Yext, Inc. Announces Fourth Quarter and Full Year Fiscal 2019 Results
NEW YORK, March 6, 2019 /PRNewswire/ -- Yext, Inc. (NYSE: YEXT), the leader in digital knowledge management (DKM), today announced its results for the three months ended January 31, 2019, or the Company's fourth quarter, and the fiscal year that ended in that same period.
"We had another record quarter highlighted by the addition of 128 new Enterprise logos - the most we've added in any quarter in our history. The fourth quarter reflects our increasing momentum throughout fiscal 2019, with nearly 350 new Enterprise accounts signed," said Howard Lerman, Founder and Chief Executive Officer of Yext.
"Brands around the world are catching on to the revolution of DKM, including thought leaders like Morgan Stanley. During the quarter, Morgan Stanley announced its selection of Yext as the designated platform to manage facts such as their areas of focus, certifications, language skills, investment approach and more for its 15,000 wealth advisors.
"Today, we manage more than 185 million facts about our customers in our platform, providing brand-verified answers in services like Google, Siri, Alexa and WeChat to consumers looking for information verified by the source of truth. We will continue to invest in expanding our services and features, our geographic reach, and the endpoints in our Knowledge Network as we continue our mission to provide perfect answers everywhere."
Fourth Quarter Fiscal 2019 Highlights:
Note to the reader: Yext adopted the revenue accounting standard ASC 606 for its fiscal year ended January 31, 2019, and the results for both the fourth quarter and fiscal year ended January 31, 2019, which we refer to as the current periods, are presented on that basis. Yext elected the modified retrospective approach for adoption and our results for the fiscal year ended January 31, 2018 and all prior periods continue to be presented on the basis of ASC 605. Because we previously issued revenue and non-GAAP net loss per share guidance for the current periods on the basis of ASC 605, these results are also presented below on the basis of ASC 605 to facilitate comparability to the guidance. See the tables labeled "Reconciliation of Impacts from the Adoption of ASC 606" at the end of this release.
-- Revenue of $63.8 million, a 33% increase as compared to the $48.0
million reported in fourth quarter fiscal 2018. The adoption of ASC 606
did not have a material impact on revenue in the quarter.
-- Gross Profit of $48.1 million, a 34% increase as compared to the $35.8
million reported in fourth quarter fiscal 2018. Gross margin of 75.5% as
compared to the 74.6% reported in fourth quarter fiscal 2018.
-- Net Loss and Non-GAAP Net Loss:
-- Net loss of $15.5 million as compared to the $17.0 million net loss
in fourth quarter fiscal 2018. The improvement reflects a benefit to
sales and marketing expenses associated with the adoption of ASC
606, as commissions and related costs are now being amortized over a
longer period.
-- Non-GAAP net loss of $3.2 million as compared to the $9.6 million
non-GAAP net loss in the fourth quarter fiscal 2018. The improvement
was primarily due to the same factors that affected net loss.
-- Net Loss Per Share and Non-GAAP Net Loss Per Share:
-- Net loss per share of $0.15 based on 101.4 million weighted-average
shares outstanding, as compared to the net loss per share of $0.18
in the fourth quarter fiscal 2018 based on 92.4 million
weighted-average shares outstanding.
-- Non-GAAP net loss per share of $0.03 as reported under ASC 606,
based on 101.4 million weighted-average shares outstanding, as
compared to the non-GAAP net loss per share of $0.10 in the fourth
quarter fiscal 2018 based on 92.4 million weighted-average shares
outstanding.
-- Non-GAAP net loss per share would have been $0.08 if reported on the
basis of ASC 605.
-- Balance Sheet: Cash, cash equivalents and marketable securities of
$142.8 million as of January 31, 2019. The adoption of ASC 606 did not
alter the reported cash balance.
-- Cash Flow: Cash provided by operating activities for the fourth quarter
of fiscal 2019 was $30.8 million as compared to cash used in operating
activities of $2.1 million in the same period in fiscal 2018. The
improvement in cash flow in the current period reflects improved working
capital, driven primarily by a higher amount of unearned revenue.
-- Remaining Performance Obligations ("RPO"): RPO as of January 31, 2019
was $262.0 million, with $242.9 million expected to be recognized over
the next 24 months and the balance to be recognized thereafter. RPO does
not include amounts under contracts subject to certain accounting
exclusions.
Full Year Fiscal 2019 Highlights:
-- Revenue of $228.3 million as reported under ASC 606, or $228.8 million
if reported on the basis of ASC 605, reflects a 34% increase as compared
to the $170.2 million reported in fiscal year ended January 31, 2018.
-- Gross Profit of $170.9 million, a 35% increase as compared to the $126.1
million reported in fiscal year ended January 31, 2018. Gross margin of
74.9% as compared to the 74.1% reported in fiscal year ended January 31,
2018.
-- Net Loss and Non-GAAP Net Loss:
-- Net loss of $74.8 million as compared to the $66.6 million net loss
in fiscal year ended January 31, 2018.
-- Non-GAAP net loss of $30.6 million as compared to the $44.2 million
non-GAAP net loss in the fiscal year ended January 31, 2018.
-- Net Loss Per Share and Non-GAAP Net Loss Per Share:
-- Net loss per share of $0.76 based on 98.4 million weighted-average
shares outstanding, as compared to the net loss per share of $0.85
in the fiscal year ended January 31, 2018 based on 78.6 million
weighted-average shares outstanding.
-- Non-GAAP net loss per share of $0.31 as reported under ASC 606,
based on 98.4 million weighted-average shares outstanding at January
31, 2019, as compared to the non-GAAP net loss per share of $0.47 in
the fiscal year ended January 31, 2018 based on 94.0 million
non-GAAP shares outstanding at January 31, 2018.
-- Non-GAAP net loss per share would have been $0.40 if reported on the
basis of ASC 605.
-- Cash Flow: Cash provided by operating activities for the fiscal year
ended January 31, 2019 was $5.2 million as compared to cash used in
operating activities of $32.4 million for the fiscal year ended January
31, 2018.
As the Company adopted ASC 606 on a modified retrospective basis, operating results for the fiscal year ended January 31, 2019 are presented under ASC 606, whereas operating results for the fiscal year ended January 31, 2018 are presented under ASC 605. Readers are encouraged to review the tables labeled "Reconciliation of GAAP to Non-GAAP Financial Measures" and "Reconciliation of Impacts from the Adoption of ASC 606" at the end of this release.
Recent Business Highlights:
-- Stored more than 185 million facts(1) in Yext's digital knowledge
platform as of January 31, 2019, an increase of approximately 50% as
compared to January 31, 2018.
-- Announced the appointment of Wendi Sturgis, Yext's Chief Client Officer,
as CEO of Yext Europe, as well as a tripling in the number of enterprise
customers over the past year served by its Southern Europe region across
a diverse set of industries, including luxury, retail, food,
hospitality, and financial services.
-- Unveiled an expansion of Yext's presence in the Washington D.C.-area
with an office located in Rosslyn, Virginia, as well as a plan to hire
hundreds of people over a five year period in that region.
-- Issued our Spring Product Release, providing new services and features
to our platform, including: integrations with some of the largest global
digital services used by Chinese consumers when traveling overseas, such
as Baidu Map (Overseas), Fliggy, CK Map and PIRT; the ability for our
customers to monitor and answer questions their consumers ask about them
on Google in Google's Q&A search results; general access for self-serve,
AI-ready Pages, letting our customers create smart landing pages on
their website for any entity stored in Yext.
-- Expanded the Yext Knowledge Network through an integration with
Snapchat, allowing businesses to power the facts about them in Snapchat
Context Cards and Organic Venue Geofilters directly from Yext.
-- Named to the Best Workplaces in Technology list by Fortune Magazine and
Great Place to Work(®).
1. Facts represent the data
stored by customers in our
Knowledge Manager. We
previously reported a metric
called attributes, which
aggregated certain data in
our Knowledge Manager and
reported that data as a
single attribute. Facts
reflects all of the discrete
data elements provided by our
customers. For example, a
customer's opening hours from
Monday through Friday is
reflected as five facts.
Financial Outlook:
Yext is also providing the following guidance for its first fiscal quarter ending April 30, 2019 and the fiscal year ending January 31, 2020. All guidance is provided on the basis of ASC 606.
-- First Quarter Fiscal 2020 Outlook:
-- Revenue is projected to be $66.0 million to $67.0 million. This
compares to $51.0 million of revenue from the first quarter of
fiscal 2019, which reflects the adoption of ASC 606.
-- Non-GAAP net loss per share is projected to be $0.09 to $0.11, which
assumes 103.1 million weighted-average shares outstanding. This
compares to a non-GAAP net loss per share of $0.10 from the first
quarter of fiscal 2019, which reflects the adoption of ASC 606.
-- Full Year Fiscal 2020 Outlook:
-- Revenue is projected to be $295 million to $300 million.
-- Non-GAAP net loss per share is projected to be $0.40 to $0.44, which
assumes 105.9 million weighted-average shares outstanding.
Conference Call Information
Yext will host a conference call at 5:00 P.M. Eastern Time (2:00 P.M. Pacific Time) today to discuss its financial results. To join, participants may call 1.877.883.0383 (U.S. callers) or 1.412.902.6506 (international callers) using conference ID number 7870330. A live audio webcast of the call will also be available on the Investor Relations section of the Company's website at investors.yext.com. A replay of the call will be available until March 13, 2019 at 11:59 P.M. Eastern Time by dialing 1.877.344.7529 (U.S. callers) or 1.412.317.0088 (international) and entering passcode 10129114.
About Yext:
Yext, Inc. (NYSE: YEXT) is the leading Digital Knowledge Management (DKM) platform. Our mission is to give companies control over their brand experiences across the digital universe of maps, apps, search engines, voice assistants, and other intelligent services that drive consumer discovery, decision, and action. Today, thousands of businesses including brands like Taco Bell, Rite Aid, and Steward Health Care use the Yext Knowledge Engine(TM) to manage their digital knowledge in order to boost brand engagement, drive foot traffic, and increase sales.
Yext has been named a Best Place to Work by Fortune and Great Place to Work® as well as a Best Workplace for Women. Yext is headquartered in New York City with offices in Berlin, Chicago, Dallas, Geneva, London, Paris, San Francisco, Shanghai, Tokyo and the Washington, D.C. area. For more information, visit yext.com.
Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995
This release includes forward-looking statements including, but not limited to, statements regarding our revenue, non-GAAP net loss and shares outstanding for our first fiscal quarter 2020 and full year fiscal 2020 in the paragraphs under "Financial Outlook" above, and other statements regarding our expectations regarding the growth of our company, our future hiring, our market opportunity and our industry. In some cases, you can identify forward-looking statements by terminology such as "may," "will," "should," "could," "expect," "plan," "anticipate," "believe," "estimate," "predict," "intend," "potential," "might," "would," "continue," or the negative of these terms or other comparable terminology. Actual events or results may differ from those expressed in these forward-looking statements, and these differences may be material and adverse.
We have based the forward-looking statements contained in this release primarily on our current expectations and projections about future events and trends that we believe may affect our business, financial condition, results of operations, strategy, short- and long-term business operations, prospects, business strategy and financial needs. Our actual results could differ materially from those stated or implied in forward-looking statements due to a number of factors, including, but not limited to, our ability to renew existing customers and attract new customers; our ability to successfully expand and compete in new geographies; our ability to recruit and retain our enterprise-level sales force; our ability to expand our publishing network; our ability to develop new product and platform offerings to expand our market opportunity; the impact of newly adopted accounting standards on our financial results and guidance; our ability to release product updates that are adopted by our customers; our ability to manage our growth effectively; the number of options exercised by our employees and former employees; and the accuracy of the assumptions and estimates underlying our financial projections. For a detailed discussion of these and other risk factors, please refer to the risks detailed in our filings with the Securities and Exchange Commission, including, without limitation, our most recent Quarterly Report on Form 10-Q and Annual Report on Form 10-K, which are available at http://investors.yext.com and on the SEC's website at https://www.sec.gov. Further information on potential risks that could affect actual results will be included in other filings we make with the SEC from time to time. Moreover, we operate in a very competitive and rapidly changing environment. New risks and uncertainties emerge from time to time and it is not possible for us to predict all risks and uncertainties that could have an impact on the forward-looking statements contained in this release. We cannot assure you that the results, events and circumstances reflected in the forward-looking statements will be achieved or occur, and actual results, events or circumstances could differ materially from those described in the forward-looking statements.
The forward-looking statements made in this release relate only to events as of the date on which such statements are made. We undertake no obligation to update any forward-looking statements after the date hereof or to conform such statements to actual results or revised expectations, except as required by law.
Non-GAAP Measurements
In addition to disclosing financial measures prepared in accordance with U.S. generally accepted accounting principles (GAAP), this press release and the accompanying tables include non-GAAP net loss, non-GAAP net loss per share and non-GAAP net loss margin. Non-GAAP net loss, non-GAAP net loss per share and non-GAAP net loss margin are financial measures that are not calculated in accordance with GAAP. We define these non-GAAP net loss financial measures as our GAAP net loss as adjusted to exclude the effects of stock-based compensation expenses. Non-GAAP net loss per share is defined as non-GAAP net loss on a per share basis. See "Reconciliation of GAAP to Non-GAAP Financial Measures" for a discussion of the applicable weighted-average shares outstanding. Non-GAAP net loss margin is defined as non-GAAP net loss divided by revenue. We believe these non-GAAP financial measures provide investors and other users of our financial information consistency and comparability with our past financial performance and facilitate period-to-period comparisons of our results of operations. With respect to non-GAAP net loss margin, we believe this metric is useful in evaluating our profitability relative to the amount of revenue generated, excluding the impact of stock-based compensation expense. We also believe these non-GAAP financial measures are useful in evaluating our operating performance compared to that of other companies in our industry, as these metrics eliminate the effects of stock-based compensation, which may vary for reasons unrelated to overall operating performance.
We use these non-GAAP financial measures in conjunction with traditional GAAP measures as part of our overall assessment of our performance, including the preparation of our annual operating budget and quarterly forecasts, to evaluate the effectiveness of our business strategies and to communicate with our Board of Directors concerning our financial performance. Our definition may differ from the definitions used by other companies and therefore comparability may be limited. In addition, other companies may not publish this or similar metrics. Thus, our non-GAAP financial measures should be considered in addition to, not as a substitute for, nor superior to or in isolation from, measures prepared in accordance with GAAP.
These non-GAAP financial measures may be limited in their usefulness because they do not present the full economic effect of our use of stock-based compensation. We compensate for these limitations by providing investors and other users of our financial information a reconciliation of non-GAAP net loss to net loss, non-GAAP net loss per share to net loss per share and non-GAAP net loss margin to net loss margin, the most closely related GAAP financial measures. However, we have not reconciled the non-GAAP guidance measures disclosed under "Financial Outlook" to their corresponding GAAP measures because certain reconciling items such as stock-based compensation and the corresponding provision for income taxes depend on factors such as the stock price at the time of award of future grants and thus cannot be reasonably predicted. Accordingly, reconciliations to the non-GAAP guidance measures is not available without unreasonable effort. We encourage investors and others to review our financial information in its entirety, not to rely on any single financial measure and to view non-GAAP net loss and non-GAAP net loss per share in conjunction with net loss and net loss per share.
YEXT, INC.
Consolidated Balance Sheets
(In thousands, except share and per share data)
(Unaudited)
January 31, January 31,
2019 2018
---
Assets
Current assets:
Cash and cash equivalents $
91,755 $
34,367
Marketable securities 51,021 83,974
Accounts receivable, net of
allowances of $256 and $231,
respectively 55,341 44,656
Prepaid expenses and other current
assets 14,135 7,703
Costs to obtain revenue contracts,
current 17,817 9,342
Total current assets 230,069 180,042
Property and equipment, net 11,077 11,438
Goodwill 4,660 4,924
Intangible assets, net 1,960 2,761
Costs to obtain revenue contracts,
non-current 18,366 3,405
Other long term assets 996 919
Total assets $
267,128 $
203,489
Liabilities and stockholders' equity
Current liabilities:
Accounts payable, accrued expenses
and other current liabilities $
42,651 $
27,416
Unearned revenue, current 135,544 89,474
Deferred rent, current 1,585 1,288
Total current liabilities 179,780 118,178
Deferred rent, non-current 1,607 3,213
Other long term liabilities 1,192 645
Total liabilities 182,579 122,036
Commitments and contingencies
Stockholders' equity:
Preferred stock, $0.001 par value
per share; 50,000,000 shares
authorized at January 31, 2019
and 2018, respectively; zero
shares issued and outstanding at
January 31, 2019 and 2018 -
Common stock, $0.001 par value per
share; 500,000,000 shares
authorized at January 31, 2019
and 2018, respectively;
108,678,234 and 100,482,264
shares issued at January 31, 2019
and 2018, respectively;
102,172,900 and 93,976,930 shares
outstanding at January 31, 2019
and 2018, respectively 109 100
Additional paid-in capital 398,882 328,344
Accumulated other comprehensive
loss (1,428) (1,636)
Accumulated deficit (301,109) (233,450)
Treasury stock, at cost (11,905) (11,905)
Total stockholders' equity 84,549 81,453
Total liabilities and
stockholders' equity $
267,128 $
203,489
YEXT, INC.
Consolidated Statements of Operations and Comprehensive Loss
(In thousands, except share and per share data)
(unaudited)
Three months ended Fiscal year ended
January 31,
January 31,
2019 2018 2019 2018
---
Revenue $
63,759 $
48,020 $
228,283 $
170,201
Cost of revenue 15,641 12,208 57,413 44,095
Gross profit 48,118 35,812 170,870 126,106
Operating expenses:
Sales and marketing 41,006 35,089 158,845 126,980
Research and development 9,228 7,250 36,098 25,687
General and administrative 14,107 10,976 51,572 40,079
Total operating expenses 64,341 53,315 246,515 192,746
Loss from operations (16,223) (17,503) (75,645) (66,640)
Investment income 372 394 1,485 1,135
Interest income (expense) 74 (85) 72 (359)
Other income (expense), net 56 128 (527) (539)
Loss from operations before income taxes (15,721) (17,066) (74,615) (66,403)
(Provision for) benefit from income taxes 261 68 (222) (162)
Net loss $
(15,460) $
(16,998) (74,837) $
(66,565)
Net loss per share attributable to common stockholders, basic and diluted $
(0.15) $
(0.18) $
(0.76) $
(0.85)
Weighted-average number of shares used in computing net loss per share attributable to common
stockholders, basic and diluted 101,354,229 92,400,382 98,387,366 78,632,448
Other comprehensive income (loss):
Foreign currency translation adjustment $
(97) $
82 $
(75) $
492
Unrealized gain (loss) on marketable securities 114 (172) 280 (320)
Total comprehensive loss $
(15,443) $
(17,088) $
(74,632) $
(66,393)
YEXT, INC.
Consolidated Statements of Cash Flows
(In thousands)
(unaudited)
Fiscal year ended January 31,
2019 2018
---
Operating activities:
Net loss $
(74,837) $
(66,565)
Adjustments to reconcile net loss to net cash provided by
(used in) operating activities:
Depreciation and amortization 6,813 5,123
Provision for bad debts 492 478
Stock-based compensation expense 44,233 22,360
Change in fair value of convertible
preferred stock warrant liability - 491
Deferred income taxes (43) (129)
Amortization of deferred financing costs 130 140
Amortization of (discount) premium on
marketable securities (170) 156
Gain on sale of marketable securities - (1)
Changes in operating assets and liabilities:
Accounts receivable (11,601) (17,036)
Prepaid expenses and other current
assets (6,745) (4,043)
Costs to obtain revenue contracts (16,817) (4,420)
Other long term assets 2 (358)
Accounts payable, accrued expenses and
other current liabilities 17,328 350
Unearned revenue 47,004 31,753
Deferred rent (1,291) (807)
Other long term liabilities 742 99
Net cash provided by (used in) operating
activities 5,240 (32,409)
Investing activities:
Purchases of marketable securities (52,916) (110,644)
Maturities of marketable securities 86,320 20,154
Sales of marketable securities - 6,041
Capital expenditures (5,270) (3,674)
Net cash provided by (used in) investing
activities 28,134 (88,123)
Financing activities:
Proceeds from initial public offering,
net of underwriting discounts and
commissions - 123,527
Payments of deferred offering costs - (4,263)
Proceeds from exercise of stock options 18,880 11,610
Proceeds from exercise of warrants - 79
Repayments on Revolving Line - (5,000)
Payments of deferred financing costs (159) (99)
Proceeds, net from employee stock
purchase plan withholdings 5,663 3,750
Net cash provided by financing
activities 24,384 129,604
Effect of exchange rate changes on cash,
cash equivalents and restricted cash (370) 375
Net increase in cash, cash equivalents
and restricted cash 57,388 9,447
Cash, cash equivalents and restricted
cash at beginning of period 34,367 24,920
Cash, cash equivalents and restricted
cash at end of period $
91,755 $
34,367
YEXT, INC.
Reconciliation of GAAP to Non-GAAP Financial Measures
(in thousands)
(unaudited)
Three months ended January 31, 2019
GAAP Stock-Based Non-GAAP
Compensation
Expense
---
Cost and expenses:
Cost of revenue $
15,641 $
(883) $
14,758
Gross profit $
48,118 $
883 $
49,001
Sales and marketing $
41,006 $
(6,189) $
34,817
Research and development $
9,228 $
(2,464) $
6,764
General and administrative $
14,107 $
(2,754) $
11,353
Loss from operations $
(16,223) $
12,290 $
(3,933)
Net loss $
(15,460) $
12,290 $
(3,170)
Net loss margin (24)
% 19
% (5)
%
Three months ended January 31, 2018
GAAP Stock-Based Non-GAAP
Compensation
Expense
---
Cost and expenses:
Cost of revenue $
12,208 $
(512) $
11,696
Gross profit $
35,812 $
512 $
36,324
Sales and marketing $
35,089 $
(3,644) $
31,445
Research and development $
7,250 $
(1,323) $
5,927
General and administrative $
10,976 $
(1,879) $
9,097
Loss from operations $
(17,503) $
7,358 $
(10,145)
Net loss $
(16,998) $
7,358 $
(9,640)
Net loss margin (35) 15
% (20)
% %
YEXT, INC.
Reconciliation of GAAP to Non-GAAP Financial Measures
(in thousands)
(unaudited)
Fiscal year ended January 31, 2019
GAAP Stock-Based Non-GAAP
Compensation
Expense
---
Cost and expenses:
Cost of revenue $
57,413 $
(2,915) $
54,498
Gross profit $
170,870 $
2,915 $
173,785
Sales and marketing $
158,845 $
(22,519) $
136,326
Research and development $
36,098 $
(8,475) $
27,623
General and administrative $
51,572 $
(10,324) $
41,248
Loss from operations $
(75,645) $
44,233 $
(31,412)
Net loss $
(74,837) $
44,233 $
(30,604)
Net loss margin (33)
% 20
% (13)
%
Fiscal year ended January 31, 2018
GAAP Stock-Based Non-GAAP
Compensation
Expense
---
Cost and expenses:
Cost of revenue $
44,095 $
(1,459) $
42,636
Gross profit $
126,106 $
1,459 $
127,565
Sales and marketing $
126,980 $
(11,121) $
115,859
Research and development $
25,687 $
(3,756) $
21,931
General and administrative $
40,079 $
(6,024) $
34,055
Loss from operations $
(66,640) $
22,360 $
(44,280)
Net loss $
(66,565) $
22,360 $
(44,205)
Net loss margin (39)
% 13
% (26)
%
YEXT, INC.
Reconciliation of GAAP to Non-GAAP Financial Measures
(in thousands, except share and per share data)
(unaudited)
Three months ended January 31,
2019 2018
---
Net loss $
(15,460) $
(16,998)
Stock-based
compensation
expense 12,290 7,358
Non-GAAP net loss $
(3,170) $
(9,640)
Net loss per share
attributable to
common
stockholders, basic
and diluted $
(0.15) $
(0.18)
Stock-based
compensation
expense per share 0.12 0.08
Non-GAAP net loss
per share
attributable to
common
stockholders, basic
and diluted $
(0.03) $
(0.10)
Weighted-average number of
shares used in computing net
loss per share attributable
to common stockholders, basic
and diluted 101,354,229 92,400,382
Fiscal year ended January 31,
2019 2018
---
Net loss $
(74,837) $
(66,565)
Stock-based
compensation
expense 44,233 22,360
Non-GAAP net loss $
(30,604) $
(44,205)
Net loss per share
attributable to
common
stockholders, basic
and diluted $
(0.76) $
(0.85)
Stock-based
compensation
expense per share 0.45 0.28
Non-GAAP unweighted
adjustment - 0.10
Non-GAAP net loss
per share
attributable to
common
stockholders, basic
and diluted $
(0.31) $
(0.47)
Weighted-average
number of shares
used in computing
net loss per share
attributable to
common
stockholders, basic
and diluted 98,387,366 78,632,448
Non-GAAP unweighted
adjustment - 15,344,482
Non-GAAP number of
shares outstanding
in computing non-
GAAP net loss per
share attributable
to common
stockholders, basic
and diluted 98,387,366 93,976,930
Note: the Company's IPO transaction closed on April 19, 2017, at which time the Company's convertible preferred stock converted to
approximately 43.5 million shares and the Company issued an additional 12.1 million shares to investors in that offering. In
order to serve as a better comparison for future periods, the Company calculated non-GAAP net loss per share for the fiscal year
ended January 31, 2018 on a comparative basis, using the shares outstanding as of the end of the period, as if they had been
outstanding for the whole period.
The Company calculated non-GAAP net loss per share for the fiscal year ended January 31, 2019 and the three months ended January
31, 2019 and 2018 using the weighted-average number of shares outstanding for the respective periods.
YEXT, INC.
Cash Flow Data
(in thousands)
(unaudited)
Three months ended January 31,
2019 2018
---
Net cash provided by (used in):
Net loss $
(15,460) $
(16,998)
Adjustments to
net loss for
non-cash items 14,199 8,854
Changes in
operating assets
and liabilities 32,081 6,065
Operating
activities 30,820 (2,079)
Investing
activities 26,951 7,238
Financing
activities 5,552 7,950
Effect of
exchange rate
changes on cash,
cash equivalents
and restricted
cash 95 146
Net increase in
cash, cash
equivalents and
restricted cash 63,418 13,255
Cash, cash
equivalents and
restricted cash
at beginning of
period 28,337 21,112
Cash, cash
equivalents and
restricted cash
at end of period $
91,755 $
34,367
YEXT, INC.
Quarterly Statement of Operations Data
(In thousands, except share and per share data)
(unaudited)
As reported (ASC 606)
Three months ended
Jan. 31, 2019 Oct. 31, 2018 Jul. 31, 2018 Apr. 30, 2018
---
Revenue $
63,759 $
58,613 $
54,923 $
50,988
Cost of revenue 15,641 14,886 14,086 12,800
Gross profit 48,118 43,727 40,837 38,188
Operating expenses:
Sales and marketing 41,006 43,714 38,298 35,827
Research and development 9,228 9,158 9,983 7,729
General and administrative 14,107 13,867 12,060 11,538
Total operating expenses 64,341 66,739 60,341 55,094
Loss from operations (16,223) (23,012) (19,504) (16,906)
Investment income 372 350 376 387
Interest income (expense) 74 74 (9) (67)
Other income (expense), net 56 (194) (219) (170)
Loss from operations before income taxes (15,721) (22,782) (19,356) (16,756)
(Provision for) benefit from income taxes 261 (158) (40) (285)
Net loss (15,460) (22,940) (19,396) (17,041)
Stock-based compensation expense 12,290 12,922 11,028 7,993
Non-GAAP net loss $
(3,170) $
(10,018) $
(8,368) $
(9,048)
Net loss per share attributable to common stockholders, basic and diluted $
(0.15) $
(0.23) $
(0.20) $
(0.18)
Stock-based compensation expense per share $
0.12 $
0.13 $
0.11 $
0.08
Non-GAAP net loss per share attributable to common stockholders, basic and diluted $
(0.03) $
(0.10) $
(0.09) $
(0.10)
Weighted-average number of shares used in computing net loss per share attributable to common
stockholders, basic and diluted 101,354,229 99,628,479 97,511,660 94,942,773
YEXT, INC.
Reconciliation of Impacts from the Adoption of ASC 606
Balance Sheet Data
(In thousands)
(unaudited)
As of January 31, 2019
Without Adoption Impacts from As Reported
(ASC 605) Adoption (ASC 606)
Assets
Accounts receivable, net $
56,222 $
(881) $
55,341
Costs capitalized to obtain
revenue contracts, current 15,082 2,735 17,817
Costs capitalized to obtain
revenue contracts, non current 4,699 13,667 18,366
Liabilities
Accounts payable, accrued
expenses and other current
liabilities 41,508 1,143 42,651
Unearned revenue, current 137,418 (1,874) 135,544
Stockholders' equity
Accumulated other comprehensive
loss (1,442) 14 (1,428)
Accumulated deficit $
(317,347) $
16,238 $
(301,109)
YEXT, INC.
Reconciliation of Impacts from the Adoption of ASC 606
Statement of Operations Data
(In thousands, except share and per share data)
(unaudited)
Fiscal year ended January 31, 2019
Without Adoption Impacts from As Reported
(ASC 605) Adoption (ASC 606)
Revenue $
228,751 $
(468) $
228,283
Cost of revenue 57,413 57,413
Gross profit 171,338 (468) 170,870
Operating expenses:
Sales and marketing 168,372 (9,527) 158,845
Research and development 36,098 36,098
General and administrative 51,572 51,572
Total operating expenses 256,042 (9,527) 246,515
Loss from operations (84,704) 9,059 (75,645)
Investment income 1,485 1,485
Interest income 72 72
Other expense, net (527) (527)
Loss from operations before income taxes (83,674) 9,059 (74,615)
(Provision for) benefit from income taxes (222) (222)
Net loss (83,896) 9,059 (74,837)
Stock-based compensation expense 44,233 44,233
Non-GAAP net loss $
(39,663) $
9,059 $
(30,604)
Net loss per share attributable to common stockholders, basic and diluted $
(0.85) $
0.09 $
(0.76)
Stock-based compensation expense per share 0.45 0.45
Non-GAAP net loss per share attributable to common stockholders, basic and diluted $
(0.40) $
0.09 $
(0.31)
Weighted-average number of shares used in computing net loss per share attributable to common
stockholders, basic and diluted 98,387,366 98,387,366
YEXT, INC.
Reconciliation of Impacts from the Adoption of ASC 606
Quarterly Statement of Operations Data
Three Months Ended January 31, 2019
(In thousands, except share and per share data)
(unaudited)
Three months ended January 31, 2019
Without Adoption Impacts from As Reported
(ASC 605) Adoption (ASC 606)
Revenue $
63,818 $
(59) $
63,759
Cost of revenue 15,641 15,641
Gross profit 48,177 (59) 48,118
Operating expenses:
Sales and marketing 45,503 (4,497) 41,006
Research and development 9,228 9,228
General and administrative 14,107 14,107
Total operating expenses 68,838 (4,497) 64,341
Loss from operations (20,661) 4,438 (16,223)
Investment income 372 372
Interest income 74 74
Other income, net 56 56
Loss from operations before income taxes (20,159) 4,438 (15,721)
(Provision for) benefit from income taxes 261 261
Net loss (19,898) 4,438 (15,460)
Stock-based compensation expense 12,290 12,290
Non-GAAP net loss $
(7,608) $
4,438 $
(3,170)
Net loss per share attributable to common stockholders, basic and diluted $
(0.20) $
0.05 $
(0.15)
Stock-based compensation expense per share 0.12 0.12
Non-GAAP net loss per share attributable to common stockholders, basic and diluted $
(0.08) $
0.05 $
(0.03)
Weighted-average number of shares used in computing net loss per share attributable to common
stockholders, basic and diluted 101,354,229 101,354,229
YEXT, INC.
Reconciliation of Impacts from the Adoption of ASC 606
Quarterly Statement of Operations Data
Three Months Ended October 31, 2018
(In thousands, except share and per share data)
(unaudited)
Three months ended October 31, 2018
Without Adoption Impacts from As Reported
(ASC 605) Adoption (ASC 606)
Revenue $
58,742 $
(129) $
58,613
Cost of revenue 14,886 14,886
Gross profit 43,856 (129) 43,727
Operating expenses:
Sales and marketing 45,669 (1,955) 43,714
Research and development 9,158 9,158
General and administrative 13,867 13,867
Total operating expenses 68,694 (1,955) 66,739
Loss from operations (24,838) 1,826 (23,012)
Investment income 350 350
Interest income 74 74
Other expense, net (194) (194)
Loss from operations before income taxes (24,608) 1,826 (22,782)
(Provision for) benefit from income taxes (158) (158)
Net loss (24,766) 1,826 (22,940)
Stock-based compensation expense 12,922 12,922
Non-GAAP net loss $
(11,844) $
1,826 $
(10,018)
Net loss per share attributable to common stockholders, basic and diluted $
(0.25) $
0.02 $
(0.23)
Stock-based compensation expense per share 0.13 0.13
Non-GAAP net loss per share attributable to common stockholders, basic and diluted $
(0.12) $
0.02 $
(0.10)
Weighted-average number of shares used in computing net loss per share attributable to common
stockholders, basic and diluted 99,628,479 99,628,479
YEXT, INC.
Reconciliation of Impacts from the Adoption of ASC 606
Quarterly Statement of Operations Data
Three Months Ended July 31, 2018
(In thousands, except share and per share data)
(unaudited)
Three months ended July 31, 2018
Without Adoption Impacts from As Reported
(ASC 605) Adoption (ASC 606)
Revenue $
55,096 $
(173) $
54,923
Cost of revenue 14,086 14,086
Gross profit 41,010 (173) 40,837
Operating expenses:
Sales and marketing 40,171 (1,873) 38,298
Research and development 9,983 9,983
General and administrative 12,060 12,060
Total operating expenses 62,214 (1,873) 60,341
Loss from operations (21,204) 1,700 (19,504)
Investment income 376 376
Interest expense (9) (9)
Other expense, net (219) (219)
Loss from operations before income taxes (21,056) 1,700 (19,356)
(Provision for) benefit from income taxes (40) (40)
Net loss (21,096) 1,700 (19,396)
Stock-based compensation expense 11,028 11,028
Non-GAAP net loss $
(10,068) $
1,700 $
(8,368)
Net loss per share attributable to common stockholders, basic and diluted $
(0.22) $
0.02 $
(0.20)
Stock-based compensation expense per share and rounding 0.12 (0.01) 0.11
Non-GAAP net loss per share attributable to common stockholders, basic and diluted $
(0.10) $
0.01 $
(0.09)
Weighted-average number of shares used in computing net loss per share attributable
to common stockholders, basic and diluted 97,511,660 97,511,660
YEXT, INC.
Reconciliation of Impacts from the Adoption of ASC 606
Quarterly Statement of Operations Data
Three Months Ended April 30, 2018
(In thousands, except share and per share data)
(unaudited)
Three months ended April 30, 2018
Without Adoption Impacts from As Reported
(ASC 605) Adoption (ASC 606)
Revenue $
51,095 $
(107) $
50,988
Cost of revenue 12,800 12,800
Gross profit 38,295 (107) 38,188
Operating expenses:
Sales and marketing 37,029 (1,202) 35,827
Research and development 7,729 7,729
General and administrative 11,538 11,538
Total operating expenses 56,296 (1,202) 55,094
Loss from operations (18,001) 1,095 (16,906)
Investment income 387 387
Interest expense (67) (67)
Other expense, net (170) (170)
Loss from operations before income taxes (17,851) 1,095 (16,756)
(Provision for) benefit from income taxes (285) (285)
Net loss (18,136) 1,095 (17,041)
Stock-based compensation expense 7,993 7,993
Non-GAAP net loss $
(10,143) $
1,095 $
(9,048)
Net loss per share attributable to common stockholders, basic and diluted $
(0.19) $
0.01 $
(0.18)
Stock-based compensation expense per share 0.08 0.08
Non-GAAP net loss per share attributable to common stockholders, basic and diluted $
(0.11) $
0.01 $
(0.10)
Weighted-average number of shares used in computing net loss per share attributable to common
stockholders, basic and diluted 94,942,773 94,942,773
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SOURCE Yext, Inc.
