Yext(YEXT) - 2025 Q3 - Quarterly Results

Financial Performance - Revenue for Q3 fiscal 2025 was $114.0 million, with an Adjusted EBITDA of $23.1 million and a non-GAAP EPS of $0.12, while GAAP net loss was $12.8 million or $(0.10) per share [2]. - Revenue for Q3 Fiscal 2025 was $114.0 million, a 13% increase from $101.2 million in Q3 Fiscal 2024 [40]. - Gross profit was $87.7 million, an 11% increase year-over-year, with a gross margin of 77.0% [41]. - Adjusted EBITDA for Q3 Fiscal 2025 was $23.1 million, compared to $13.5 million in Q3 Fiscal 2024 [46]. - Revenue for the three months ended October 31, 2023, was $113.989 million, a 12.8% increase from $101.164 million in the same period last year [98]. - GAAP net loss for the three months ended October 31, 2023, was $(12,799,000), compared to a net loss of $(468,000) in the same period last year [118]. - Non-GAAP net income for the three months ended October 31, 2023, was $15,615,000, compared to $11,290,000 for the same period last year, representing an increase of 38.5% [118]. - GAAP net loss for the nine months ended October 31, 2024, was $20,673,000, compared to a loss of $4,317,000 for the same period in 2023 [123]. - Non-GAAP net income for the nine months ended October 31, 2024, was $28,717,000, down from $30,018,000 in 2023, representing a decrease of 4.3% [123]. Annual Recurring Revenue (ARR) - Annual Recurring Revenue (ARR) grew to $441.8 million, including contributions from the integration of Hearsay Systems [4]. - Annual Recurring Revenue (ARR) reached $441.8 million, an 11% increase year-over-year, with direct customers contributing 85% of total ARR [47]. - Total Annual Recurring Revenue (ARR) increased to $441,795,000 as of October 31, 2024, up 11% from $396,826,000 in 2023 [132]. - Direct Customers ARR rose by 15% to $374,502,000 from $326,625,000 year-over-year [132]. Customer Retention and Growth - Slight sequential increases in gross and net retention rates were reported, driven by upsells and customer optimization efforts [6]. - Dollar-Based Net Retention Rate (NRR) for total customers was 91%, with direct customers also at 91% [48]. - Dollar-Based Net Retention Rate for Direct Customers was 91% as of October 31, 2024, down from 97% in the previous year [132]. Cash Flow and Financial Position - Free cash flow generated over the trailing twelve months amounting to $37.7 million [3]. - Cash and cash equivalents were $118.0 million, down from $182.2 million a year earlier, primarily due to the acquisition of Hearsay [52]. - Cash and cash equivalents at the end of the period were $100.484 million, down from $182.156 million at the end of the same period last year [101]. - The company reported a net cash provided by operating activities of $11.865 million for the nine months ended October 31, 2023, compared to $18.137 million in the prior year [101]. Guidance and Future Outlook - Full year revenue guidance remains consistent with previous estimates, with expectations for further Adjusted EBITDA margin expansion in Q4 [32]. - Expected FY25 results indicate an 8% revenue growth compared to FY22, with Adjusted EBITDA increasing 220-fold, demonstrating effective management of shareholder dilution [37]. - Fourth Quarter Fiscal 2025 revenue is projected to be between $112.4 million and $112.9 million [55]. - Full Year Fiscal 2025 revenue is projected to be between $420.3 million and $420.8 million [56]. Operating Expenses and Profitability - Operating expenses for the three months ended October 31, 2023, totaled $98.110 million, up from $80.879 million in the prior year, representing a 21.3% increase [98]. - GAAP operating expenses for the three months ended October 31, 2023, were $98,110,000, compared to $80,879,000 in the prior year, reflecting a year-over-year increase of 21.2% [114]. - Non-GAAP operating expenses for the nine months ended October 31, 2023, were $208,137,000, slightly down from $212,466,000 year-over-year, indicating a decrease of 2.0% [114]. - The company emphasizes the importance of non-GAAP financial measures alongside GAAP measures for a comprehensive assessment of performance [74]. Market and Strategic Initiatives - Yext Social was launched in mid-September, enhancing the digital presence platform and leveraging generative AI for content creation [13][14]. - The company is focused on driving top-line growth through M&A opportunities, supported by a strong balance sheet and cash flow profile [12]. - The macroeconomic environment remains complex, but there are signs of improvement in customer interest and deal acceleration related to digital transformation [31].