Yext, Inc. Q4 FY2024 earnings call

• Progress in fiscal 2024 despite difficult operating environment, with focus on profitability, sales productivity, and efficiency. • Shifted focus to core product offerings, reoriented roadmap around customer priorities including Generative AI features and social management. • Conservative view on market environment and Generative AI uptake, but positive on Generative AI's future for enterprise efficiency. • Acknowledged challenges of the past two years and pride in the team's resilience in reshaping the operating profile and recommitting to customers.

No specific detailed financial performance for product segments provided in the transcript, so no absolute terms or revenue contribution % stated.

• Adjusted EBITDA expenses are expected to be down about $10 million year-over-year. • Adding sales capacity in a measured way, with investment in direct revenue generating roles to start showing contribution in the second half of the year. • Impact of a large customer churn (an $11M customer whose contract ended in December) with full three months of impact in Q1, but anticipation of reacceleration of ARR growth to high single digits by the end of fiscal 2025.

• Risks related to economic conditions, industry evolution, product development, management performance. • Impact of a large customer churn, which will affect metrics like revenue, ARR, and retention metrics.

Q: On the product roadmap, where are investments focused and what's the timeline for new capabilities like social media management?

A: Focus on core products like listings, pages, etc., with social media management being an area customers have requested more of, expecting more innovation in the second half of the year.

Q: What's being seen in sales productivity and when to expect investment in sales capacity?

A: At highest direct sales productivity in 4 years, will add sales capacity in a measured way in first half, with contribution expected in second half.

Q: Drivers of lead volume and pipeline creation?

A: Structured demand generation machine and better matching of campaigns to customer interests today, shifting from future state messaging to value-based messaging around core platform capabilities.

Q: Guidance on adjusted EBITDA and drivers?

A: Adjusted EBITDA expenses down $10M YOY, with investment in sales capacity baked into outlook, and consideration of seasonal spend and marketing campaign impacts.

Q: Customer budgets, upsells, and mid-tier vs enterprise?

A: Similar dynamics across customer groups, focusing on higher end of mid-market and enterprise, with reseller channel helping access mid-market.

Q: Impact of large customer churn on fiscal 2025?

A: $11M customer's contract ended in December, impacting Q4 revenue and full Q1, with impact on metrics like ARR and retention, but efforts to share ex-churn effects.