Yext, Inc. (NYSE: YEXT) reported Q3 EPS of ($0.19), $0.01 worse than the analyst estimate of ($0.18). Revenue for the quarter came in at $76.4 million versus the consensus estimate of $76.36 million.

Third Quarter Fiscal 2020 Highlights:

• Revenue of $76.4 million, a 30% increase as compared to the $58.6 million reported in the third quarter fiscal 2019.
• Gross Profit of $56.0 million, a 28% increase as compared to the $43.7 million reported in the third quarter fiscal 2019. Gross margin of 73.3% as compared to 74.6% reported in third quarter fiscal 2019.
• Net Loss and Non-GAAP Net Loss:
  • Net loss of $42.7 million increased 86% as compared to the $22.9 million net loss in third quarter fiscal 2019. The increased loss was driven primarily by higher operating expenses, due to an overall increase in headcount as well as the impact of new lease arrangements, including New York, NY.
  • Non-GAAP net loss of $21.6 million increased 116% as compared to the $10.0 million non-GAAP net loss in the third quarter fiscal 2019. The increase in non-GAAP net loss was primarily attributable to the higher operating expenses as described above.
• Net Loss Per Share and Non-GAAP Net Loss Per Share:
  • Net loss per share of $0.38 in the third quarter of fiscal 2020 compared to a net loss per share of $0.23 in the third quarter of fiscal 2019.
  • Non-GAAP net loss per share of $0.19 in the third quarter of fiscal 2020 compared to a non-GAAP net loss per share of $0.10 in the third quarter of fiscal 2019.
  • Net loss per share and non-GAAP net loss per share were based on 113.5 million weighted-average basic shares outstanding for the third quarter of fiscal 2020 and 99.6 million weighted-average basic shares outstanding for the third quarter of fiscal 2019.
• Balance Sheet: Cash and cash equivalents of $244.8 million as of October 31, 2019. Unearned revenue of $107.5 million as of October 31, 2019, increased $26.3 million from $81.2 million at October 31, 2018.
• Remaining Performance Obligations (\"RPO\"): RPO as of October 31, 2019 was $251.8 million, with $237.5 million expected to be recognized over the next 24 months and the balance to be recognized thereafter. RPO does not include amounts under contracts subject to certain accounting exclusions.
• Cash Flow: Net cash used by operating activities for the third quarter of fiscal 2020 was $31.8 million, as compared to net cash used by operating activities of $22.6 million in the same period of fiscal 2019.

"We successfully launched Yext Answers during the quarter, introducing the next chapter of our mission of putting the truth online. This modern site search platform, built upon our data knowledge graph containing over 259 million facts about our customers, expands the Yext market opportunity from one of businesses with physical locations to any business with a website," said Howard Lerman, Founder and Chief Executive Officer of Yext. "Brands across multiple industries have transformed their websites with Answers during its beta period, including BBVA USA, Three Mobile, and IHA."

"With the launch of Answers and the momentum generated at ONWARD19, Yext is well-positioned to address the increased demand from enterprise and mid-market customers across multiple industries. We continue to invest in our sales team, customer support and the build-out of our new Global Headquarters in New York to support Yext's long-term, future growth."

GUIDANCE:

Yext, Inc. sees Q4 2020 EPS of ($0.15)-($0.13), versus the consensus of ($0.08). Yext, Inc. sees Q4 2020 revenue of $79-81 million, versus the consensus of $83.87 million.

Yext, Inc. sees FY2020 EPS of ($0.51)-($0.49), versus the consensus of ($0.42). Yext, Inc. sees FY2020 revenue of $296-298.5 million, versus the consensus of $301.05 million.

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