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 ...

Financial Performance - Total revenue for the three months ended October 31, 2023, was $101,164,000, representing a 1.9% increase from $99,280,000 in the same period of 2022[20] - Gross profit for the three months ended October 31, 2023, was $79,098,000, up from $73,617,000 in the prior year, indicating a gross margin improvement[20] - Net loss for the three months ended October 31, 2023, was $468,000, significantly reduced from a net loss of $12,310,000 in the same quarter of 2022[20] - Total revenue for the three months ended October 31, 2023, was $101.2 million, a 1.8% increase from $99.3 million in the same period of 2022[39] - Total revenue for the nine months ended October 31, 2023, was $303.2 million, a 1% increase from $299.0 million in the same period of 2022, driven by new customer subscriptions[134] - Gross profit for the nine months ended October 31, 2023, was $237.4 million, reflecting a gross margin of 78.3%, up from 74.1% in the same period of 2022[138] - The net loss for the three months ended October 31, 2023, was $468,000, a significant improvement from a net loss of $12.3 million in the same period of 2022[125] - Non-GAAP net income for the nine months ended October 31, 2023, was $30.0 million, compared to a non-GAAP net loss of $9.2 million in the same period of 2022[149] Cash and Liquidity - Cash and cash equivalents as of October 31, 2023, were $182,156,000, down from $190,214,000 at the beginning of the fiscal year[17] - The company reported net cash provided by operating activities of $18,137,000 for the nine months ended October 31, 2023, compared to a net cash used of $18,092,000 in the prior year[27] - As of October 31, 2023, the company had cash and cash equivalents of $182.2 million, sufficient to meet projected operating requirements for at least the next 12 months[152] - The company may seek additional equity or debt financing in the future to support capital requirements and potential acquisitions[154] - The company has maintained compliance with all debt covenants as of October 31, 2023[161] Assets and Liabilities - Total assets decreased to $431,640,000 as of October 31, 2023, from $523,761,000 as of January 31, 2023[17] - Total liabilities decreased to $295,294,000 as of October 31, 2023, from $395,738,000 as of January 31, 2023[17] - Stockholders' equity increased to $136,346,000 as of October 31, 2023, from $128,023,000 as of January 31, 2023[17] - The company’s accumulated deficit increased to $680,859,000 as of October 31, 2023, from $676,542,000 as of January 31, 2023[17] Revenue Sources - Revenue from North America for the nine months ended October 31, 2023, was $239.3 million, representing 79% of total revenue, while international revenue was $63.9 million[40] - Revenue from Direct Customers was $82.3 million for the three months ended October 31, 2023, a 4% increase from $78.9 million in 2022, while revenue from Third-Party Reseller Customers decreased by 7% to $18.9 million[128] - Professional services revenue accounted for approximately 8% of total revenue for the nine months ended October 31, 2023[38] - The company had no single customer accounting for more than 10% of total revenue for the three and nine months ended October 31, 2023[36] Operating Expenses - Operating expenses for the three months ended October 31, 2023, were $80,879,000, down from $85,749,000 in the same period of 2022[20] - Cost of revenue decreased to $22.1 million for the three months ended October 31, 2023, down 14% from $25.7 million in 2022, primarily due to lower employee-related costs[129] - Sales and marketing expenses decreased by 8% to $45.4 million for the three months ended October 31, 2023, compared to $49.4 million in the same period of 2022[131] - General and administrative expense decreased by 8% to $17.2 million for the three months ended October 31, 2023, down from $18.7 million in the same period of 2022[133] - Research and development expense was $18.3 million for the three months ended October 31, 2023, an increase of 4% from $17.6 million in the same period of 2022[132] Stock-Based Compensation - The total stock-based compensation expense for the nine months ended October 31, 2023, was $34.335 million, a decrease from $48.990 million in the same period of 2022[72] - The aggregate intrinsic value of options vested and expected to vest and exercisable is $1.282 million as of October 31, 2023[60] - The company’s stock-based compensation for the nine months ended October 31, 2023, was $34.576 million, compared to $49.376 million for the same period in 2022[75] - The total unrecognized compensation cost related to the Employee Stock Purchase Plan (ESPP) as of October 31, 2023, was $0.8 million, expected to be amortized over 0.37 years[68] Customer Metrics - As of October 31, 2023, the company had approximately 2,980 customers, reflecting its ability to grow its enterprise and mid-size customer base[111] - Total Annual Recurring Revenue (ARR) increased to $396.8 million for the year ended October 31, 2023, up 2% from $389.5 million in 2022[116] - Direct Customers ARR rose to $326.6 million, a 3% increase from $317.3 million in the previous year, while Third-Party Reseller Customers ARR decreased by 3% to $70.2 million[116] - The dollar-based net retention rate for Direct Customers improved to 97% in 2023 from 96% in 2022, while Third-Party Reseller Customers increased significantly from 89% to 95%[118] Challenges and Risks - The company has faced significant leadership changes, including the resignation of key executives in 2022 and 2023[200] - The company has experienced challenges in recruiting and retaining a sufficient sales force, which is critical for revenue growth[205] - Adverse economic conditions, including inflation and reduced technology spending, may negatively impact business performance[195] - The company is exposed to foreign currency exchange rate risks that could negatively impact revenue and increase expenses for international operations[209] - The company may face challenges in renegotiating agreements with third-party application providers, which could lead to loss of access to critical resources and negatively affect customer subscriptions[213] - Future profitability is uncertain, with the need to generate increased revenue and reduce expenses to achieve profitability[194]

Investor Presentation September 6, 2023 Safe Harbor Statement Statements in this presentation that are not statements of historical facts are forward-looking statements and should be evaluated as such. Forward-looking statements include, but are not limited to, statements regarding our expected financial and operating results in future periods and statements regarding our expectations regarding the growth of our company, our market opportunity, product roadmap, including artificial intelligence, sales effic ...

Financial Data and Key Metrics Changes - Revenue for Q2 grew to $102.6 million, up 2% year-over-year, or 1% in constant currency [15][116] - Net income for Q2 was $8.1 million compared to a net loss of $3.9 million in the year-ago quarter [35] - Annual recurring revenue (ARR) was $397.7 million, up 3% year-over-year, with direct ARR increasing by 5% [125] - Gross profit for Q2 was $81 million, representing a gross margin of 78.9%, compared to 74.5% in the year-ago quarter [109] Business Line Data and Key Metrics Changes - Direct customers represented 82% of total ARR, with direct ARR totaling $327.2 million, an increase of 5% year-over-year [125] - Third-party resellers, which represented 18% of total ARR, delivered ARR of $70.5 million, a decrease of 6% year-over-year [125] - Sales and marketing costs as a percentage of revenue were 42% in Q2 compared to 48% in the second quarter of last year [126] Market Data and Key Metrics Changes - The macro environment continues to exert pressure on customer budgets, leading to longer sales cycles and increased scrutiny on spending [5][24] - The company is seeing a mixed response from enterprises, with some being cautious while others are aggressively expanding their digital experiences [39][56] Company Strategy and Development Direction - The company is focused on improving sales productivity and qualified demand generation as part of its go-to-market transformation [6][23] - Continued emphasis on margin improvement has enabled the company to grow its bottom line while managing expenses effectively [25] - The summer '23 release features enhancements to the digital experience platform, leveraging AI to meet market demands [10][120] Management's Comments on Operating Environment and Future Outlook - Management remains cautious about the operating environment in the back half of the year, expecting budget scrutiny and prolonged sales cycles to persist [7][117] - The company anticipates revenue for Q3 in the range of $101.5 million to $102.5 million, reflecting ongoing macroeconomic challenges [127] - There is confidence in the long-term growth opportunities despite current headwinds, with a focus on optimizing direct business [107][125] Other Important Information - The company has authorized an additional $50 million for its share repurchase program, totaling $138 million since March of last year [17][26] - The net retention rate for direct customers was 98%, while for third-party resellers, it was 92% [34] Q&A Session Summary Question: What is the impact of the macro environment on new logos and existing customers? - The macro environment is causing more scrutiny and budget pressure, affecting both new logos and existing customers, particularly in larger enterprises [129] Question: Can you elaborate on the dynamics of boomerang customers? - Boomerang customers are primarily those who left for lower-cost solutions but returned due to unmet expectations from competitors [97][88] Question: How is the company addressing pricing and packaging to drive renewals? - The company is focusing on consolidating capabilities to create more value for customers while addressing budget scrutiny [74][71] Question: What is the outlook for margin expansion without top-line growth? - There are opportunities for margin expansion through increased sales productivity, but it is essential to balance this with revenue growth [76][82] Question: How does the company view the potential for AI solutions in the market? - There is significant interest in AI solutions, but larger enterprises may take longer to adopt due to regulatory and compliance concerns [111][43]