Summary
Yext finished fiscal 2024 with a fourth-quarter revenue decline and a much stronger bottom line. Revenue was $101.1 million for the quarter, down 0.8% from the prior-year quarter. Gross profit was $79.4 million, up 5.4%. Gross margin reached 78.6%, up 4.6 percentage points. Operating income was $1.0 million, compared with an operating loss of $7.7 million in the prior-year quarter. Operating margin was 1.0%, up 8.6 percentage points. Net income was $1.7 million, compared with a net loss of $7.8 million. For the full fiscal year, revenue was $404.3 million, up 0.9%. Gross profit was $316.9 million, up 6.7%, and gross margin was 78.4%, up 4.3 percentage points. The full-year operating loss was $6.2 million, improved from a loss of $64.8 million. The full-year net loss was $2.6 million, improved from a loss of $65.9 million. Diluted EPS for the full year was -$0.02, compared with -$0.53. Full-year operating margin was -1.5%, up 14.6 percentage points.
Cash generation was uneven. Operating cash flow was $28.0 million for the quarter, down 22.0% from the prior-year quarter, but full-year operating cash flow was $46.2 million, up 158.5%. Capital expenditures were $0.4 million for the quarter, down 48.5%, and $2.7 million for the full year, down 56.0%. Deferred revenue was $212.2 million, down 5.1% from the prior-year quarter. Remaining performance obligations were $465.1 million, up 3.9%. The balance sheet metrics show a business that is collecting cash but not expanding its deferred revenue base.
Operational metrics reveal pressure in the customer base. Total annual recurring revenue was $387.4 million as of January 31, 2024, down 3% from $400.4 million a year earlier. Direct customer ARR was $315.6 million, down 3%, and third-party reseller ARR was $71.8 million, down 2%. The company said ARR at January 31, 2024 included a $10.8 million decrease from the attrition of a large customer during the quarter. Dollar-based net retention for total customers was 92%, compared with 96% a year earlier. Direct customer retention was 91%, compared with 97%. Third-party reseller retention was 95%, compared with 92%. Customer count was approximately 3,000 as of January 31, 2024.
Profitability benefited from cost reductions. Non-GAAP net income was $42.3 million for fiscal 2024, compared with a non-GAAP net loss of $2.9 million for fiscal 2023. Adjusted EBITDA was $54.6 million, compared with $15.8 million. The company also repurchased 2,980,641 shares during fiscal 2024 for $22.9 million, and $49.7 million remained available under its share repurchase program as of January 31, 2024.
Risks center on macroeconomic uncertainty and customer attrition. Management cites foreign currency fluctuations, interest rates, inflation, recession risks, and public health emergencies as factors that could hurt results. Customers may reduce, suspend, or delay technology spending, seek contract concessions, shorten contract durations, or not renew. The large customer attrition is expected to become more apparent in quarterly results for fiscal 2025. Near-term revenue is relatively predictable because of the subscription model, but changes in contracting activity may not show up until future periods.
Forecast
No forward guidance in this quarter's filings.
Reported figures
GAAP, from SEC filings| Metric | Q4 FY2024 | Q3 FY2024 | QoQ | Q4 FY2023 | YoY |
|---|---|---|---|---|---|
| Revenue | $101.1M | $101.2M | -0.1% | $101.9M | -0.8% |
| Gross profit | $79.4M | $79.1M | +0.4% | $75.4M | +5.4% |
| Gross margin | 78.6% | 78.2% | +0.4 pp | 74.0% | +4.6 pp |
| Research & development | $18.1M | $18.3M | -1.0% | $17.1M | +5.7% |
| Sales & marketing | $41.9M | $45.4M | -7.6% | $47.2M | -11.3% |
| General & administrative | $18.4M | $17.2M | +6.8% | $18.7M | -1.6% |
| Total operating expenses | $78.4M | $80.9M | -3.1% | $83.1M | -5.6% |
| Operating income (loss) | $1.0M | -$1.8M | +158.6% | -$7.7M | +113.6% |
| Operating margin | 1.0% | -1.8% | +2.8 pp | -7.5% | +8.6 pp |
| Net income (loss) | $1.7M | -$468.0K | +460.5% | -$7.8M | +121.6% |
| Net margin | 1.7% | -0.5% | +2.1 pp | -7.7% | +9.3 pp |
| Diluted EPS | $0.01 | $0.00 | +$0.01 | -$0.06 | +$0.07 |
| Net retention rate | 92.0% | 97.0% | -5.0 pp | 95.0% | -3.0 pp |
Risks
The filing states annual revenue growth slowed to 1% for FY2024, after 3% for FY2023 and 10% for FY2022, and reported FY2024 Q4 revenue was down 0.8% versus the prior-year quarter. The company may not achieve revenue growth in future periods or growth rates may slow further or contract.
The top five customers accounted for approximately 8% of FY2024 revenue. During the three months ended January 31, 2024, one top five customer attrited, reducing Direct ARR by $10.8 million; Direct ARR declined 3% and Total ARR declined 3% as of January 31, 2024. MD&A expects the absence of revenue from this customer to become more apparent in FY2025 quarterly results.
Dollar-based net retention rate for Direct Customers decreased to 91% as of January 31, 2024 from 97% a year earlier, and Total Customers decreased to 92% from 96%. The decline reflects customer attrition and contraction, and lower retention could reduce future revenue.
Third-Party Reseller revenue decreased 7% in FY2024 to $77.2 million, and Third-Party Reseller ARR decreased 2% as of January 31, 2024. The filing states reseller customers comprise a significant portion of revenue and that the company does not control their efforts.
MD&A states that if macroeconomic uncertainty continues or increases, customers may reduce, suspend, or delay technology spending, request contract renegotiations such as extended billing and payment terms, shorten contract duration, or elect not to renew subscriptions.
The filing cites significant leadership changes, including CEO and CFO resignations in March 2022, CRO changes, and the President and COO resigning in September 2023. A reduction in force of approximately 8% of overall headcount took effect in the three months ended April 30, 2023, and MD&A attributes lower operating expenses to lower headcount.
The company is incorporating generative AI into some products, which the filing says may present compliance and reputational risks. The EU AI Act draft expected to be enacted in early 2024 could categorize AI systems as high or limited risk and impose penalties including fines of the greater of EUR 35 million or 7% of worldwide annual turnover for certain violations.
The company recently began offering capacity-based pricing for its Pages and Search products. The filing states there is no assurance that this new pricing and distribution model will be successful, which could adversely affect financial results.
The company plans to transition a portion of its professional services business to various third-party service providers. The filing states this has and may continue to negatively impact revenue growth rates and that the company does not control the quality of services provided by these third parties.
The platform is sold to enterprises with complex operating environments, which can lead to long and unpredictable sales cycles. Delays or failures to complete sales could cause financial results to vary from period to period.
SaaS KPIs
All quarters →Customer Count
Adjusted EBITDA
Dollar-Based Net Retention Rate (Total Customers)
Total Annual Recurring Revenue
Summary, forecast, risks and KPIs are extracted from Yext, Inc.'s SEC filings for Q4 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.