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]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended January 31, 2022 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 organization) Delaware 20-8 ...

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 ...

Yext, Inc. (NYSE:YEXT) Q3 2022 Results Conference Call December 2, 2021 4:30 PM ET Company Participants Jeff Houston - VP, IR Howard Lerman - Co-Founder, CEO & Director David Rudnitsky - President & CEO Steve Cakebread - CFO Conference Call Participants Naved Khan - Truist Securities Rohit Kulkarni - MKM Partners Pinjalim Bora - JPMorgan Operator Good day, and welcome to the Yext Third Quarter Fiscal 2022 Earnings Conference Call. All participants will be in listen-only mode. [Operator Instructions] After t ...

[PART I. FINANCIAL INFORMATION](index=6&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Financial Statements](index=6&type=section&id=Item%201.%20Financial%20Statements) Yext, Inc. reported $190.1 million revenue and a $45.2 million net loss for the six months ended July 31, 2021, with total assets of $568.7 million and improved operating cash flow to $2.4 million [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of July 31, 2021, total assets decreased to $568.7 million and total liabilities to $352.2 million, while stockholders' equity increased to $216.6 million Balance Sheet Data | Balance Sheet Items (In thousands) | July 31, 2021 (In thousands) | January 31, 2021 (In thousands) | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $240,490 | $230,411 | | Accounts receivable, net | $59,110 | $97,455 | | Total current assets | $349,220 | $376,184 | | Total assets | $568,744 | $595,989 | | **Liabilities & Stockholders' Equity** | | | | Unearned revenue, current | $165,377 | $191,810 | | Total current liabilities | $228,875 | $260,161 | | Total liabilities | $352,165 | $388,754 | | Total stockholders' equity | $216,579 | $207,235 | [Condensed Consolidated Statements of Operations and Comprehensive Loss](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Loss) For the three months ended July 31, 2021, revenue grew 11.4% to $98.1 million with a $27.6 million net loss, while the six-month period saw revenue increase 9.6% to $190.1 million and net loss narrow to $45.2 million Statements of Operations Data | Statement of Operations (In thousands) | Q2 2022 (ended Jul 31, 2021) (In thousands) | Q2 2021 (ended Jul 31, 2020) (In thousands) | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | $98,124 | $88,055 | +11.4% | | Gross Profit | $71,509 | $66,071 | +8.2% | | Loss from operations | $(26,412) | $(24,240) | +9.0% | | Net loss | $(27,592) | $(25,116) | +9.9% | | Net loss per share, basic and diluted | $(0.22) | $(0.21) | +4.8% | Statements of Operations Data | Statement of Operations (In thousands) | Six Months ended Jul 31, 2021 (In thousands) | Six Months ended Jul 31, 2020 (In thousands) | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | $190,116 | $173,406 | +9.6% | | Gross Profit | $141,647 | $130,238 | +8.8% | | Loss from operations | $(43,644) | $(53,429) | -18.3% | | Net loss | $(45,223) | $(54,340) | -16.8% | | Net loss per share, basic and diluted | $(0.36) | $(0.46) | -21.7% | [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash provided by operating activities significantly improved to $2.4 million for the six months ended July 31, 2021, while net cash used in investing activities decreased to $10.6 million and net cash from financing activities increased to $17.6 million Cash Flow Data | Cash Flow Items (In thousands) | Six months ended July 31, 2021 (In thousands) | Six months ended July 31, 2020 (In thousands) | | :--- | :--- | :--- | | Net cash provided by (used in) operating activities | $2,449 | $(16,295) | | Net cash used in investing activities | $(10,555) | $(40,055) | | Net cash provided by financing activities | $17,585 | $9,664 | | Net increase (decrease) in cash and cash equivalents | $10,079 | $(44,829) | | Cash and cash equivalents at end of period | $240,490 | $223,347 | [Notes to Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Notes highlight subscription-based revenue, with North America contributing 79%, $341.6 million in remaining performance obligations, a $50.0 million revolving loan facility with $35.7 million available, and $35.0 million in stock-based compensation expense Revenue by Geographic Region | Revenue by Geographic Region (In thousands) | Six months ended July 31, 2021 (In thousands) | Six months ended July 31, 2020 (In thousands) | | :--- | :--- | :--- | | North America | $150,699 | $140,398 | | International | $39,417 | $33,008 | | **Total revenue** | **$190,116** | **$173,406** | - As of July 31, 2021, the company had **$341.6 million** of remaining performance obligations, with **$323.8 million** expected to be recognized as revenue over the next twenty-four months[42](index=42&type=chunk) Stock-Based Compensation Expense | Stock-Based Compensation Expense (In thousands) | Six months ended July 31, 2021 (In thousands) | Six months ended July 31, 2020 (In thousands) | | :--- | :--- | :--- | | Cost of revenue | $3,757 | $2,540 | | Sales and marketing | $12,878 | $15,741 | | Research and development | $9,816 | $7,876 | | General and administrative | $8,549 | $8,445 | | **Total** | **$35,000** | **$34,602** | - The company has a **$50.0 million** senior secured revolving loan facility. As of July 31, 2021, **$35.7 million** was available, with **$14.3 million** allocated for letters of credit. The company was in compliance with all debt covenants[82](index=82&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=22&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes Q2 2022 revenue growth to new and expanded subscriptions, while acknowledging ongoing COVID-19 risks, with the company reporting a GAAP net loss of $27.6 million and maintaining strong liquidity with $240.5 million in cash - The COVID-19 pandemic continues to impact business, with potential for customers in highly affected industries (retail, food services) and geographies (Europe) and to reduce, suspend, or delay technology spending[104](index=104&type=chunk) Revenue and Gross Profit Data | Revenue and Gross Profit (In thousands) | Q2 2022 (ended Jul 31, 2021) (In thousands) | Q2 2021 (ended Jul 31, 2020) (In thousands) | Variance ($) (In thousands) | Variance (%) | | :--- | :--- | :--- | :--- | :--- | | Revenue | $98,124 | $88,055 | $10,069 | 11% | | Cost of revenue | $26,615 | $21,984 | $4,631 | 21% | | Gross profit | $71,509 | $66,071 | $5,438 | 8% | | Gross margin | 72.9% | 75.0% | - | - | - The increase in cost of revenue was primarily driven by a **$2.9 million** increase in personnel-related costs and a **$1.0 million** increase in stock-based compensation, reflecting higher headcount[115](index=115&type=chunk) Reconciliation of GAAP to Non-GAAP Net Loss | Reconciliation of GAAP Net Loss to Non-GAAP Net Loss (In thousands) | Q2 2022 (ended Jul 31, 2021) (In thousands) | Q2 2021 (ended Jul 31, 2020) (In thousands) | | :--- | :--- | :--- | | Net loss (GAAP) | $(27,592) | $(25,116) | | Plus: Stock-based compensation expense | $20,402 | $17,230 | | **Non-GAAP net loss** | **$(7,190)** | **$(7,886)** | [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, but management does not anticipate a material effect on financial position or results from a hypothetical 10% change in these factors - The company's primary market risks are related to foreign currency, inflation, and interest rates[156](index=156&type=chunk) - Management states that a 10% change in the value of the U.S. dollar or a 10% change in interest rates would not have a material effect on the company's financial statements[157](index=157&type=chunk)[160](index=160&type=chunk) [Controls and Procedures](index=31&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were ineffective as of July 31, 2021, due to a material weakness in sales commission accounting processes, which the company is actively remediating - The company's Chief Executive Officer and Chief Financial Officer concluded that disclosure controls and procedures were **ineffective** as of July 31, 2021[163](index=163&type=chunk) - The ineffectiveness is due to a material weakness related to the processes to calculate, record, and account for sales commissions, as described in the Annual Report on Form 10-K[163](index=163&type=chunk)[164](index=164&type=chunk) [PART II. OTHER INFORMATION](index=32&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Legal Proceedings](index=32&type=section&id=Item%201.%20Legal%20Proceedings) The company is not currently a party to any legal proceedings that are considered material to its business or financial condition - As of the filing date, Yext is not a party to any material legal proceedings[167](index=167&type=chunk) [Risk Factors](index=32&type=section&id=Item%201A.%20Risk%20Factors) The company faces significant risks including a history of net losses, ongoing COVID-19 impacts, intense competition, operational challenges in sales and partner relationships, and a material weakness in internal controls over financial reporting - The company has a history of losses, with a net loss of **$94.7 million** in fiscal 2021 and an accumulated deficit of **$517.3 million** as of January 31, 2021. It may not achieve profitability in the future[175](index=175&type=chunk) - The COVID-19 pandemic is expected to continue to have an adverse effect on business, as some customers may reduce, suspend, or delay technology spending[176](index=176&type=chunk) - Growth is dependent on strategic relationships with approximately 200 third-party application providers in its Knowledge Network, including Google, Apple, and Amazon. Losing access to key providers could significantly harm the business[195](index=195&type=chunk) - A material weakness in internal control over financial reporting associated with the process to calculate, record, and account for sales commissions continued to exist as of January 31, 2021[221](index=221&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=66&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) There were no unregistered sales of equity securities during the period - None[313](index=313&type=chunk) [Defaults Upon Senior Securities](index=66&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) There were no defaults upon senior securities during the period - None[314](index=314&type=chunk) [Mine Safety Disclosures](index=66&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not applicable[315](index=315&type=chunk) [Other Information](index=66&type=section&id=Item%205.%20Other%20Information) There is no other information to report for the period - None[315](index=315&type=chunk) [Exhibits](index=66&type=section&id=Item%206.%20Exhibits) The report lists exhibits filed with the Form 10-Q, including certifications by the Principal Executive Officer and Principal Financial Officer as required by the Sarbanes-Oxley Act of 2002, and Interactive Data Files (Inline XBRL) - Key exhibits filed include CEO and CFO certifications pursuant to Sections 302 and 906 of the Sarbanes-Oxley Act[316](index=316&type=chunk)

Yext, Inc. (NYSE:YEXT) Q2 2022 Earnings Conference Call September 2, 2021 4:30 PM ET Company Participants Jeff Houston - VP, IR Howard Lerman - Co-Founder, CEO & Director David Rudnitsky - President & CEO Steve Cakebread - CFO Conference Call Participants Matt Coss - JPMorgan Ryan MacDonald - Needham & Company Nic Cronin - Truist Securities Arjun Bhatia - William Blair Rohit Kulkarni - MKM Partners Operator Good afternoon, and welcome to the Yext Second Quarter Fiscal 2022 Earnings Conference Call. All pa ...