Financial Data and Key Metrics Changes - For Q4, the company reported revenue of $101.9 million and non-GAAP net income per share of $0.05, both exceeding the high end of guidance ranges [9][37] - Full year revenue reached $400.9 million, up from $390.6 million in the previous fiscal year, representing a growth of approximately 3% on an as-reported basis [37][70] - Annual recurring revenue (ARR) at the end of Q4 was $400.4 million, reflecting a 4% year-over-year increase in constant currency and a 3% increase on an as-reported basis [38][79] - The company achieved a gross retention rate in the high-80s for Q4, an improvement from the mid-80s in Q3 [40][72] Business Line Data and Key Metrics Changes - The services business accounted for approximately 9% of total revenue, with plans to transition some services to systems integrators and partners, which is expected to positively impact gross margins [10][82] - Direct customers represented 82% of total ARR, with direct ARR totaling $327 million, a 6% year-over-year increase in constant currency [79] Market Data and Key Metrics Changes - The company experienced a year-over-year impact of approximately $4.8 million on ARR due to foreign exchange fluctuations [38] - Third-party resellers generated ARR of $73.3 million, a decrease of 6% year-over-year in constant currency [71] Company Strategy and Development Direction - The company is focused on enhancing customer satisfaction, operational efficiency, and product innovation to drive long-term growth potential [6][8] - A shift towards a partner-centric go-to-market strategy is being implemented, particularly in Japan, while reducing direct sales efforts to SMBs [53][56] - The company is investing in automation to reduce the need for services and create more value for customers [21][24] Management's Comments on Operating Environment and Future Outlook - Management anticipates revenue headwinds from the shift towards systems integrators and services partners, which may modestly impact revenue and renewals [43][56] - Despite these challenges, the company expects to operate more efficiently and profitably in the upcoming fiscal year, with gross margin improvements and reduced operating expenses as a percentage of revenue [43][44] Other Important Information - The company repurchased 13.8 million shares in fiscal year 2023, reducing share count by approximately 10% [51] - The upcoming Investor Day on April 4 will provide further insights into the company's financial objectives and strategies [26][69] Q&A Session Summary Question: What does the full year guide contemplate regarding the listings business? - The company does not forecast based on products but acknowledges headwinds from strategic decisions made in Q4, impacting growth by low-single-digit percentage points [87] Question: Should we anticipate a significant increase in gross margins after the changes made in the services side? - Yes, the actions taken in Q4 are expected to result in a step function increase in gross margins, with Q1 expected to be in the middle of the 75% to 80% range [88] Question: How does Yext Chat integrate with existing knowledge bases compared to other chatbots? - Yext Chat delivers an enterprise experience by ensuring that the information used is accurate and derived from the knowledge base, avoiding the pitfalls of generative models that may produce inaccurate information [94] Question: What is the timeline for seeing financial contributions from new products like Yext Chat and Content Generation? - Content Generation will be part of the spring release, while Yext Chat is currently in beta, with broader availability expected in the latter half of the year [119][121] Question: What strategies are the new C-suite executives focusing on? - The new executives are focused on improving the go-to-market strategy, which may take time to show quantitative impacts due to the nature of sales cycles [124]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended October 31, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-38056 YEXT, INC. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or orga ...

Financial Performance and Key Metrics - In Q3 2023, the company's revenue was $99.3 million, reflecting a 4% increase on a constant currency basis compared to the prior year, driven by new customers and upsells [6][17] - Non-GAAP net income per share improved to $0.02 from a net loss of $0.04 in the same period last year, attributed to streamlined operations and improved efficiencies [6][19] - Non-GAAP operating expenses as a percentage of revenue decreased to 73% from 81% year-over-year, with sales and marketing expenses also declining to 44% from 52% [6][19] - Annual recurring revenue (ARR) reached $389.5 million, up 1% year-over-year, with direct ARR growth of 3% year-over-year [18] Business Line Performance - Direct ARR growth was 3% year-over-year, while third-party reseller ARR declined by 8% year-over-year [18] - The gross retention rate improved to the mid-80s, indicating better customer retention and satisfaction [8][9] Market Performance - The company expanded its leadership in financial services, healthcare, and technology, with significant wins in e-commerce, sports, government, and religious organizations [14] - The company faced macroeconomic headwinds, leading to elongated sales cycles and increased scrutiny on budgets, particularly in international markets [8][29] Company Strategy and Industry Competition - The company is focused on efficient and profitable growth through product innovation and operational efficiency, with a commitment to enhancing its Answers platform [8][12] - The competitive landscape includes larger players in the search solutions space, but the company maintains an advantage with its broad platform capabilities [54] Management Commentary on Operating Environment and Future Outlook - Management acknowledged the challenging macroeconomic environment but expressed confidence in the company's value proposition and ability to help customers reduce costs [8][45] - The company expects Q4 revenue to be between $100 million and $101 million, with full-year revenue guidance of $399 million to $400 million [20] Other Important Information - The company welcomed a new Chief Revenue Officer to enhance sales execution and customer success strategies [9] - Cash and cash equivalents were $162 million at the end of Q3, with share repurchases totaling $10.1 million during the quarter [19] Q&A Session Summary Question: What is driving the sequential decline in net dollar retention for direct customers? - Management noted that the decline from 98% to 97% is influenced by lower gross retention in previous quarters and some foreign exchange impacts [24][25] Question: What updates are there on the third-party reseller opportunity? - Management indicated that while there are growth opportunities in the reseller channel, it remains a challenged space, particularly for SMBs [28] Question: How are renewals trending in Q4? - Management expressed optimism about improvements in gross retention and bookings, indicating a positive outlook for renewals [31][32] Question: What is the company's approach to hiring going into 2023? - Management emphasized a focus on R&D investment while maintaining operational efficiency, with plans to scale teams as productivity improves [41] Question: How is the competitive environment evolving? - Management highlighted the company's platform advantages and recent competitive wins, indicating confidence in its ability to compete effectively [54][52]

PART I. FINANCIAL INFORMATION [Item 1. Financial Statements](index=6&type=section&id=Item%201.%20Financial%20Statements) Unaudited financial statements for July 31, 2022, show revenue up 5% to **$199.7 million**, a **$45.8 million** net loss, and total assets decreasing to **$480.3 million** [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | July 31, 2022 | January 31, 2022 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $187,906 | $261,210 | | Accounts receivable, net | $53,422 | $101,607 | | Total current assets | $290,300 | $410,353 | | Total assets | $480,324 | $620,335 | | **Liabilities & Stockholders' Equity** | | | | Unearned revenue, current | $165,889 | $223,427 | | Total current liabilities | $231,324 | $290,704 | | Total liabilities | $341,378 | $408,465 | | Total stockholders' equity | $138,946 | $211,870 | [Condensed Consolidated Statements of Operations and Comprehensive Loss](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Loss) Condensed Consolidated Statements of Operations (in thousands) | Metric | Three Months Ended July 31, 2022 | Three Months Ended July 31, 2021 | Six Months Ended July 31, 2022 | Six Months Ended July 31, 2021 | | :--- | :--- | :--- | :--- | :--- | | Revenue | $100,869 | $98,124 | $199,671 | $190,116 | | Gross Profit | $73,787 | $71,509 | $147,861 | $141,647 | | Loss from operations | $(19,521) | $(26,412) | $(45,023) | $(43,644) | | Net loss | $(19,991) | $(27,592) | $(45,830) | $(45,223) | | Net loss per share, basic and diluted | $(0.16) | $(0.22) | $(0.36) | $(0.36) | [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Condensed Consolidated Statements of Cash Flows (in thousands) | Activity | Six months ended July 31, 2022 | Six months ended July 31, 2021 | | :--- | :--- | :--- | | Net cash (used in) provided by operating activities | $(7,305) | $2,449 | | Net cash used in investing activities | $(3,875) | $(10,555) | | Net cash (used in) provided by financing activities | $(56,568) | $17,585 | | Net (decrease) increase in cash and cash equivalents | $(73,304) | $10,079 | | Cash and cash equivalents at end of period | $187,906 | $240,490 | - The significant cash used in financing activities for the six months ended July 31, 2022, was primarily due to **$58.7 million** in common stock repurchases[25](index=25&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) - The company operates as a single operating segment, providing the Yext platform which organizes a business's facts into a Knowledge Graph to provide answers across search engines, voice assistants, and a business's own website[28](index=28&type=chunk)[34](index=34&type=chunk) Revenue by Geographic Region (in thousands) | Region | Three months ended July 31, 2022 | Six months ended July 31, 2022 | | :--- | :--- | :--- | | North America | $81,082 | $159,791 | | International | $19,787 | $39,880 | | **Total revenue** | **$100,869** | **$199,671** | - As of July 31, 2022, the company had **$326.6 million** of remaining performance obligations, of which **$310.3 million** is expected to be recognized as revenue over the next twenty-four months, a decrease from **$404.9 million** as of January 31, 2022[44](index=44&type=chunk) - In March 2022, the Board of Directors authorized a **$100.0 million** share repurchase program, with **10.2 million** shares purchased for **$58.9 million** as of July 31, 2022, leaving approximately **$41.1 million** available[79](index=79&type=chunk) - A putative class action lawsuit was filed against the company in June 2022, alleging false and/or misleading statements regarding the company's business and the effects of the COVID-19 pandemic, which the company intends to vigorously defend[94](index=94&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=21&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management reports a 5% revenue increase to **$199.7 million** for the six months ended July 31, 2022, maintaining strong liquidity with **$187.9 million** cash Revenue Comparison (in thousands) | Period | 2022 | 2021 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | **Three Months Ended July 31** | $100,869 | $98,124 | $2,745 | 3% | | **Six Months Ended July 31** | $199,671 | $190,116 | $9,555 | 5% | - Revenue growth was negatively impacted by foreign currency exchange rates, with a negative impact of approximately **$2.8 million** and **$4.2 million** for the three and six months ended July 31, 2022, respectively, resulting in constant currency growth of **6%** and **7%**[117](index=117&type=chunk)[125](index=125&type=chunk)[139](index=139&type=chunk) - For the six months ended July 31, 2022, the increase in cost of revenue was primarily driven by a **$2.9 million** increase in personnel-related costs due to higher headcount, while operating expenses increased due to higher personnel-related costs in R&D and G&A, and increased travel and events in Sales & Marketing[127](index=127&type=chunk)[129](index=129&type=chunk)[130](index=130&type=chunk) GAAP vs. Non-GAAP Net Loss Reconciliation (in thousands) | Metric | Six months ended July 31, 2022 | Six months ended July 31, 2021 | | :--- | :--- | :--- | | Net loss (GAAP) | $(45,830) | $(45,223) | | Stock-based compensation expense | $34,168 | $35,000 | | **Non-GAAP net loss** | **$(11,662)** | **$(10,223)** | - As of July 31, 2022, the company had **$187.9 million** in cash and cash equivalents, believed sufficient for at least the next 12 months, and a **$50.0 million** revolving loan facility with **$35.9 million** available[140](index=140&type=chunk)[147](index=147&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=30&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company faces market risks from foreign currency, inflation, and interest rates, with a **10%** change in rates not materially affecting financials - The company is exposed to foreign currency risk from non-U.S. subsidiaries, but a hypothetical **10%** change in the U.S. dollar's value is not expected to have a material effect[162](index=162&type=chunk) - Inflation has not had a material effect on the business, but future significant inflationary pressures on personnel costs could harm results if not offset by price increases[163](index=163&type=chunk) - The company does not anticipate material risks from changes in interest rates, as its **$187.9 million** cash and cash equivalents are primarily for capital preservation and liquidity, and a hypothetical **10%** change would not have a material impact[164](index=164&type=chunk)[165](index=165&type=chunk) [Item 4. Controls and Procedures](index=31&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded disclosure controls were effective as of July 31, 2022, with no material changes in internal financial reporting controls - Based on an evaluation, the Chief Executive Officer and Chief Financial Officer concluded that the company's disclosure controls and procedures were effective as of July 31, 2022[168](index=168&type=chunk) - No changes in internal control over financial reporting occurred during the six months ended July 31, 2022, that have materially affected, or are reasonably likely to materially affect, internal controls[169](index=169&type=chunk) PART II. OTHER INFORMATION [Item 1. Legal Proceedings](index=32&type=section&id=Item%201.%20Legal%20Proceedings) The company faces a putative class action lawsuit filed June 17, 2022, alleging false statements, which it intends to vigorously defend - A putative class action lawsuit was filed on June 17, 2022, naming the Company, its former CEO, and former CFO as defendants[172](index=172&type=chunk) - The complaint alleges false and/or misleading statements about the Company's business, operations, and prospects, including the effects of the COVID-19 pandemic, for securities purchased between March 4, 2021, and March 8, 2022[172](index=172&type=chunk) [Item 1A. Risk Factors](index=32&type=section&id=Item%201A.%20Risk%20Factors) The company faces significant risks including slowing revenue growth, net losses, economic impacts, leadership changes, and dependence on strategic partners - The company's revenue growth rate has slowed from **10%** in fiscal 2022 to **5%** for the six months ended July 31, 2022, and is expected to be slower in the coming year[179](index=179&type=chunk) - Yext has a history of losses, with a net loss of **$20.0 million** for the quarter ended July 31, 2022, and an accumulated deficit of **$656.4 million**, with future profitability not guaranteed[180](index=180&type=chunk) - The COVID-19 pandemic has had and is expected to continue to have an adverse effect on business, with some customers reducing, suspending, or delaying technology spending[184](index=184&type=chunk)[185](index=185&type=chunk) - The company has experienced significant leadership changes, including the resignation of its CEO and CFO in March 2022, which could have near-term effects on business, growth, and profitability[191](index=191&type=chunk) - Growth depends on strategic relationships with approximately **200** third-party service and application providers (Knowledge Network), and losing access to key providers like Google could lead to a significant loss of customers[203](index=203&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=65&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company repurchased **10,224,095** shares through July 31, 2022, with **$41.1 million** remaining under the repurchase program Issuer Purchases of Equity Securities (March - July 2022) | Period | Total Shares Purchased | Average Price Paid per Share | Approx. Dollar Value Remaining (in millions) | | :--- | :--- | :--- | :--- | | Mar 2022 | 665,366 | $7.06 | $95.3 | | Apr 2022 | 4,172,818 | $6.20 | $69.4 | | May 2022 | 4,558,694 | $5.33 | $45.2 | | Jun 2022 | 391,858 | $5.30 | $43.1 | | Jul 2022 | 435,359 | $4.65 | $41.1 | [Item 3. Defaults Upon Senior Securities](index=65&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) The company reports no defaults upon senior securities - None[318](index=318&type=chunk) [Item 4. Mine Safety Disclosures](index=65&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not applicable[319](index=319&type=chunk) [Item 5. Other Information](index=65&type=section&id=Item%205.%20Other%20Information) The company reports no other information for this period - None[320](index=320&type=chunk) [Item 6. Exhibits](index=66&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including CEO/CFO certifications and Interactive Data Files (Inline XBRL) - Exhibits filed include certifications from the Principal Executive Officer and Principal Financial Officer as required by Sections 302 and 906 of the Sarbanes-Oxley Act of 2002[322](index=322&type=chunk) - The filing includes Interactive Data Files (Inline XBRL) for the condensed consolidated financial statements and notes[322](index=322&type=chunk)

Financial Data and Key Metrics Changes - Revenue for Q2 2023 was $100.9 million, representing a 3% year-over-year growth, exceeding the high end of guidance by $0.02 million [10][39] - Non-GAAP net loss per share was $0.03, an improvement from a net loss of $0.06 per share in the same quarter last year [44] - Annual recurring revenue (ARR) was $387 million at the end of Q2, up 2% year-over-year, with a negative impact of approximately $10.8 million from foreign exchange (FX) [40][42] - Cash and cash equivalents decreased to $188 million from $248 million at the end of the previous quarter, primarily due to share repurchases totaling $31.6 million in Q2 [45] Business Line Data and Key Metrics Changes - Direct ARR grew 5% year-over-year to $312 million, while third-party reseller ARR declined by 6% [42] - Gross margin for Q2 was 74.5%, slightly down from 75.2% in the previous year [43] - Operating expenses were $78.6 million, representing 78% of revenue, down from 81% in the same quarter last year [43] Market Data and Key Metrics Changes - The company experienced a negative year-over-year revenue impact of approximately $2.8 million or 3% due to FX, with constant currency growth of approximately 6% [39] - The company noted a global trend towards increased scrutiny on spending and elongated deal cycles, particularly in Europe [85] Company Strategy and Development Direction - The company is focused on driving long-term growth through operational efficiency, product innovation, and customer satisfaction [9] - A rebranding effort was initiated to clarify the company's offerings, transitioning the name of the Answers product to Search and consolidating various products under the Answers platform [11][26] - The appointment of a new Chief Marketing Officer aims to strengthen the brand and increase demand for Yext solutions globally [13] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about achieving profitability in the second half of the year, despite caution regarding the overall economic environment [10][20] - The company is adapting to a more clinical and efficient operating model, which is expected to yield better customer outcomes and sales effectiveness [21][17] - Management acknowledged challenges in customer success and gross retention impacting net dollar retention, which decreased to 98% from 99% [58] Other Important Information - The company plans to continue share repurchases as part of its strategy to maintain a strong balance sheet [45] - The guidance for Q3 revenue is projected to be between $99 million and $100 million, reflecting the negative impact of FX [47] Q&A Session Summary Question: Update on sales and marketing headcount and efficiency - Management emphasized a focus on driving sales productivity rather than increasing headcount, with ongoing evaluations of sales team effectiveness [56] Question: Clarification on net dollar retention decline - The decline to 98% was attributed to challenges in customer success and gross retention, impacting upsells [58] Question: Impact of rebranding on pricing and customer purchasing - The company previously shifted to a capacity-based pricing model, and no immediate changes to pricing are anticipated [66] Question: Timeline for seeing broader impacts from initiatives - Management indicated that while early signs of improvement are visible, significant changes in bookings and retention dynamics may take six to twelve months [69] Question: Retention trends in the Listings business - Gross retention in the Listings business was in the low-80s, with ongoing product enhancements aimed at improving customer satisfaction [75] Question: Potential for M&A activity - While M&A is not a current priority, the company remains open to opportunities that may arise in the future [81]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended April 30, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-38056 YEXT, INC. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or organi ...

Financial Data and Key Metrics Changes - First quarter revenue was $98.8 million, which is a 7% year-over-year increase and $1.5 million above the high end of guidance [10][49] - Non-GAAP net loss per share was $0.06, which is $0.01 better than the high end of guidance [11][57] - Annual recurring revenue (ARR) at the end of Q1 was $387 million, up 5% year-over-year [49] - Gross margin for Q1 was 76.4%, down from 77.8% in the year-ago quarter [55] - Q1 net loss was $7.8 million compared to a net loss of $3 million in the year-ago quarter [57] Business Line Data and Key Metrics Changes - Direct customers represent 80% of total ARR, totaling $310 million, which is a 7% year-over-year growth [54] - Third-party reseller ARR totaled $77 million at Q1, representing a decline of 3% over the prior year [54] - Customer count, excluding small business customers and third-party resellers, increased 11% year-over-year to 2,830 [52] Market Data and Key Metrics Changes - The company experienced a 1% negative impact from foreign exchange (FX) on Q1 revenue and a 2% negative impact on ARR [50] - More than 95% of revenue in the quarter was recurring in nature, with onetime services representing about 2% of total revenue [24] Company Strategy and Development Direction - The company is focused on streamlining operations, improving efficiency, and re-architecting its go-to-market strategy [9][18] - A renewed commitment to customer satisfaction is central to the company's strategy, with a focus on reducing customer churn and contract downgrades [13][15] - The company plans to provide ARR metrics broken out by direct and third-party reseller customers moving forward [21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to operate efficiently despite economic uncertainty, inflation, and FX headwinds [11][27] - The company is taking a long-term view of customer relationships, prioritizing future opportunities over near-term revenue [16] - Management acknowledged challenges with customer satisfaction and emphasized the need for improved service to retain customers [66][68] Other Important Information - The company announced the departure of David Rudnitsky, the Chief Revenue Officer, and is in the process of searching for a global CRO [17] - The company authorized a $100 million share repurchase program and repurchased $31 million through the end of the quarter [58] Q&A Session Summary Question: Impact of customer downgrades and churn - Management noted that gross retention slipped into the low 80s, primarily driven by a single customer churn due to service disruptions [66][67] Question: Demand post-COVID - Management indicated that they are seeing a return to normalcy post-COVID, with a variety of deals coming through, although not at the desired volume yet [71] Question: Sales and marketing headcount reduction - Management explained that the impact of headcount reduction on expenses will be more pronounced in the second half of the year, with expectations for improved efficiency [78] Question: Customer success motion - Management highlighted efforts to standardize customer success initiatives and improve coordination across teams to enhance customer experience [81][82] Question: Renewal cycle and churn prevention - Management expressed caution regarding potential churn but emphasized the importance of providing a unified customer experience to retain clients [92][93] Question: Macro impacts on demand - Management stated that they are not currently seeing a slowdown in demand due to macroeconomic factors and believe software businesses tend to perform well in recessionary environments [114]

Business Operations and Strategy - Yext's platform allows businesses to provide direct answers to consumer questions on their own websites, enhancing user experience and potentially increasing sales opportunities [25]. - The Knowledge Graph organizes data to answer complex questions, storing both data points and their relationships, which improves search accuracy [39]. - In the fiscal year ended January 31, 2022, Yext expanded its Knowledge Network to approximately 200 applications, enhancing its service offerings [38]. - The company plans to continue investing in its sales force to grow its customer base both domestically and internationally [38]. - Yext's platform enables businesses to create and manage search-optimized landing pages, automatically updating them with the most accurate information [41]. - The introduction of new integrations, such as with Salesforce and Zendesk, allows customers to implement Yext's search experience in various operational contexts [38]. - Yext's advanced analytics provide insights into consumer interactions, helping businesses drive revenue through improved engagement [40]. - The company aims to expand its international presence, with established operations in several European countries and plans for further geographic expansion [38]. - Yext's platform reduces support costs by enabling consumers to find answers independently, thus decreasing the workload on support agents [41]. - The company serves businesses globally, with no single customer accounting for more than 10% of revenue for the fiscal years ended January 31, 2022, 2021, and 2020 [48]. - The company has established strategic relationships with approximately 200 third-party service and application providers, including major platforms like Google and Facebook, which are crucial for accessing and updating content on their websites [98]. Financial Performance and Challenges - Revenue growth rates were 31% from FY 2019 to FY 2020, 19% from FY 2020 to FY 2021, and 10% from FY 2021 to FY 2022, with expectations for slower growth in the coming year [76]. - The company reported net losses of $121.5 million, $94.7 million, and $93.3 million for the fiscal years ended January 31, 2020, 2021, and 2022, respectively, with an accumulated deficit of $610.6 million as of January 31, 2022 [77]. - Revenue is recognized ratably over the term of subscription agreements, which complicates the immediate reflection of new business downturns in operating results [83]. - A significant portion of revenue is dependent on a few customers and third-party reseller customers, which poses risks to revenue stability [76]. - The company anticipates increased operating expenses due to hiring, technology development, and compliance costs, which may hinder profitability if revenue does not increase accordingly [77]. - The company faces intense competition in the marketplace, with many established companies and potential new entrants that may have greater resources and market recognition [104][106]. - The company faces long and unpredictable sales cycles when targeting enterprise customers, which could harm financial results [119]. - The company may acquire other businesses or technologies, which could divert management's attention and disrupt operations [127]. - The company’s ability to grow depends on encouraging customers to expand their use of the platform beyond current subscriptions [118]. - The company may face risks related to ownership changes that could limit its ability to utilize existing NOLs to offset future taxable income [197]. Workforce and Management - As of January 31, 2022, the company had approximately 225 quota-carrying sales representatives, a reduction of about 35 representatives from the previous year [52]. - The company had over 1,400 full-time employees as of January 31, 2022, primarily based in New York [65]. - The transition in senior management, including the appointment of a new CEO and CFO, is expected to bring strategic changes to the company [29]. - The company plans to expand and scale its sales force, which is critical for revenue growth, but has faced challenges in recruiting and retaining sales personnel [91]. - The company is committed to diversity and inclusion, supporting seven employee resource groups and implementing strategies to improve recruitment and retention [62]. - High-quality customer support is critical for retaining existing customers, and difficulties in hiring qualified personnel may affect service quality as the company expands [137]. - The company faces challenges in attracting and retaining qualified personnel, particularly software developers, which could hinder business strategy execution [134]. Regulatory and Compliance Risks - Compliance with privacy and data protection regulations is essential, as failure to comply could harm the company's business and revenue [175]. - The company is subject to anti-corruption and anti-bribery laws, with non-compliance potentially resulting in significant fines and reputational harm [185]. - The handling of personal data is subject to various laws and regulations, and any failure to comply could impair customer base expansion efforts [175]. - The California Consumer Privacy Act (CCPA) became effective on January 1, 2020, requiring businesses to disclose data collection practices and allowing consumers to opt out of data sharing [176]. - The California Privacy Rights Act (CPRA) will modify the CCPA and create a new state agency for enforcement, effective January 1, 2023 [177]. - The General Data Protection Regulation (GDPR) in the European Union imposes stringent operational requirements and significant penalties for non-compliance, effective May 2018 [178]. - The invalidation of the EU-U.S. Privacy Shield framework in July 2020 necessitates additional contractual and technical safeguards for data transfers, increasing compliance costs [178]. - Compliance with evolving privacy and data security regulations has led to increased costs and may impair the ability to grow the business [179]. Market and Economic Conditions - The COVID-19 pandemic has adversely affected sales activities, with potential customers in heavily impacted industries reducing or delaying technology spending [80]. - Adverse economic conditions, including the impact of the COVID-19 pandemic and geopolitical tensions, have led to decreased technology spending among customers, affecting sales and subscription growth [141]. - The company has experienced negative impacts on sales activities in Europe due to economic weakness and uncertainty related to the COVID-19 pandemic and geopolitical events [142]. - The ongoing geopolitical tensions, particularly due to the conflict in Ukraine, may negatively impact the global economy and capital markets, affecting the company's financial condition [95]. Intellectual Property and Technology Risks - The company has 15 issued U.S. patents and 19 non-provisional U.S. patent applications as of January 31, 2022, with expiration dates ranging from 2032 to 2039 [58]. - The company faces potential intellectual property disputes, which could lead to significant costs and harm to business operations [157]. - There is a risk of substantial costs associated with protecting or defending intellectual property rights, which could divert management's attention from core operations [159]. - The company relies on third-party software, and failure to maintain these licenses could result in increased costs or reduced service levels [167]. - The reliability of the company's network and support infrastructure is critical, with potential outages leading to significant costs and reputational damage [168]. - The company has experienced performance problems due to infrastructure changes and capacity constraints, which could lead to service outages [170]. Corporate Governance and Stockholder Rights - The company does not intend to pay dividends for the foreseeable future, focusing instead on retaining earnings for business operations and expansion [210]. - The company has 131,156,986 shares of common stock outstanding as of January 31, 2022, and future sales of capital stock could result in dilution for existing stockholders [207]. - The market price of the company's common stock has been volatile, influenced by various factors including changes in accounting principles and general economic conditions [202]. - The company is subject to Delaware law provisions that could make mergers or proxy contests difficult, potentially depressing the trading price of its common stock [212]. - The company has a classified board of directors with three-year staggered terms, which could delay stockholders' ability to change the majority membership of the Board [214]. - The company prohibits cumulative voting in the election of directors, which may limit stockholder influence [214]. - Directors can only be removed for cause, restricting stockholder power in governance [214]. - The Board has the authority to issue preferred stock without stockholder approval, potentially diluting ownership for hostile acquirers [214]. - A special meeting of stockholders can only be called by the Board or certain executives, which may delay stockholder actions [214]. - Amendments to the company's certificate of incorporation require a 66 2/3% affirmative vote from stockholders, inhibiting unsolicited takeover attempts [214]. - Advance notice procedures are in place for stockholder nominations, which may deter potential acquirers from soliciting proxies [214].

Yext, Inc. (NYSE:YEXT) Q4 2022 Earnings Conference Call March 8, 2022 4:30 PM ET Company Participants Jeffrey Houston - Vice President, Investor Relations Howard Lerman - Co-Founder, Chief Executive Officer & Director David Rudnitsky - President & Chief Executive Officer Steve Cakebread - Chief Financial Officer Darryl Bond - Chief Accounting Officer Michael Walrath - Independent Chairman of the Board Conference Call Participants Naved Khan - Truist Securities Ryan MacDonald - Needham Pinjalim Bora - JPMorg ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended October 31, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-38056 YEXT, INC. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or orga ...