Yext Inc (YEXT) Reports Record Non-GAAP Profitability for Fiscal 2024
Revenue: Q4 revenue of $101.1 million, a slight decrease from $101.9 million in Q4 FY23.
Net Income: Achieved first quarterly GAAP net income of $1.7 million, a significant improvement from a net loss of $7.8 million in Q4 FY23.
Adjusted EBITDA: Increased to $14.8 million in Q4, up 36% from the same quarter of the prior year.
Annual Recurring Revenue (ARR): Ended FY24 with $387.4 million, a decrease from $400.4 million at the end of FY23.
Non-GAAP Net Income: For FY24, reported $42.3 million, compared to a non-GAAP net loss of $2.9 million in FY23.
Operating Expenses: Non-GAAP operating expenses decreased to 68% of revenue in Q4 FY24 from 69% in Q4 FY23.
Guidance: For Q1 FY25, revenue is projected to be between $96.0 to $96.5 million, and for full-year FY25, revenue is projected to be between $400.0 million to $402.0 million.
On March 6, 2024, Yext Inc (NYSE:YEXT), a leader in digital knowledge management, released its 8-K filing, detailing the company's financial results for the fourth quarter and full fiscal year 2024. Yext Inc provides a cloud-based platform that allows businesses to manage their digital knowledge and sync it to over 200 services, enhancing the accuracy and reach of their information across the web and various applications.
Fiscal 2024 Highlights
Yext Inc (NYSE:YEXT) reported a year of significant progress, focusing on efficiency, productivity, and profitability. The company's strategic decisions led to an increase in gross profit and a reduction in operating expenses, particularly within sales and marketing. Notably, Yext achieved its first quarterly GAAP net income in the company's history during Q4 FY24.
Despite a challenging market and the churn of a large customer, Yext Inc (NYSE:YEXT) managed to grow its Adjusted EBITDA to $54.6 million, a 245% year-over-year increase. The company also reported a Non-GAAP net income of $42.3 million for FY24, compared to a loss in the previous year, showcasing a remarkable turnaround in profitability.
Financial Performance Analysis
Yext Inc (NYSE:YEXT)'s financial achievements in FY24 underscore the company's ability to navigate market challenges and execute a strategic realignment. The significant improvement in profitability, particularly the transition from a Non-GAAP net loss to a substantial Non-GAAP net income, highlights the company's disciplined approach to cost management and its focus on high-ROI opportunities.
The company's ARR at the end of FY24 was $387.4 million, a slight decrease from the previous year, primarily due to customer churn. However, excluding this churn and other headwinds, the ARR would have shown a 2% year-over-year increase. This resilience in the face of market headwinds is a testament to Yext's robust product offerings and customer value proposition.
Yext Inc (NYSE:YEXT) also provided guidance for the first quarter and full year of fiscal 2025, projecting revenue in the range of $96.0 to $96.5 million for Q1 FY25 and $400.0 million to $402.0 million for the full year. This guidance reflects the company's cautious optimism in the face of ongoing macroeconomic uncertainty and its commitment to balancing efficiency with growth.
For a more detailed analysis of Yext Inc (NYSE:YEXT)'s financial performance, investors and interested parties are encouraged to review the full 8-K filing.
Yext Inc (NYSE:YEXT) remains confident in its strategic objectives for fiscal 2025, aiming to capitalize on its strengths, re-accelerate top-line growth, and continue delivering value to customers and shareholders alike.
Explore the complete 8-K earnings release (here) from Yext Inc for further details.
This article first appeared on GuruFocus.
