Yext(YEXT) - 2026 Q3 - Quarterly Results

Revenue Performance - Revenue for Q3 FY 2026 was $112.0 million, a 2% decrease compared to $114.0 million in Q3 FY 2025[4] - Total revenue for the three months ended October 31, 2025, was $111,998, a decrease of 1.7% compared to $113,989 for the same period in 2024[43] - Revenue for the nine months ended October 31, 2025, was $334.575 million, representing a 9% increase from $307.866 million in 2024[63] - Total Annual Recurring Revenue (ARR) as of October 31, 2025, was $444.360 million, down 1% from $448.649 million in 2024[65] Profitability Metrics - Gross profit was $82.8 million, a decrease of 6% from $87.7 million in Q3 FY 2025, resulting in a gross margin of 73.9%[8] - The company reported a net income of $6,136 for the three months ended October 31, 2025, compared to a net loss of $12,799 in the same period of 2024[43] - GAAP net income for Q3 2025 was $6,136, compared to a loss of $12,799 in Q3 2024, representing a significant turnaround[47] - Non-GAAP net income for Q3 2025 was $17,495, compared to $15,615 in Q3 2024, reflecting a year-over-year increase of 11.3%[56] - GAAP net income for the nine months ended October 31, 2025, was $33.657 million, compared to a loss of $20.673 million in 2024[60] - Non-GAAP net income for the same period was $50.329 million, up from $28.717 million year-over-year[60] Cash Flow and Liquidity - Cash, cash equivalents, and restricted cash totaled $158.9 million as of October 31, 2025, up from $138.7 million as of January 31, 2025[11] - Cash and cash equivalents at the end of the period were $139,916, an increase from $123,133 at the beginning of the period[41] - The company reported a net cash provided by operating activities of $26,312 for the nine months ended October 31, 2025, compared to $11,865 in 2024[45] - Free cash flow for the nine months ended October 31, 2025, was $24.662 million, compared to $10.096 million in 2024[63] Customer Metrics - Dollar-Based Net Retention Rate (NRR) for total and direct customers was 96%, while NRR for third-party reseller customers was 99%[10] - Direct customers represented 83% of total ARR, totaling $368.6 million, a 2% year-over-year decrease[15] - The dollar-based net retention rate for total customers was 96% as of October 31, 2025, compared to 92% a year earlier[65] - The dollar-based gross retention rate for total customers improved to 88% as of October 31, 2025, from 84% in the same period last year[65] Operating Expenses - Operating expenses for the three months ended October 31, 2025, were $75,015, down from $98,110 in the same period of 2024, reflecting a reduction in sales and marketing expenses[43] - GAAP operating expenses for Q3 2025 were $75,015, down from $98,110 in Q3 2024, leading to a GAAP operating margin of 7%[53] - Non-GAAP operating expenses for Q3 2025 were $62,285, compared to $70,288 in Q3 2024, with a non-GAAP operating margin of 22%[53] Stock and Shareholder Returns - Share repurchase program year-to-date totaled $59.6 million, with approximately $22.3 million remaining for future purchases[11] - GAAP net income per share attributable to common stockholders (diluted) was $0.06 for the nine months ended October 31, 2025, compared to a loss of $0.16 in 2024[60] - Non-GAAP net income per share attributable to common stockholders (diluted) increased to $0.38 from $0.22 year-over-year[60] Performance Obligations - Remaining Performance Obligations (RPO) were $415.6 million, with $377.1 million expected to be recognized as revenue over the next 24 months[10]