Slide 1: Investor Presentation December 2024
Investor | Presentation December 2024
Slide 2: Safe Harbor Statement
Safe Harbor Statement Statements in this presentation that are not statements of historical facts are forward-looking statements and should be evaluated as such. Forward-looking statements include, but not limited to, statements regarding: our expected financial and operating results in future perio
Slide 3: Yext is the leading digital presence platform for multi-location brands
Yext is the leading digital presence platform for multi-location brands, helping them reach and serve their end customer
Slide 4: Consumers expect to find accurate, relevant, and engaging information
83% of shoppers use Google Search to learn Consumers expect about local businesses to find accurate, relevant, and engaging information, wherever 54% of users they are engage with social media to research products 99% of consumers read online reviews as part of their search Source: Google Consumer I
Slide 5: Yext optimizes brand content to enable discovery and drive conversions
Yext optimizes brand content to enable discovery and drive conversions
Slide 6: The only end-to-end platform powering the entire digital customer journey
We are the only end-to-end platform powering the entire digital customer journey
Slide 7: AI and Search fragmentation are further complicating that journey
AI and Search fragmentation are further complicating that journey today Consolidation Fragmentation 2009 TIME
Slide 8: The Yext value proposition
The Yext value proposition enables customers to accelerate revenue growth while reducing costs GROWTH REVENUE Increase visibility Drive conversions Manage a consistent brand Increase engagement with local DIGITAL EXPERIENCES experience across all digital channels customers through personalized inter
Slide 9: Brands choose any combination of products
Brands choose any combination of products and iterate as needs grow
Slide 10: Yext delivers the results brands want
Yext delivers the results brands want Show up Leverage Make Scale everywhere AI-powered data-driven workflows with customers are tools to increase decisions in one platform looking efficiency real-time +47% 2.3x 40.8% +30% +57% listings more unbranded customer improvement in impressions appearances
Slide 11: Our Knowledge Graph is our economic moat
Our Knowledge Graph is our economic moat Captures & organizes data Creates actionable predictive from multiple sources insights to guide customers to: Improve and optimize customer Analyzes complex relationships experiences Better understand customer intent Knowledge Knowledge Combines disparate dat
Slide 12: Yext is the source of truth for our customers' brand information
Yext is the source of truth for our customers’ brand information Trust (and rank) is gained through Highest update frequency, requires consistency with Pages & Listings consistent and Schema everywhere, reinforced frequent data by Listings consistency, first-party synchronization page control Broad
Slide 13: Yext enhances brands' AI readiness
Yext enhances brands’ AI readiness… Search engines Web pages Your digital presence is your data strategy Listings Reviews Social AI
Slide 14: Enables generative AI experiences through integrations with key publishers
…and enables generative AI experiences through integrations with key publishers
Slide 15: Financials
Financials
Slide 16: Driving profitable growth
Driving profitable growth FY’21 FY’22 FY’23 FY’24 FY’25E Adjusted EBITDA is a non-GAAP measure; see Appendix for further information and reconciliations of GAAP to non-GAAP measures.
Slide 17: Delivering consistently strong gross margins
Delivering consistently strong gross margins Non-GAAP gross margin Non-GAAP gross profit Q1 Q1 Q1 Q1 Q1 FY’21 FY’22 FY’23 FY’24 FY’25 Non-GAAP gross profit $ in millions; see Appendix for reconciliations of GAAP to non-GAAP measures.
Slide 18: Producing Opex efficiency
Producing Opex efficiency Non-GAAP Opex as a % of revenue G&A R&D S&M FY’21 FY’22 FY’23 FY’24 YTD FY’25 See Appendix for reconciliations of GAAP to non-GAAP measures.
Slide 19: Progress toward Rule of 40
Progress toward Rule of 40 Q1 Q1 Q1 Q1 FY’22 FY’23 FY’24 FY’25 *Based on the midpoints of Q4 FY’25 guidance ranges, as of December 9, 2024. Adj. EBITDA margin is a non-GAAP measure; see Appendix for reconciliations of GAAP to non-GAAP measures. We have not reconciled this forward-looking measure to
Slide 20: Q3 FY'25 Performance
Q3 FY’25 Performance * Top Line Efficiency Profitability Q3 FY’24 Q3 FY’25 Gross margin $114 M Revenue 79% (non-GAAP) Net Income $11.3 M $15.6 M (non-GAAP) Operating expense 62% as a % of revenue (non-GAAP) $0.09 $0.12 EPS (non-GAAP) $442 M ARR S&M 31% as a % of revenue (non-GAAP) $13.5 M $23.1 M Ad
Slide 21: Guidance
Guidance Projected Q4 FY’25* Projected FY’25* Revenue ($ millions) $112.4 to $112.9 $420.3 to $420.8 Adjusted EBITDA** ($ millions) $24.5 to $25.0 $67.0 to $67.5 Non-GAAP net income per share** $0.12 to $0.13 $0.35 to $0.36 Weighted-average basic shares outstanding (millions) 128.2 127.0 Non-GAAP ta
Slide 22: Appendix
Appendix
Slide 23: Yext puts brands front and center sources
Yext puts brands front and center sources +47% listings impressions when customers switch to Yext Sampled a random set of 20 Yext customers who moved to Yext after working with a competitor using an aggregator strategy with very few direct integrations. Across this sample, the median growth they ach
Slide 24: Condensed Consolidated Balance Sheets (Assets)
Q3FY25 Condensed Consolidated Balance Sheets Assets Current assets: Cash and cash equivalents $ Restricted cash, current Accounts receivable, net of allowances of $1,468 and $1,013, respectively Prepaid expenses and other current assets Costs to obtain revenue contracts, current Total current assets
Slide 25: Condensed Consolidated Balance Sheets (Liabilities)
Q3FY25 Condensed Consolidated Balance Sheets Current liabilities: Accounts payable, accrued expenses and other current liabilities Unearned revenue, current Operating lease liabilities, current Total current liabilities Operating lease liabilities, non-current Contingent consideration, non-current O
Slide 26: Condensed Consolidated Statements of Operations
Q3FY25 Condensed Consolidated Statements of Operations and Comprehensive Loss Revenue Cost of revenue Gross profit Operating expenses: Sales and marketing Research and development General and administrative Total operating expenses Loss from operations Interest income Interest expense Other expense,
Slide 27: Condensed Consolidated Statements of Cash Flows
Q3FY25 Condensed Consolidated Statements of Cash Flows Operating activities: Net loss Adjustments to reconcile net loss to net cash provided by operating activities: Depreciation and amortization expense Bad debt expense Stock-based compensation expense Amortization of operating lease right-of-use a
Slide 28: Condensed Consolidated Statements of Cash Flows (continued)
Q3FY25 Condensed Consolidated Statements of Cash Flows Nine months ended October 31, 2024 2023 Investing activities: Capital expenditures (1,769) (2,320) Cash paid in acquisition, net of cash acquired (89,407) rd Net cash used in investing activities (91,176) (2,320) Financing activities: Proceeds f
Slide 29: Reconciliation of GAAP net loss to Adjusted EBITDA
Q3FY25 Reconciliation of GAAP to Non-GAAP Financial Measures GAAP net loss to Adjusted EBITDA: GAAP net loss Interest (income) expense, net Provision for income taxes Depreciation and amortization Other expense (income), net Stock-based compensation expense Acquisition-related costs Adjusted EBITDA
Slide 30: Reconciliation: cost of revenue and sales and marketing
Q3FY25 Reconciliation of GAAP to Non-GAAP Financial Measures Cost ofrevenue GAAP cost of revenue Less: Stock-based compensation expense Less: Acquisition-related costs Les mortization of acquired intangibles Non-GAAP cost of revenue GAAP cost of revenue as a % of revenue Non-GAAP cost of revenue as
Slide 31: Reconciliation: R&D and G&A
Q3FY25 Reconciliation of GAAP to Non-GAAP Financial Measures Research and development GAAP research and development Less: Stock-based compensation expense Less: Acquisition-related costs Non-GAAP research and development GAAP research and development as a % of revenue Non-GAAP research and developme
Slide 32: Reconciliation: gross profit, operating expenses, operating income
Q3FY25 Reconciliation of GAAP to Non-GAAP Financial Measures Gross profit GAAP gross profit Plus: Stock-based compensation expense Plus: Acquisition-related costs Plus: Amortization of acquired intangibles Non-GAAP gross profit GAAP gross margin Non-GAAP gross margin Qperating expenses GAAP operatin
Slide 33: Reconciliation: non-GAAP net income, three months
Q3FY25 Reconciliation of GAAP to Non-GAAP Financial Measures Three months ended October 31, 2024 2023 GAAP net loss $ (12,799) $ (468) Plus: Stock-based compensation expense 12,693 11,758 Plus: Acquisition-related costs 14,482 = Plus: Amortization of acquired intangibles 3,465 a Less: Tax adjustment
Slide 34: Reconciliation: non-GAAP net income, nine months
Q3FY25 Reconciliation of GAAP to Non-GAAP Financial Measures Nine months ended October 31, 2024 2023 GAAP net loss $ (20,673) $ (4,317) Plus: Stock-based compensation expense 37,091 34,335 Plus: Acquisition-related costs 16,650 — Plus: Amortization of acquired intangibles 3,465 a Less: Tax adjustmen
Slide 35: Constant currency revenue and free cash flow
Q3FY25 Reconciliation of GAAP to Non-GAAP Financial Measures Constant Currency Revenue Revenue (GAAP) Effects of foreign currency rate fluctuations Revenue on a constant currency basis (Non-GAAP) Revenue (GAAP) Effects of foreign currency rate fluctuations Revenue on a constant currency basis (Non-G
Slide 36: Annual Recurring Revenue
Q3FY25 Annual Recurring Revenue Direct Customers Third-Party Reseller Customers Total Annual Recurring Revenue Annual Recurring Revenue Trend Direct Customers Third-Party Reseller Customers Total Annual Recurring Revenue Dollar-Based Net Retention Rate Direct Customers Third-Party Reseller Customers
Slide 37: Non-GAAP Measurements
Q3FY25 Non-GAAP Measurements In addition to disclosing financial measures prepared in accordance with U.S. generally accepted accounting principles ("GAAP"), this presentation and the accompanying tables include non-GAAP cost of revenue, non-GAAP gross profit, non-GAAP gross margin, non-GAAP operati
Slide 38: Non-GAAP Measurements (continued)
Q3FY25 Non-GAAP Measurements In addition, we present non-GAAP constant currency measures of revenue. Constant currency as it relates to revenue provides a framework for assessing Company performance which excludes the effect of foreign currency rate fluctuations. Current period results for entities
Slide 39: Operating Metrics
Q3FY25 Operating Metrics This presentation also includes certain operating metrics that we believe are useful in providing additional information in assessing the overall performance of our business. Annual recurring revenue, or ARR, for Direct customers is defined as the annualized recurring amount