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 ...

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An earnings beat and encouraging revenue guidance generated some bullishness toward the enterprise software company. Enterprise software company Yext (YEXT 13.01%) had an excellent Thursday on the stock exchange. Its share price ended the session almost 13% higher thanks to a quarterly earnings report that featured better-thanexpected numbers. That performance was in marked contrast to the trajectory of the S&P 500 index, which closed 0.3% lower. A solid bottom-line beat Yext published its results for the s ...

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 ...