Slide 1: Investor Presentation
Investor Presentation December 5, 2023
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 are not limited to, statements regarding our expected financial and operating results in future pe
Slide 3: Digital Experiences Are Complex
Digital Experiences Are Complex The customer journey occurs across Company-Owned and Third Party experiences
Slide 4: The Consumer Web Sets the Bar for Digital Experiences
The Consumer Web Sets the Bar for Digital Experiences Great Search | Fast Page Speed | Rich Content | Seamless multi-channel | AI
Slide 5: Legacy Architectures Cannot Deliver
Legacy LEGACY ARCHITECTURE NEW ARCHITECTURE Architectures Monolithic Composable Cannot Deliver Proprietary Open source Consumer-Grade Limited to first-party (web, mobile) Multichannel support (web, mobile, third-party, etc.) Digital Experiences Not optimized for AI AI Foundation Single-channel CMS H
Slide 6: Yext is the Ultimate Digital Experience Architecture
Yext is the Ultimate Digital Experience Architecture Multi-Channel Experience Layer Fine tune and deliver multi-channel experiences Artificial Intelligence Layer Manage the customer journey, recognize user patterns, and generate content to fit the channel and customer Data Layer Collects, manages, a
Slide 7: The Yext Platform
The Yext Platform A set of API-first, composable products delivering consumer- grade experiences on a foundation of AI Listings Pages Chat Reviews Content Search PLATFORM FEATURES AI & Knowledge Graph App Directory Users, Roles & Permissions Connectors Analytics Social Global Serving Regions & CDN C
Slide 8: Build on Yext
Build on Yext Choose any combination of products and iterate as your needs change Commerce CDP Listings Pages Chat CRM Personalization Reviews Content Search Marketing Business Automation Connectors Analytics Social Intelligence CERTIFIED
Slide 9: We've been building the Answers Platform since 2006
We've been building Recommendations the Answers Platform Chat Connectors since 2006. Search App Directory Reviews Pages Studio Social Analytics Listings Location Manager Yext Content Content Generation 2006 2008 2014 2016 2017 2018 2021 2023 Roadmap
Slide 10: Deliver Digital Experiences with AI
Organize Generate Knowledge Graph Connectors, Knowledge Graph Leverage AI to automatically generate Collect content, data and knowledge and transform content on the fly for from across your organization. different channels. Summarize, Leverage AI to automatically clean, translate, transform extract,
Slide 11: Trusted by thousands of businesses for over 15 years
Trusted by thousands of businesses for over 15 years Food & Hospitality Telecommunications Retail & CPG/DTC Public Sector Healthcare Financial Services High Tech Alliances
Slide 12: Sizeable and expanding market opportunity
Sizeable and expanding market opportunity $61 B $49 B 22% $40 B 5-year CAGR total addressable market $32 B $27 B $23 B Source: IDC Semiannual Software Tracker - 2022 H1 Forecast. TAM consists of Intelligent Knowledge Discovery and portions of Persuasive Content Management, Customer Service, Digital
Slide 13: Financial Overview Q3 FY24
Financial Overview Q3 FY24
Slide 14: Q3 FY24 Performance
Q3 FY24 Performance Top Line Efficiency Profitability Q3FY23 Q3FY24 $101.2 M 2% Growth 78.9% Gross margin $11.3 M Net Income Revenue Y/Y as reported (non-GAAP) $2.5 M (non-GAAP) 69% Operating Expense $0.02 $0.09 Earnings $397 M 2% Growth as a % of revenue (non-GAAP) per share (non-GAAP) ARR Y/Y as r
Slide 15: Progress towards Rule of 40
Progress towards Rule of 40 FY20 FY21 FY22 FY23 FY24 Positive TTM Adj. EBITDA Margin Negative TTM Adj. EBITDA Margin -9% TTM Revenue Growth -10% 25% Rule of 40 -13% 23% *Implied based on midpoints of 34% -16% Revenue and Adj. EBITDA guides 33% 19% -17% -14% -7% -3% 32% 15% 16% 15% 14% 14% ~14%* 13%
Slide 16: Q4 & FY24 Guidance
Q4 & FY24 Guidance Projected Projected Q4 FY24* FY24* Revenue ($ millions) $100.0 to $100.5 $403.2 to $403.7 Adjusted EBITDA ($ millions) $12.0 to $13.0 $51.7 to $52.7 Non-GAAP net income per share $0.07 to $0.08 $0.31 to $0.32 Weighted-average basic shares outstanding 124.4 124.1 (millions) *as of
Slide 17: Appendix
Appendix
Slide 18: Balance Sheet
Balance Sheet October 31, 2023 January 31, 2023 Assets Current assets: Cash and cash equivalents $ 182,156 $ 190,214 Accounts receivable, net of allowances of $829 and $868, respectively 51,387 109,727 Prepaid expenses and other current assets 18,280 15,629 Costs to obtain revenue contracts, current
Slide 19: Balance Sheet
Balance Sheet October 31, 2023 January 31, 2023 Liabilities and stockholders’ equity Current liabilities: Accounts payable, accrued expenses and other current liabilities $ 38,027 $ 49,017 Unearned revenue, current 144,451 223,706 Operating lease liabilities, current 16,644 18,155 Total current liab
Slide 20: Income Statement
Income Statement (In thousands, except share and per share data) (Unaudited) Three months ended October 31, Nine months ended October 31, 2023 2022 2023 2022 Revenue $ 101,164 $ 99,280 $ 303,215 $ 298,951 Cost of revenue 22,066 25,663 65,809 77,473 Gross profit 79,098 73,617 237,406 221,478 Operatin
Slide 21: Cash Flow Statement
Cash Flow Statement Nine months ended October 31, 2023 2022 Operating activities: Net loss $ (4,317) $ (58,140) Adjustments to reconcile net loss to net cash provided by (used in) operating activities: Depreciation and amortization expense 12,625 13,098 Bad debt expense 589 381 Stock-based compensat
Slide 22: Cash Flow Statement
Cash Flow Statement Nine months ended October 31, 2023 2022 Investing activities: Capital expenditures (2,320) (5,400) Net cash used in investing activities (2,320) (5,400) Financing activities: Proceeds from exercise of stock options 8,770 561 Repurchase of common stock (23,086) (68,695) Payments f
Slide 23: Supplemental Information
Supplemental Information October 31, Variance 2023 2022 Dollars Percent Annual Recurring Revenue Direct Customers $ 326,625 $ 317,280 $ 9,345 3% Third-Party Reseller Customers 70,201 72,258 (2,057) (3)% Total Annual Recurring Revenue $ 396,826 $ 389,538 $ 7,288 2% Oct. 31, 2023 Jul. 31, 2023 Apr. 30
Slide 24: Non-GAAP Reconciliation
Non-GAAP Reconciliation Three months ended October 31, Nine months ended October 31, 2023 2022 2023 2022 GAAP net loss to Adjusted EBITDA: GAAP net loss $ (468) $ (12,310) $ (4,317) $ (58,140) Interest (income) expense (1,749) (376) (4,962) (314) Provision for income taxes 366 398 1,348 1,410 Deprec
Slide 25: Non-GAAP Reconciliation
Non-GAAP Reconciliation Three months ended October 31, 2023 Three months ended October 31, 2022 Stock-Based Stock-Based Compensation Compensation Costs and expenses GAAP Expense Non-GAAP GAAP Expense Non-GAAP Cost of revenue $ 22,066 $ (739) $ 21,327 $ 25,663 $ (1,176) $ 24,487 Sales and marketing $
Slide 26: Non-GAAP Reconciliation
Non-GAAP Reconciliation Nine months ended October 31, 2023 Nine months ended October 31, 2022 Stock-Based Stock-Based Compensation Compensation Costs and expenses GAAP Expense Non-GAAP GAAP Expense Non-GAAP Cost of revenue $ 65,809 $ (2,151) $ 63,658 $ 77,473 $ (3,899) $ 73,574 Sales and marketing $
Slide 27: Non-GAAP Reconciliation
Non-GAAP Reconciliation Three months ended October 31, Nine months ended October 31, 2023 2022 2023 2022 Gross profit GAAP gross profit $ 79,098 $ 73,617 $ 237,406 $ 221,478 Plus: Stock-based compensation expense 739 1,176 2,151 3,899 Non-GAAP gross profit $ 79,837 $ 74,793 $ 239,557 $ 225,377 Gross
Slide 28: Non-GAAP Reconciliation
Non-GAAP Reconciliation Three months ended October 31, 2023 2022 GAAP net loss $ (468) $ (12,310) Plus: Stock-based compensation expense 11,758 14,822 Non-GAAP net income $ 11,290 $ 2,512 GAAP net loss per share attributable to common stockholders, basic $ — $ (0.10) Stock-based compensation expense
Slide 29: Non-GAAP Reconciliation
Non-GAAP Reconciliation Nine months ended October 31, 2023 2022 GAAP net loss $ (4,317) $ (58,140) Plus: Stock-based compensation expense 34,335 48,990 Non-GAAP net income (loss) $ 30,018 $ (9,150) GAAP net loss per share attributable to common stockholders, basic $ (0.03) $ (0.46) Stock-based compe
Slide 30: Non-GAAP Reconciliation
Non-GAAP Reconciliation Three months ended October 31, Constant Currency Revenue 2023 2022 Growth Rates Revenue (GAAP) $ 101,164 $ 99,280 2% Effects of foreign currency rate fluctuations (1,413) Revenue on a constant currency basis (Non-GAAP) $ 99,751 —% Nine months ended October 31, 2023 2022 Growt
Slide 31: Non-GAAP measurements
Non-GAAP measurements In addition to disclosing financial measures prepared in accordance with U.S. generally accepted accounting principles (GAAP), this presentation includes non-GAAP cost of revenue, non-GAAP gross profit, non- GAAP gross margin, non-GAAP operating expenses (sales and marketing, r
Slide 32: Operating metrics
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 of all