for **$125 million** in cash, plus a **$20 million** bonus pool and up to **$75 million** in contingent earnout consideration, with the deal expected to close in the second half of fiscal 2025[85](index=85&type=chunk)[86](index=86&type=chunk) Key Metrics Comparison | Metric | April 30, 2024 | April 30, 2023 | | :--- | :--- | :--- | | Total Annual Recurring Revenue (ARR) | $382.6M | $398.3M | | Total Dollar-Based Net Retention Rate | 91% | 96% | Q1 Fiscal 2025 vs. Q1 Fiscal 2024 Results (in thousands) | Account | Q1 2025 | Q1 2024 | Variance ($) | Variance (%) | | :--- | :--- | :--- | :--- | :--- | | Revenue | $95,990 | $99,453 | $(3,463) | (3)% | | Gross Profit | $74,444 | $78,103 | $(3,659) | (5)% | | Loss from Operations | $(5,426) | $(1,232) | $(4,194) | 340% | | Net Loss (GAAP) | $(3,817) | $(412) | $(3,405) | 826% | | Adjusted EBITDA (Non-GAAP) | $9,602 | $14,448 | $(4,846) | (34)% | [Quantitative and Qualitative Disclosures About Market Risk](index=28&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company is exposed to market risks related to foreign currency exchange rates, inflation, and interest rates, though management does not believe these have had a material effect to date - **Foreign Currency Risk:** The company does not expect a 10% change in the U.S. dollar's value to have a material effect on its financial position or results of operations[147](index=147&type=chunk) - **Inflation Risk:** While inflation has not had a material effect, the company notes that significant inflationary pressure on personnel costs could harm the business if not offset by price increases[148](index=148&type=chunk) - **Interest Rate Risk:** The company does not anticipate being exposed to material risks from changes in interest rates, and a hypothetical 10% change would not have had a material impact[150](index=150&type=chunk) [Controls and Procedures](index=29&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and procedures were effective as of April 30, 2024, with no material changes to internal control over financial reporting during the quarter - The Chief Executive Officer and Chief Financial Officer concluded that the company's disclosure controls and procedures were effective as of April 30, 2024[153](index=153&type=chunk) - No changes in internal control over financial reporting occurred during the quarter that have materially affected, or are reasonably likely to materially affect, internal controls[154](index=154&type=chunk) PART II. OTHER INFORMATION [Legal Proceedings](index=30&type=section&id=Item%201.%20Legal%20Proceedings) The company reports that it is not currently a party to any legal proceedings that are considered material to its business or financial condition - Yext is not currently a party to any material legal proceedings[157](index=157&type=chunk) [Risk Factors](index=30&type=section&id=Item%201A.%20Risk%20Factors) This section details significant risks that could adversely affect Yext's business, including challenges related to revenue growth, profitability, economic conditions, acquisitions, competition, data security, and evolving regulations - **Business & Industry Risks:** The company highlights that its revenue growth has slowed and contracted, with a **3%** decline in the recent quarter. It has a history of GAAP net losses (**$3.8 million** for the quarter) and may not achieve future profitability. The business is also exposed to risks from economic conditions, competition, and customer churn[163](index=163&type=chunk)[164](index=164&type=chunk) - **Technology & IP Risks:** The company is vulnerable to security breaches and network attacks. It faces risks from potential intellectual property infringement claims by third parties and the costs of protecting its own IP. The use of generative AI is noted as a new and developing technology that presents compliance and reputational risks[162](index=162&type=chunk)[259](index=259&type=chunk) - **Legal & Regulatory Risks:** Yext is subject to complex and evolving government regulations, particularly concerning data privacy (like GDPR and CCPA), which could increase compliance costs and legal exposure. The regulatory framework for AI is also rapidly changing and could adversely affect the use of such technologies in its products[163](index=163&type=chunk)[265](index=265&type=chunk)[278](index=278&type=chunk) - **Stock Ownership Risks:** The market price of the company's common stock has been and may continue to be volatile. The company does not intend to pay dividends in the foreseeable future, and anti-takeover provisions in its charter and bylaws could depress the trading price[163](index=163&type=chunk)[302](index=302&type=chunk)[308](index=308&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=56&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reported no unregistered sales of equity securities during the period - None[314](index=314&type=chunk) [Other Information](index=56&type=section&id=Item%205.%20Other%20Information) The company states that no director or officer adopted, modified, or terminated a Rule 10b5-1 trading arrangement or non-Rule 10b5-1 trading arrangement during the three months ended April 30, 2024 - During the quarter, no director or officer adopted, modified, or terminated a Rule 10b5-1 or non-Rule 10b5-1 trading arrangement[317](index=317&type=chunk)

Exhibit 2.1 AGREEMENT AND PLAN OF MERGER BY AND AMONG YEXT, INC., HOUSTON MERGER SUB, INC., TABLE OF CONTENTS | | | | Page | | --- | --- | --- | --- | | ARTICLE | I | | 2 | | THE | | MERGER | | | 1.1 | | The Merger. | 2 | | 1.2 | | Ef ective Time. | 2 | | 1.3 | | Ef ect of the Merger. | 2 | | 1.4 | | Organizational Documents. | 2 | | 1.5 | | Management. | 3 | | 1.6 | | Ef ect of Merger on the Capital Stock of the Constituent Corporations. | 3 | | 1.7 | | Dissenting Shares. | 6 | | 1.8 | | Parent's Obligatio ...

Financial Performance - The company reported a significant increase in revenue, with a year-over-year growth of 25%[21] - The company anticipates a revenue growth rate of 20% for the next fiscal year, driven by new product launches and market expansion[21] User Growth - User data showed an increase in active users, reaching 1.5 million, up from 1.2 million last year, representing a growth of 25%[21] Market Expansion - The company plans to expand its market presence in Europe and Asia, targeting a 10% increase in market share within the next two years[21] - A strategic acquisition is in progress, which is projected to enhance the company's product offerings and customer base[21] Research and Development - Investment in research and development is expected to increase by 15%, focusing on innovative technologies and product enhancements[21] Operating Expenses - Operating expenses are expected to rise by 5% due to increased marketing efforts and operational scaling[21] Financial Stability - The company maintains a strong cash position, with sufficient liquidity to meet cash needs for at least the next 12 months[21] Risk Management - Management highlighted the importance of adapting to macroeconomic conditions, including inflation and currency fluctuations, to mitigate risks[21] Sales Strategy - Future sales strategies will focus on enhancing customer relationships and expanding the publisher network to drive growth[21]

Financial Data and Key Metrics Changes - The company reported record profitability in fiscal year 2024 despite a challenging operating environment [9] - There was an increase in sales productivity, reaching the highest level in the last four years [22] - The outlook anticipates a reacceleration of ARR growth into the high single digits by the end of fiscal year 2025 [49] Business Line Data and Key Metrics Changes - The company is focusing on core product offerings such as listings, pages, reviews, and search products, reallocating investments to enhance customer satisfaction [11][12] - There has been a significant increase in year-over-year lead volume and higher pipeline creation, driven by demand generation initiatives [25][26] Market Data and Key Metrics Changes - The company maintains a conservative outlook on the market environment, expecting continued uncertainty around the economy, inflation, and interest rates [14] - The demand generation machine has been improved, leading to better alignment of marketing campaigns with customer needs [31] Company Strategy and Development Direction - The company plans to invest in Generative AI features and enhance social management and analytics capabilities [12][13] - There is a strategic shift towards providing broader solutions to reduce the number of vendors for customers, focusing on efficiency and value [40][41] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the challenges faced over the past two years but expresses pride in the team's resilience and commitment [16] - The company expects to see continued discussions with customers centered around the value derived from the platform, creating opportunities for upsells [40] Other Important Information - The company experienced churn from a large customer, impacting revenue and retention metrics, but this has been factored into the guidance for fiscal year 2025 [46][49] - The company is seeing an acceleration of "boomerang customers," indicating a return of former clients due to improved offerings [52] Q&A Session Summary Question: Focus on product roadmap and new capabilities - Management discussed the need to refocus on core offerings and the development of social media management capabilities [18][19] Question: Sales productivity and hiring plans - Management indicated that direct sales productivity is at its highest in four years and plans to increase sales capacity in a measured way [21][22] Question: Year-over-year lead volume and demand generation initiatives - Management clarified that while lead volume has increased, they do not expect a significant uptick in the spending environment [25][26] Question: Customer budgets and upsell opportunities - Management expects discussions to focus on the value customers receive from the platform, creating upsell opportunities [40] Question: Impact of churn from a large customer - Management confirmed that the churn from an $11 million customer will impact revenue and retention metrics in fiscal year 2025 [46][49] Question: Demand for specific products and pipeline progression - Management noted strong demand for core products and improvements in the efficiency of the demand generation machine [51][56]

EXHIBIT 99.1 Wednesday, March 6, 2024 Dear Shareholders, Fiscal 2024 was a year of significant progress for Yext. We set out to run our organization with more efficiency, to increase our productivity, and to take the necessary steps to operate profitably. We refocused on putting our customers' needs and satisfaction at the center of our decision making. I'm pleased with our achievements across all these objectives, and encouraged by the momentum we are carrying into the first quarter of our new fiscal year. ...

Yext, Inc (NYSE:YEXT) Q3 2024 Earnings Conference Call December 5, 2023 5:00 PM ET Company Participants Nils Erdmann - Senior Vice President, Investor Relations Mike Walrath - Chairman and Chief Executive Officer Darryl Bond - Chief Financial Officer Conference Call Participants Wyatt Swanson - D.A. Davidson Rohit Kulkarni - ROTH MKM Naved Khan - B. Riley Matt Shea - Needham Chris Madison - William Blair Operator Good afternoon and welcome to the Yext Fiscal Third Quarter 2024 Earnings Conference Call. [Ope ...