Slide 1: Investor Presentation
Investor Presentation June 6, 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: The Customer Journey is Fragmented
The Customer Journey is Fragmented 2010 2023 The website was the center of a There is no center of a company’s company’s digital experience. digital experience.
Slide 4: 52% of Digital Experiences Occur Off of Your Website
52% of Digital Experiences Occur Off of Your Website Company-Owned Experiences Third Party Experiences Many companies are ignoring half of the 48% 52% digital experience Source: Study of 37,115 business locations conducted by Yext in February 2023
Slide 5: 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 6: 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 7: AI is Disrupting Digital Experiences
AI is Disrupting Digital Experiences Curated Knowledge/Content FAQs Jobs Products AI-generated AI Digital Experiences People Events Locations
Slide 8: The Yext Platform
The Yext Platform A set of API-first, composable products delivering consumer- grade experiences on a foundation of AI BETA Listings Pages Chat Knowledge Reviews Graph Search (Content) PLATFORM FEATURES AI & Machine Learning App Directory Users, Roles & Permissions Connectors Analytics Social Global
Slide 9: Build on Yext
Build on Yext Choose any combination of products and iterate as your needs change BETA Commerce CDP Listings Pages Chat CRM Knowledge Personalization Reviews Graph Search (Content) Marketing Business Automation Connectors Analytics Social Intelligence CERTIFIED CERTIFIED
Slide 10: 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 Knowledge Graph Content Generation 2006 2008 2014 2016 2017 2018 2021 2023 Roadmap
Slide 11: 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 12: 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 13: 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 14: Financial Overview Q1 FY24
Financial Overview Q1 FY24
Slide 15: Q1 FY24 Performance
Q1 FY24 Performance Top Line Efficiency Profitability Q1FY23 Q1FY24 $99.5 M 2% Growth 79% Gross margin $(7.8) M $10.6 M Net Income (Loss) Revenue Y/Y constant currency (non-GAAP) (non-GAAP) 69% Operating Expense $(0.06) $0.09 Earnings (Loss) $398 M 3% Growth as a % of revenue (non-GAAP) per share (n
Slide 16: Progress towards Rule of 40
Progress towards Rule of 40 40% FY20 FY21 FY22 FY23 FY24 35% Positive TTM Adj. EBITDA Margin Negative TTM Adj. EBITDA Margin 30% -9% TTM Revenue Growth -10% 25% Rule of 40 25% -13% 23% *Implied based on midpoints of 34% -16% Revenue and Adj. EBITDA guides 33% 19% 20% -17% -14% -7% -3% 32% 15% 16% 15
Slide 17: Q2 & FY24 Guidance
Q2 & FY24 Guidance Projected Projected Q2 FY24* FY24* Revenue ($ millions) $101.5 to $102.5 $404 to $407 Adjusted EBITDA ($ millions) $11 to $12 $49 to $51 Non-GAAP net income per share $0.06 to $0.07 $0.28 to $0.29 Weighted-average basic shares outstanding 124.6 125.1 (millions) *as of June 6, 2023
Slide 18: Appendix
Appendix
Slide 19: Balance Sheet
Balance Sheet April 30, 2023 January 31, 2023 Assets Current assets: Cash and cash equivalents $ 216,850 $ 190,214 Accounts receivable, net of allowances of $1,602 and $868, respectively 58,340 109,727 Prepaid expenses and other current assets 17,236 15,629 Costs to obtain revenue contracts, current
Slide 20: Balance Sheet
Balance Sheet April 30, 2023 January 31, 2023 Liabilities and stockholders’ equity Current liabilities: Accounts payable, accrued expenses and other current liabilities $ 32,785 $ 49,017 Unearned revenue, current 197,046 223,706 Operating lease liabilities, current 17,722 18,155 Total current liabil
Slide 21: Income Statement
Income Statement (In thousands, except share and per share data) (Unaudited) Three months ended April 30, 2023 2022 Revenue $ 99,453 $ 98,802 Cost of revenue 21,350 24,728 Gross profit 78,103 74,074 Operating expenses: Sales and marketing 43,996 60,779 Research and development 16,753 17,302 General
Slide 22: Cash Flow Statement
Cash Flow Statement Three months ended April 30, 2023 2022 Operating activities: Net loss $ (412) $ (25,839) Adjustments to reconcile net loss to net cash provided by operating activities: Depreciation and amortization expense 4,668 4,387 Bad debt expense 975 (650) Stock-based compensation expense 1
Slide 23: Cash Flow Statement
Cash Flow Statement Three months ended April 30, 2023 2022 Investing activities: Capital expenditures (944) (1,644) Net cash used in investing activities (944) (1,644) Financing activities: Proceeds from exercise of stock options 7,271 311 Repurchase of common stock (4,583) (27,142) Payments for tax
Slide 24: Supplemental Information
Supplemental Information April 30, Variance 2023 2022 Dollars Percent Annual Recurring Revenue Direct Customers $ 326,058 $ 310,312 $ 15,746 5 % Third-Party Reseller Customers 72,232 76,671 (4,439) (6)% Total Annual Recurring Revenue $ 398,290 $ 386,983 $ 11,307 3 % Apr. 30, 2023 Jan. 31, 2023 Oct.
Slide 25: Non-GAAP Reconciliation
Non-GAAP Reconciliation Three months ended April 30, 2023 2022 GAAP net loss to Adjusted EBITDA (loss): GAAP net loss $ (412) $ (25,839) Interest (income) expense (1,461) 118 Provision for income taxes 321 348 Depreciation and amortization 4,668 4,387 Other expense (income) 320 (129) Stock-based com
Slide 26: Non-GAAP Reconciliation
Non-GAAP Reconciliation Three months ended April 30, 2023 Three months ended April 30, 2022 Stock-Based Stock-Based Compensation Compensation Costs and expenses GAAP Expense Non-GAAP GAAP Expense Non-GAAP Cost of revenue $ 21,350 $ (644) $ 20,706 $ 24,728 $ (1,382) $ 23,346 Sales and marketing $ 43,
Slide 27: Non-GAAP Reconciliation
Non-GAAP Reconciliation Three months ended April 30, 2023 2022 Gross profit GAAP gross profit $ 78,103 $ 74,074 Plus: Stock-based compensation expense 644 1,382 Non-GAAP gross profit $ 78,747 $ 75,456 Gross margin GAAP gross margin 78.5 % 75.0 % Plus: Stock-based compensation expense 0.7 % 1.4 % Non
Slide 28: Non-GAAP Reconciliation
Non-GAAP Reconciliation Three months ended April 30, 2023 2022 GAAP net loss $ (412) $ (25,839) Plus: Stock-based compensation expense 11,012 18,086 Non-GAAP net income (loss) $ 10,600 $ (7,753) GAAP net loss per share attributable to common stockholders, basic $ — $ (0.20) Stock-based compensation
Slide 29: Non-GAAP Reconciliation
Non-GAAP Reconciliation Three months ended April 30, 2023 2022 GAAP net loss as a percentage of revenue (0.4) % (26.2) % Plus: Stock-based compensation expense 11.1 % 18.3 % Non-GAAP net income (loss) as a percentage of revenue 10.7 % (7.9) % Three months ended April 30, Constant Currency Revenue 20
Slide 30: 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, re
Slide 31: 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