Yext Inc (YEXT) Posts Narrowed Net Loss and Strong Non-GAAP Earnings in Q3 FY2024
Yext Inc (NYSE:YEXT) reports a 2% year-over-year revenue increase to $101.2 million in Q3 FY2024.
Non-GAAP net income per share rises to $0.09, compared to $0.02 in the same quarter last year.
Adjusted EBITDA climbs to $13.5 million, reflecting a significant improvement from $7.1 million in Q3 FY2023.
Company's balance sheet remains solid with $182.2 million in cash and cash equivalents.
On December 5, 2023, Yext Inc (NYSE:YEXT) released its 8-K filing, announcing financial results for the third quarter of fiscal year 2024. The company reported a modest revenue increase and a significant improvement in non-GAAP profitability, highlighting its strategic focus on driving profitable growth in a challenging macroeconomic environment.
Financial Performance Overview
Yext Inc (NYSE:YEXT) achieved a revenue of $101.2 million in the third quarter, marking a 2% increase from the $99.3 million reported in the third quarter of fiscal 2023. The company's gross profit also saw a healthy rise, reaching $79.1 million, up 7% year-over-year, with a gross margin of 78.2%, compared to 74.2% in the prior year's quarter.
The net loss for the quarter was significantly reduced to $0.5 million, down from a net loss of $12.3 million in Q3 FY2023. On a non-GAAP basis, net income reached $11.3 million, a substantial increase from the $2.5 million reported in the same period last year. Non-GAAP net income per share was $0.09, based on 124.2 million weighted average basic shares outstanding, showing a notable rise from the $0.02 per share in Q3 FY2023.
Balance Sheet and Cash Flow
As of October 31, 2023, Yext Inc (NYSE:YEXT) reported cash and cash equivalents of $182.2 million. The company's balance sheet also showed unearned revenue of $144.5 million. Net cash used in operating activities for the quarter was $1.6 million, a significant improvement from the $10.8 million used in the same period the previous year.
Operational Highlights and Future Outlook
Yext Inc (NYSE:YEXT) highlighted its commitment to innovation and customer engagement, with CEO Michael Walrath stating,
Our record non-GAAP profitability and strong Q3 adjusted EBITDA illustrate our commitment to driving profitable growth, even in a challenging macroeconomic environment."
The company's Annual Recurring Revenue (ARR) increased by 2% year-over-year to $396.8 million.
Looking ahead, Yext Inc (NYSE:YEXT) provided guidance for the fourth fiscal quarter ending January 31, 2024, with revenue projected to be in the range of $100.0 to $100.5 million and adjusted EBITDA expected to be between $12.0 million and $13.0 million. Non-GAAP net income per share is anticipated to be between $0.07 and $0.08.
Investor and Analyst Perspectives
Investors and analysts may view Yext Inc (NYSE:YEXT)'s narrowed net loss and strong non-GAAP earnings as positive signs of the company's ability to manage costs and improve operational efficiency. The increase in gross margin and adjusted EBITDA suggests that Yext is successfully navigating the current economic headwinds while maintaining a focus on profitability.
For a detailed understanding of Yext Inc (NYSE:YEXT)'s financials and future expectations, stakeholders are encouraged to review the full financial tables and reconciliations of GAAP to non-GAAP financial measures provided in the earnings release.
Yext Inc (NYSE:YEXT) will host a conference call to discuss these financial results with the investment community, offering further insights into the company's performance and strategic initiatives.
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Explore the complete 8-K earnings release (here) from Yext Inc for further details.
This article first appeared on GuruFocus.
