- Revenue of $102.6 Million, Increased 2% Year-over-Year or 1% on a Constant Currency Basis
- Net Loss Per Share of $0.03 or Non-GAAP Earnings Per Share of $0.07, Basic
- Net Loss of $3.4 Million or Adjusted EBITDA of $11.8 Million
- ARR of $398 Million, Increased 3% Year-over-Year or 2% on a Constant Currency Basis
- Customer Count of Approximately 2,980
- Cash and Cash Equivalents of $201 Million
- Increased Share Repurchase Program by an Additional $50 Million
Yext, Inc. (NYSE: YEXT), a leading digital experience platform, today announced its results for the three months ended July 31, 2023, or the Company’s second quarter of fiscal year 2024.
“Our sharpened focus on positioning the business for durable and profitable growth enabled us to execute well in the second quarter against our financial and operating objectives,” said Yext CEO and Chair of the Board, Michael Walrath. “Given the market interest in AI-enabled products and improving the customer experience, and the value of our digital experience platform, we believe we’re well positioned to benefit from the opportunity. While the macroeconomic environment remains uncertain, the operational improvements we’ve made to the business give us reason to be optimistic about our ability to continue executing on our objectives for the remainder of the year.”
Second Quarter Fiscal 2024 Highlights:
Revenue of $102.6 million, a 2% increase, compared to $100.9 million reported in the second quarter fiscal 2023. Second quarter fiscal 2024 revenue included a positive impact of approximately $0.4 million from foreign currency exchange rates on a constant currency basis.
Gross Profit of $80.2 million, a 9% increase, compared to $73.8 million reported in the second quarter fiscal 2023. Gross margin of 78.2%, compared to 73.2% reported in the second quarter fiscal 2023.
Net Loss and Non-GAAP Net Income/Loss:
- Net loss of $3.4 million, compared to the net loss of $20.0 million in the second quarter fiscal 2023.
- Non-GAAP net income of $8.1 million, compared to the non-GAAP net loss of $3.9 million in the second quarter fiscal 2023.
Net Loss Per Share and Non-GAAP Net Income/Loss Per Share:
- Net loss per share attributable to common stockholders, basic and diluted, was $0.03 based on 124.4 million weighted average basic and diluted shares outstanding. This compares to net loss per share attributable to common stockholders, basic and diluted, of $0.16 based on 124.2 million weighted average basic and diluted shares outstanding in the second quarter fiscal 2023.
- Non-GAAP net income per share attributable to common stockholders, basic, was $0.07 based on 124.4 million weighted average basic shares outstanding. Non-GAAP net income per share attributable to common stockholders, diluted, was $0.06 based on 129.1 million weighted average diluted shares outstanding. This compares to non-GAAP net loss per share attributable to common stockholders, basic and diluted, of $0.03 based on 124.2 million weighted average basic and diluted shares outstanding in the second quarter fiscal 2023.
Adjusted EBITDA was $11.8 million, compared to $0.9 million in the second quarter fiscal 2023.
Balance Sheet: Cash and cash equivalents of $201 million as of July 31, 2023. Unearned revenue of $170 million as of July 31, 2023, compared to $166 million as of July 31, 2022.
Remaining Performance Obligations (“RPO”): RPO of $424.5 million as of July 31, 2023. RPO expected to be recognized over the next 24 months of $370.7 million with the remaining balance expected to be recognized thereafter. RPO does not include amounts under contract subject to certain accounting exclusions.
Annual Recurring Revenue (“ARR”): ARR increased 3% year-over-year to $398 million as of July 31, 2023, compared to $387 million as of July 31, 2022. As of July 31, 2023, ARR included an approximate $4.1 million positive impact from foreign currency exchange rates, on a constant currency basis.
Cash Flow: Net cash used in operating activities was $7.0 million for the three months ended July 31, 2023, compared to net cash used in operating activities of $25.2 million for the three months ended July 31, 2022.
Share Repurchase Program: In September 2023, the Yext Board of Directors authorized an additional $50.0 million to the share repurchase program. As of July 31, 2023, approximately $11.6 million remained available for future purchases from the initial $100.0 million program.
Readers are encouraged to review the tables labeled “Reconciliation of GAAP to Non-GAAP Financial Measures” at the end of this release.
Financial Outlook:
Yext is also providing the following guidance for its third fiscal quarter ending October 31, 2023 and fiscal year ending January 31, 2024.
- Third Quarter Fiscal 2024 Outlook:
- Revenue is projected to be in the range of $101.5 to $102.5 million;
- Adjusted EBITDA is projected to be in the range of $11.5 million to $12.5 million; and
- Non-GAAP net income per share is projected to be in the range of $0.06 to $0.07, which assumes 125.1 million weighted-average basic shares outstanding.
- Full Year Fiscal 2024 Outlook:
- Revenue is projected to be in the range of $405.0 million to $407.0 million;
- Adjusted EBITDA is projected to be in the range of $50.0 million to $52.0 million; and
- Non-GAAP net income per share is projected to be in the range of $0.29 to $0.30, which assumes 124.8 million weighted-average basic shares outstanding.
Conference Call Information
Yext will host a conference call today at 5:00 P.M. Eastern Time (2:00 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 9070278.
A replay will be available domestically at (877) 344-7529 or internationally at (412) 317-0088, passcode 4178723, until midnight (ET) September 27, 2023.
For more such updates, follow us on Google News Martech News