Yext(US:YEXT)2021-12-03 01:15Financial Data and Key Metrics Changes - Revenue for Q3 2022 was $99.5 million, exceeding guidance by $1 million, reflecting a 12% year-over-year growth [6][27] - Annual Recurring Revenue (ARR) reached $387 million, also up 12% year-over-year [27] - Gross margin improved to 76.5%, up from 75.2% in the previous quarter [28] - Net loss for Q3 was $5.5 million, compared to a loss of $2.8 million in the same quarter last year [30] Business Line Data and Key Metrics Changes - Listings ARR growth reaccelerated to 5% year-over-year, up from a low of 1% [7][36] - Answers ARR sustained triple-digit growth, exceeding 130% year-over-year [7][50] - The number of direct customers increased by 20% year-over-year to over 2,700 [19] - 53% of customers that renewed were upsells, indicating strong customer engagement [16] Market Data and Key Metrics Changes - Europe experienced over 30% year-over-year ARR growth in Q3 [10] - Renewals in financial services and healthcare were strong, with notable clients like Fidelity and H&R Block [22] - New logo signings included major brands such as Citibank and Prada, indicating strong market demand [20] Company Strategy and Development Direction - The company is focused on innovation, launching new AI search products in healthcare and financial services [11] - A land and expand strategy is being effectively implemented, with significant upsells from existing customers [23] - The company is entering new markets such as product listings and workplace answers, aiming to capture additional growth opportunities [13][14] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about future growth opportunities due to positive trends in customer engagement and product recovery [11][33] - The company is well-positioned to capture long-term growth as macroeconomic conditions improve [34] - Management noted that the shift in product mix from Listings to Answers is beneficial for future performance [46][50] Other Important Information - Cash and cash equivalents stood at $230 million, indicating a strong balance sheet [30] - The company expects Q4 revenue to be between $100 million and $102 million [32] Q&A Session Summary Question: Can you quantify gross retention levels? - Management indicated that gross retention has dramatically recovered and is now in line with pre-COVID levels [39][40] Question: What are the investment priorities going forward? - The company plans to maintain R&D investments at current levels while continuing to innovate [42] Question: What percentage of new wins includes Answers versus Listings? - Non-Listings ARR grew 30% year-over-year, while Answers ARR grew 130% year-over-year [50] Question: How are discussions with retail and food service customers going? - There is renewed engagement with these customers, and they are adding more locations and capacity [69] Question: What trends are being seen with Support Answers? - There is strong interest in Support Answers, with significant ROI reported by customers like Samsung [73]