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 July 31, 2023 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 organiz ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended April 30, 2023 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) Washington, D.C. 20549 FORM 10-Q (Mark One) Delaware 20-8059722 (State or other jurisdiction of inc ...

Yext, Inc. (NYSE:YEXT) Q1 2024 Earnings Conference Call June 6, 2023 5:00 PM ET Company Participants Nils Erdmann - Senior Vice President, Investor Relations Michael Walrath - Chief Executive Officer and Chair of the Board Marc Ferrentino - President and Chief Operating Officer Darryl Bond - Chief Financial Officer Conference Call Participants Thomas White - D.A. Davidson Ryan MacDonald - Needham & Company Rohit Kulkarni - ROTH MKM Christopher Madison - William Blair Operator Hello and welcome to the Yext I ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (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, 2023 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 organization) ...

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 ...