Yext, Inc. · NYSE:YEXT
Yext — Investor Day (March 2021)
60 slides from Yext's investor day presentation, Mar 17, 2021
Slide 1: Investor Day 2021
Investor Day 2021 March 17, 2021
Slide 2: Legal Disclosures
Legal Disclosures This presentation and the accompanying oral presentation contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 2IE of the Securities Exchange Act of 1934, including, without limitation, statements regarding revenue and revenu
Slide 3: Howard Lerman, Founder & Chief Executive Officer
Howard Lerman Founder & Chief Executive Officer
Slide 4: Marc Ferrentino, Chief Strategy Officer
Marc Ferrentino Chief Strategy Officer
Slide 5: New In The Spring '21 Release
New In The Spring ’21 Release Document Search Data Connectors with Crawler New Developer Tools O- Authenticated Use Cases And 65 other amazing features across our product suite
Slide 6: David Rudnitsky, President & Chief Revenue Officer
David Rudnitsky President & Chief Revenue Officer
Slide 7: Go-To-Market Strategy
Go-To-Market Strategy Mid-Market Direct Sales with Account Execs Strategic Alliances Resellers
Slide 8: Enterprise And Mid-Market Sales Leadership
Enterprise And Mid-Market Sales Leadership Brian Distelburger David Rudnitsky Norihiro Shimogaki Mary Fratto Rowe Co-Founder, President & COO President & CRO President & COO, Yext Japan Chief Customer Officer <5 Carrie Bosworth Lindsay Johnston Jon Buss GVP, Commercial Business EVP, North America Ma
Slide 9: Invested In Sales Teams
Invested In Sales Teams Nearly Nearly 250 250 Over 170 131 100 Sdles Headcount FY17 | FYI8 | FYI9 | FY20 | FY21 | FY22E Saleg Average Ten Jan-17 | Jan-18 | Jan-19 | Jan-20] Jan-21
Slide 10: Yext Strategic Alliances
Yext Strategic Alliances Global Tech Partners Strategic Sis Regional Sls PERE Hori= pureinsight$ publicis HEROS virtusa” sapient AY Deloitte. <epam> Adobe > 7 valtech_ ong accenture revitilT —bounteous LiveArea EPSILON AeCepgernins ince “een ) HATHWAY Avionos THOMPSON
Slide 11: Strategic Alliances Progress
Strategic Alliances Progress Premier Partner Program Strategic Alliance Traction / ‘i Charter Member 500+ Strategic Alliance Hitchhikers A Multiple deals closed Closed deals worth $Ms in ACV in and strong pipeline FY2] Adobe for FY22 > _ so accenture 2 Capgemini
Slide 12: Hitchhikers Program
Hitchhikers Program Training Platform Community
Slide 13: Hitchhikers Progress
Hitchhikers Progress @) 3,500+ 1,900+ Hitchhikers Badges Trained Earned 14,000+ Modules Completed
Slide 14: External Hitchhikers Multiply
External Hitchhikers Multiply Scale Je, 1 Gr “ %, he - WO, ye CB ; )¥9 Om dS 5B 1% - NY, mn Partner oe WO, Vy v Partner Partner
Slide 15: Resellers: Best Way To Reach SMB
Resellers: Best Way To Reach SMB gosite Kkareo GPiteart @ surefire local. — SSO) SemrusH Yors] _ vantago @NI(D 9 P . thryv. (& localsearch Freire Yaheos ... townsquare Fonecta’ /' @ itaiconiine vivial hibu @RevLocal “RRegiotlelden youvia Bee 2 \VENDASTA
Slide 16: Diverse Solutions Enabled By Our Search Platform
Diverse Solutions Enabled By Our Search Platform Location Listings Solutions Product Feeds Event Feeds Search 28, listings Platform & knowledge graph
Slide 17: Steady Growth In Multi-Product Deals
Steady Growth In Multi-Product Deals 45% 43% «39% 37% 38% 34% 32% 5 31% 31% 29% 90% 26% 26% 27% 234, 24% 24% % of ARR From Customers with 2+ Products
Slide 18: Steady Increase Of Customers With >$100K ARR
Steady Increase Of Customers With >$100K ARR 550 489 yg 479 434 413 393 374 321 297 258 269 215 197 166 180 Direct Channel Customers
Slide 19: Q4 Answers Momentum Growing
Q4 Answers Momentum Growing 25.7 M . 245 14.7M S Searches 111M “ 150 1.7 M, 82 54 Direct Answers Customers a Q4 Ql Q2 FY20 FY2I FY2I
Slide 20: Deals With Answers Almost 3x Larger
Deals With Answers Almost 3x Larger 2.9X FY21 New Logo Average ACV Deal Size Without Answers
Slide 21: Answers Capacity Upsell
Answers Capacity Upsell Capacity Purchased Annualized Searches Large CPG Company AIM}20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Jan-21 Feb-pyl
Slide 22: Answers Opens Up More Vertical Opportunities
Answers Opens Up More Vertical Opportunities Food cial p 5 Hospitality poor Healthcare Comm's _ InfoTech Native ras MYYYYY = OOOVOO
Slide 23: Answers Enhances Key Verticals
Answers Enhances Key Verticals 38% 22% Communications 9% % of Direct ARR ex SMB 4aryal Total Answers Only Total Answers Only Answers Only
Slide 24: Vertical Mix Shifting
Vertical Mix Shifting Retail declined 8 pts in four years Retail Retail 18% Other Hospitality Hospitality Wholesale Wholesale Q4 Communications FY2] 26% Communications 7 ° . Financial Manufacturing 5 25% CST ete as 9% Financial 11% . ty Food Services 8% Food Services Ike Mealthcare Healthcare % of A
Slide 25: Top Global Brands Use The Yext Search Platform
Top Global Brands Use The Yext Search Platform Financial Services CHASEO BANK OF AMERICA Bank fe TO ia MSOs = % Ss comcast COX Telecom verizon’ § 2555 ‘EF Mobile Ss AT&T cspire Restaurants xz 5 ( SUBWAY @& Pizza ba BELL (Y) fe x4 ge DUNKIN' Grocery B @rawwertsons — &) Hofhaize cPG/DTC Campbell, chew
Slide 26: Steve Cakebread, Chief Financial Officer
Steve Cakebread Chief Financial Officer
Slide 27: Strong Growth
Strong Growth {03 <éfl Ge Strong Growth Key Business Drivers Attractive Outlook Saas Business Model Growth & Productivity Long-Term Financial Profile
Slide 28: Strong Revenue Growth
Strong Revenue Growth FYI6-20 CAGR: 35% FYI6-21 CAGR: 32% $170 M $124M $90M $228 M $299 M $355 M
Slide 29: Answers Search Platform TAM
Answers Search Platform TAM 2024 TAM: ~$30B 2021-2024 CAGR: 12% $27.3 B $24.5B $21.8 B $30.5 B
Slide 30: Growth Over Time
Growth Over Time Growth Multiple 11x FYI7 & Prior Cohort ARR, Total ex SMB See Appendix for information regarding ARR
Slide 31: New Products Expected To Shore Up Net Revenue Retention
New Products Expected To Shore Up Net Revenue Retention . % % 112% 9 5 Targeting ll0% to% rox W% _N2% M6 110% 108% 107% 106% 19.4% “ee: long-term , TTM, Direct ex SMB
Slide 32: Executing On International Expansion
Executing On International Expansion 20% 18% +31% Y/Y %ofRevenue 14% 2% +72% Y/Y % +118% Y/Y +216% Y/Y me Fyi7 FYI8 FYI9 FY20 FY21 +158% Y/Y International Revenue
Slide 33: Margin Improvement With Scale
Margin Improvement With Scale 9 71% 75% ike 78% 71% 66% Non-GAAP Gross Margin
Slide 34: Key Business Drivers
Key Business Drivers {03 <étl Ge Strong Growth Key Business Drivers Attractive Outlook Saas Business Model Growth & Productivity Long-Term Financial Profile
Slide 35: Multiple Business Drivers
Multiple Business Drivers evenue C nels Growth Drivers International Expansion Sales Productivity Productivity Drivers Efficiencies
Slide 36: Over A Decade Of Innovation
Over A Decade Of Innovation 2021 y Search Platform 2020 © hitchhikers 2019 y answers knowledge graph 2017 y ajo directory reviews 2018 =) [eeees E listings my analytics
Slide 37: More Lanes Deliver Faster Growth
More Lanes Deliver Faster Growth Strategic Alliances
Slide 38: Further International Expansion Opportunities
Further International Expansion Opportunities $70M 20% of Rev FY21 $53M 18% of Rev $31M 14% of Rev $14M International Revenue 8% of Rev $6M $2M 4% of ReV FYI8 FYI9 FY20 2% of REV mana): FYI7
Slide 39: Sales Productivity Improving
Sales Productivity Improving Targeting 30-35% long-term Non-GAAP S&M as % of Revenue
Slide 40: Many FY21 Opex Efficiencies Are Sustainable
Many FY21 Opex Efficiencies Are Sustainable Continued leverage 88% going forward . 18% 17% FYI9 FY20 FYI8 FYI9 Non-GAAP S&M (as a % of Revenue) FY20
Slide 41: Attractive Outlook
Attractive Outlook {03 <étl Ge Strong Growth Key Business Drivers Attractive Outlook Saas Business Model Growth & Productivity Long-Term Financial Profile
Slide 42: Revenue Channels
Revenue Channels Direct Sales Mid-Market & Enterprise Resellers » small Business Engage, Retain & Upsell Customers
Slide 43: Executing Shift To Strategic Areas
Executing Shift To Strategic Areas +41% Y/Y Direct Resell +19% Y/Y +13% Y/Y +0% Y/Y ese +31% Y/Y SOS - +83% Y/Y +46% Y/Y Revenue by Channel
Slide 44: Expect Strong Growth In Strategic Areas
Expect Strong Growth In Strategic Areas Targeting 20%+ medium-term revenue growth Medium-Term FY17 FY21 FYI7-21 Growth % of Rev % of Rev CAGR Target Direct Reseller Services Total 30% 20%+
Slide 45: Long-Term Non-GAAP Margin Targets
Long-Term Non-GAAP Margin Targets FY17 FYI8 FYI9 FY20 FY21 Gross Margin 1% 78% 78% 76% 77h S&M as % of Revenue 62% 68% 60% 62% 55% R&D as % of Revenue 14% 13% 12% 12% 12% G&A as % of Revenue 21% 20% 18% 19% 7% Operating Margin -26% -26% -14% -18% -6% Long-Term Target 75-80% 30-35% 10-15% ~10% 20%+
Slide 46: Operating Cash Flow Breakeven
Operating Cash Flow Breakeven FY22 And Beyond | me | a 7 FY23
Slide 47: Non-GAAP Net Income Breakeven
Non-GAAP Net Income Breakeven In FY23 And Beyond FY23 agege
Slide 48: Q&A
Q&A: Howard Lerman, Founder & CEO Marc Ferrentino, Chief Strategy Officer David Rudnitsky, President & CRO Steve Cakebread, CFO Yuka Broderick, Head of Investor Relations
Slide 49: Slide 49
Slide 50: Appendix
Appendix
Slide 51: Gross profit
Gross profit GAAP gross profit Plus: Stock-based compensation expense Non-GAAP gross profit Gross margin GAAP gross margin Plus: Stock-based compensation expense @) Non-GAAP gross margin YEXT, INC. Reconciliation of GAAP to Non-GAAP Financial Measures (In thousands) (Unaudited) Fiscal year ended Jan
Slide 52: Reconciliation of GAAP to Non-GAAP: Sales and Marketing
YEXT, INC. Reconciliation of GAAP to Non-GAAP Financial Measures (In thousands) (Unaudited) Fiscal year ended January 31, Sales and marketing expense 2021 2020 2019 2018") 20170) GAAP sales and marketing expense $ 228,417 $ 218,076 $ 158,845 $ 126,980 $ 81,529 Less: Stock-based compensation expense
Slide 53: Reconciliation of GAAP to Non-GAAP: Research and Development
YEXT, INC. Reconciliation of GAAP to Non-GAAP Financial Measures (In thousands) (Unaudited) Fiscal year ended January 31, Research and development expense 2021 2020 2019 2018) 2017 GAAP research and development expense $ 58,146 $ 49,445 $ 36,098 $ 25,687 $ 19,316 Less: Stock-based compensation expen
Slide 54: Reconciliation of GAAP to Non-GAAP: General and Administrative
YEXT, INC. Reconciliation of GAAP to Non-GAAP Financial Measures (In thousands) (Unaudited) Fiscal year ended January 31, General and administrative expense 2021 2020 2019 2018 2017 GAAP general and administrative expense $ 76,026 $ 77,231 $ 51,572 $ 40,079 $ 29,166 Less: Stock-based compensation ex
Slide 55: Reconciliation of GAAP to Non-GAAP: Loss from Operations
YEXT, INC. Reconciliation of GAAP to Non-GAAP Financial Measures (In thousands) (Unaudited) Fiscal year ended January 31, Loss from operations 2021 2020 2019 2018) 20170 GAAP loss from operations $ (94,332) $ (122,953) $ (75,645) $ (66,640) $ (42,700) Plus: Stock-based compensation expense 72,294 67
Slide 56: Reconciliation of GAAP to Non-GAAP: Quarterly Sales and Marketing
YEXT, INC. Reconciliation of GAAP to Non-GAAP Financial Measures (In thousands) (Unaudited) Three months ended Sales and marketing expense Jan 31, 2021 Oct 31, 2020 Jul 31, 2020 Apr 30, 2020 Jan 31, 2020 Oct 31, 2019 Jul 31, 2019 Apr 30, 2019 GAAP sales and marketing expense $ 57,202 $ 56,646 $ 56,0
Slide 57: Reconciliation of GAAP to Non-GAAP: Quarterly Sales and Marketing
YEXT, INC. Reconciliation of GAAP to Non-GAAP Financial Measures (In thousands) (Unaudited) Three months ended Sales and marketing expense Jan 31, 2019 Oct 31, 2018 Jul 31, 2018 Apr 30, 2018 Jan 31, 2018 Oct 31, 2017) Jul 31, 20170 Apr 30, 201717) GAAP sales and marketing expense $ 41,006 $ 43,714 $
Slide 58: Net Loss
YEXT, INC. Reconciliation of GAAP to Non-GAAP Financial Measures (In thousands) (Unaudited) Fiscal year ended January 31, Net Loss 2021 2020 2019 201811) 2017) GAAP net loss $ (94,692) $ (121,544) $ (74,837) $ (66,565) $ (43,150) Plus: Stock-based compensation expense 72,294 67,770 44,233 22,360 9,8
Slide 59: 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 and the accompanying oral presentation include non-GAAP gross margin, non-GAAP operating expenses (sales and marketing, research and
Slide 60: Operating Metrics
Operating Metrics This presentation and the accompanying oral presentation also include certain operating metrics that we believe are useful in providing additional information in assessing the overall performance of our business. Customer count is defined as the total number of customers with contr