Yext, Inc. Announces Fourth Quarter and Full Year Fiscal 2019 Results

Mittwoch, 06.03.2019 22:15 von PR Newswire

PR Newswire

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.

Yext logo. (PRNewsFoto/Yext) (PRNewsFoto/Yext)

"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 facts1 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™ 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,
2019


January 31,
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
January 31,


Fiscal year ended
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
Compensation
Expense


Non-GAAP

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
Compensation
Expense


Non-GAAP

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
Compensation
Expense


Non-GAAP

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
Compensation
Expense


Non-GAAP

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
(ASC 605)


Impacts from
Adoption


As Reported
(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
(ASC 605)


Impacts from
Adoption


As Reported
(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
(ASC 605)


Impacts from
Adoption


As Reported
(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
(ASC 605)


Impacts from
Adoption


As Reported
(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
(ASC 605)


Impacts from
Adoption


As Reported
(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
(ASC 605)


Impacts from
Adoption


As Reported
(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.