Yext(US:YEXT)2019-03-07 02:58Financial Data and Key Metrics Changes - Total revenue grew 33% year-over-year in Q4, reaching $63.8 million, exceeding guidance [9][30] - Full year revenue increased 34%, totaling $228.8 million [9][30] - Operating cash flow for Q4 was nearly $31 million, marking the first full year of positive operating cash flow [9][36] - Net loss for Q4 increased to $19.9 million from $17 million a year ago, with a net loss per share of $0.20 [34] Business Line Data and Key Metrics Changes - Signed 128 new enterprise logos in Q4, a 68% increase from the previous year [10][19] - New annual contract value (ACV) from new customers and expansions was balanced, with approximately half coming from each segment [30] - Deferred revenue increased 54% year-over-year to $137.4 million [31] Market Data and Key Metrics Changes - International results were strong, with Japan achieving the largest first-year results in company history [25] - Significant growth in Europe, particularly in northern and southern regions [25] Company Strategy and Development Direction - The company aims to provide verified answers online, positioning itself as a critical technology provider for brands [16][24] - Focus on expanding sales capacity, particularly in mid-market and enterprise segments, with plans to hire more quota-carrying sales representatives [20][63] - Strategic discussions with customers are leading to larger contracts, with 169 deals above $100,000 closed in Q4 [23] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the business's state and growth opportunities, citing strong demand indicators and increased C-level engagement [19][106] - The company plans to continue investing in sales and marketing, as well as R&D, to support growth [38][66] Other Important Information - The company adopted ASC-606 accounting standards, with minimal impact on revenue recognition [27][29] - Remaining performance obligations (RPO) stood at $262 million, with an additional $34 million in backlog [32] Q&A Session Summary Question: Can you discuss the RPO metric and its historical growth? - Management noted that the RPO reflects contracted but unbilled revenue, with the $34 million representing exclusions under ASC-606 [44] Question: How is the focus on mid-market accounts progressing? - The company has ramped up hiring for mid-market sales teams and is seeing significant growth in that segment [46] Question: What is the retention trend for the SMB segment? - Retention for the SMB segment remains in the mid-40% to 50% range, with a strategic shift towards mid-market and enterprise [51] Question: How is sales hiring trending? - The company is aggressively hiring, currently at 18% quota-carrying sales headcount, with a goal of reaching 20% [63] Question: What drove the increase in deferred revenue in Q4? - The increase is attributed to strong new business and renewals, typical for the software industry [92]