Yext, Inc. Q1 FY2025 earnings call

• Mike Walrath discussed the definitive agreement to acquire Hearsay Systems, highlighting the complementarity of Hearsay's client engagement solutions with Yext's digital presence platform. • Mentioned Hearsay's position as a trusted global leader in digital client engagement for financial services, empowering over 260,000 advisors and agents, and its customer base including top US life insurance firms and global wealth management firms. • Darryl Bond talked about financial services being a significant vertical for Yext, with health care and another vertical around 21%-22% mark, and the complementary nature of Hearsay in the financial services vertical.

No specific segment performance data on product segments with absolute terms and revenue contribution % provided in the transcript.

• Full-year revenue guide was affected by slower conversion of pipeline, budget constraints, deal cycles, and adjustments in sales capacity ramp. • Current guidance does not include the Hearsay acquisition; once closed, financial outlooks will be updated. • Expectation of ARR growth in the second half of the year despite market challenges, with a conservative lens applied to pipeline, conversion rates, and renewals.

• Forward-looking statements subject to risks including Yext's growth, industry evolution, product development, competition, acquisition of Hearsay Systems and integration, management performance, and general economic and business conditions. • Factors causing actual results to differ from forward-looking statements are detailed in SEC filings.

Q: Congrats on the Hearsay deal, can you comment on the process and size?

A: Mike Walrath said they focus on how complementary the solutions are and synergy in combining platforms rather than specific size, looking for consolidation opportunities.

Q: On full year revenue guide, what's changed?

A: Mike Walrath said it's due to slower conversion of demand, budget constraints, deal cycles, and adjustments in sales capacity ramp.

Q: Color on Hearsay overlap, synergies in verticals?

A: Darryl Bond mentioned financial services verticals and opportunities for revenue synergies within financial services, and broader opportunities in other verticals as Yext builds out social product.

Q: Growth rate of Hearsay's end market, margin profile with integration?

A: Mike Walrath said current guidance doesn't include Hearsay acquisition, Hearsay operates in financial services vertical, and integration's margin impact will be discussed post-acquisition closure.

Q: ARR trend, driver of dip?

A: Mike Walrath said it's due to renewal cycles, budget pressures, and preferring downgrades over logo churns.

Q: Color on Hearsay employees, function?

A: Mike Walrath said Hearsay is diverse with all functions, operating around cash flow breakeven, and synergies expected upon integration.