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Yext Financial Statements S1A

Warning: I am not a financial analyst, but I play one on this blog

Yext* has updated its S-1 filing to include more detail on its revenue and other aspects of its business in the run-up to its pending IPO.  Since we’re all interested, I figured I’d provide some summary info. Some of the key details from Yext’s Consolidated Statement of Operations, Balance Sheet and other docs:

  1. Yext’s Revenues for the fiscal year ending January 2017 were $124,261,000, a 38% increase from the previous year
  2. Revenues for the quarter ending January 2017 were $35,671,000, an 18% increase from the previous quarter and a 46% increase from the same quarter a year earlier
  3. No single customer accounted for more than 10% of Yext’s revenue for fiscal year 2017
  4. Yext’s Cost of Revenues for 2016-17 was $36,950,000, a 19% increase from the previous year
  5. Cost of Revenues for the quarter ending January 2017 was $9,724,000, a 4% increase from the previous quarter and a 10% increase from the same quarter a year earlier
  6. Yext’s Sales & Marketing expenses for 2016-17 were $81,529,000, a 64% increase from the previous year
  7. Sales & Marketing expenses for the quarter ending January 2017 were $26,161,000, a 28% increase from the previous quarter and an 81% increase from the same quarter a year earlier
  8. Yext’s Net Loss for 2016-17 was $43,150,000, a 63% increase from the previous year
  9. Net Loss for the quarter ending January 2017 was $14,573,000, a 43% increase from the previous quarter and a 76% increase from the same quarter a year earlier
  10. About $10MM of the 2016-17 expenses were in the form of stock-based compensation
  11. Yext had $24,420,000 in cash on hand at the end of January 2017
  12. About 11% of 2016-17 revenues came from new customers
  13. Enterprise and mid-size business and reseller customers accounted for about 86% of 2016-17 revenue ($106.6MM)
  14. Yext has 106 sales people and over 3,500 resellers
  15. Gross margin improved from 65% to 70% as revenue growth outpaced cost of revenues growth
  16.  LocationWorld, Yext’s new conference, cost $1.6MM

There are some other nuggets in there that I’ll leave to the FAKE FINANCIAL NEWS media. Some initial thoughts on the revised S-1:

  • Revenue growth accelerated in the last quarter
  • Yext appears to have become less reliant on Dex Media, its biggest customer in 2015-16, as a source of revenue over the past year
  • Sales & Marketing expenses are still growing fast. This is likely a combination of increased sales headcount as Yext expands globally and the costs associated with LocationWorld at the end of 2016
  • 89% of 2016-17 revenues came from existing customers. Either Yext has very low churn or it has figured out how to increase the amount of revenue from those customers that stick around
  • It’s unclear from the filing (or I just got tired of looking for it) what percent of revenue comes from resellers. I suspect this is a huge growth area for Yext as resellers are the key to SMBs
  • Ok, enough playing financial analyst. Back to work. Or check out this interesting post on Yext’s IPO by Manish Patel, CEO of Brandify: Yext IPO: The New Local Reality

*Disclosure: Yext is a Local SEO Guide client, but we have no confidential/inside information about its IPO

 

 


 
 

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