Yext, Inc. (NYSE:YEXT) Q4 2025 Earnings Call Transcript
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
Overview
The earnings call presents a mixed picture: strong product innovation and integration success, but missed EPS expectations and potential integration risks. The absence of a share buyback program and economic uncertainties further temper sentiment. Although there's optimism for 2026 and growing retention rates, the lack of immediate revenue impact from acquisitions and spending scrutiny contribute to a neutral outlook.
Key Financial Performance
Earnings Per Share (EPS) $0.12 EPS, down from expectations of $0.14.
Gross Annual Recurring Revenue (ARR) Retention Gross ARR retention increased to the high 80%s, indicating improvement in customer retention.
Net Retention Rate Net retention rate increased across both direct and reseller channels, showing positive customer engagement.
EBITDA Margins EBITDA margins are north of 20%, reflecting strong operational efficiency.
Projected EBITDA for Fiscal Year 2026 Outlook for over $100 million in EBITDA, indicating financial strength and growth potential.
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Operating Highlights
New Product Launch: The launch of Yext Scout represents a major milestone for Yext, with an enthusiastic response from customers and hundreds of waitlist signups within two days of the closed beta announcement.
Market Positioning: Yext is strategically well-positioned, with positive trends in performance metrics, including increasing gross and net retention rates, and a strong outlook for over $100 million in EBITDA in fiscal year 2026.
Operational Efficiency: Integration of Hearsay is generating go-to-market and cost synergies as expected, contributing to improved operational efficiencies.
Strategic Shift: Yext is focusing on product innovation driven by AI, enhancing its platform and product roadmap, which is expected to be a growth driver.
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Risk or Challenges
Earnings Expectations: Yext, Inc. missed earnings expectations with a reported EPS of $0.12, below the expected $0.14.
Integration Risks: There are risks associated with the integration of acquired businesses, specifically the recent acquisition of Hearsay, which could impact operational efficiency and synergy realization.
Economic Conditions: The company noted that general economic and business conditions remain unchanged, which could affect future growth and demand.
Spending Scrutiny: Ongoing scrutiny of spending persists, which may impact customer purchasing decisions and overall demand for Yext's products.
Product Development Risks: The success of Yext's product innovations, including the newly launched Yext Scout, is critical, and any failure to meet customer expectations could pose a risk.
Market Competition: Yext faces competitive pressures in the local marketing space, which could affect its market position and growth opportunities.
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Guidance & Outlook
Integration of Hearsay: Yext has made excellent progress with the integration of Hearsay, generating go-to-market and cost synergies as expected.
Product Innovation: Product innovation is accelerating at Yext, which is expected to be a growth driver, particularly with the launch of Yext Scout.
Launch of Yext Scout: The launch of Yext Scout has received an enthusiastic response from customers, indicating strong demand and potential for changing customer data insights.
EBITDA Outlook: Yext projects over $100 million in EBITDA for fiscal year 2026.
Retention Rates: Gross ARR retention is increasing to the high 80%s, and net retention rates are also up across both direct and reseller.
EBITDA Margins: EBITDA margins are reported to be north of 20%.
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Shareholder Return Plan
Share Buyback Program: None
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Key Q&A
Q:Is the outlook for 2026 still optimistic given the previous signs of stabilization?
A:Management feels that the environment has stabilized and normalized, with headwinds not worsening and a sense of urgency among customers regarding AI experiences.
Q:Are there any tailwinds in the financial services space that could benefit Yext?
A:Yes, there is momentum in healthcare and financial services, particularly due to heightened SEC scrutiny, which is driving demand for Yext's services.
Q:What are the key investment priorities for fiscal year 2026?
A:Management is expanding disclosure around ARR and will be conservative in managing expenses until growth develops, with a focus on either investing in growth or flowing excess EBITDA to the bottom line.
Q:What is the rationale behind the Places Scout acquisition?
A:The acquisition enhances Yext's ability to gather and analyze SEO data, providing a comprehensive platform that helps customers improve their digital presence.
Q:Is there any revenue contribution from the Places Scout acquisition?
A:No, there is no meaningful impact on revenue from the acquisition as it was a relatively small company.
Q:What caused the sequential decline in ARR?
A:The decline was primarily due to a $3.5 million impact from FX, along with some bookings and churn, but the pace of decline has tapered down.
Q:Is the EBITDA guide more comfortable because it is less dependent on top-line performance?
A:Yes, management feels they have more control over the EBITDA number and are confident in the improvements made.
Q:Review of Unclear Management Responses
A:Management avoided giving a direct answer regarding specific financial contributions from the Places Scout acquisition, stating it was a small company and not forecasting any meaningful impact.
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Earnings Word Cloud
The most frequently occurring keywords in this quarter's earning call
CFO statement
Chair CFO
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Definitions reconciliation
Erdmann Senior
Financial Results
Forward Looking
Inc expectation
Instructions event
Looking Statements
Nils Erdmann
Note Forward
Relations afternoon
Results Conference
Statements Risk
Transcript Yext
Yext Financial
Yext Inc
Yext conference
ability business
acquisition expectation
afternoon measure
business condition
conference Nils
expectation afternoon
letter afternoon
measure Definitions
mode Instructions
month release
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YEXT Transcript
Yext, Inc. (YEXT) Q1 2026 Earnings Call Transcript
Positive6-3
The earnings call reflects strong financial performance with a 20% revenue increase, improved margins, and positive cash flow. The launch of Yext Scout and enhancements in digital visibility are promising. Despite macroeconomic caution, management is optimistic about growth and has a robust balance sheet for strategic investments. The Q&A reveals positive sentiment from analysts, with strong customer interest in new products and plans for share buybacks, further supporting a positive outlook for the stock price.
Yext, Inc. (NYSE:YEXT) Q4 2025 Earnings Call Transcript
Unknown3-6
The earnings call presents a mixed picture: strong product innovation and integration success, but missed EPS expectations and potential integration risks. The absence of a share buyback program and economic uncertainties further temper sentiment. Although there's optimism for 2026 and growing retention rates, the lack of immediate revenue impact from acquisitions and spending scrutiny contribute to a neutral outlook.
Earnings call transcript: Yext Q4 2025 misses EPS, stock drops post-hours
Unknown3-5
The earnings call summary presents a mixed picture. While there are positive elements such as improved retention rates, a strong cash position, and an increased share buyback program, there are also challenges like ARR decline, macroeconomic pressures, and competitive pressures. The Q&A section reveals some uncertainties, particularly around the Scout acquisition's impact. Despite some positive guidance and operational efficiencies, the sequential decline in ARR and foreign exchange impact create a neutral outlook for the stock price in the next two weeks.
Yext, Inc. (YEXT) Q4 2025 Earnings Call Transcript
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Despite positive developments such as the integration of Hearsay and strong EBITDA margins, the lack of a share repurchase program and the sequential decline in ARR due to FX impact temper enthusiasm. The Q&A reveals stabilized conditions but highlights potential risks from competitive pressures and macroeconomic factors. The cautious outlook on expenses and lack of immediate revenue impact from the acquisition further support a neutral stance.
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