Yext, Inc. Q4 FY2025 earnings call

• Yext is well-positioned strategically and competitively, with successful integration of Hearsay and combined businesses generating synergies. • Positive performance metrics: gross retention and net retention rates increasing, EBITDA margins north of 20%, and outlook for over $100 million in EBITDA in fiscal year '26. • Launch of Scout has received strong customer enthusiasm, with hundreds of waitlist signups for the closed beta. • Momentum in healthcare and financial services verticals, driven by factors like SEC scrutiny in financial services and urgency around local presence optimization across all verticals due to AI-driven search fragmentation.

• Outlook for over $100 million in EBITDA in fiscal year '26. • Conservative expense management until growth develops, with potential to invest in ARR growth or flow excess EBITDA to the bottom-line. • Integration of Hearsay contributes to the EBITDA guide, with ARR growth potential and momentum continuing.

• Forward-looking statements subject to risks including Yext's growth, industry evolution, product development, integration of acquired businesses, management performance, and general economic and business conditions. • Further information on factors and risks in SEC filings, including Form 10-Q and shareholder letter.

Q: Outlook for 2026, qualitative assessment of environment A: Michael Walrath stated momentum continuing, with AI urgency driving demand and headwinds not getting worse.

Q: Hearsay and Yext Social tailwinds in financial services, other verticals A: Healthcare and financial services strong, with urgency across verticals for local presence optimization due to AI-driven search fragmentation.

Q: Investment priorities for FY '26, margin flow-through A: Conservative expense management, focus on ARR growth potential, and integration of Hearsay contributing to EBITDA.

Q: Scout acquisition rationale, competitive positioning A: Scout helps with search fragmentation, provides AI insights, and has strong customer response.

Q: Capital deployment, acquisitions, buyback A: Opportunistic capital allocation including acquisitions, buyback, and ongoing hunt for other acquisitions.

Q: ARR dynamics in Q4, organic ARR growth in 2026 A: FX impact on ARR decline, stable retention, Hearsay growth, and Scout launch contributing to organic growth.

Q: EBITDA guide independence from top-line A: EBITDA guide more controllable due to investment control despite top-line factors.