Yext(US:YEXT)2019-08-30 02:18Financial Data and Key Metrics Changes - Revenue grew 32% year-over-year to $72.4 million, exceeding the high-end of guidance [7][30] - Unearned revenue increased 42.4% year-over-year to $122.7 million [7][30] - Net loss increased from $19.4 million a year ago to $29.3 million this quarter, with a net loss per share of $0.26 compared to $0.20 a year ago [36][37] - Non-GAAP net loss increased from $8.4 million a year ago to $12.7 million this quarter, with a non-GAAP net loss per share of $0.11 [37] - Cash, cash equivalents, and marketable securities totaled $274.2 million as of July 31, 2019 [38] Business Line Data and Key Metrics Changes - The company closed over 90 deals with at least $100,000 in contract value, including ten deals with at least $1 million in total contract value [21] - Small business revenue was $3.2 million for the quarter [30] - International revenue accounted for 17% of total revenue, with significant growth in Europe and Japan [22][23][125] Market Data and Key Metrics Changes - The company signed contracts with major brands such as Travelers, Liberty Mutual, and Campbell's, indicating strong market demand [8][10] - The number of structured facts grew more than 60% year-over-year, reflecting increased engagement and usage [7] Company Strategy and Development Direction - The launch of the new product, Yext Answers, aims to enhance the customer experience by providing structured search capabilities [12][15] - The company is focusing on expanding its total addressable market by targeting businesses without physical locations [18][72] - Investments in building a mid-market sales team are expected to smooth revenue fluctuations from larger enterprise deals [39][40] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in returning to traditional net revenue retention levels despite a drop to 108% this quarter [33] - The company does not foresee macroeconomic influences affecting business performance, with sales cycles remaining stable [128][129] - Future guidance includes expected revenue between $75.5 million and $76.5 million for Q3, with a full-year revenue range raised to $299 million to $301 million [41][42] Other Important Information - The company adopted ASC-606 and ASC-842 accounting standards, impacting revenue recognition and lease accounting [29] - The upcoming Onward event is expected to attract over 1,600 marketers and search technology leaders, focusing on the future of search [44][45] Q&A Session Summary Question: Sales capacity and headcount growth - Management confirmed that the 35% year-over-year increase in sales headcount is on target, with a focus on both enterprise and mid-market segments [48][50] Question: Enterprise growth rates - Management indicated that enterprise growth rates are challenged due to tough comparisons from a strong prior year, but the pipeline remains solid [59] Question: Impact of Google algorithm changes - Management stated that changes in Google's algorithm do not significantly impact their business, as they focus on providing accurate answers through knowledge graphs [62][64] Question: Pricing and packaging for Yext Answers - Management indicated that pricing details for Yext Answers will be announced at the Onward event, with the product expected to be a key offering [66][70] Question: International revenue growth - Management confirmed that international revenue is growing, with strong performance in the UK, France, Italy, and Japan [125][126] Question: Macro influences on sales cycles - Management reported no signs of longer sales cycles or macroeconomic impacts on business performance [128][129]