Yext Inc provides a knowledge engine platform that lets businesses manage their digital knowledge in the cloud and sync it to approximately 200 services including Apple Maps, Bing, Cortana, Facebook, Google, Google Maps, Instagram, Siri, and Yelp. The company derives the majority of its revenues from subscription services, with a significant portion coming from North America.
Performance Overview
Yext Inc (YEXT, Financial) reported revenue of $96 million for Q1 FY2025, slightly below the analyst estimate of $96.33 million and representing a 3% decrease compared to $99.5 million in the same quarter last year. The company’s non-GAAP earnings per share (EPS) came in at $0.05, surpassing the analyst estimate of -$0.03.
Financial Achievements and Challenges
Despite the revenue decline, Yext Inc (YEXT, Financial) achieved an Adjusted EBITDA of $9.6 million, although this was lower than the $14.4 million reported in Q1 FY2024. The company generated nearly $40 million in cash flow from operations, highlighting its strong cash management capabilities.
However, the company faced challenges, including a net loss of $3.8 million compared to a net loss of $0.4 million in the same period last year. Operating expenses increased slightly to $79.9 million, or 83% of revenue, up from $79.3 million, or 80% of revenue, in Q1 FY2024.
Income Statement Highlights
| Metric | Q1 FY2025 | Q1 FY2024 |
|---|---|---|
| Revenue | $96 million | $99.5 million |
| Gross Profit | $74.4 million | $78.1 million |
| Net Loss | $3.8 million | $0.4 million |
| Adjusted EBITDA | $9.6 million | $14.4 million |
Balance Sheet and Cash Flow
Yext Inc (YEXT, Financial) reported cash and cash equivalents of $246.1 million as of April 30, 2024, up from $216.9 million a year earlier. The company’s total assets stood at $481.7 million, while total liabilities were $326.1 million, resulting in a stockholders' equity of $155.7 million.
Operational Highlights and Strategic Initiatives
Yext Inc (YEXT, Financial) announced its intention to acquire Hearsay Systems, a leading digital client engagement platform for financial services. This acquisition is expected to expand Yext’s market opportunity and enhance its product offerings.
"We believe this acquisition will enable us to move even faster," stated the company in its shareholder report.
Additionally, Yext Inc (YEXT, Financial) implemented strategic actions to enhance operating efficiency, including a restructuring that impacted approximately 12% of its full-time employees.
Outlook
For Q2 FY2025, Yext Inc (YEXT, Financial) projects revenue in the range of $98.0 to $98.4 million and Adjusted EBITDA between $8.0 million and $8.5 million. For the full fiscal year 2025, the company expects revenue between $394.0 million and $396.0 million and Adjusted EBITDA in the range of $65.0 million to $67.0 million.
For more detailed information, readers are encouraged to review the full 8-K filing.
Explore the complete 8-K earnings release (here) from Yext Inc for further details.
