Yext(US:YEXT)2020-12-04 01:58Financial Data and Key Metrics Changes - The third quarter revenue grew 17% year-over-year to $89.1 million, with unearned revenue increasing 20% year-over-year to $129 million [31] - Annual recurring revenue (ARR) at the end of Q3 was $346 million, up 18% year-over-year from $293 million reported in the same quarter last year [31] - Q3 GAAP net loss was $22 million, compared to a loss of $42.7 million in the year-ago quarter, representing a 48% improvement [34] - Non-GAAP net loss for Q3 was $2.8 million, a significant improvement from the $21.6 million loss in the year-ago quarter [34] Business Line Data and Key Metrics Changes - Closed 86 Answers-led deals in Q3, driving over 30% of new and upsell annual contract value (ACV) compared to 20% in Q2 [10] - The total number of mid-market and enterprise customers increased 28% year-over-year to nearly 2,300, excluding SMB and third-party reseller customers [24] - New logo deals included significant contracts with a top three U.S. financial institution and Chewy, while upsell deals included Humana and Wells Fargo [25][26] Market Data and Key Metrics Changes - The company experienced muted upsells, particularly among customers with retail footprints and in the EMEA region due to COVID-related economic lockdowns [31] - The trailing 12-month net dollar-based retention rate was 103%, with direct enterprise retention at 104% [31] Company Strategy and Development Direction - The company is focused on driving revenue growth through the "Land with Answers" sales motion while improving operational efficiency [11][50] - The "Answers, Not Ads" campaign aims to position the company as a leader in branded search, emphasizing the need for businesses to provide direct answers rather than ads [16] - The integration with WordPress is expected to accelerate adoption of Answers among mid-sized customers by simplifying the setup process [45] Management's Comments on Operating Environment and Future Outlook - Management expressed caution regarding the near-term outlook due to ongoing global economic uncertainties and potential lockdowns [36] - The company anticipates Q4 revenue to be between $87 million and $89 million, with a non-GAAP net loss per share expected between $0.08 and $0.10 [36] - Management remains optimistic about long-term growth opportunities driven by the Answers platform and operational efficiencies [37] Other Important Information - The company welcomed Hillary Smith to its Board of Directors, highlighting her experience in the tech industry [22] - Cash and cash equivalents were reported at $209 million, indicating a strong balance sheet to navigate the current economic environment [35] Q&A Session Summary Question: Guidance for Q4 and growth dynamics - Management indicated that Q4 may be more challenging due to lockdowns and emphasized the need for upsells from customers [42][43] Question: New WordPress integration and its impact - The WordPress integration is aimed at mid-sized customers, allowing for easier setup of Answers without coding [45] Question: Success of Answers versus other business areas - In Q3, 86 Answers deals were closed, representing significant momentum and efficiency in sales [49] Question: Progress on removing onboarding bottlenecks - The company is focused on making the product more self-serve and has seen improvements in customer onboarding processes [54] Question: Impact of the U.S. Election on deal cycles - Management reported no significant influence from the U.S. Election on deal cycles [62] Question: Sustainability of operational expense improvements - Management believes that many of the cost-saving measures implemented will be sustainable moving forward [66]