Yext(US:YEXT)2025-09-08 20:07Financial Performance - Revenue for the three months ended July 31, 2025, was $113,094,000, representing a 15.5% increase from $97,887,000 in the same period of 2024[19] - Gross profit for the six months ended July 31, 2025, was $167,412,000, up from $150,038,000 in 2024, indicating an increase of 11.6%[19] - Net income for the three months ended July 31, 2025, was $26,751,000, compared to a net loss of $4,057,000 in the same period of 2024[19] - Net income for the six months ended July 31, 2025, was $27.5 million, compared to a net loss of $7.9 million for the same period in 2024[29] - Total revenue for the six months ended July 31, 2025, was $222.6 million, representing a 14.8% increase from $193.9 million in 2024[45] - Adjusted EBITDA for the three months ended July 31, 2025, was $26,369,000, compared to $9,787,000 for the same period in 2024, representing a significant increase[185] - GAAP net income for the six months ended July 31, 2025, was $27,521,000, up from a loss of $7,874,000 in the same period in 2024[184] Assets and Liabilities - Total current assets increased to $300,353,000 as of July 31, 2025, from $285,801,000 as of January 31, 2025, reflecting a growth of 5.4%[17] - Total liabilities decreased to $473,637,000 as of July 31, 2025, down from $456,885,000 as of January 31, 2025, a reduction of 3.7%[17] - Cash and cash equivalents increased to $178,761,000 as of July 31, 2025, compared to $123,133,000 as of January 31, 2025, marking a significant increase of 45.2%[17] - The total stockholders' equity as of July 31, 2025, was $152,529,000, slightly down from $153,193,000 as of January 31, 2025[17] - As of July 31, 2025, total assets amounted to $107.1 million, with $47.35 million in Level 1 assets and $59.76 million in Level 2 assets[77] Cash Flow - Cash provided by operating activities for the six months ended July 31, 2025, was $46.1 million, an increase from $27.7 million in 2024[29] - Free cash flow for the three months ended July 31, 2025, was $7,834,000, compared to a negative free cash flow of $11,194,000 in the same period in 2024[190] - The company reported a free cash flow margin of 20% for the six months ended July 31, 2025, compared to 14% in the same period in 2024[190] - Changes in accounts receivable positively impacted cash flows, with an increase of $47.3 million for the six months ended July 31, 2025[206] Expenses - Operating expenses for the three months ended July 31, 2025, were $55,360,000, down from $83,160,000 in the same period of 2024, a decrease of 33.5%[19] - The Company incurred total expenses of $89.48 million for the three months ended July 31, 2025, compared to $86.94 million for the same period in 2024, reflecting an increase of about 2.9%[123] - Cost of revenue for the three months ended July 31, 2025, was $28,060, representing 25% of total revenue[155] - Cost of revenue for the six months ended July 31, 2025, was $55.2 million, an increase of $11.3 million or 26%, primarily due to higher amortization expenses and personnel-related costs[169] Acquisitions - The company completed the acquisition of Hearsay on August 1, 2024, to enhance its digital presence platform capabilities[53] - The total consideration transferred for the acquisition of Hearsay amounted to $180.7 million, including $132.5 million in cash and liabilities incurred[54] - The acquisition of Places Scout was completed for a purchase price of $20.3 million, with $13.8 million allocated to goodwill[67][68] - The Company recognized acquisition-related costs totaling $11.2 million, which included $8.8 million related to the incentive pool for Hearsay founders and early employees[59] Stock-Based Compensation - Stock-based compensation expense increased to $25.6 million in the first half of 2025 from $24.4 million in 2024[29] - Total stock-based compensation expense for Q2 2025 was $12.962 million, a 5.1% increase from $12.333 million in Q2 2024[91] - Research and development stock-based compensation increased to $3.818 million in Q2 2025, up 46.4% from $2.607 million in Q2 2024[91] Debt and Credit Agreements - The company entered into a credit agreement providing for term loan facilities of up to $200 million[135] - The company is required to maintain minimum qualified cash of at least $35 million under the May 2025 Credit Agreement[105] - As of July 31, 2025, the company had $100 million in principal debt obligations under the May 2025 Credit Agreement[109] - The May 2025 Credit Agreement includes financial covenants requiring a minimum qualified cash of at least $35 million at all times[201] Revenue Growth - Revenue from North America for the six months ended July 31, 2025, was $179.9 million, up 18.3% from $152.2 million in 2024[45] - The company’s international revenue for the six months ended July 31, 2025, was $42.7 million, a slight increase from $41.7 million in 2024[45] - Revenue from direct customers was $94.5 million for the three months ended July 31, 2025, up 19% from $79.3 million in 2024, while revenue from third-party resellers remained stable at $18.6 million[158] Other Financial Metrics - The Company achieved a net income of $26.75 million for the three months ended July 31, 2025, compared to a net loss of $4.06 million for the same period in 2024[122] - The diluted net income per share attributable to common stockholders for the three months ended July 31, 2025, was $0.03, compared to a loss of $0.03 per share in the same period of 2024[122] - Dollar-Based Net Retention Rate for Direct Customers improved to 95% from 91% year-over-year[146] - Annual Recurring Revenue (ARR) for Direct customers increased to $369,541, representing an 18% growth from $313,392 in the previous year[143] - Total ARR reached $444,362, up 15% from $387,296 year-over-year[143]