Yext (YEXT) 9 Dec 242025 Q3 Earnings call transcript

Good afternoon, and welcome to the Yext, Inc.

Third Quarter Fiscal 2025 Financial Results Conference Call. [Operator Instructions] Please note, this event is being recorded. I would now like to turn the conference over to Nils Erdmann, Senior Vice President, Investor Relations. Please go ahead.

Thank you, operator, and good afternoon, everyone. Quarter Earnings Third Call. Yext's to Fiscal Conference XXXX Welcome of CEO Mike With are Chair the Bond. me today Darryl and Board, CFO, Walrath and

of issued and earnings in our and XX-Q X including other related XXXX, Systems Factors letter the strategy the economic Form of we and our in the after fourth release included year our beliefs as and certain Statements we X statements, factors the and growth, for made, and changes integration those section financial statements most occur in report expenditures performance, is and afternoon. were reflect call, Risk our success, the date with statements information are of make letter. These Systems, acquisition indications capital statements Special shareholder including call. Further October that as with and to months our titled of Regarding regarding the integrate business to assumptions and Yext development our SEC, reports represent and our management to to conditions. differ our expectations fiscal and XX, the that Looking business, ours, results general in from no or update Note other Hearsay materially Forward statements to only further outlook our forward-looking evolution obligation that regarding recent and statements this effects revise for this any full cause financial These ability of on filed risks metrics, our to ended could future this of described performance undertake XXXX, forward-looking on and quarter risks, subject expected During business shareholder our assumptions, and quarterly the estimates actual to these forward-looking and of our future growth opportunities uncertainties our will and operating including forward-looking third Hearsay industry, quarter related product statements our our

refer Reconciliations metrics, also the we investors.yext.com. are most call, is measures. available to the comparable non-GAAP financial which including letter, the at certain available shareholder During historical GAAP in measures with

in call We to will also letter. I Mike. metrics these over definitions turn the shareholder now the of provide

afternoon. for us Good today. Thank all you joining

shareholder quarterly to Our our Relations read it. a been to you've letter I all Investor has hope posted chance site. had

Before to like for we emphasize results few Q&A, letter. We're jump I'd from pleased with points a the our into QX.

our to contributions and like ways broader the their accelerating we consumer thank here. this global from of profile, there commitment operating and the Our and business Yext am moderating. fragmenting seeing We're a of on inclusion would today, opportunity ongoing brands are is with we're The XX% revenue margin our in believe results. stable, Yext selling to signs focused AI year, the environment early as seeing possible the take be search experiences. I Systems. appears much search environment have to generative Hearsay environment and growth cost structure efforts and with to growth. the Hearsay. experiences. a of of contribution a of I'd and year-over-year the we to None We set content increasingly continue team, efficient grew find data pleased by for this for improve are lean still them early our half their without driven is and to of to The more positive very need and moment We're core much deliver business will search of second best is a to optimization while the seeing extreme phases into stabilized

open like for to questions. it up we'd Now

Needham Our & from is question first with MacDonald Ryan Instructions] [Operator Company.

you talked early start, search Congrats letter maybe on of that phases Mike, in just a environment. remarks in a about a bit prepared we're in and the the the quite to fragmented there nice quarter.

and a strategies of Can about AI SEO conversations lot monopoly sort it's and of of this is could next of do potential So new translating pipeline do generative out this into talk sort today. organic starting to over you generation? search years? just of customer SEM as potentially how and we traditional think Google's think kind you what And for growth couple the disrupt

the Ryan. for question, Thanks sure. Yes,

conversation with it's single because a focused #X with years, kind lot single this interesting with for a I a X both business think this and talked So X, centralization certainly us, -- about is we've this. having challenge really customers a is prospects. X, of on the SEO probably mean, over that Search I has And the the we're last party, been the party focus of and SEM and the

consumer start we us there search clear ways questions, deliver and fragmentation the questions a be to that are different to those As going to to what address that AI seems see answer to questions. answers is ultimately, be experiences going

of is we came why the an data that going making gathering that I'm channels And the problem as to reason be sure my going to structuring more exists. is are a of brand strategy. dynamics central Google, to into that content updating to customer really that Yext then likely we're do things it's that the -- to by these of a these How generative adjustable -- and is with ways, that digital SEO that Yext marketplace generative to do lot for a much deliverable Google's How platform this with. have going number marketers going the information, advanced very data of and is have this experiences? content this rules device. rules different. of through historically simple of the In increasing different a data to be top no the be mobile and having One the search brands about is, is fragmentation I pipes faced -- marketplaces. There's deliver SCM not for from be search that that I create or experiences? very mind SEO making point I SEM not talking from following And view, and It's as

And about the see making rooms. in brands especially so in are this locally impacts this, not in there's the already more thinking predictions right start is the of of boardrooms, for today we I happening topic top don't to now. brands, exactly And it's management topic we're mind when any think who that

then nice that kind of of the of it expansion like compare quarter line -- care, for some new quarter, sequential Can And shareholder on the fourth some taking the activity. top a very implied -- in of letter, we're maybe of step sort from there. the health Helpful with additions, where kind you especially maybe lots like good down. seems logo a guidance then the just

the Just terms you're -- the it some you business how should things of can with say? the And your or versus sort stand between we of divide maybe initial seeing core trajectory? things versus think maybe business in of about where organic Yext

Ryan. Sure, Yes.

So for thanks question. the

your the you it's of Darryl, of into related. punch I'm FX think get line the to So to if sort sequential guide is specifics, going don't I of revenue QX to let nature Darryl the I and sort in know but QX want the question in jump confusing is the in...

of contribution more end the QX at business When right. filed the of QX. and from their little contribution that back specifics this off view the down direct on at we Hearsay Yext was you the ARR bit is few of Q from the It there's from QX, the about No, a QX. sort up the Hearsay million stable. the that's QX of of $XX.X at to to bit and ARR. in little end But sort afternoon, which was in legacy QX, Yext day, Ryan, a And business a we sort the pretty look

that stability pretty shareholder in we we're good talked the seeing some rate. there. retention We about So letter the feel improvements we're seeing about modest of in the

So business feels pretty the there stable.

at way side On is another you revenue could look it. -- the

QX sort the QX in Yext of at also And pretty $XX.X to the revenue you QX, to quantified at We revenue when look well. sort as Hearsay that of QX stable from is million. legacy

lot revenue. are that committed stable how up number the driving And usage sort coming consistent through But the talked great, about and going Reseller it's you be been that's got down. for we've So on a is we're that which quarters, coming past way I might ARR Reseller, commitments a a similar there, not ARR but driving down. talked business. And few that committed pretty that the we've the where despite think focused over pretty as dynamic about a of really the evidence is business. few and of We've through we're the see quarters, look

QX to build the start the business where we're feel So year the into and good of to next excited on that at overall, about post-closing. through Hearsay to continue really addition we got pretty is we've and get momentum to

Ryan, to to Yes, just add that.

think between your was the could part revenue bit guide of for QX sort guide would we of down that revenue sort be appear little suggests that, sequentially. explain and the a delta and revenue QX, the the I question of had revenue in that that it the

and quarter is the there into in metrics QX. picture is with when into you're way which getting is and revenue, overall really watch kind they're of stable, kind to I of last future. get FX there what year look things and expect through ARR of the we the talked in upside fluctuated, stability that that what forward that -- just growing as out, and -- there's the And what move about we is think really in downside was the end there sort the the you we dealing starting revenue those the QX, picture we're we then actually as of there's those was

the elaborate in But Yes. rates down, FX we and on what get a from we bit that's use and FX. benefit did And our October XX, revenue just come a post Ryan, to We to guide. set FX saw the little QX.

with The Tom next Davidson. question White is from D.A.

on couple a Hearsay. just Maybe Great.

little, to guys the that guess, I had deeply have more time Now maybe into dive you a books.

having trends new whether curious could deal then quality to to I'm on have about curious share difference any maybe the compliance you any heard enterprises exposed of there's given in there's that it's quick if X curious guys ago? from if satisfy resilient -- requirements. versus Hearsay maybe cycles any bit update Just I business, pipeline you little just the just follow-up. more we it's versus that there's business maybe front. if like on the And a in a legacy when the that months And for insights

Yes.

growing, any continues. trend I would was So there's big say knew We not surprises the here. that and really business

that that. What with against, we're we that progress the complete best As would the we're of the platform unified the I get momentum our also system having we're with really the that and to there's is of use making business we other think seeing the data year, insights. a platforms and and through unified in conversations real integration, by great power and unifying and be about having expect the which these end or largely customers are who having one customers mutual

couple last Hearsay, -- starting and the of So of now that we're years, and around seen the cost years cutting have letter talked look, around the lot the there's we're a I slowed that and now to too. we're couple just accelerate And deals think we done on cutting they've seeing that it's feeling of it's that is this bit headwinds abate. Part have years little customers the bucket sort of overall that as have -- a a that in to some we've of cost the in and Yext about of the couple the of to budgeting a see see over extreme last not we over more starting when And side, think we're starting sustainable. to over business or see a last little down I margin we much profile done. We've maybe bit. also

compliant. be greater to to end headwinds to I'm looking ways look going the about we're going about to demand for of sure communicate advantage but financial -- to need for also to ways accelerate we're optimize last tailwinds profile, And only your be for that to be for so we're talk of increases. and That need -- always the looking also we're take margin institutions abating. And growth get ready yet, but and the question to not ways going to the going certainly ready is some then to to with different as talk about compliance are consumer we're

for and communications. We media, the compliance social fragmentation followed customers can search growth think of compliance different of leads headache has trajectory through really their texting into Hearsay a to you innovation And and your area So communication that a that social business, which talk a then focusing the compliant, fragmentation all that nice to getting for through on solve. also different channels. creates how do of the environment we help is channels,

of are the as some to feel a about, the in so these selling medium- reasons the I we're And term. long why lot think, forward we look to environment better starting

letter products a Great. I very Hearsay feel it we heard look just was Maybe any like digital say you I that decided search think continues quarters. think about of needed in about a curious, a years. wanting. And guys the if opportunities. about you make and a of kind or you guys Mike, interesting. curious thinking was you've Social a I'm are for are space experiences we have. that building about, sudden, knowledge just years for that products hear talks fragmentation few like quickly. that to letter, ton if that sense I'm And out there adjacent other couple guys you you evaluate either also Systems then search about you didn't of just this like, you and talking how all and And imagine any to a the and will evolve about for Social, just that adjacent that buying? was it might I products to there Okay. space mention I few something there guess can And you continue other to think discussed M&A of like

Yes.

social a big product platform as our -- both compliance, acquisition. communications, I Hearsay media. by development of would driven -- unified They a think a well part that we've and Social our big listings, as part driven reputation about search, Yext customer media, really is of our the the non-financial by talked for of pages compliant this publishing, communications, We're unify right? the were customers, demand management, social services

we've the them customers what what -- to done most lot us company so about talked And rebooted we've we've customer. are And the for important this, around going a is tell the are. and we've our things

two incredibly continue a broaden see health see focused of is so analytics our we insights. opportunities lot verticals. we're in and remain opportunities they're customers. There to value to we our see the data in And listening on. going opportunities in and care, customers And we to really One And to proposition things are to and understanding. different

needs M&A. on growth very customer the And going in things and that So need. customers development organic every not to we'll be focused and approach take thing, very same and also disciplined continue very to opportunities to different then pragmatic, a and the we're research the delivering

The next question Rohit Kulkarni is ROTH Capital from with Partners.

is perhaps transformation. you weeks, your extent on couple seeing tie guidance, does that to can in reason One last the And maybe ex of on of have businesses you're big the initial -- things. couple. this And focus then more you're last how FX few said provide, what follow-ups is? deals picture A the letter, the that the tie the seeing the for that into the some accelerate a as have with on I you guidance only then trend Or weeks, is couple guidance? FX

problem. no Sure,

let and one Darryl talk FX take stuff. I'll second the the So about

expect financial I guidance going think from in term. what be come conservative, generally our us have to is short probably the to you is speaking, that

there. because we're like the seeing to things we're abatement I And not some dynamics because going are so going to we're -- headwinds seeing think prove that, of -- that want we're to maybe just and

the we comfortable that some we're we happens predicting perform There I get to with we've standpoint, is when going into that so confident but FX a until line in start business guidance sight in feel Darryl think it. going is noise the better growth is of we of can talk that are what to not which clear to mainly given. from business the more have it, about. But to feeling And detail

too, think are QX. But impact hundred thousand FX that couple that all in, to right, Yes. it's a the end the seeing, least we're it's the impacting going QX like in towards revenue deals really come much. the business quarter at And not timing, of deal I that in

we as thoughtful a put want be there, said, still to knowing Mike So how conservative and that we guide environment. out we're in dynamic about that operating

nimble integrating with like of chat seems with and I pretty launch which also, about on And tidbits think you're search I how integration of couple quick and AI. a and probably also conversational can And Social, a think and Okay. you've AI Hearsay. Meta talked Yext

about see opportunities Yext opportunity in go-to the in market? the So or the near the in upsell perhaps greatest Social, getting is you talk do logos what And perhaps term? where new near-term

Yes.

it's both. think something for using I of our most particularly think are I social do customers, our today. larger customers

reason really but long-term Hearsay that of to part so two customers features. analytics compliance And don't marketing. on and and social for different needs most the Yext are location-based Social have media of industries other media path, the are initiatives the different of these convergence They're a social manage non-financial services Social because why

and of to We that early over officially to that us of converged, that reputation not manage September. social look launched that go converge management we'll if need telling side, an to platforms product we're systems least everybody Hearsay Social the about both is good it's in the listings so feel time. compliance the headway, we'll Yext they've customers at publishing they pages all don't the to singular product the and and not of But into insights and focus about offering seeing those been level with on analytics and that handle know is has. It's that more really future we which going multiple a sophistication And But quarters. strengths in talk some ultimately and we've and we want because that. built for

going We enables also of environment view, are all results. be those is of know system, which of best-in-class structured Yext that that going where is, that our data complex. things insights and you're system more structured that the to all get when to -- most in proprietary to Knowledge going you an getting analytics, from see where Where that's workflow create point Graph the a better and data you're

that we as complexity the think I these so need my stores, experiences, have and all CEO, my doctors and a all way. my in And products, findable is a all going different different going to to same to make you're about advisers, brand, sure marketer, visible that as as not a see all and that where these my going they're it to to do are the be places

core and going to all have is structured data will with a which the that truth enables to source content the in that to of So be a that distribute of future. synonymous is data, you system

to Rule Okay. Rule expect on you where you you quarters breakdown the can the revenue do I have extend next are the that latest And few the of given if the XX? kind profitability could in approach of had growth and thinking how provide Star to North of ask, Mike, XX you your today, with the over

Yes.

I get continue the progress a there, lot expect to line made talk haven't progress, that right? we obviously in to the So and sand we'll on when we're think we a making. about date a of put And

we different QX. lot there's a QX, although there standpoint, still in there, we kind a revenue that from think flavors and and improve of -- to it lot profile of expect will expect areas. further from We come as we our XX Rule beyond more we that well. margin I think And of the do think of to our growth contribution in are improved of different opportunity there's growth,

last steadfast a there's that or in going And to that so. X.X So today started at Rule revenue have we're to growth the years than XX and been growth. And is all our better. those been organic be of to much pursue or inorganic of levers. any goal point revenue we we We've closer we're obviously different since

not get there. but a be satisfied. that think but We're progress. So Satisfied where going it to trajectory sort of to is we're not us we good want we have that making yet, satisfied we

is [Operator Instructions] question next B. Riley. Khan from The Naved with

QX? maybe, happened? two can direct ARR the QX why And from on So then that's that the Darryl, you if me. decline case, questions just that One ARR. clarify from into

Sure.

back decline was what range. saying is QX million So before to $XX.X in the you like, from out to ARR if Hearsay QX of is $X.X that down QX I sequential I think, contribution The in million.

bit. $XXX million, it's of million little on a revenue, $XXX down So

seasonality our of Now our of that each like be QX biggest But could bit there's the of of in in the and business we've for quarters. some things little of volume. a up again, is FX. got some quarters, quarter renewal generally in terms

Obviously, a bit So overall, QX coming a from QX, QX were up bit we got down from to QX little we've QX. little to up.

churn So get that feels sort the to to that when keep us. customer that we'll metrics. we this retention impact of that pretty of QX report and large obviously in will be And mind, mentioned, and growth we year stable lapping QX, and

is talking Naved, I a can to about. Mike. just add was little bit what this Darryl If

of business business, stable was and core we last which I being getting that think of kind about it we ultimately about growing we talked talked talked business to sort then and is. quarter, a again. And the this Yext about Hearsay, grow

solidifying too, think that and where mean of making with they're our been how overbought from things operating that and -- are when like that. customers been value we've potentially doing had may in areas getting need about they we have you -- we've I very licenses this they partnerships software a I think focused the sure and how on who very I peers we're our this, lot platform think on that We've our been the focusing focused environment, customers. in that

find we've improvement sort it seen to seen straight think seen but retention, in in straight I'm to three trends net making improvement. we're a And we're because seeing with rate. we acceptable say right retention make. we we're We've that's to three of we're give stable quarters not find -- in and out, we're the the And so we it, business, that headwinds thrilled we number there gross there are kind going need that I of of seeing be -- -- ARR why the our now, we've still decisions overall that but this isn't quarters also of renewal long-term

tells can And us we're ability melting the need a a or and attention the that to to so the doing leverage cube we fundamentally the picture. things ice that growth ourselves turn whether to to that up in stronger declining ARR future. that a And we this with the for answered business. create margin is question profile not operating now set do operating And about and I profile or growth really think our stronger we've a

it. Got

Okay.

question fragmentation have, I user. than around your so is the commentary and just The the the Mike, other of search on even fragmentation more that, of maybe

much that in at like very early looking it's of the still changing still on terms that's consumer is the seems of versus of and trends, the proliferation consumer still how search. out products much there. It kind of in is the behavior, just So kind of just

also. change? think I in terms that change, So that may how positioned is Or the quickly then much how mean, you -- might don't case things that out if thoughts happen. they can in Any you listed how like on be on how change of happening? Yext

Yes.

scenario change. I going think to there's aren't the things -- discount where notion heavily mean, I that So would I a

different there's that sort from Intelligence, sponsored of ways to in and enough a you Apple OpenAI page. different human in we've to seen behavior and you we've questions are that's engine search beings are to you traditionally seen for asked consumer language search things which Perplexity We get different that a because them. that we in customers happening lot their I across form links can a a results bunch has and AI a interesting going there know question be structure like what with of and shape than a -- and become ask know on Facebook the a interact going ways of bullion, see with search, take top that and that question of that think search bunch really explore be of mind links a

platform that is best me the something, exploit buy right? this product the question. But final with could different countless questions. a that the which place interactions a predict One get of being precedes for when historically, exploit, of I'm search to information we is, about there there search, do question, right? is talk -- ask a That's move So lot I to things an when where on choice a lot harder talk exploration is customer ready for of talk exploit, Google the XYZ a lot to when I like to from the at about lot journey, we a asking price, be there's exploration think on choice we of we exploration about in those

to happening evidence think that seeing like happening and that that way satisfied access structured I to exploitable. we're experiences, search is get The significant data. able AI is yet a that kind just going makes is need today of seeing that on look I need that of experiences they're what happening not I of need sort lot need those so that lot are across with seeing on it generative amount search that our we're to to generative the not search for transactional those to and data capitalism information. location being exploit And exploration experiences, answers in where which be easier be says I information, to me they're my deliver questions. much product faith TikTok networks to can there's order for in make a do What world that. experience I there going search exploit. include engines different is to media things going to there's I going like the a more experiences. But works be we're way social things and the exploration more more that like

we to question. that things it's I'm a answer see a one give and of today, so answer, going you long thorough to the your but I apologize, And

One well, search tell you're we can asked or to Google that these of question. question today need that to and going the of go They're where lot is to to to that generative the you things get about, answer likely me. I places experiences, see the when great on like near that to Yelp a hamburger sites like you a get

be advice the consumer much with only to think and to change, our that's I you're data those think explorer makes the it's have manage exploit believe just going element order and in to time not you aren't exploit don't to things believe more this is sense. case, get your so exploit I in that hope some generative that that the of to believe satisfied order search as to going to fragments. everybody the monetizable that we queries. We are the that experiences ready

This concludes the I would Walrath over our conference remarks. closing turn like back to question-and-answer session. Mike to any for

to joining not another to and just you forward quarter, thank everyone I'd to sooner. for speaking us in today if like look

for The attending today's now conference you has presentation. concluded. Thank

disconnect. may now You