NEW YORK, June 4, 2020
/PRNewswire/ -- Yext, Inc. (NYSE: YEXT), the Search Experience
Cloud company, today announced its results for the three months
ended April 30, 2020, or the
Company's first quarter of fiscal 2021.
"We have seen the rise of questions on the internet accelerate
the digital transformation of every business, particularly in the
last couple of months," said Howard
Lerman, Founder and Chief Executive Officer of Yext. "Our
platform is mission-critical to providing accurate and timely
official answers to urgent questions. Given the large TAM
opportunity and strong demand for our Yext Answers product, we are
continuing to position Yext as The Official Answers Company. We
have transitioned to a 'Lead with Answers' sales motion, and our
90-Day Yext Answers Free Trial will allow any company to quickly
see ROI and how important site search is to their customers'
digital experiences."
Last week, Yext announced it is the first search technology
partner to join the Adobe Exchange program at the premier level,
the top tier of Adobe's technology partner program. "We're thrilled
to work more closely with Adobe, the behemoth in the digital
experience space, to extend Yext's Search Experience Cloud to an
even wider pool of marketers," said Lerman. "Now, every Adobe rep
in the world can refer Yext Answers to their customers, and Yext
can show customers how Answers will deliver lower support costs,
higher revenue conversion, and deep customer insights on their
websites."
First Quarter Fiscal 2021 Highlights:
- Revenue of $85.4 million,
a 24% increase compared to the $68.7
million reported in the first quarter fiscal 2020.
- Gross Profit of $64.2
million, a 23% increase compared to the $52.2 million reported in the first quarter
fiscal 2020. Gross margin of 75.2% compared to 76.0% reported in
first quarter fiscal 2020.
- Net Loss and Non-GAAP Net Loss:
-
- Net loss of $29.2 million
compared to the net loss of $19.0
million in the first quarter fiscal 2020. The increased net
loss was driven primarily by higher operating expenses, due to an
overall increase in employee-related costs, as well as an increase
in lease expenses, primarily as a result of our new lease
arrangement for our corporate headquarters in New York, NY which commenced in May 2019.
- Non-GAAP net loss of $11.9
million compared to the non-GAAP net loss of $5.7 million in the first quarter fiscal 2020.
The increase in non-GAAP net loss was primarily attributable to the
higher operating expenses as described above.
- Net Loss Per Share and Non-GAAP Net Loss Per Share:
-
- Net loss per share of $0.25 in
the first quarter fiscal 2021 compared to net loss per share of
$0.18 in the first quarter fiscal
2020.
- Non-GAAP net loss per share of $0.10 in the first quarter fiscal 2021 compared
to non-GAAP net loss per share of $0.05 in the first quarter fiscal 2020.
- Net loss per share and non-GAAP net loss per share were based
on 116.6 million and 106.5 million weighted-average basic
shares outstanding for the first quarter fiscal 2021 and fiscal
2020, respectively.
- Balance Sheet: Cash and cash equivalents of
$248.8 million as of April 30,
2020. Unearned revenue of $152.6
million as of April 30, 2020, a 22% increase compared
to $125.4 million as of
April 30, 2019.
- Remaining Performance Obligations ("RPO"): RPO of
$293.8 million as of April 30,
2020. RPO expected to be recognized over the next 24 months of
$277.8 million with the remaining
balance expected to be recognized thereafter. RPO does not include
amounts under contract subject to certain accounting
exclusions.
- Cash Flow: Net cash used in operating activities was
$0.7 million for the first quarter
fiscal 2021 compared to net cash provided by operating activities
of $0.8 million for the same period
of fiscal 2020.
Readers are encouraged to review the tables labeled
"Reconciliation of GAAP to Non-GAAP Financial Measures" at the end
of this release.
Recent Business Highlights:
- Announced global technology partnership with Adobe. Yext is
joining the Adobe Exchange program at the premier level, the top
tier of Adobe's technology partner program. Adobe content
management system clients can choose to upgrade their search
experience with Yext's innovative site search product,
Answers.
- Offered our new site search product, Yext Answers, for a 90-day
free trial.
- Launched No Wrong Answers integrated marketing campaign to help
more organizations across industries transform their websites with
Yext Answers and provide consumers with official answers.
- Announced collaborations with the States of New Jersey and Alabama to launch a comprehensive information
hub, powered by Yext Answers, that centralizes accurate information
and updates about the COVID-19 pandemic.
- Announced collaboration with the United States Department of
State on an official COVID-19 travel alert and advisory information
hub, powered by Yext Answers.
- Announced collaboration with the World Health Organization
(WHO) to integrate Yext Answers on its COVID-19 webpage.
- Customer count, which excludes our small business and
third-party reseller customers, increased 36% year-over-year to
nearly 2,100.
- Executed a new credit agreement which provides a revolving loan
facility of up to $50.0 million.
- Appointed Seth Waugh, CEO of the
PGA of America, to its Board of Directors, effective March 3, 2020.
Financial Outlook:
Yext is also providing the following guidance for its second
fiscal quarter ending July 31, 2020.
- Second Quarter Fiscal 2021 Outlook:
-
- Revenue is projected to be in the range of $84 million to $86
million.
- Non-GAAP net loss per share is projected to be $0.13 to $0.11
which assumes 118.5 million weighted-average basic shares
outstanding.
With the uncertainty surrounding the ongoing impact of the
COVID-19 pandemic, we are withdrawing our previously issued full
year fiscal 2021 guidance.
Conference Call Information
Yext will host a
conference call today at 4:30 P.M. Eastern
Time (1:30 P.M. Pacific Time)
to discuss its financial results with the investment community. A
live webcast of the call will be available on the Yext Investor
Relations website at http://investors.yext.com. A live dial-in is
available domestically at (877) 883-0383 and internationally at
(412) 902-6506, passcode 6370206.
A replay will be available domestically at (877) 344-7529 or
internationally at (412) 317-0088, passcode 10143690, until
midnight (ET) June 11, 2020.
About Yext
The ultimate source for official answers
about a business online should be the business itself. However,
when consumers ask questions on company websites, too often they
are left in the dark with wrong answers. Yext (NYSE: YEXT), the
Search Experience Cloud, solves this problem by organizing a
business's facts so it can provide official answers to consumer
questions — wherever people search. Starting with the company
website, then extending across search engines and voice assistants,
businesses around the world, like Taco Bell, Marriott, and Jaguar
Land Rover—as well as organizations like the U.S. State
Department—trust Yext to radically improve the search experience on
their websites and across the entire search ecosystem.
Yext's mission is to help businesses and organizations around
the world deliver official answers everywhere people search. Yext
has been named a Best Place to Work by Fortune and Great Place to
Work®, as well as a Best Workplace for Women. Yext is headquartered
in New York City with offices in
Amsterdam, Berlin, Chicago, Dallas, Geneva, London, Miami, Milan,
Paris, San Francisco, Shanghai, Tokyo, and the Washington, D.C. area—and work-from-home
offices all around the world.
Safe Harbor Statement Under the Private Securities Litigation
Reform Act of 1995
This release includes forward-looking
statements including, but not limited to, statements regarding our
revenue, non-GAAP net loss and shares outstanding for our second
quarter fiscal 2021 in the paragraphs under "Financial Outlook"
above, statements regarding the impact of the COVID-19 pandemic on
our business and results of operations and other statements
regarding our expectations regarding the growth of our company, our
market opportunity and our industry. In some cases, you can
identify forward-looking statements by terminology such as "may,"
"will," "should," "could," "expect," "plan," "anticipate,"
"believe," "estimate," "predict," "intend," "potential," "might,"
"would," "continue," or the negative of these terms or other
comparable terminology. Actual events or results may differ
from those expressed in these forward-looking statements, and these
differences may be material and adverse.
We have based the forward-looking statements contained in this
release primarily on our current expectations and projections about
future events and trends that we believe may affect our business,
financial condition, results of operations, strategy, short- and
long-term business operations, prospects, business strategy and
financial needs. Our actual results could differ materially
from those stated or implied in forward-looking statements due to a
number of factors, including, but not limited to, the impact of the
COVID-19 pandemic on U.S. and global markets, our business,
operations, financial results, cash flow, demand for our products,
sales cycles, and customer acquisition and retention; our ability
to renew existing customers and attract new customers generally;
our ability to successfully expand and compete in new geographies
and industry verticals; our ability to maintain and scale our sales
force; our ability to expand our service and application provider
network; our ability to develop new product and platform offerings
to expand our market opportunity, including with Yext Answers; our
ability to release new products and updates that are adopted by our
customers; our ability to manage our growth effectively; changes to
our real estate strategy, in particular the timing of our exit of
our existing global headquarters in New
York, New York and the timing and size of our capital
expenditures related to new facilities; weakened global economic
conditions; the number of options exercised by our employees and
former employees; and the accuracy of the assumptions and estimates
underlying our financial projections. For a detailed
discussion of these and other risk factors, please refer to the
risks detailed in our filings with the Securities and Exchange
Commission, including, without limitation, our most recent
Quarterly Report on Form 10-Q and Annual Report on Form 10-K, which
are available at http://investors.yext.com and on the SEC's website
at https://www.sec.gov. Further information on potential
risks that could affect actual results will be included in other
filings we make with the SEC from time to time. Moreover, we
operate in a very competitive and rapidly changing environment. New
risks and uncertainties emerge from time to time and it is not
possible for us to predict all risks and uncertainties that could
have an impact on the forward-looking statements contained in this
release. We cannot assure you that the results, events and
circumstances reflected in the forward-looking statements will be
achieved or occur, and actual results, events or circumstances
could differ materially from those described in the forward-looking
statements.
The forward-looking statements made in this release relate only
to events as of the date on which such statements are made. We
undertake no obligation to update any forward-looking statements
after the date hereof or to conform such statements to actual
results or revised expectations, except as required by law.
Non-GAAP Measurements
In addition to disclosing
financial measures prepared in accordance with U.S. generally
accepted accounting principles (GAAP), this press release and the
accompanying tables include non-GAAP net loss, non-GAAP net loss
per share and non-GAAP net loss margin. Non-GAAP net loss, non-GAAP
net loss per share and non-GAAP net loss margin are financial
measures that are not calculated in accordance with GAAP. We define
these non-GAAP net loss financial measures as our GAAP net loss as
adjusted to exclude the effects of stock-based compensation
expenses. Non-GAAP net loss per share is defined as non-GAAP net
loss on a per share basis. See "Reconciliation of GAAP to Non-GAAP
Financial Measures" for a discussion of the applicable
weighted-average shares outstanding. Non-GAAP net loss margin is
defined as non-GAAP net loss divided by revenue. We believe these
non-GAAP financial measures provide investors and other users of
our financial information consistency and comparability with our
past financial performance and facilitate period-to-period
comparisons of our results of operations. With respect to non-GAAP
net loss margin, we believe this metric is useful in evaluating our
profitability relative to the amount of revenue generated,
excluding the impact of stock-based compensation expense. We also
believe these non-GAAP financial measures are useful in evaluating
our operating performance compared to that of other companies in
our industry, as these metrics eliminate the effects of stock-based
compensation, which may vary for reasons unrelated to overall
operating performance.
We use these non-GAAP financial measures in conjunction with
traditional GAAP measures as part of our overall assessment of our
performance, including the preparation of our annual operating
budget and quarterly forecasts, to evaluate the effectiveness of
our business strategies and to communicate with our Board of
Directors concerning our financial performance. Our definition may
differ from the definitions used by other companies and therefore
comparability may be limited. In addition, other companies
may not publish this or similar metrics. Thus, our non-GAAP
financial measures should be considered in addition to, not as a
substitute for, nor superior to or in isolation from, measures
prepared in accordance with GAAP.
These non-GAAP financial measures may be limited in their
usefulness because they do not present the full economic effect of
our use of stock-based compensation. We compensate for these
limitations by providing investors and other users of our financial
information a reconciliation of non-GAAP net loss to net loss,
non-GAAP net loss per share to net loss per share and non-GAAP net
loss margin to net loss margin, the most closely related GAAP
financial measures. However, we have not reconciled the
non-GAAP guidance measures disclosed under "Financial Outlook" to
their corresponding GAAP measures because certain reconciling items
such as stock-based compensation and the corresponding provision
for income taxes depend on factors such as the stock price at the
time of award of future grants and thus cannot be reasonably
predicted. Accordingly, reconciliations to the non-GAAP guidance
measures is not available without unreasonable effort. We encourage
investors and others to review our financial information in its
entirety, not to rely on any single financial measure and to view
non-GAAP net loss and non-GAAP net loss per share in conjunction
with net loss and net loss per share.
For Further Information Contact:
Investor
Relations:
Yuka Broderick
IR@yext.com
Public Relations:
Amanda Kontor
PR@yext.com
YEXT,
INC.
Condensed
Consolidated Balance Sheets
(In thousands,
except share and per share data)
(Unaudited)
|
|
|
April 30,
2020
|
|
January 31,
2020
|
Assets
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
|
248,796
|
|
|
$
|
256,076
|
|
Accounts receivable,
net of allowances of $1,741 and $995, respectively
|
47,308
|
|
|
80,583
|
|
Prepaid expenses and
other current assets
|
17,202
|
|
|
12,730
|
|
Costs to obtain
revenue contracts, current
|
28,143
|
|
|
28,423
|
|
Total current
assets
|
341,449
|
|
|
377,812
|
|
Restricted
cash
|
—
|
|
|
12,100
|
|
Property and equipment,
net
|
49,033
|
|
|
26,200
|
|
Operating lease
right-of-use assets
|
114,101
|
|
|
111,973
|
|
Costs to obtain revenue
contracts, non-current
|
22,694
|
|
|
26,051
|
|
Goodwill
|
4,494
|
|
|
4,534
|
|
Intangible assets,
net
|
1,148
|
|
|
1,343
|
|
Other long term
assets
|
3,871
|
|
|
3,607
|
|
Total
assets
|
$
|
536,790
|
|
|
$
|
563,620
|
|
Liabilities and
stockholders' equity
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts payable,
accrued expenses and other current liabilities
|
$
|
55,799
|
|
|
$
|
59,482
|
|
Unearned revenue,
current
|
152,565
|
|
|
176,806
|
|
Operating lease
liabilities, current
|
8,796
|
|
|
8,640
|
|
Total current
liabilities
|
217,160
|
|
|
244,928
|
|
Operating lease
liabilities, non-current
|
123,109
|
|
|
115,187
|
|
Other long term
liabilities
|
2,610
|
|
|
2,293
|
|
Total
liabilities
|
342,879
|
|
|
362,408
|
|
Commitments and
contingencies
|
|
|
|
Stockholders'
equity:
|
|
|
|
Preferred stock,
$0.001 par value per share; 50,000,000 shares authorized at
April 30, 2020 and January 31, 2020; zero shares issued
and outstanding at April 30, 2020 and January 31,
2020
|
—
|
|
|
—
|
|
Common stock, $0.001
par value per share; 500,000,000 shares authorized at
April 30, 2020 and January 31, 2020; 124,029,508 and
122,335,709 shares issued at April 30, 2020 and
January 31, 2020, respectively; 117,524,174 and 115,830,375
shares outstanding at April 30, 2020 and January 31,
2020, respectively
|
124
|
|
|
122
|
|
Additional paid-in
capital
|
659,262
|
|
|
636,008
|
|
Accumulated other
comprehensive loss
|
(1,693)
|
|
|
(360)
|
|
Accumulated
deficit
|
(451,877)
|
|
|
(422,653)
|
|
Treasury stock, at
cost
|
(11,905)
|
|
|
(11,905)
|
|
Total stockholders'
equity
|
193,911
|
|
|
201,212
|
|
Total liabilities and
stockholders' equity
|
$
|
536,790
|
|
|
$
|
563,620
|
|
YEXT,
INC.
Condensed
Consolidated Statements of Operations and Comprehensive
Loss
(In thousands,
except share and per share data)
(Unaudited)
|
|
|
Three months ended
April 30,
|
|
2020
|
|
2019
|
Revenue
|
$
|
85,351
|
|
|
$
|
68,708
|
|
Cost of
revenue
|
21,184
|
|
|
16,473
|
|
Gross
profit
|
64,167
|
|
|
52,235
|
|
Operating
expenses:
|
|
|
|
Sales and
marketing
|
58,520
|
|
|
46,398
|
|
Research and
development
|
14,378
|
|
|
9,906
|
|
General and
administrative
|
20,458
|
|
|
15,191
|
|
Total operating
expenses
|
93,356
|
|
|
71,495
|
|
Loss from
operations
|
(29,189)
|
|
|
(19,260)
|
|
Interest
income
|
468
|
|
|
906
|
|
Interest
expense
|
(137)
|
|
|
(53)
|
|
Other expense,
net
|
(84)
|
|
|
(206)
|
|
Loss from operations
before income taxes
|
(28,942)
|
|
|
(18,613)
|
|
(Provision for)
benefit from income taxes
|
(282)
|
|
|
(346)
|
|
Net loss
|
$
|
(29,224)
|
|
|
$
|
(18,959)
|
|
|
|
|
|
Net loss per share
attributable to common stockholders, basic and diluted
|
$
|
(0.25)
|
|
|
$
|
(0.18)
|
|
Weighted-average
number of shares used in computing net loss per share attributable
to common stockholders, basic and diluted
|
116,606,835
|
|
|
106,453,558
|
|
|
|
|
|
Other comprehensive
(loss) income:
|
|
|
|
Foreign currency
translation adjustment
|
$
|
(1,333)
|
|
|
$
|
314
|
|
Unrealized gain on
marketable securities, net
|
—
|
|
|
35
|
|
Total comprehensive
loss
|
$
|
(30,557)
|
|
|
$
|
(18,610)
|
|
YEXT,
INC.
Condensed
Consolidated Statements of Cash Flows
(In
thousands)
(Unaudited
|
|
|
Three months ended
April 30,
|
|
2020
|
|
2019
|
Operating
activities:
|
|
|
|
Net loss
|
$
|
(29,224)
|
|
|
$
|
(18,959)
|
|
Adjustments to
reconcile net loss to net cash (used in) provided by operating
activities:
|
|
|
|
Depreciation and
amortization
|
2,045
|
|
|
1,941
|
|
Bad debt
expense
|
759
|
|
|
40
|
|
Stock-based
compensation expense
|
17,372
|
|
|
13,216
|
|
Amortization of
operating lease right-of-use assets
|
3,457
|
|
|
1,578
|
|
Other, net
|
190
|
|
|
(32)
|
|
Changes in operating
assets and liabilities:
|
|
|
|
Accounts
receivable
|
32,395
|
|
|
22,195
|
|
Prepaid expenses and
other current assets
|
(5,064)
|
|
|
60
|
|
Costs to obtain
revenue contracts
|
3,465
|
|
|
(365)
|
|
Other long term
assets
|
(479)
|
|
|
(1,913)
|
|
Accounts payable,
accrued expenses and other current liabilities
|
(4,650)
|
|
|
(6,338)
|
|
Unearned
revenue
|
(24,161)
|
|
|
(9,708)
|
|
Operating lease
liabilities
|
2,679
|
|
|
(1,242)
|
|
Other long term
liabilities
|
559
|
|
|
346
|
|
Net cash (used in)
provided by operating activities
|
(657)
|
|
|
819
|
|
Investing
activities:
|
|
|
|
Maturities of
marketable securities
|
—
|
|
|
24,697
|
|
Capital
expenditures
|
(21,275)
|
|
|
(831)
|
|
Net cash (used in)
provided by investing activities
|
(21,275)
|
|
|
23,866
|
|
Financing
activities:
|
|
|
|
Proceeds from common
stock offering, net of underwriting discounts and
commissions
|
—
|
|
|
147,000
|
|
Payments of common
stock deferred offering issuance costs
|
—
|
|
|
(208)
|
|
Proceeds from exercise
of stock options
|
1,879
|
|
|
5,000
|
|
Payments of deferred
financing costs
|
(394)
|
|
|
(163)
|
|
Proceeds, net from
employee stock purchase plan withholdings
|
1,483
|
|
|
1,868
|
|
Net cash provided by
financing activities
|
2,968
|
|
|
153,497
|
|
Effect of exchange rate
changes on cash, cash equivalents and restricted cash
|
(416)
|
|
|
(174)
|
|
Net (decrease) increase
in cash, cash equivalents and restricted cash
|
(19,380)
|
|
|
178,008
|
|
Cash, cash equivalents
and restricted cash at beginning of period
|
268,176
|
|
|
91,755
|
|
Cash, cash equivalents
and restricted cash at end of period
|
$
|
248,796
|
|
|
$
|
269,763
|
|
|
Supplemental
reconciliation of cash, cash equivalents and restricted cash within
the condensed consolidated balance sheets:
|
|
(in
thousands)
|
April 30,
2020
|
|
|
April 30,
2019
|
|
Cash and cash
equivalents
|
$
|
248,796
|
|
|
$
|
257,663
|
|
Restricted
cash
|
—
|
|
|
12,100
|
|
Total cash, cash
equivalents and restricted cash
|
$
|
248,796
|
|
|
$
|
269,763
|
|
YEXT,
INC.
Reconciliation of
GAAP to Non-GAAP Financial Measures
(In
thousands)
(Unaudited
|
|
|
Three months ended
April 30, 2020
|
|
GAAP
|
|
Stock-Based
Compensation
Expense
|
|
Non-GAAP
|
Cost and
expenses:
|
|
|
|
|
|
Cost of
revenue
|
$
|
21,184
|
|
|
$
|
(1,233)
|
|
|
$
|
19,951
|
|
Gross
profit
|
$
|
64,167
|
|
|
$
|
1,233
|
|
|
$
|
65,400
|
|
Sales and
marketing
|
$
|
58,520
|
|
|
$
|
(7,781)
|
|
|
$
|
50,739
|
|
Research and
development
|
$
|
14,378
|
|
|
$
|
(3,943)
|
|
|
$
|
10,435
|
|
General and
administrative
|
$
|
20,458
|
|
|
$
|
(4,415)
|
|
|
$
|
16,043
|
|
Loss from
operations
|
$
|
(29,189)
|
|
|
$
|
17,372
|
|
|
$
|
(11,817)
|
|
Net loss
|
$
|
(29,224)
|
|
|
$
|
17,372
|
|
|
$
|
(11,852)
|
|
Net loss
margin
|
(34.2)%
|
|
|
20.3%
|
|
|
(13.9)%
|
|
|
|
Three months ended
April 30, 2019
|
|
GAAP
|
|
Stock-Based
Compensation
Expense
|
|
Non-GAAP
|
Cost and
expenses:
|
|
|
|
|
|
Cost of
revenue
|
$
|
16,473
|
|
|
$
|
(818)
|
|
|
$
|
15,655
|
|
Gross
profit
|
$
|
52,235
|
|
|
$
|
818
|
|
|
$
|
53,053
|
|
Sales and
marketing
|
$
|
46,398
|
|
|
$
|
(6,840)
|
|
|
$
|
39,558
|
|
Research and
development
|
$
|
9,906
|
|
|
$
|
(2,572)
|
|
|
$
|
7,334
|
|
General and
administrative
|
$
|
15,191
|
|
|
$
|
(2,986)
|
|
|
$
|
12,205
|
|
Loss from
operations
|
$
|
(19,260)
|
|
|
$
|
13,216
|
|
|
$
|
(6,044)
|
|
Net loss
|
$
|
(18,959)
|
|
|
$
|
13,216
|
|
|
$
|
(5,743)
|
|
Net loss
margin
|
(27.6)%
|
|
|
19.2%
|
|
|
(8.4)%
|
|
YEXT,
INC.
Reconciliation of
GAAP to Non-GAAP Financial Measures
(In thousands,
except share and per share data)
(Unaudited)
|
|
|
Three months ended
April 30,
|
|
2020
|
|
2019
|
Net loss
|
$
|
(29,224)
|
|
|
$
|
(18,959)
|
|
Stock-based
compensation expense
|
17,372
|
|
|
13,216
|
|
Non-GAAP net
loss
|
$
|
(11,852)
|
|
|
$
|
(5,743)
|
|
|
|
|
|
Net loss per share
attributable to common stockholders, basic and diluted
|
$
|
(0.25)
|
|
|
$
|
(0.18)
|
|
|
|
|
|
Stock-based
compensation expense per share
|
0.15
|
|
|
0.13
|
|
Non-GAAP net loss per
share attributable to common stockholders, basic and
diluted
|
$
|
(0.10)
|
|
|
$
|
(0.05)
|
|
|
|
|
|
Weighted-average
number of shares used in computing net loss per share attributable
to common stockholders, basic and diluted
|
116,606,835
|
|
|
106,453,558
|
|
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SOURCE Yext, Inc.