Slide 1: Investor Presentation March 2024
Investor Presentation March 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 are not limited to, statements regarding our expected financial and operating results in future pe
Slide 3: Yext is the leading digital presence platform for multi-location brands
Yext is the leading digital presence platform for multi-location brands 3
Slide 4: Yext powers the digital presence
Yext powers the digital presence Surfacing approved content everywhere customers are looking COLLECT ORGANIZE DELIVER As people engage with brands, Yext provides insights on customer behavior to influence brand strategy 4
Slide 5: Choose any combination of products to reach brand goals
Choose any combination of products to reach brand goals and iterate as needs change 5
Slide 6: Yext puts brands front and center
Yext puts brands front and center Helps local Automates Provides better One platform for all customers find workflows with AI marketing insights digital marketing and engage channels with brands +47% 2.3x 40.8% +30% +57% listings impressions more appearances unbranded listings customer actions impro
Slide 7: Yext Confidential: Do Not Distribute
Yext Confidential: Do Not Distribute 77
Slide 8: Financial Overview
Financial Overview 9
Slide 9: Fiscal 2024 results
Fiscal 2024 results ~375bp ~155% ~780bp ~625bp 29% Expansion Growth Improvement Improvement Reduction in gross margin* in operating cash in Rule of 40** in opex* as % of Rev in stock-based flow compensation $ 46 M $63 M 14% 79% 76% $45 M 7% 75% $ 18 M 69% FY23 FY24 FY23 FY24 FY23 FY24 FY23 FY24 FY23
Slide 10: Revenue growth against headwinds
Revenue growth against headwinds $406.00 $404M $404.00 $402.00 Headwinds FY24 revenue $400M growth despite $400.00 challenging market conditions$398.00 Services Performance & Churn and headwinds Japan $396.00 FX & SMB $394.00 FY23 FY24 $392.00 11
Slide 11: Driving gross margin expansion
Driving gross margin expansion $320M $302M Efficiencies Revenue Increasing Services Growth gross margin Transition through operating efficiencies FY23 FY24 12
Slide 12: Building up our adjusted EBITDA
Building up our adjusted EBITDA $55 M Improvements from incremental revenue, gross margin, and Operating Efficiency operating efficiency $16 M Incremental Gross Margin Revenue Improvement FY23 FY24 *Adjusted EBITDA is a non-GAAP measure. See Appendix for definition and/or reconciliation of GAAP to n
Slide 13: Progress towards Rule of 40
Progress towards Rule of 40 40% FY20 FY21 FY22 FY23 FY24 35% Negative TTM Adj. EBITDA Margin* 30% TTM Revenue Growth -9% -10% Rule of 40 25% Positive TTM Adj. EBITDA Margin* 25% -13% 23% 34% -16% 33% 20% 19% -17% -14% -7% -3% 32% 16% 14% 15% 15% 14% 14% 15% 13% 31% 12% 22% 19% 12% 12% 14% 1% 11% 10%
Slide 14: Q4 FY24 Performance
Q4 FY24 Performance Top Line Efficiency Profitability Q4FY23 Q4FY24 $101.1 M 1% Decline 79.3% Gross margin $12.3 M Net Income Revenue Y/Y as reported (non-GAAP) $6.3 M (non-GAAP) 68% Operating Expense $0.05 $0.10 Earnings $387 M 3% Decline as a % of revenue (non-GAAP) per share (non-GAAP) ARR Y/Y as
Slide 15: Q1 & FY25 Guidance
Q1 & FY25 Guidance Projected Projected Q1 FY25* FY25* Revenue ($ millions) $96.0 to $96.5 $400.0 to $402.0 Adjusted EBITDA** ($ millions) $9.5 to $10.0 $60.0 to $62.0 Non-GAAP net income per share $0.04 to $0.05 $0.30 to $0.31 Weighted-average basic shares outstanding 125.5 127.2 (millions) Non-GAAP
Slide 16: Appendix
Appendix Q4 FY24 17
Slide 17: Balance Sheet
Balance Sheet January 31, 2024 January 31, 2023 Assets Current assets: Cash and cash equivalents $ 210,184 $ 190,214 Accounts receivable, net of allowances of $1,013 and $868, respectively 108,198 109,727 Prepaid expenses and other current assets 14,849 15,629 Costs to obtain revenue contracts, curr
Slide 18: Balance Sheet
Balance Sheet January 31, 2024 January 31, 2023 Liabilities and stockholders’ equity Current liabilities: Accounts payable, accrued expenses and other current liabilities $ 38,766 $ 49,017 Unearned revenue, current 212,210 223,706 Operating lease liabilities, current 16,798 18,155 Total current liab
Slide 19: Income Statement
Income Statement Three months ended January 31, Fiscal year ended January 31, 2024 2023 2024 2023 Revenue $ 101,107 $ 101,899 $ 404,322 $ 400,850 Cost of revenue 21,659 26,487 87,468 103,960 Gross profit 79,448 75,412 316,854 296,890 Operating expenses: Sales and marketing 41,888 47,235 178,830 211,
Slide 20: Cash Flow Statement
Cash Flow Statement Fiscal year ended January 31, 2024 2023 Operating activities: Net loss $ (2,630) $ (65,938) Adjustments to reconcile net loss to net cash provided by operating activities: Depreciation and amortization expense 15,805 17,583 Bad debt expense 888 182 Stock-based compensation expens
Slide 21: Cash Flow Statement
Cash Flow Statement Fiscal year ended January 31, 2024 2023 Investing activities: Capital expenditures (2,728) (6,193) Net cash used in investing activities (2,728) (6,193) Financing activities: Proceeds from exercise of stock options 9,405 714 Repurchase of common stock (23,086) (77,250) Payments f
Slide 22: Supplemental Information
Supplemental Information January 31, Variance 2024 2023 Dollars Percent Annual Recurring Revenue Direct Customers $ 315,594 $ 327,017 $ (11,423) (3)% Third-Party Reseller Customers 71,784 73,343 (1,559) (2)% Total Annual Recurring Revenue $ 387,378 $ 400,360 $ (12,982) (3)% Jan. 31, 2024 Oct. 31, 20
Slide 23: Non-GAAP Reconciliation
Non-GAAP Reconciliation Three months ended January 31, Fiscal year ended January 31, 2024 2023 2024 2023 GAAP net income (loss) to Adjusted EBITDA: GAAP net income (loss) $ 1,687 $ (7,798) $ (2,630) $ (65,938) Interest (income) expense, net (1,662) (781) (6,624) (1,095) Provision for income taxes 94
Slide 24: Non-GAAP Reconciliation
Non-GAAP Reconciliation Three months ended January 31, 2024 Three months ended January 31, 2023 Stock-Based Stock-Based Compensation Compensation Costs and expenses GAAP Expense Non-GAAP GAAP Expense Non-GAAP Cost of revenue $ 21,659 $ (749) $ 20,910 $ 26,487 $ (1,143) $ 25,344 Sales and marketing $
Slide 25: Non-GAAP Reconciliation
Non-GAAP Reconciliation Fiscal year ended January 31, 2024 Fiscal year ended January 31, 2023 Stock-Based Stock-Based Compensation Compensation Costs and expenses GAAP Expense Non-GAAP GAAP Expense Non-GAAP Cost of revenue $ 87,468 $ (2,900) $ 84,568 $ 103,960 $ (5,042) $ 98,918 Sales and marketing
Slide 26: Non-GAAP Reconciliation
Non-GAAP Reconciliation Three months ended January 31, Fiscal year ended January 31, 2024 2023 2024 2023 Gross profit GAAP gross profit $ 79,448 $ 75,412 $ 316,854 $ 296,890 Plus: Stock-based compensation expense 749 1,143 2,900 5,042 Non-GAAP gross profit $ 80,197 $ 76,555 $ 319,754 $ 301,932 Gross
Slide 27: Non-GAAP Reconciliation
Non-GAAP Reconciliation Three months ended January 31, 2024 2023 GAAP net income (loss) $ 1,687 $ (7,798) Plus: Stock-based compensation expense 10,626 14,088 Non-GAAP net income $ 12,313 $ 6,290 GAAP net income (loss) per share attributable to common stockholders, basic $ 0.01 $ (0.06) Stock-based
Slide 28: Non-GAAP Reconciliation
Non-GAAP Reconciliation Fiscal year ended January 31, 2024 2023 GAAP net loss $ (2,630) $ (65,938) Plus: Stock-based compensation expense 44,961 63,078 Non-GAAP net income (loss) $ 42,331 $ (2,860) GAAP net loss per share attributable to common stockholders, basic $ (0.02) $ (0.53) Stock-based compe
Slide 29: Non-GAAP Reconciliation
Non-GAAP Reconciliation Three months ended January 31, Constant Currency Revenue 2024 2023 Growth Rates Revenue (GAAP) $ 101,107 $ 101,899 (1) % Effects of foreign currency rate fluctuations (859) Revenue on a constant currency basis (Non-GAAP) $ 100,248 (2) % Fiscal year ended January 31, 2024 2023
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: Non-GAAP Measurements
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 reporti
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