Summary
Yext reported third quarter fiscal 2024 revenue of $101.16 million, up 1.9% from $99.28 million in the prior-year quarter. Gross profit rose 7.4% to $79.10 million from $73.62 million, and gross margin expanded to 78.2% from 74.2%. The company still posted a GAAP operating loss of $1.78 million, but that loss narrowed sharply from $12.13 million a year earlier. Operating margin improved to -1.8% from -12.2%. Net loss narrowed to $0.47 million from $12.31 million, and diluted EPS swung to $0.00 from -$0.10. On a non-GAAP basis, net income was $11.3 million, compared with $2.5 million, and Adjusted EBITDA was $13.5 million, compared with $7.1 million. The gap between the GAAP and non-GAAP results is largely stock-based compensation, which management excludes from its profitability measures.
Total annual recurring revenue was $396.8 million, up 2% from $389.5 million. The channel split tells a more uneven story. Direct customer ARR rose 3% to $326.6 million, while third-party reseller ARR fell 3% to $70.2 million. Remaining performance obligations were $423.30 million, up 15.8% from $365.40 million, a sign that contract duration and bookings mix differ from what the ARR trend alone implies. Customer count was approximately 2,980. Dollar-based net retention came in at 96% for total customers, 97% for direct customers and 95% for third-party resellers, which points to modest contraction and churn rather than expansion. Deferred revenue, current portion, was $144.45 million, down 5.8% from $153.27 million.
Cash flow and spending discipline improved. Yext used $1.57 million of cash in operating activities during the quarter, compared with $10.79 million used in the prior-year quarter. For the nine months, operating cash flow was $18.14 million, compared with $18.09 million used in the prior-year period. Capital expenditures were $0.75 million for the quarter, down from $1.52 million. The company has repurchased 16,824,920 shares for $100.3 million since the repurchase program began, and $49.7 million remained available as of October 31, 2023. Management also trimmed cost of revenue, sales and marketing, and general and administrative expense, mostly through lower headcount, while research and development spending edged up.
Guidance for the fourth quarter of fiscal 2024 calls for Adjusted EBITDA of $12.0 million to $13.0 million and non-GAAP net income per share of $0.07 to $0.08, assuming 124.4 million weighted-average basic shares. For the full fiscal year 2024, management projects Adjusted EBITDA of $51.7 million to $52.7 million and non-GAAP net income per share of $0.31 to $0.32, assuming 124.1 million weighted-average basic shares. The company did not reconcile these forward-looking non-GAAP measures to their GAAP equivalents, citing uncertainty around stock-based compensation and income taxes. The outlook keeps the emphasis on profitability rather than top-line acceleration.
Risks remain centered on the macro backdrop and retention. Management points to weak or changing global economic conditions, higher inflation, higher interest rates and foreign currency volatility. Customers may reduce, suspend or delay technology spending, ask for concessions such as extended billing and payment terms, shorten contract lengths, or decline to renew. Attrition already weighed on third-party reseller ARR, and dollar-based net retention below 100% shows the installed base is contracting slightly. Competition is intense in a fast-changing market, and the business depends on renewing and expanding subscriptions with existing enterprise customers. Yext also carries a $50.0 million revolving credit facility with financial covenants, though it reported compliance as of October 31, 2023.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q3 FY2024 | Q2 FY2024 | QoQ | Q3 FY2023 | YoY |
|---|---|---|---|---|---|
| Revenue | $101.2M | $102.6M | -1.4% | $99.3M | +1.9% |
| Gross profit | $79.1M | $80.2M | -1.4% | $73.6M | +7.4% |
| Gross margin | 78.2% | 78.2% | +0.0 pp | 74.2% | +4.0 pp |
| Research & development | $18.3M | $18.9M | -3.2% | $17.6M | +3.6% |
| Sales & marketing | $45.4M | $47.6M | -4.7% | $49.4M | -8.1% |
| General & administrative | $17.2M | $18.0M | -4.0% | $18.7M | -8.0% |
| Total operating expenses | $80.9M | $84.4M | -4.2% | $85.7M | -5.7% |
| Operating income (loss) | -$1.8M | -$4.2M | +57.9% | -$12.1M | +85.3% |
| Operating margin | -1.8% | -4.1% | +2.4 pp | -12.2% | +10.5 pp |
| Net income (loss) | -$468.0K | -$3.4M | +86.4% | -$12.3M | +96.2% |
| Net margin | -0.5% | -3.4% | +2.9 pp | -12.4% | +11.9 pp |
| Diluted EPS | $0.00 | -$0.03 | +$0.03 | -$0.10 | +$0.10 |
| Net retention rate | 97.0% | 98.0% | -1.0 pp | — | — |
Risks
Revenue growth has slowed in recent periods; total revenue rose 1.9% in the quarter and 1.4% year to date, and the Risk Factors section identifies slowing growth as a core risk that could make it difficult to achieve or maintain profitability.
MD&A says rising inflation and foreign exchange fluctuations have had, and may continue to have, an adverse impact; if macroeconomic uncertainty continues, customers may reduce, suspend or delay technology spending, seek contract concessions, shorten contract durations, or not renew.
A significant portion of revenue depends on third-party resellers whose efforts Yext does not control; third-party reseller ARR declined 3% year over year, and dollar-based net retention for third-party reseller customers was 95% for the nine months ended October 31, 2023.
Revenue growth is substantially reliant on the sales force, and the filing says a recent net decrease in sales personnel could impede growth if recruiting, training and productivity do not recover; MD&A attributes lower sales and marketing expense to lower headcount.
Yext has experienced significant leadership turnover, including the September 2023 resignation of President and COO Marc Ferrentino and earlier CEO, CFO and CRO changes; a January 2023 reduction in force cut about 8% of headcount, and the filing warns related disruption may continue to have near-term effects.
The Answers platform uses AI technology, and the filing says AI is subject to a complex and evolving regulatory landscape across jurisdictions; compliance may be costly or require changes to products and business practices.
The credit facility was provided by Silicon Valley Bank and later assumed by First Citizens after SVB's closure; Yext says further bank failures could limit access to its revolver or expose cash balances to loss.
Growth depends in part on strategic relationships with over 200 Publisher Network providers, including Google; loss or impairment of a key relationship could reduce customer subscriptions and harm competitive position.
Yext recently began offering capacity-based pricing for Pages and Search, and the filing warns there is no assurance the new pricing and distribution model will succeed and that large customers may demand greater discounts.
Enterprise sales cycles are long and unpredictable, and the filing says they could increase under uncertain or volatile macroeconomic conditions; delayed or complex sales could cause operating results to vary period to period.
If customers do not renew or reduce subscriptions, revenue will decline; total dollar-based net retention was 96% for the nine months ended October 31, 2023, and the filing says customers may seek fewer features, renegotiated rates or shorter contracts.
SaaS KPIs
All quarters →Customer Count
Summary, forecast, risks and KPIs are extracted from Yext, Inc.'s SEC filings for Q3 FY2024 (10-Q / 10-K and the 8-K earnings release); GAAP figures in the summary are checked against the reported XBRL data. They can contain errors; the filings are authoritative. Processed Oct 6, 2026.