Yext(YEXT)2024-12-09 21:10Financial Performance - Revenue for the three months ended October 31, 2024, was $113.989 million, an increase of 12.4% compared to $101.164 million for the same period in 2023[21]. - Gross profit for the three months ended October 31, 2024, was $87.742 million, up from $79.098 million in the prior year, reflecting a gross margin improvement[21]. - The net loss for the three months ended October 31, 2024, was $12.799 million, compared to a net loss of $468,000 for the same period in 2023[21]. - Total revenue for the nine months ended October 31, 2024, was $307.9 million, compared to $303.2 million for the same period in 2023, reflecting a growth of approximately 1.1%[49]. - The net loss for the nine months ended October 31, 2024, was $20.673 million, compared to a net loss of $4.317 million for the same period in 2023, representing a significant increase in losses[33]. Expenses and Costs - Operating expenses increased to $98.110 million for the three months ended October 31, 2024, compared to $80.879 million in the same period last year, primarily due to higher general and administrative costs[21]. - Research and development expenses rose to $21.070 million for the three months ended October 31, 2024, compared to $18.291 million in the prior year, indicating a focus on innovation[21]. - Stock-based compensation expense increased to $37.091 million for the nine months ended October 31, 2024, compared to $34.335 million for the same period in 2023, marking an increase of approximately 8.1%[33]. - The company reported a depreciation and amortization expense of $12.101 million for the nine months ended October 31, 2024, slightly down from $12.625 million in the prior year[33]. Cash and Liquidity - Cash and cash equivalents as of October 31, 2024, were $159.962 million, reflecting a decrease from $162.803 million at the end of the previous quarter[25]. - Cash, cash equivalents, and restricted cash at the end of the period were $118.005 million, down from $182.156 million at the end of the same period in 2023, reflecting a decrease of about 35.3%[33]. - Net cash provided by operating activities for the nine months ended October 31, 2024, was $11.865 million, down from $18.137 million in the same period of 2023, a decrease of approximately 34.5%[33]. - The company experienced a net decrease in cash of $92.179 million during the nine months ended October 31, 2024[33]. Acquisition and Growth Strategy - Yext recently completed the acquisition of Hearsay Social, Inc., which is expected to enhance its product offerings and market position[9]. - The acquisition of Hearsay on August 1, 2024, involved total consideration of $180.342 million, including cash consideration of $132.462 million and contingent consideration of $39.5 million[54]. - The Company plans to invest in international expansion and research and development to drive future growth[9]. - The acquisition is expected to create an end-to-end digital presence platform, combining Yext's capabilities with Hearsay's compliant engagement solutions[54]. Stockholder Equity and Shares - Total stockholders' equity as of October 31, 2024, was $159.962 million, up from $136.346 million as of October 31, 2023, indicating a year-over-year increase of approximately 17.4%[33]. - The weighted-average number of shares used in computing net loss per share for the three months ended October 31, 2024, was 128,036,993, compared to 124,239,180 for the same period in 2023[21]. - The Company had approximately 3.8 million shares available for future awards under the Hearsay Plan as of October 31, 2024[77]. Liabilities and Obligations - The Company has contractual obligations totaling $118.976 million for leases and $49.119 million for other obligations, with various expiry dates between fiscal years 2025 and 2035[87]. - The Company may be required to pay up to $75.0 million to former holders of Hearsay's equity interests, contingent on achieving certain ARR milestones over a two-year period[91]. - The Company is required to maintain a minimum liquidity of $35 million and a consolidated total leverage ratio of no greater than 3.00 to 1.00, tested quarterly[84]. Tax and Compliance - The Company recorded a provision for income taxes of $3.0 million for the three months ended October 31, 2024, compared to $0.4 million for the same period in 2023, reflecting a significant increase[86]. - The effective tax rate differs from the U.S. federal statutory tax rate primarily due to full valuation allowances related to net deferred tax assets in the U.S. and certain foreign jurisdictions[86]. - The Company was in compliance with all debt covenants as of October 31, 2024[84].