Yext, Inc. · NYSE:YEXT
Yext — Investor Day (April 2023)
131 slides from Yext's investor day presentation, Apr 4, 2023
Slide 1: Investor Day 2023
INVESTOR DAY 2023 April 4, 2023
Slide 2: Safe Harbor Statement
Safe Harbor Statement This presentation includes forward-looking statements including, but not limited to, statements regarding our expected financial and operating results in future periods, and statements regarding our expectations regarding the growth of our company, our market opportunity, produ
Slide 3: Michael Walrath
Michael Walrath Chief Executive Officer & Chair of the Board
Slide 4: Agenda
Restructuring and Progress Customer Voices Operating Philosophy & Plans Unified Go-To-Market Product Strategy Financial Updates & Outlook Artificial Intelligence Q&A
Slide 5: Strong progress made
Strong progress made ~21% ~30% ~10% ~7% Increase Reduction Reduction Reduction Reduction in renewal rate in headcount in exec level in S&M* in share count ~ 1,400 High 80’s 51% ~ 131 M ~ 1,100 ~ 104 41% ~ 73 ~ 122 M Low 80’s 4QFY22 Today 4QFY22 Today 4QFY22 4QFY23 FY22 FY23 1QFY23 4QFY23 *as % of re
Slide 6: Restructuring to a global organization
Restructuring to a global organization Michael Walrath CEO Jason Thomas Raianne (open) Marc Darryl Ho Skip Yvette LaFollette Nielsen Reiss Ferrentino Bond Shin Schipper Martinez-Rea EVP, CRO CMO EVP, President CFO General CPO EVP, Engineering Product & COO Counsel Corp Dev
Slide 7: The Rule of 40
The Rule of 40 FY20 FY21 FY22 FY23 FY24E *Implied based on midpoints of Revenue and Adj. EBITDA guides 25% 23% 19% 15% 16% 15% 14% 13% 12% 12% 11% 12%* 10% 9% 8% 8% 6% 7% 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 4Q
Slide 8: FY23 Turnaround to efficiency
FY23 Turnaround to efficiency Efficient growth Sales productivity Qualified pipeline Retention Macro environment Inefficient growth Q1 Q1 FY20 FY24E
Slide 9: Platform evolution
Platform evolution Chat Studio Utilizes LLMs / AI Content Generation Connectors Search Investment in Artificial Intelligence App Directory Reviews LLM in Summer release Pages Analytics Listings LLM in Fall release Location Manager Knowledge Graph LLM in Spring release 2006 2008 2014 2016 2017 2018 2
Slide 10: AI on the horizon
AI on the horizon
Slide 11: Dec. 2022 Dec. 2022 Jan. 2023
Dec. 2022 Dec. 2022 Jan. 2023 Jan. 2023 Feb. 2023
Slide 12: AI today
AI today
Slide 13: Dec. 2022 Jan. 2023 Feb. 2023
Dec. 2022 Jan. 2023 Feb. 2023 Feb. 2023 Mar. 2023
Slide 14: Examples
Examples "Explain quantum computing in simple terms" > "Got any creative ideas for a 10 year old's birthday?" > "How do | make an HTTP request in Javascript?" > ChatGPT 4 Capabilities Remembers what user said earlier in the conversation Allows user to provide follow- up corrections Trained to declin
Slide 15: Generative AI biography example
MW Michael Walrath is an accomplished entrepreneur and technology executive, best known for co-founding Right Media, an online advertising exchange platform that was later acquired by Yahoo for $850 million. Born in 1975, Walrath grew up in Florida and went on to attend the University of Virginia, w
Slide 16: Generative AI biography example
MW Michael Walrath is an accomplished entrepreneur and technology executive, best known for co-founding Right Media, an online advertising exchange platform that was later acquired by Yahoo for $850 million. Born in 1975, Walrath grew up in Florida and went on to attend the University of Virginia, w
Slide 17: Generative AI biography example
MW Michael Walrath is an accomplished entrepreneur and technology executive, best known for co-founding Right Media, an online advertising exchange platform that was later acquired by Yahoo for $850 million. Born in 1975, Walrath grew up in Florida and went on to attend the University of Virginia, V
Slide 18: Generative AI Risk
Generative AI Risk Combination of probability & random choice adding one word at a time Source: Stephen Wolfram Writings 1/9/2023, Alpha as the Way to Bring Computational Knowledge Superpowers to ChatGPT
Slide 19: Generative AI without Yext vs with Yext
Generative AI Generative AI without Yext with Yext Rephrases content Answers from the Content source from the web Knowledge Graph Probability & Sourced from Content generation random choice brand verified content Correct information & Content quality Only correct information wrong information Conten
Slide 20: Vision, Efficiency, Productivity
Vision Large TAM Efficiency R&D Productivity Execution
Slide 21: Marc Ferrentino
Marc Ferrentino President & Chief Operating Officer
Slide 22: The customer journey is fragmented
The customer journey is fragmented 2010 2023 The website was the center of a There is no center to a company’s company’s digital experience digital experience
Slide 23: Your digital experience is more than your website
Your digital experience is more than your website 52% of interactions with your brand happen on 3rd party services Source: Study of 37,115 business locations conducted by Yext in February 2023
Slide 24: The consumer web sets the bar for digital experience
The consumer web sets the bar for digital experience
Slide 25: Digital experience
DIGITAL EXPERIENCE Browse social Check Look up Interact with media Search Google return policy store locations support agent for competitors and FAQs BUY Read Get an in-store Reviews exam, eval, etc. Visit Buy online brand website
Slide 26: Components of a Digital Experience
Components of a Digital Experience Commerce Listings Pages Chat CDP CRM Reviews Content Search Personalization Marketing Business Connectors Analytics Automation Intelligence
Slide 27: AI will disrupt every industry
AI will disrupt every industry
Slide 28: Yext is leveraging AI to disrupt the digital experience space
Yext is leveraging AI to disrupt the digital experience space
Slide 29: Our Vision
Our Vision FAQs Jobs Products The Ultimate Digital Experience People Events Locations AI Collects and Organizes AI Generation, Reasoning and AI-Powered Experience Knowledge Orchestration everaging the latest in consumer AI from across the enterprise
Slide 30: Three Pillars of Must-Have Enterprise Software Spend
Three Pillars of Must-Have Enterprise Software Spend DXP ERP CRM Digital Experience + Enterprise Resource + Customer Relationship Platform Planning Management
Slide 31: The Answers Platform helps build digital experiences
The Answers Platform helps build digital experiences
Slide 32: The Answers Platform
The Answers Platform An API-first, composable approach to building digital experiences BETA : RE TU Listings Pages Chat UC TR AS FR IN ing RM arn FO Le AT ine PL ach M ry & to AI ec Di r ion s Reviews Search Ap p i ss Knowledge erm Graph P N & CD s, Role s & er s , i on Us Reg e g nc r vin plia Se m
Slide 33: Build on Yext — your way
Build on Yext — your way Choose any combination of products and iterate as your needs change BETA Commerce CDP Listings Pages Chat CRM Personalization Reviews Knowledge Search Graph Marketing Business Automation Connectors Analytics Intelligence
Slide 34: Other Digital Experience Players
Other Digital Experience Players Monolithic Composable Proprietary Open source Limited to first-party Multichannel support (web, mobile) (web, mobile, third-party, etc.) Not optimized for AI AI-enabled Single-channel CMS Headless CMS Bad search Great search Slow page speed Superfast page speed Outda
Slide 35: Michael Misiewicz
Michael Misiewicz Director, Data Science
Slide 36: Our strategy for large language models
Our strategy for large language models
Slide 37: We've been building with LLMs for years
We’ve been building with LLMs for years… 2018 Search Predictions Sigmoid Fully -connected Layer Feature Vector CLS W1 -- CLS SEP Wx -- Wm
Slide 38: A continuous cycle of improvement and differentiation
We have learned you need a continuous cycle of improvement and differentiation! RETAIN MODEL, DEPLOY KEY INVESTMENTS: LOGS, WAREHOUSE, MODEL LABELING COLLECT RESPONSES, PERFORMANCE METRICS AND FEEDBACK Virtuous cycle of AGGREGATE AND FILTER AI powered features LABELING OPS AND GOVERNANCE REFINE LABE
Slide 39: How do we develop with large language models?
How do we develop with large language models?
Slide 40: Development of AI powered features
Development of AI powered features 1. Find a problem framing that works well for the business problem and a model architecture to match Models are computer programs that encode the problem and framing 2. Find reliable clean data to train a model Yext has made big investments in Labeling Operations,
Slide 41: Build, Borrow, Buy
Build, Borrow, Buy Three options to obtain and use deep learning models, including LLMs Yext Annotated MPNet Hugging Face BERT FLAN T5 BLOOM Build Borrow Buy Write or modify our own code Use open source code Call an API Train it ourselves Use open source weights or Run it ourselves Train it ourselve
Slide 42: LLMs in the world today
LLMs in the world today LANGUAGE MODEL SIZES TO MAR/2023 BERT 340m Plato-XL iia = CMa ee GPT-1 17m ‘ © GPT-2 158 Eons Cedille © ee Toolformer Fairseq 138 Gopher i . 2808 = NOOR @ Galactica alia! 52B | Chinchilla Flamingo SeeKeR 270 aa GPT-) @ “es 70B* 808" Z-Code++ 7iom-« BienderBot2.0 948 Sato a) A
Slide 43: What is coming next?
What is coming next?
Slide 44: Third party LLMs, self-hosted LLMs, right model
Buying Third party LLMs API Becomes commoditized Self-hosted LLMs Access Right model + Cost Right job + Accuracy Excellent execution Right time + Latency Next frontier: Reasoning problems in research What could a model reason … if the enterprise knowledge was stored in the Yext Knowledge Graph?
Slide 45: Christian Ward
Christian Ward Chief Data Officer
Slide 46: Digital experience challenges
Digital experience challenges Information SEARCH Exploit Explore ACTION Ability to process time time The Information Overload The Explore vs Exploit Trade- Paradox off
Slide 47: Build on Yext — your way
Build on Yext — your way Choose any combination of products and iterate as your needs change BETA Commerce CDP Listings Pages Chat CRM Personalization Reviews Knowledge Search Graph Marketing Business Automation Connectors Analytics Intelligence
Slide 48: The platform approach to AI
The platform approach to AI
Slide 49: New Jersey COVID-19 Information Hub
N NEW JERSEY COVID-19 Information Hub Call (COVID-19 Vaccination and Testing): 1-855-568-0545 (10a-6p, M-F; 10a-4p, Sa) Call (Medical COVID-19 Questions): 1-800-962-1253 (24/7) @ Select a Language v Search for COVID-19 and Reopening Information Here TESTING What you need to know 3) Can | use new dru
Slide 50: Google search example
About Store Gmail images Google . Can | be evicted in NJ if | have Covid issues? x to Google Search I'm Feeling Lucky
Slide 51: Google search results example
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Slide 52: Official Site of the State of New Jersey
OFFICIAL SITE OF THE STATE OF NEW JERSEY return to Nj NEW JERSEY Call (COVID-19 Vaccination and Testing): 1-855-568-0545 (10a6p, M+; 10a-4p, Sa) Call (Medical COVID-19 Questions): 1-800-962-1253 (24/7) COVID-19 Information Hub Search for COVID-19 and Reopening Information Here @ Select a Language v
Slide 53: Find a Doctor
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Slide 54: Open Data Portal
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Slide 55: First Citizens Bank
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Slide 56: Wendy's location page
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Slide 57: Samsung Support
SAMSUNG Support Mobile TV Audio Appliances Computing Displays Accessories SmartThings Offers Outlet 2 ° lar a ‘Welcome tos ; How do | reset my ice maker? Replace TV Remote: Download Mode ‘TWSoftware Update TV Screen Mirroring " Reset ice Maker Phone User Manual Phone Software Update Phone Factory Re
Slide 58: The UPS Store
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Slide 59: The Knowledge Graph we use here at Yext
The Knowledge Graph we use here at Yext
Slide 60: Quick Find
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Slide 61: Quick Find
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Slide 62: Quick Find
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Slide 63: Agent Desktop Code Editor Deploy
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Slide 64: How do I share a dashboard
how do i share a dashboard x ® ALL HELP ARTICLES KNOWLEDGE BASE ZENDESK TICKETS JIRA ISSUES SLACK MESSAGE } MORE This article covers how to share an analytics dashboard directly from your account. To provide access to analytics dashboards to users within the account, see Configure dashboard share se
Slide 65: Quick Find
Q Quick Find @® = HH Ideas Board Deploys Notifications Settings History HH Ideas Board unwelcome-stopping- visitor ps ) BEREED main-unwelcome--stopping-vi view repository in GitHub 7 B main v Date Range Merge pull request #119 from yext/will/dev1 j? mainezisaiso: EEE q Initial Build Page Generation
Slide 66: Community Ideas
‘Community v Ideas A platform for you to share your product idea or feature request and to collaborate on others ideas through upvoting and commenting. Filter IDEA CATEGORY SORT: Most Relevant ¥ |. Knowledge Graph 1-25 out of 1333 Listings ] Search C1 Analytics © (een ] ™ Reviews Bulk Edit Apple Act
Slide 67: Hitchhikers Community Ideas
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Slide 68: Hitchhikers program
) Hitchhikers Products v Training Community v Login Sign Up What is the Hitchhikers program? « § @® ALL UNITS TRACKS = REFERENCE DOCS == COMMUNITY POSTS _IDEAS : MORE What is Hitchhikers? How the Learning Platform Updates in Hitchhikers Works 20 Points, 5 Minutes 20 Points, 5 Minutes 20 Points, 5 Mi
Slide 69: Introducing Yext Chat: Conversational AI for the Enterprise
Introducing Yext Chat: Conversational Al for the Enterprise LEARN MORE Solutions Platform — Learn Company GET STARTED One Platform. Limitless Solutions. Deliver relevant, actionable answers wherever your customers, employees, and partners look for information. rr GET A DEMO ( FREE TRIAL ) se ee > Tr
Slide 70: Telescope
Telescope Initiatives Kr Hitchhikers Feedback Help Welcome to Telescope Telescope / tela, skop/ (n): an instrument to view distant objects Telescope is the platform where Yext employees can find ~perfect~ answers to all of the workplace questions they have. You can "scope" info about fellow Yexters,
Slide 71: Telescope Knowledge Base
@Telescope | Knowledge Base Home / Telescope @ Telescope Knowledge Base 101 ‘Type a keyword to filter cards © @ How to Manage Content in the Knowledge Base Last updated: 52 days ago @ Telescope Knowledge Base FAQs Last updated: 164 days ago @ Telescope Knowledge Base Overview & How To Guide Last upd
Slide 72: Search Term Clusters
Filters Search Term Search Date is Last 30 Days @ = Q Quick Find Search Term Clusters € Back o Search Term Clustering Last Run On: 03/31/2023 Guides Answers ae 5 Experience Details Needs Attention - Large Cluster @) High Search Volume / Low Click Through Rate Analysi ‘Traffic Type is External ) Need
Slide 73: Digital Experience
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 74: Redacted
> redacted > redacted 131> redacted YEXT CONFIDENTIAL - DO NOT DISTRIBUTE
Slide 75: Third Party AI-Generated Content
Third Party AI-Generated Content How do I forward my business phone? Welcome to the Cox Communications Business Phone Call Forwarding Guide! First things first, let's take a little trip down memory lane. Did you know that the concept of call forwarding was first patented way back in 1921 by Almon St
Slide 76: Cox Business support page
Residential | Small Business | Enterprise Contact Us | @ Ocala, FL Cox ; Sign In Products Y Industries ¥ Support BUSINESS MyAccount = how do I forward my phone x Q All FAQ Links Channels Support Articles Guides Videos & FAQ forward my phones How do | enable call forwarding to my phones? a The Cox Bu
Slide 77: Cox Communications
Cox Communications Jim Robinson AVP, Digital Operations
Slide 78: Thomas Nielsen
Thomas Nielsen Chief Revenue Officer
Slide 79: How we're organized in FY24
1. How we’re organized in FY24 2. The big bets we’re making around operational excellence and growth 3. When it’s time to accelerate our investment in growth
Slide 80: How we're organized in FY24
How we’re organized in FY24
Slide 81: How We're Organized
How We’re Organized NORTH AMERICA EMEA & APAC FLATTENED ORG Verticals GEOs IMPROVED EFFICIENCY GEOs Mid-Market LEVERAGE PARTNER-FIRST Mid-Market Reseller Reseller COLLABORATION
Slide 82: The big bets we're making
The big bets we’re making around operational excellence and growth
Slide 83: Winning Team Culture
Alignment & Pipeline Value-Based Platform Buying Value Data Driven Roles Generation Selling Programs Realization Position our Build a culture of Shared company Implement a Equip sellers with Create a Value teams and roles setting goals, pipeline Value-Based Buying Programs Realization to best capita
Slide 84: When it's time to accelerate our investment in growth
When it’s time to accelerate our investment in growth
Slide 85: When it's time to accelerate our investment in growth
When it’s time to accelerate our investment in growth Pipeline Generation Sales Productivity Product Innovation
Slide 86: Productivity
Productivity Sales Productivity ● New Sales Tools ● Reusable Assets ● Maximixe Output Increasing productivity isn't Effort enough to make the decision to ramp up QCs. Time
Slide 87: Pipeline Generation
Pipeline Generation ● Quarterly KPIs ● Growing BDRs and Lead- Flow process ● Partner Org Expanding Sales Plays Higher quality leads and faster BDRs & Lead-Flow Processes progression into qualified pipeline results in a hockey stick Partners curve
Slide 88: Product Innovation
Product Innovation ● New Spend Category ● New Releases ● Full Platform Selling Our teams have much more to promote and compete with.
Slide 89: Capture our Opportunity
Capture our Opportunity ● Full Platform Selling 76% of our Direct customers* have one or two products *excl SMB
Slide 90: When it's time to accelerate our investment in growth
When it’s time to accelerate our investment in growth Pipeline Generation Sales Productivity Quarterly KPIs New Sales Tools Growing BDRs and Lead- Reusable Assets Flow process Maximixe Output Partner Org Expanding Product Innovation New Spend Category New Releases Full Platform Selling
Slide 91: Raianne Reiss
Raianne Reiss Chief Marketing Officer
Slide 92: The First Six Months
MARKETING The Six different organizations One integrated team First Sales & Marketing out of sync Aligned priorities and GTM motions Six Subjective measures Measurable KPIs and ROI Months Focused on brand Focused on brand + accelerating growth New logo acquisition New logos + customer expansion Pipe
Slide 93: Grow Marketing Pipeline
Grow New Audiences Marketing Integrated Campaigns Pipeline Reboot Demand Partner Engine Ecosystem Consistent Messaging BDR Impact
Slide 94: Lexi Bohonnon
Lexi Bohonnon EVP, Customer Success
Slide 95: United Rentals
United Rentals Courtney Versteeg Director, Digital Marketing and E-Commerce
Slide 96: Darryl Bond
Darryl Bond Chief Financial Officer
Slide 97: FY23 Performance, FY24 Strategic objectives, FY25+ Long-term outlook
1. FY23 Performance 2. FY24 Strategic objectives 3. FY25+ Long-term outlook
Slide 98: FY23 Performance
FY23 Performance
Slide 99: FY23 performance summary
FY23 Top Line FY23 Direct FY23 Reseller $401 M 5% Growth $327 M 6% Growth $73 M 6% Decline Revenue Y/Y constant currency ARR Y/Y constant currency ARR Y/Y constant currency $400 M 4% Growth Dollar-based Dollar-based 97% net retention 92% net retention ARR Y/Y constant currency (ARR) (ARR) FY23 Effic
Slide 100: FY24 Strategic objectives
FY24 Strategic objectives
Slide 101: Progress towards Rule of 40%
Progress towards Rule of 40 40% FY20 FY21 FY22 FY23 FY24E 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% 32% -3% 15% 15% 1
Slide 102: Platform adoption generates ARR growth
Platform adoption generates ARR growth $400,000 $350,000 10% CAGR Direct ARR* $319 M $300,000 4 Products $250,000 3 Products $200,000 3% CAGR Listings & Reviews ARR* $183 M $185 M $150,000 $142 M $100,000 76% of over 2,960 2 Products Direct customers* have 1 or 2 products $50,000 *excl SMB Q1 Q1 Q1
Slide 103: Compelling upsell opportunity
Compelling upsell opportunity Mid-Market Enterprise 10.0x 76% Direct customers* 5.7x have 1 or 2 products 3.7x 3.3x 2.1x 1.8x 1.0x 1.0x 1 Product ARR 2 Product ARR 3 Product ARR 4 Product ARR *excl SMB Multiple Multiple Multiple Multiple
Slide 104: Improvements in gross retention
Improvements in gross retention Dollar-based gross retention (ARR) for Direct High 80’s High 80’s ~57% from low 80’s Renewal rate* Dollar-based gross of Direct ARR is improvement Q4FY23 retention (ARR) in attributable to vs. Q1FY23 Q4FY23 multi-year deals* *Previously referred to as gross retention
Slide 105: Greater platform adoption leads to higher gross retention
Greater platform adoption leads to higher gross retention 100% Dollar-based gross retention (ARR) for Direct* 2+ Product 95% 1 Product 2+ Products customers have 90% 88% 88% 87% higher gross 85% 83% retention 80% 79% 77% 75% 70% *excl SMB 65% Q4FY21 Q4FY22 Q4FY23
Slide 106: Focus on net retention improvement
Focus on net retention improvement Dollar-based net retention (ARR) for Direct 115.00% 110.00% 108% Over the long-term return to105.00% 101% 100% 110%+ 100.00% 97% 95.00% by improving customer90.00% value 85.00% 80.00% 75.00% Q4FY20 Q4FY21 Q4FY22 Q4FY23
Slide 107: Reseller opportunity
Reseller opportunity FY23 Nearly half of $73 M 6% Decline customers have multi-year contracts* ARR Y/Y constant currency Opportunity to introduce additional Dollar-based products 92% net retention (ARR) *as of 1/31/23
Slide 108: Growing revenue against headwinds
Growing revenue against headwinds Headwinds $414.00 Low single-digit percentage $412.00 Macro impact to $410.00 & FX FY24 growth $408.00 Japan & SMB $406.00 $404.00 Services $402.00 Churn Adjusted $400.00 FY24E FY24E
Slide 109: Driving gross margin expansion
Driving gross margin expansion 77% - 80% Increasing Efficiencies gross margin Revenue Growth by moving away 75% from low margin Services services Transition FY23 FY24E
Slide 110: Increasing Adjusted EBITDA
Increasing Adjusted EBITDA ~$45 M* Improvements from incremental revenue, Operating gross margin, and Efficiency operating efficiency $16 M Gross Margin Improvement Incremental Revenue *midpoint of FY24 guide Adj. EBITDA Adj. EBITDA FY23 FY24E
Slide 111: Continuing to grow operating cash flow
Continuing to grow operating cash flow OCF Adj. EBITDA ~$45 M* Positive operating cash flow since FY21 Expect cash flow growth in FY24E *midpoint of FY24 guide FY23 FY24E
Slide 112: Q1 & FY24 Guidance
Q1 & FY24 Guidance Projected Projected Q1 FY24* FY24* Revenue ($ millions) $98.0 to $99.0 $402.0 to $406.0 Adjusted EBITDA ($ millions) $10.5 to $11.5 $44.0 to $46.0 Non-GAAP net income per share $0.05 to $0.06 $0.22 to $0.23 Weighted-average basic shares outstanding 122.9 124.5 (millions) *as of Ma
Slide 113: Significant progress reducing dilution
Significant progress reducing dilution 10% SBC Dilution* Issuance Dilution* $80 9% $73 M $75 $72 M 8% $68 M $70 7.0% Expect SBC to 7% 6.5% $63 M $65 5.8% decrease Y/Y 6% $60 5% $55 3.7% 3.8% 4% 3.5% $50 3.4% 3% 2.6% $45 *Dilution = Y/Y change in ending share count excluding share buy-backs and offer
Slide 114: FY25 and beyond long-term outlook
FY25 and beyond long-term outlook
Slide 115: 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 116: TAM Categories and Products
TAM Categories Products Intelligent Knowledge Discovery Software Knowledge Graph Search Customer Service Applications Knowledge Graph Search Chat Digital Commerce Applications Knowledge Graph Search Persuasive Content Management Applications Knowledge Graph Listings Pages Reviews AI Software Service
Slide 117: The Answers Platform
The Answers Platform BETA Listings Pages Chat Reviews Knowledge Search Graph Connectors Analytics
Slide 118: Vertical mix shift
Vertical mix shift Financial All Other Financial All Other Services Services 26% 22% 31% 36% Q4 Q4 FY21 FY23 14% Retail 17% 13% 12% Healthcare 13% Retail 16% Food & Hospitality Healthcare Food & Hospitality % of ARR by Vertical, Direct excl SMB
Slide 119: Long-term target
Long-term target Long-term target Long-term target FY21 FY22 FY23 lower growth higher growth Revenue growth 19% 10% 3% 10%+ 20%+ Gross margin (non-GAAP) 77% 77% 75% 80% 75%+ S&M (non-GAAP) 55% 52% 47% 30% 35% R&D (non-GAAP) 12% 12% 14% 10% 15% G&A (non-GAAP) 17% 16% 15% 10% 10% Operating margin (non
Slide 120: Rule of 40 long-term target
Rule of 40 long-term target 40%+ Steady progress on an annual basis ~12%* 7% *Implied based on midpoints of Revenue and Adj. EBITDA guides FY23 FY24E
Slide 121: Investor Day 2023
INVESTOR DAY 2023
Slide 122: Appendix
APPENDIX
Slide 123: Non-GAAP reconciliation
Non-GAAP reconciliation Th re e m o n th s e n d e d J a n u a ry 31, Fis c a l ye a r e n d e d J a n u a ry 31, 20 23 20 22 20 23 20 22 GAAP n e t lo s s to Ad ju s te d EBITDA: GAAP n e t lo s s $ ( 7,79 8 ) $ ( 23,110 ) $ ( 6 5 ,9 38 ) $ ( 9 3,25 9 ) In te re s t (in c o m e ) e xp e n s e ( 78
Slide 124: Non-GAAP reconciliation
Non-GAAP reconciliation Th re e m o n th s e n d e d J a n u a ry 31, 20 23 20 22 GAAP n e t lo s s $ ( 7,79 8 ) $ ( 23,110 ) Plu s : Sto c k- b a s e d c o m p e n s a tio n e xp e n s e 14 ,0 8 8 19 ,0 25 No n - GAAP n e t in c o m e ( lo s s ) $ 6 ,29 0 $ ( 4 ,0 8 5 ) GAAP n e t lo s s p e r s h
Slide 125: Non-GAAP reconciliation
Non-GAAP reconciliation Fisca l yea r ended Ja nua ry 31, 20 23 20 22 GAAP n e t lo s s $ ( 6 5 ,9 38 ) $ ( 9 3,25 9 ) Plu s : Sto c k- b a s e d c o m p e n s a tio n e xp e n s e 6 3,0 78 73,4 8 0 No n - GAAP n e t lo s s $ ( 2,8 6 0 ) $ ( 19 ,779 ) GAAP n e t lo s s p e r s h a re a ttrib u ta b
Slide 126: Non-GAAP reconciliation
Non-GAAP reconciliation Th re e m o n th s e n d e d J a n u a ry 31, C o n s ta n t C u rre n c y Re ve n u e 20 23 20 22 Gro wth Ra te s Re ve n u e ( GAAP) $ 10 1,8 9 9 $ 10 0 ,9 32 1 % Effe c ts o f fo re ig n c u rre n c y ra te flu c tu a tio n s 2,326 Re ve n u e o n a c o n s ta n t c u rre
Slide 127: Non-GAAP reconciliation
Non-GAAP reconciliation Three months ended January 31, 2023 2022 Sales and marketing expense GAAP sales and marketing expense $ 47,235 $ 58,175 Less: Stock-based compensation expense (5,004) (6,861) Non-GAAP sales and marketing expense $ 42,231 $ 51,314 Sales and marketing expense as a percentage of
Slide 128: Non-GAAP reconciliation
Non-GAAP reconciliation Fiscal year ended January 31, 2023 2022 2021 Gross profit GAAP gross profit $ 296,890 $ 292,278 $ 268,257 Plus: Stock-based com pensation expense 5,042 7,099 5,724 Non-GAAP gross profit $ 301,932 $ 299,377 $ 273,981 Gross m argin GAAP gross m argin 74.1% 74.8% 75.6% Plus: Sto
Slide 129: 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 gross profit, non-GAAP gross margin, non-GAAP operating expenses (sales and marketing, research and development, ge
Slide 130: 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. Customer count is defined as the total number of customers with contracts executed as of the last day of th
Slide 131: Investor Day 2023
INVESTOR DAY 2023