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Yext, Inc. Announces Fourth Quarter and Full Year Fiscal 2020 Results

- Full Year Fiscal 2020 Revenue Increased 31% Year-over-Year to $298.8 Million

- Full Year Fiscal 2020 International Revenue Increased 72% Year-over-Year to $53 Million

- Unearned Revenue Increased 30% Year-over-Year to $176.8 Million

- Customer Count Increased 38% Year-over-Year to Over 1900

- Structured Facts in the Yext Knowledge Graph Increased 49% Year-over-Year Exceeding 277 Million

- Issues Initial Revenue Guidance for First Quarter and Fiscal 2021

NEW YORK, March 3, 2020 /PRNewswire/ -- Yext, Inc. (NYSE: YEXT), the Search Experience Cloud company, today announced its results for the three months ended January 31, 2020, or the Company's fourth quarter of fiscal 2020, and the fiscal year ended January 31, 2020.

Yext logo. (PRNewsFoto/Yext) (PRNewsFoto/Yext)

"We had a stunning Q4 and solid end to our fiscal year 2020. We have a terrific platform of products driving strong demand across the board," said Howard Lerman, Founder and Chief Executive Officer of Yext. "For more than a decade, we have innovated to put the truth online by putting perfect answers about our customers everywhere. We are excited to enter fiscal year 2021 with a solid platform of products and the most tenured sales team in Yext history."

Note to the reader: Yext adopted the revenue accounting standard ASC 606 for its fiscal year ended January 31, 2019 and the results for all periods presented below are reported on that basis.

Fourth Quarter Fiscal 2020 Highlights:

  • Revenue of $81.4 million, a 28% increase compared to the $63.8 million reported in the fourth quarter fiscal 2019.
  • Gross Profit of $60.5 million, a 26% increase compared to the $48.1 million reported in the fourth quarter fiscal 2019. Gross margin of 74.3% compared to 75.5% reported in the fourth quarter fiscal 2019.
  • Net Loss and Non-GAAP Net Loss:
  • Net Loss Per Share and Non-GAAP Net Loss Per Share:
  • Balance Sheet: Cash and cash equivalents of $256.1 million as of January 31, 2020. Unearned revenue of $176.8 million as of January 31, 2020, a 30% increase compared to $135.5 million as of January 31, 2019.
  • Remaining Performance Obligations ("RPO"): RPO of $328.1 million as of January 31, 2020. RPO expected to be recognized over the next 24 months of $309.7 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 provided by operating activities of $11.7 million for the fourth quarter fiscal 2020, compared to net cash provided by operating activities of $30.8 million for the same period of fiscal 2019.

Full Year Fiscal 2020 Highlights:

  • Revenue of $298.8 million, a 31% increase compared to the $228.3 million reported in the fiscal year ended January 31, 2019.
  • Gross Profit of $221.8 million, a 30% increase compared to the $170.9 million reported in the fiscal year ended January 31, 2019. Gross margin of 74.2% compared to the 74.9% reported in the fiscal year ended January 31, 2019.
  • Net Loss and Non-GAAP Net Loss:
  • Net Loss Per Share and Non-GAAP Net Loss Per Share:
  • Cash Flow: Cash used in operating activities of $30.8 million for the fiscal year ended January 31, 2020, compared to cash provided by operating activities of $5.2 million for the fiscal year ended January 31, 2019.

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:

  • Customer count, which excludes our small business and third-party reseller customers, increased 38% year-over-year to over 1900.
  • Announced our new office in Tokyo, Japan and plans to hire 100 employees in the country over the next five years.
  • Appointed Norihiro Shimogaki as President and COO of Yext Japan, effective February 1, 2020. Shimogaki brings more than three decades of experience at leading technology companies to Yext, where he will lead the company's strategy in Japan in partnership with President and CEO of Yext Japan, Eiji Uda.

Financial Outlook:

Yext is also providing the following guidance for its first fiscal quarter ending April 30, 2020 and the fiscal year ending January 31, 2021.  

  • First Quarter Fiscal 2021 Outlook:
  • Full Year Fiscal 2021 Outlook:

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 1335406.

A replay will be available domestically at (877) 344-7529 or internationally at (412) 317-0088, passcode 10139053, until midnight (ET) March 10, 2020.

About Yext
The customer journey starts with a question, and every day consumers search for answers about brands. However, they are increasingly served false or misleading information from sources other than the brand. Yext (NYSE: YEXT), the Search Experience Cloud company, exists to help brands regain and maintain a direct relationship with their customers. With a mission to provide perfect answers everywhere, Yext puts businesses in control of their facts online by delivering brand verified answers straight from the source — wherever their customers are searching. Companies like Taco Bell, Marriott, Jaguar-Land Rover, and businesses around the world use Yext to take back control of the customer journey, starting on their own website.

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.

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 first quarter fiscal 2021 and full year fiscal 2021 in the paragraphs under "Financial Outlook" above, hiring plans in Japan 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, our ability to renew existing customers and attract new customers; our ability to successfully expand and compete in new geographies and industry verticals; our ability to recruit and retain our sales force including in enterprise and midmarket; our ability to expand our publishing 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, weakened global economic conditions including from the effects of the coronavirus; 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:
Dominic Paschel
IR@yext.com

Public Relations:
Amanda Kontor
PR@yext.com

 

YEXT, INC.
Consolidated Balance Sheets
(In thousands, except share and per share data)
(unaudited)



January 31, 2020


January 31, 2019

Assets




Current assets:




Cash and cash equivalents

$

256,076



$

91,755


Marketable securities



51,021


Accounts receivable, net of allowances of $995 and $256, respectively

80,583



55,341


Prepaid expenses and other current assets

12,730



14,135


Costs to obtain revenue contracts, current

28,423



17,817


Total current assets

377,812



230,069


Restricted cash

12,100




Property and equipment, net

26,200



11,077


Operating lease right-of-use assets

111,973




Costs to obtain revenue contracts, non-current

26,051



18,366


Goodwill

4,534



4,660


Intangible assets, net

1,343



1,960


Other long term assets

3,607



996


Total assets

$

563,620



$

267,128


Liabilities and stockholders' equity




Current liabilities:




Accounts payable, accrued expenses and other current liabilities

$

59,482



$

44,236


Unearned revenue, current

176,806



135,544


Operating lease liabilities, current

8,640




Total current liabilities

244,928



179,780


Operating lease liabilities, non-current

115,187




Other long term liabilities

2,293



2,799


Total liabilities

362,408



182,579


Commitments and contingencies




Stockholders' equity:




Preferred stock, $0.001 par value per share; 50,000,000 shares authorized at January 31, 2020 and 2019; zero shares issued and outstanding at January 31, 2020 and 2019




Common stock, $0.001 par value per share; 500,000,000 shares authorized at January 31, 2020 and 2019, respectively; 122,335,709 and 108,678,234 shares issued at January 31, 2020 and 2019, respectively; 115,830,375 and 102,172,900 shares outstanding at January 31, 2020 and 2019, respectively

122



109


Additional paid-in capital

636,008



398,882


Accumulated other comprehensive loss

(360)



(1,428)


Accumulated deficit

(422,653)



(301,109)


Treasury stock, at cost

(11,905)



(11,905)


Total stockholders' equity

201,212



84,549


Total liabilities and stockholders' equity

$

563,620



$

267,128



 

YEXT, INC.
Consolidated Statements of Operations and Comprehensive Loss
(In thousands, except share and per share data)
(unaudited)



Three months ended January 31,


Fiscal year ended January 31,


2020


2019


2020


2019

Revenue

$

81,378



$

63,759



$

298,829



$

228,283


Cost of revenue

20,922



15,641



77,030



57,413


Gross profit

60,456



48,118



221,799



170,870


Operating expenses:








Sales and marketing

57,338



41,006



218,076



158,845


Research and development

13,842



9,228



49,445



36,098


General and administrative

19,839



14,107



77,231



51,572


Total operating expenses

91,019



64,341



344,752



246,515


Loss from operations

(30,563)



(16,223)



(122,953)



(75,645)


Interest income

687



487



4,099



1,711


Interest expense

(95)



(36)



(308)



(143)


Other expense, net

(194)



51



(1,285)



(538)


Loss from operations before income taxes

(30,165)



(15,721)



(120,447)



(74,615)


(Provision for) benefit from income taxes

(412)



261



(1,097)



(222)


Net loss

$

(30,577)



$

(15,460)



$

(121,544)



$

(74,837)










Net loss per share attributable to common stockholders, basic and diluted

$

(0.27)



$

(0.15)



$

(1.09)



$

(0.76)


Weighted-average number of shares used in computing net loss per share attributable to common stockholders, basic and diluted

115,166,912



101,354,229



111,758,946



98,387,366










Other comprehensive income (loss):








Foreign currency translation adjustment

$

197



$

(97)



$

1,197



$

(75)


Unrealized (loss) gain on marketable securities, net

(169)



114



(129)



280


Total comprehensive loss

$

(30,549)



$

(15,443)



$

(120,476)



$

(74,632)



















 

YEXT, INC.
Consolidated Statements of Cash Flows
(In thousands)
(unaudited)



Fiscal year ended January 31,


2020


2019

  Operating activities:




Net loss

$

(121,544)



$

(74,837)


   Adjustments to reconcile net loss to net cash (used in) provided by operating activities:




Depreciation and amortization

8,069



6,813


Provision for bad debts

1,246



492


Stock-based compensation expense

67,770



44,233


Amortization of operating lease right-of-use assets

11,124




Other, net

120



(83)


   Changes in operating assets and liabilities:




Accounts receivable

(26,981)



(11,601)


Prepaid expenses and other current assets

268



(6,745)


Costs to obtain revenue contracts

(18,344)



(16,817)


Other long term assets

(2,629)



2


Accounts payable, accrued expenses and other current liabilities

8,267



17,626


Unearned revenue

42,345



47,004


Operating lease liabilities

(1,044)




Other long term liabilities

565



(847)


Net cash (used in) provided by operating activities

(30,768)



5,240


  Investing activities:




Purchases of marketable securities



(52,916)


Maturities of marketable securities

51,197



86,320


Capital expenditures

(11,889)



(5,270)


Net cash provided by investing activities

39,308



28,134


  Financing activities:




Proceeds from common stock offering, net of underwriting discounts and commissions

147,000




Payments of deferred offering costs

(530)




Proceeds from exercise of stock options

14,893



18,880


Payments of deferred financing costs

(260)



(159)


Proceeds, net from employee stock purchase plan withholdings

7,270



5,663


Net cash provided by financing activities

168,373



24,384


  Effect of exchange rate changes on cash, cash equivalents and restricted cash

(492)



(370)


  Net increase in cash, cash equivalents and restricted cash

176,421



57,388


  Cash, cash equivalents and restricted cash at beginning of period

91,755



34,367


  Cash, cash equivalents and restricted cash at end of period

$

268,176



$

91,755






Supplemental reconciliation of cash, cash equivalents and restricted cash reported within the consolidated balance sheets as of January 31,

(in thousands)

2020


2019

Cash and cash equivalents

$

256,076



$

91,755


Restricted cash

12,100




Total cash, cash equivalents and restricted cash

$

268,176



$

91,755


 

YEXT, INC.
Reconciliation of GAAP to Non-GAAP Financial Measures
(In thousands)
(unaudited)



Three months ended January 31, 2020


GAAP


Stock-Based
Compensation
Expense


Non-GAAP

Cost and expenses:






Cost of revenue

$

20,922



$

(1,133)



$

19,789


Gross profit

$

60,456



$

1,133



$

61,589


Sales and marketing

$

57,338



$

(7,748)



$

49,590


Research and development

$

13,842



$

(3,952)



$

9,890


General and administrative

$

19,839



$

(4,020)



$

15,819


Loss from operations

$

(30,563)



$

16,853



$

(13,710)


Net loss

$

(30,577)



$

16,853



$

(13,724)


Net loss margin

(37.6)%



20.7%



(16.9)%





Three months ended January 31, 2019


GAAP


Stock-Based
Compensation
Expense


Non-GAAP

Cost and expenses:






Cost of revenue

$

15,641



$

(883)



$

14,758


Gross profit

$

48,118



$

883



$

49,001


Sales and marketing

$

41,006



$

(6,189)



$

34,817


Research and development

$

9,228



$

(2,464)



$

6,764


General and administrative

$

14,107



$

(2,754)



$

11,353


Loss from operations

$

(16,223)



$

12,290



$

(3,933)


Net loss

$

(15,460)



$

12,290



$

(3,170)


Net loss margin

(24.2)%



19.2%



(5.0)%


 

YEXT, INC.
Reconciliation of GAAP to Non-GAAP Financial Measures
(In thousands)
(unaudited)



Fiscal year ended January 31, 2020


GAAP


Stock-Based
Compensation
Expense


Non-GAAP

Cost and expenses:






Cost of revenue

$

77,030



$

(4,115)



$

72,915


Gross profit

$

221,799



$

4,115



$

225,914


Sales and marketing

$

218,076



$

(31,421)



$

186,655


Research and development

$

49,445



$

(13,212)



$

36,233


General and administrative

$

77,231



$

(19,022)



$

58,209


Loss from operations

$

(122,953)



$

67,770



$

(55,183)


Net loss

$

(121,544)



$

67,770



$

(53,774)


Net loss margin

(40.7)%



22.7%



(18.0)%





Fiscal year ended January 31, 2019


GAAP


Stock-Based
Compensation
Expense


Non-GAAP

Cost and expenses:






Cost of revenue

$

57,413



$

(2,915)



$

54,498


Gross profit

$

170,870



$

2,915



$

173,785


Sales and marketing

$

158,845



$

(22,519)



$

136,326


Research and development

$

36,098



$

(8,475)



$

27,623


General and administrative

$

51,572



$

(10,324)



$

41,248


Loss from operations

$

(75,645)



$

44,233



$

(31,412)


Net loss

$

(74,837)



$

44,233



$

(30,604)


Net loss margin

(32.8)%



19.4%



(13.4)%


 

YEXT, INC.
Reconciliation of GAAP to Non-GAAP Financial Measures
(In thousands, except share and per share data)
(unaudited)


Three months ended January 31,


2020


2019

Net loss

$

(30,577)



$

(15,460)


Stock-based compensation expense

16,853



12,290


Non-GAAP net loss

$

(13,724)



$

(3,170)






Net loss per share attributable to common stockholders, basic and diluted

$

(0.27)



$

(0.15)






Stock-based compensation expense per share

0.15



0.12


Non-GAAP net loss per share attributable to common stockholders, basic and diluted

$

(0.12)



$

(0.03)






Weighted-average number of shares used in computing net loss per share attributable to common stockholders, basic and diluted

115,166,912



101,354,229












Fiscal year ended January 31,


2020


2019

Net loss

$

(121,544)



$

(74,837)


Stock-based compensation expense

67,770



44,233


Non-GAAP net loss

$

(53,774)



$

(30,604)






Net loss per share attributable to common stockholders, basic and diluted

$

(1.09)



$

(0.76)






Stock-based compensation expense per share

0.61



0.45


Non-GAAP net loss per share attributable to common stockholders, basic and diluted

$

(0.48)



$

(0.31)






Weighted-average number of shares used in computing net loss per share attributable to common stockholders, basic and diluted

111,758,946



98,387,366


 

Cision

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SOURCE Yext, Inc.