yext-20220430

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended April 30, 2022


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File Number: 001-38056

YEXT, INC.

(Exact name of registrant as specified in its charter)


Delaware						20-8059722
(State or other jurisdiction of incorporation or organization)						(I.R.S. Employer Identification No.)

61 Ninth Avenue

New York, NY 10011

(Address of principal executive offices, including zip code)

(212) 994-3900

(Registrant's telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common Stock, par value $0.001 per share

YEXT

New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller

reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer

☒

Accelerated filer

☐

Non-accelerated filer

☐

Smaller reporting company

☐

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Securities Exchange Act). Yes ☐ No ☒

As of May 25, 2022, the registrant had 123,588,182 shares of common stock, $0.001 par value per share outstanding.

TABLE OF CONTENTS


			PAGE
PART I.		FINANCIAL INFORMATION
	Item 1	Financial Statements	5
		Condensed Consolidated Balance Sheets (U naudited)	5
		Condensed Consolidated Statements of Operations and Comprehensive Loss (U naudited)	6
		Condensed Consolidated Statements of Stockholders' Equity (U naudited)	7
		Condensed Consolidated Statements of Cash Flows (U naudited)	8
		Notes to Condensed Consolidated Financial Statements	9
	Item 2	Management’s Discussion and Analysis of Financial Condition and Results of Operations	19
	Item 3	Quantitative and Qualitative Disclosures About Market Risk	26
	Item 4	Controls and Procedures	27

PART II.		OTHER INFORMATION
	Item 1	Legal Proceedings	28
	Item 1A	Risk Factors	28
	Item 2	Unregistered Sales of Equity Securities and Use of Proceeds	53
	Item 3	Defaults Upon Senior Securities	53
	Item 4	Mine Safety Disclosures	53
	Item 5	Other Information	53
	Item 6	Exhibits	54

SIGNATURES

SPECIAL NOTE REGARDING FORWARD LOOKING STATEMENTS

This Quarterly Report on Form 10-Q contains, and our officers and representatives may from time to time make, forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), which statements involve substantial risks and uncertainties. All statements contained in this Quarterly Report on Form 10-Q other than statements of historical fact, including statements regarding our future results of operations and financial position, our business strategy and plans, and our objectives for future operations, are forward-looking statements. The words “believe,” “may,” “will,” “potentially,” “estimate,” “continue,” “anticipate,” “plan,” “intend,” “could,” “would,” “expect” and similar expressions that convey uncertainty of future events or outcomes are intended to identify forward-looking statements. Forward-looking statements included in this Quarterly Report on Form 10-Q include, but are not limited to, statements regarding:

•our future revenue, cost of revenue, operating expenses and cash flows;

•anticipated trends, growth rates and challenges in our business and in the markets in which we operate;

•the effect of the coronavirus (“COVID-19”) pandemic and its variants, including the effect of governmental restrictions and regulations as well as precautionary measures undertaken by businesses, on our business, operations, and financial results and the business and operations of our customers and potential customers;

•our beliefs, objectives and strategies for future operations, including plans to invest in international expansion, research and development, and our sales and marketing teams, and the impact of such investments on our operations;

•changes in management and anticipated effects thereof;

•our ability to increase sales of our products;

•maintaining and expanding our end-customer base and our relationships with our Knowledge Network; and

•sufficiency of cash to meet cash needs for at least the next 12 months.

We have based these forward-looking statements largely on our current expectations and projections about future events and trends that we believe may affect our financial condition, results of operations, business strategy, short-term and long-term business operations and objectives and financial needs. These forward-looking statements are subject to a number of risks, uncertainties and assumptions, including those described in Part II, Item 1A. “Risk Factors” in this Quarterly Report on Form 10-Q. Moreover, we operate in a very competitive and rapidly changing environment. New risks emerge from time to time. It is not possible for us to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. In light of these risks, uncertainties and assumptions, the forward-looking events and trends discussed in this Quarterly Report on Form 10-Q may not occur and actual results could differ materially and adversely from those anticipated or implied in the forward-looking statements.

You should not rely upon forward-looking statements as predictions of future events. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee that the future results, performance, or events and circumstances reflected in the forward-looking statements will be achieved or occur. We undertake no obligation to revise or publicly release the results of any revision to these forward-looking statements, whether written or oral, except as required by law.

In this Quarterly Report on Form 10-Q, the words “we,” “us,” “our” and “Yext” refer to Yext, Inc. and its wholly owned subsidiaries, unless the context requires otherwise.

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

YEXT, INC.

Condensed Consolidated Balance Sheets

(In thousands, except share and per share data)

(Unaudited)


	April 30, 2022		January 31, 2022
Assets
Current assets:
Cash and cash equivalents	$	247,769	$	261,210
Accounts receivable, net of allowances of $1,187 and $2,042, respectively	58,012		101,607
Prepaid expenses and other current assets	19,035		13,538
Costs to obtain revenue contracts, current	32,015		33,998
Total current assets	356,831		410,353

Property and equipment, net	71,555		74,604
Operating lease right-of-use assets	93,554		97,124
Costs to obtain revenue contracts, non-current	23,852		27,286
Goodwill	4,401		4,572
Intangible assets, net	211		217
Other long term assets	5,030		6,179
Total assets	$	555,434	$	620,335
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable, accrued expenses and other current liabilities	$	54,449	$	48,432
Unearned revenue, current	196,379		223,427
Operating lease liabilities, current	18,236		18,845
Total current liabilities	269,064		290,704
Operating lease liabilities, non-current	109,959		113,776
Other long term liabilities	3,491		3,985
Total liabilities	382,514		408,465
Commitments and contingencies (Note 13)
Stockholders’ equity:
Preferred stock, $0.001 par value per share; 50,000,000 shares authorized at April 30, 2022 and January 31, 2022; zero shares issued and outstanding at April 30, 2022 and January 31, 2022	—		—
Common stock, $0.001 par value per share; 500,000,000 shares authorized at April 30, 2022 and January 31, 2022; 139,407,429 and 137,662,320 shares issued at April 30, 2022 and January 31, 2022, respectively; 128,063,911 and 131,156,986 shares outstanding at April 30, 2022 and January 31, 2022, respectively	139		137
Additional paid-in capital	855,284		834,429
Accumulated other comprehensive loss	(3,601)		(187)
Accumulated deficit	(636,443)		(610,604)
Treasury stock, at cost	(42,459)		(11,905)
Total stockholders’ equity	172,920		211,870
Total liabilities and stockholders’ equity	$	555,434	$	620,335

See the accompanying notes to the condensed consolidated financial statements.

YEXT, INC.

Condensed Consolidated Statements of Operations and Comprehensive Loss

(In thousands, except share and per share data)

(Unaudited)


	Three months ended April 30,
		2022		2021
Revenue		$	98,802	$	91,992
Cost of revenue		24,728		21,854
Gross profit		74,074		70,138
Operating expenses:
Sales and marketing		60,779		55,166
Research and development		17,302		13,857
General and administrative		21,495		18,347
Total operating expenses		99,576		87,370
Loss from operations		(25,502)		(17,232)
Interest income		25		6
Interest expense		(143)		(132)
Other expense, net		129		(86)
Loss from operations before income taxes		(25,491)		(17,444)
(Provision for) benefit from income taxes		(348)		(187)
Net loss		$	(25,839)	$	(17,631)

Net loss per share attributable to common stockholders, basic and diluted		$	(0.20)	$	(0.14)
Weighted-average number of shares used in computing net loss per share attributable to common stockholders, basic and diluted		131,144,055		125,372,839

Other comprehensive (loss) income:
Foreign currency translation adjustment		$	(3,414)	$	355

Total comprehensive loss		$	(29,253)	$	(17,276)

See the accompanying notes to the condensed consolidated financial statements.

YEXT, INC.

Condensed Consolidated Statements of Stockholders' Equity

(In thousands)

(Unaudited)


						Accumulated
				Additional		Other						Total
	Common Stock			Paid-In		Comprehensive		Accumulated		Treasury		Stockholders’
	Shares	Amount		Capital		(Loss) Income		Deficit		Stock		Equity
Balance, January 31, 2021	123,989	$	130	$	733,933	$	2,422	$	(517,345)	$	(11,905)	$	207,235
Exercise of stock options	2,220	2		19,195		—		—		—		19,197
Vested restricted stock units converted to common shares	4,402	4		(4)		—		—		—		—
Issuance of restricted stock	15	—		—		—		—		—		—
Issuance of common stock under employee stock purchase plan	531	1		6,484		—		—		—		6,485
Stock-based compensation	—	—		74,821		—		—		—		74,821

SEC Form 10-Q filed by Yext Inc.