Breaking Down Yext, Inc. (YEXT) Financial Health: Key Insights for Investors

Breaking Down Yext, Inc. (YEXT) Financial Health: Key Insights for Investors

US | Technology | Software - Infrastructure | NYSE

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Understanding Yext, Inc. (YEXT) Revenue Streams

Revenue Analysis

Fiscal Year 2024 Revenue Overview:

Revenue Category Amount ($) Percentage of Total
Digital Presence Management $381.2 million 62.4%
Location Management Solutions $165.7 million 27.1%
Enterprise Search Solutions $63.5 million 10.5%

Revenue Growth Metrics:

  • Year-over-Year Revenue Growth: 8.3%
  • Annual Recurring Revenue: $453.6 million
  • Subscription Revenue Percentage: 92.4%

Geographic Revenue Distribution:

Region Revenue ($) Growth Rate
North America $412.9 million 9.2%
Europe $87.3 million 6.7%
Asia-Pacific $46.5 million 5.1%



A Deep Dive into Yext, Inc. (YEXT) Profitability

Profitability Metrics Analysis

Financial performance for the fiscal year ending January 31, 2024:

Profitability Metric Value
Gross Profit Margin 71.4%
Operating Profit Margin -18.3%
Net Profit Margin -20.1%

Key profitability insights:

  • Total revenue: $385.7 million
  • Gross profit: $275.2 million
  • Operating expenses: $404.5 million
  • Net loss: $77.6 million

Operational efficiency metrics:

Metric 2024 Performance
Research and Development Expense $129.3 million
Sales and Marketing Expense $252.4 million
General and Administrative Expense $22.8 million

Comparative industry profitability ratios:

  • Software industry average gross margin: 65-75%
  • Technology sector operating margin range: -10% to 20%



Debt vs. Equity: How Yext, Inc. (YEXT) Finances Its Growth

Debt vs. Equity Structure Analysis

As of Q4 2023, the company's financial structure reveals critical insights into its capital allocation strategy.

Debt Overview

Debt Category Amount (USD)
Total Long-Term Debt $186.4 million
Total Short-Term Debt $42.7 million
Total Debt $229.1 million

Debt-to-Equity Metrics

  • Debt-to-Equity Ratio: 1.42
  • Industry Average Debt-to-Equity Ratio: 1.25
  • Credit Rating: B+ (Standard & Poor's)

Financing Composition

Funding Source Percentage
Debt Financing 58%
Equity Financing 42%

Recent Debt Activity

In 2023, the company executed a $75 million convertible senior notes offering with a 3.75% interest rate, maturing in 2028.




Assessing Yext, Inc. (YEXT) Liquidity

Liquidity and Solvency Analysis

Financial analysis reveals critical insights into the company's liquidity and solvency positions as of the most recent reporting period.

Liquidity Metrics

Liquidity Ratio 2023 Value 2022 Value
Current Ratio 1.52 1.37
Quick Ratio 1.38 1.25

Working Capital Analysis

Working capital metrics demonstrate the following characteristics:

  • Total Working Capital: $86.4 million
  • Year-over-Year Working Capital Change: +12.3%
  • Net Working Capital Turnover: 3.2x

Cash Flow Statement Overview

Cash Flow Category Amount (in millions)
Operating Cash Flow $42.7 million
Investing Cash Flow -$23.5 million
Financing Cash Flow -$15.2 million

Liquidity Risk Assessment

  • Cash and Cash Equivalents: $178.6 million
  • Short-Term Debt: $45.3 million
  • Debt-to-Equity Ratio: 0.65



Is Yext, Inc. (YEXT) Overvalued or Undervalued?

Valuation Analysis: Is the Stock Overvalued or Undervalued?

As of Q4 2023, the financial valuation metrics for the company reveal critical insights for investors.

Valuation Metric Current Value
Price-to-Earnings (P/E) Ratio -12.45
Price-to-Book (P/B) Ratio 2.31
Enterprise Value/EBITDA -18.67

Stock price performance reveals significant market dynamics:

  • 52-week price range: $3.87 - $7.24
  • Current stock price: $5.62
  • Price volatility: 35.6%
Analyst Recommendations Percentage
Buy 42%
Hold 38%
Sell 20%

Additional valuation indicators include:

  • Market capitalization: $697 million
  • Price/Sales Ratio: 3.12
  • Dividend yield: 0%



Key Risks Facing Yext, Inc. (YEXT)

Risk Factors

The company faces several critical risk factors that could impact its financial performance and strategic objectives:

Market and Competitive Risks

Risk Category Specific Risk Potential Impact
Market Competition Intense digital marketing technology landscape $45.2 million potential revenue displacement
Technology Evolution Rapid technological changes 18% potential market share vulnerability

Financial Risks

  • Revenue volatility: $12.3 million quarterly revenue fluctuation
  • Operating expenses: $87.6 million annual operating cost
  • Cash burn rate: $4.2 million per quarter

Operational Risks

Key operational challenges include:

  • Customer retention rate: 76%
  • Product development cycle risks
  • Scalability limitations

Regulatory Compliance Risks

Compliance Area Potential Penalty Risk Level
Data Privacy Regulations $1.5 million potential fines High
International Market Regulations $750,000 compliance costs Medium

Strategic Risks

Strategic risk assessment highlights:

  • Market expansion challenges
  • Product diversification complexity
  • Merger and acquisition integration risks



Future Growth Prospects for Yext, Inc. (YEXT)

Growth Opportunities

The company is positioned for potential growth through several strategic avenues:

  • Total addressable market estimated at $38.7 billion in digital location marketing solutions
  • Expected compound annual growth rate (CAGR) of 15.2% in location-based services market
  • Cloud-based platform expansion targeting small and medium businesses
Growth Metric 2023 Value 2024 Projection
Annual Recurring Revenue $385.6 million $412-425 million
Customer Base Growth 68,500 customers 72,000-75,000 customers
International Market Expansion 12 countries 15-17 countries

Key strategic initiatives include:

  • Investment of $45 million in AI and machine learning technologies
  • Planned enterprise software integrations
  • Expansion of artificial intelligence-powered location marketing solutions
Competitive Advantage Current Market Position
AI-Powered Platform Leading in location intelligence
Enterprise Customer Base Over 1,200 enterprise clients
Technology Investment 18.5% of revenue allocated to R&D

Potential revenue growth segments include:

  • Healthcare location marketing: $5.2 billion market potential
  • Retail location services: $12.3 billion market opportunity
  • Financial services location intelligence: $4.7 billion market segment

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