Earnings call transcript Q1 2024

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Operator

Hello and welcome to the Yext Inc.

First Quarter Fiscal 2024 Financial Results Call. All participants will be in listen-only mode. [Operator Instructions] After today's presentation, there will be an opportunity to ask a question. [Operator Instructions] Please note this event is being recorded.

to President, conference Investor like Erdmann, to now Vice Senior Relations. would turn over the Nils I Please go ahead.

Nils Erdmann

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

our second regarding including opportunities, our first our in future to and this we quarter the of XXXX, and During growth related our call, the of capital described will and estimates statements make and outlook our year press fiscal of future earnings business, performance, other further indications quarter operating forward-looking expectations for expenditures statements, strategy as financial metrics, financial release.

of to those assumptions, subject and general evolution uncertainties forward-looking business and product the growth, conditions. and statements this related Yext's These made reflect our our represent certain including industry, and undertake of our our economic success, that development and statements beliefs forward-looking are only statements and obligation risks, after revise performance to occur any or management the These changes we to update date call. no to as assumptions

other materially could and January filed afternoon. statements, XXXX, in recent this Form risks most XXst, factors Risk press XX-K actual was results our titled fiscal SEC, cause including to Note Factors the Statements the year Forward-Looking Special with ended Further and on Regarding release for included in information sections differ and forward-looking these reports from that is our in the issued our that

GAAP press which investors.yext.com. to measures, metrics, certain in is available including the the earnings During financial release the call, to available refer most historical comparable are we reconciliations at measures also non-GAAP

of We press in these release. also earnings provide the definitions metrics

will I over turn Mike. the call to now

Michael Walrath

joining for today. Nils, us everyone thanks and Thanks,

to pleased QX to solid start are the strong and report results a year. We

earnings EBITDA. million. $XX.X of revenue $X.XX adjusted of Non-GAAP over $XX per million of generated share We and

history, Yext profitability. to new highest and were hit efficiency EPS EBITDA adjusted and Our peak we levels the in non-GAAP and of continue

of Our performance our execution in the the our on first customers result creating organization. for productivity quarter priorities, a improving across and our continued direct was value

Last reorienting reorganizing our Yext, deliver and we around part and customers point team, the 'XX innovation. our of better delivering a was fiscal ourselves highest year to spent product turning tremendous for value the

trusted Our first quarter $XXX.X cost ability quarter from and to a $XX.X million power for XX% XXXX down revenue and deliver total the generate decrease. fiscal we the last full year, Yext non-GAAP the spectrum hit digital expenses of operating to continued awareness build of We've running answers the million, and platform of in across in its first and Answers ground totaled experiences.

Both pain are driving their realizing new enhance and streamlining and transformation operations, customers friction, points, can much reducing our by addressing digital how customer value. increased existing platform

Content and in-depth around beta Generation Our AI. in Generative catalysts Studio Yext Chat discussions launches have been of for more

importance Yext of the a stronger. of architecture AI-led becomes strategic discussions of possibilities opportunity shows weeks, that having last do DXP. the our the can on platform In global long-term customers campaigns As our the in composable new we the modern, couple through two with our of focused launched best-in-breed the journey experience, about what digital end-to-end customer increasingly grow conviction in engaged

in are making. been six has we're we team pleased and executive go-to-market with progress Our the place for months

see a the more pipeline couple enterprise beginning While we in with smaller our production and transformation of take increases conversions, to quarters, full are customers. particularly go-to-market will

uptake good our the benefits team is cycles complex shorter sales is how and of less mid-market value proposition integrations customers. indicator a landing from Our and with

well. the eventually will larger as is believe it we while carry enterprises still early, to So momentum this over

and exceeded profitability. as and quarter. operations our goals in our performance Investor growth will our We the Day. significant we and in again generated the for greater more non-GAAP describe spite year-over-year targets and bottom-line in macroeconomic during and April out we quarter laid We targets profit adjusted of And against revenue, efficiency first of raising Darryl March top streamlined Our delivered our the demonstrated all headwinds, EBITDA, year. in EPS detail, for and we are even

During our to we multi-year and call, previous of portion mentioned transition plan our integrator partner to our ecosystem. our services business earnings a systems

of we reduced our of part As services professional restructuring our plan, the size organization.

And expected, we strategy as work renewals on had build and to a impact continue in bookings shift and our modest in retention we through expect the partnerships As services the the our year. this more throughout QX.

of of margin our XX.X% expectations to significantly. bottom has was non-GAAP this the for resulted profile beat. to felt and upside increased quarter, in immediately, and contributed This line business The which our our margin the gross exceeded

experienced that several similar in we previous were business conditions to Overall, QX quarters. the

productivity Our growth rate year-over-year our achieved a of for the basis net the on fourth with was consistent is sales desired the retention on having with direct quarter. We effect. organization, which that ARR indicates emphasis smaller

to QX, well to managing our and despite continuing staying efficiently. the efforts on in conscious significant a committed of us. environment. profitably grateful and gen I'm And and and ahead remains At our ramp, forward business in to for of progress steady commitment a momentum. entire up global our we're who same made are focused challenging the team, We've team cost picking our begin looking growing as demand the go-to-market demand engines time opportunities performing environment

I'd like the over Marc. to that, now With turn to call

Marc Ferrentino

we part Platform March, as in with of AI-enabled 'XX strengthening new the Back release. our features announced our Answers Spring of Mike. Thanks,

and Our innovative our platform customers. interest experience solutions are new AI-driven and digital driving considerable from existing

that Chat in soon customers. for be of our version And demand expect beta February, Chat in based a included release. general launched we our will from on significant Chat Yext We

features there partners Our recently opportunity products. have Content with also we our and Generation well for received. Studio launched believe these significant been us and And is

power businesses AI. prospective From clear center can clients, the of transformation and Yext that with at that leverage the massive of our it's place is conversations existing a taking help

integrations wins in security competitive Our as leading language the innovations across analytics, technology setting and driving long-term growth. marketplace sustainable processing, table for and natural our the are as well

and Our innovative businesses examples composable have product digital great easier their we experiences, some enhance it QX. customer platform makes for from to

the our expanded customer sectors. product and position consumer within services, financial During and technology, added healthcare, we wins the quarter

Here a few just are examples.

absence go-to-market large provider with inaccuracies since healthcare win provider. team back Yext And such an Our won integrations, lack as an Google, data. in from Map which a our impressed solution back Direct a customer They of a already them that with were platform Verifier, Yext This our executed best-in-class suffered XXXX. replaced features Apple new familiar further They support, QX. pre-week of was listings and on the and API impressive in new and provider. customer with listing analytics with then of has integrations, churned another

Friday's. in a them Yext, they power and to few A close search signing were to back. a forward After talks their with TGI providers against against all the experiences months boomerang documentation. search Another selected of ago, to a partnership. able customer our were e-commerce, listings of head-to-head Netgear evaluated provider, was another composable to several We're global across and by community, benefits support and the looking leaving in competitor, demonstrating great platform but with including win Yext after we sites,

a US visualizing not replace and to great their a only several were customer officers, Yext We One digital the an of engage point provider banks FAQs By became of the products the also improve branches, enhance with in but entire existing across experience. listing loan and able example of could a how customer as the solution. largest Yext opposed platform, another regional showcasing to as organization.

could provided team the analysis our in-house platform quantitative Our digital and of of and experience their provided their relative third-party providers. add examples to value that incremental

As experiences the a across with and existing channels of chose their result, our work to their manage and different platform products our customer systems suite and to modalities.

competitive existing solutions. in-house our their were compelling over to the the where solution. other a to able network win at network. was us could us platform listing Yext their opportunities manage and in publisher using of competing advantages demonstrate listings extensive they And Beltone that Beltone they a direct as business point integrations a had products earn and scale platform various future. The tools our for helped their needed we streamline process of regarded the and extensive scope been

that effort. platform their [indiscernible] across more analytics, manual of able the several of one and And benefits, our locations. looking because competitors was process than thousand We leverage scale marketing business technology. franchise highly AI-generated a existing one premium and to finally, Mathnasium were superior part platform listing of automate needed them its strong largest of help ways producers content over as for world's to could win the

of significant showcase cost Consistent capabilities to their heard with AI-based conscious what we wanted Yext customer were products devote able meeting internal with By the to consumer better customers. we several experiences without company's external numerous ways brands, having resources. this platform from explore digital to and C-level executives, or generate content, have provide how could to to

more that's particularly partner today's in awareness is executives and strong I platform. excited a to help about be in experiences AI-based this the a their position, amongst particularly moment helping technology how teams businesses, drive time, be environment. our digital can improve C-level experience buzz Yext at leverage our to through AI, couldn't in around businesses helping and demonstrate powerful composable Yext digital

Darryl. Now I'll over to turn the call

Darryl Bond

Thanks, Marc.

As efficiency first continued our quarter our highlighted results operating the demonstrate, profitability. financial and

currency range. million $X.X $XX.X was of Revenue QX guidance FX. X% negative approximately basis. approximately exceeded represented as constant of million to end X% and This on revenue due a Our high of impact the year-over-year reported in growth our

executing on achieved in sales was accountability year-over-year While reorganized macro is much emphasis marketing newly are that strategy. outcome. which productivity prudent teams ago, growth a still year growth our facing it uncertainty than productivity-led leaner sales and and environment, delivering to that desired is We indicates a our the the organization and on

QX our was continued by direct in growth driven business. demand in Our

constant Annual reported as for excluding X% year-over-year up $XXX.X ARR count or recurring customer million, X% increased as over on year-over-year basis. as revenue an in X,XXX. Our direct well currency to was SMB

million, Direct year-over-year customers in constant of currency XX% totaled ARR. Direct ARR well increase reported on basis. as represented QX of of $XXX.X an an the at end as as X% total

of represented end basis. Third-party million, as delivered in on ARR which year-over-year of as at well as $XX.X an QX X% reported XX% decrease of constant the ARR of a resellers total currency,

with As occurring rates rates end was team. sales of to QX, of rate and for net consistent due retention our of pleased with for resellers. customer as of that's XX% the third-party level our and we're These of the QX, were direct efforts end the success our customers of stabilization XX% our the and our

the and Turning margin to to was margin to non-GAAP SI partner well profit the changes These XX.X% of we better margin some quarter. of operating the result described compared GAAP contributed our our $XX.X million, results, impact changes than in XX.X% anticipated. QX, ago our which as ecosystem. gross in are gross to our in our improvements efficiency earnings QX was in shifting of were press services related continued lower-margin The that release, reconciled year representing of to as to improvements gross positive to

of would eventually improvement that At rest March, QX to in we the XX% put of us range. high time earnings report throughout end of our expected the gross the XX% year margin the our at

However, able implement recognize we than organizational cost and changes savings were to earlier anticipated.

our the year We end remain at this of remainder expect our gross of the high margins range. for to fiscal

part revenue in percentage Our and the operating been of of sales revenue The has a sales quarter operating our year. XX% discipline compared expense $XX.X marketing in our key quarter. to QX of and the our team XX% XX% XX% the million were million year-ago in in QX last compared or first as realignment $XX marketing expenses or and revenue to were of costs of

the to net in quarter. compared Our million QX net million $XX.X a year-ago of was loss income $X.X

share basic million end was the and the compared $XXX basic $X.XX were income Our compared the was million QX, repurchases The quarter. have of $X.X million or XX.X $XXX the fourth loss in cash increase totaled equivalents shares. first by program share per continued the quarter last which net net cash or $XX in our in to commencement shares. million year. XXX,XXX repurchases QX of primarily by a QX offset share million balance driven the or Since of at of totaled to of $X.XX share per end Cash collections, at partially

year-ago a compared prices. at our quarter strong activities cash cash QX maintain for to forward million going intend the attractive compared $X.X was operating back will to continue $XX.X $XX.X XXX,XXX remain million in open buying to CapEx and position and sheet Net last our provided QX stock to to year. million balance by We and in was

suggests Turning macro and to the and uncertainty. our the layers persist continued effects for conditions and guidance remains all tighter their quarter year budgets, that additional full assumes challenging common year. environment and customer our across these are this outlook weaker second will approval businesses macro behavior cycles, Longer 'XX, throughout and fiscal sales

we range XXX.X million $X.XX, As share range $XX EPS approximately in in in the expect for to of range average EBITDA a non-GAAP of million today, Adjusted million the to second revenue million. quarter, to the of of shares. count $XXX.X million the $XXX.X weighted $XX of assumes which basic $X.XX and

expect in shares. full the of weighted average the $X.XX 'XX, the count we Adjusted million, basic which of revenue to million EBITDA range million to year fiscal and in in share For $XXX $XXX to XXX.X assumes the of range of range $X.XX, EPS non-GAAP million a million. $XX approximately $XX

now open We line ready questions. to the up are for

Operator

you. Thank

D.A. Instructions] go [Operator Davidson. with question will We from White Today's the first now session. Tom Please comes ahead. question-and-answer begin

Thomas White

I building guys. Great. could some bit the elaborate my of Thanks question and net sort in start quarter, like Mike, progressing this then kind if refresh productivity on range. direct, historically year. how sales is of today XXX%, maybe offering year? question currently been Can for kind taking or thinking quota-carrying retention XX%, like curious stands more you an different market around a you initiatives how yours curious for of XXX% of ways? think kind last same Two, the be on Thanks. meaningfully our can pipeline maybe of where you adding And the as of of to some sort and could. the potentially memory reps maybe were that. Nice novel about for offerings higher you're you're that on second I And share helpful? versus when way or color would penetrated range? kind anything any had like in Just whether retention that in Any there you it's

Michael Walrath

Sure. Hey, Tom.

while second but let I'll one the first try refresh take me do we one. the can So to me. that, you remember for it

been mentioned the the comments. now this team little marketing and year. have side, over half a Raianne, an with are in I on We've on sales who progress executive for So got Tom the and in together my seat

a marketing, clearly productivity machine. indicate done obviously And me that, careful saw to growth the mean, progress, QX, not with saw smaller I we and -- be the getting in from on tells But the we're we to machine that, that increased that more there. want expense seeing is we're sales I is work

what is work to go then said to I've think cycles ongoing the obviously but it going a and have before, clearly sales more to then as the fix than it as of takes ahead takes through So couple it. quarters you're not well. And just and fix, we decide

full you view XX down and long-range hit six road it, six know clearly. if nine is, to this of kind takes the sales to fix quarters So to it few cycles, then on month steam a you months the

analysis for and goes critical the Day, we've Investor is quota-carrying this as As us. and the productivity far at the talked this about reps

fewer obviously we're building. the want accelerating with we've path that capacity, to more done today, by that you And but the numbers gate growth qualified historically. similar really So doing, doing is to we're reps sales seeing pipeline clearly

built And here as -- we're we the have about I've lot really the of that and before, because things seeing. to make because we're of said also macro to seeing. lot that want view because quality a of be new But we're of there's we to the cautious these being going have extensions sure environment, pipeline a that we clear of

the look are we strategy, where as we you decide towards demand-generation and campaigns highly launched So granularly, of do -- see the demand -- to increase part last geared more more just pretty things are weeks that analytical able where demand. be we'll that's but convert few And building that and in into moving, the sense? capacity make we'll sales ARR. we that build Is a

fundamentally to business we in Tom. know no. anything whether short me better. question for range. the rate The think don't That's the lost, XXX% net from or we with want when be were I and the second I is, retention if had on plus we But to there answer question the was changed

Clearly quarter talked as headwinds about we're here, of defocusing revenue said, we're certain with last and Investor during of taking, taking we some Day. on types we've that

wanted positive that's net efficient margins, we our far it's than term on metric So really the of a we're make to around to. retention not metric it's gross having the -- near impact help gross revenue decisions retention but the going as we or these less in sort

and that's product with story. of that anything ultimately long-run. the there think and of opportunity product anything I opportunity more in and And the part would breadth innovation to But is that think upsell about if our that we're the XXX% above don't the seeing, back be the I business, number drive cross-sell structural should there

Thomas White

I was mute I Thanks. the great. before, That's color. appreciate on but

Michael Walrath

problem. No

Operator

with question The Needham. next comes from MacDonald Ryan ahead. Please go

Ryan MacDonald

questions. opportunity taking Hi. beta new on conversations, AI-enhanced the Chat to the in of some you obviously, to there just chat offerings quarter. kind early the Yext my progress right and start and that sort great are go Michael, for of and net Thanks But a maybe through sales of -- It's interest. customers based Congrats nice see, the for guess or seeing you as now. are you've had the of of shorter on and the of of trends more cycles is buck customers? of sort the area? maybe hot with existing, spend to demand macro conversations from here prospective far, thus I broader to more there investment DX an tightening sort sort sort new see

Michael Walrath

Yeah.

and launched, use focused these are of a area. early specific Chat figuring to out feel areas generative too in to companies that that is we AI. in are on, make to But still how on just Yext we products, Content come think the it's I lot Generation clearly, much So, beta, comment there's

said, for that been we've as we've -- business business heavily And in last that five been we've for in years. investing

customers seeing of lot management are in And really seen a there be And is so, of also, this with careful of because showing downside with carefully tremendous conversations is reticence and we've There amount interest. how technology amount these thinking teams it. what to generative right a I'm deploy technologies. they enterprises up need smart is about my the to stuff all

I have generation or are effectively talk that is, We've like you demand outrunning think us headwinds, machine when I and understood. we qualified highly had, some highly demand and do not frustrations efficient there and had bookings machine of So opportunities a source we is been our there. converts this to of number about well for not side. tuned the One of a on that as as the think that's

beyond our on we quarter we have companies look outrun what begin that machines, -- of into have to as like. have we're given should the those the to how some next are the So is ability headwinds. had market -- uncertainties really really staying to have who how going it's obviously build project we limited going versus conservative to we that finely-tuned go-to-market and macro visibility But be

funny mix bring at what optimistic conservative might of the same about a and very I we're So, time to seeing us. think being progress, but the environment

Ryan MacDonald

And question, maybe doing about curious think great. customers I'm being is then a anything, driven that I just any prepared increased I of and strategy, it. sort at all? a the you go-to-market there Maybe number Thanks. of on may of customer quarter. sort evolving you tricky of an landscape emphasis are be the previously on But during the or lost within level the It's the you really in there? as focus balance, back placing dynamics noticed of get you're was this And heightened remarks had call-outs by win-backs the what a dynamics winning sounds competitive level of second on

Michael Walrath

Yeah.

that So and about want I'll say may to add. some stuff Marc

what So a I'm of seeing is things. couple

about listings was recommitted we I reviews better think through about talking happening particular, products communicating the when that's the in innovation think there. I and better the So ourselves to happening we've at innovation gotten that

lost little thread. I while a For think we that

our this makes that smaller think -- or importantly are on competitors and do much customers. their environment to uneconomic importantly, I harder it to more as some Maybe deals service of to

are of were smaller And with a us different in last companies very here, couple even in and a they been years ago private so to who capital living compete year. they and living have environment, attempting

scale And their on I a business. think they have lot less

very And so, services the one where where now. suspect they parity, position of is a we're we're on seeing that don't things these that, financial competing different some companies have I of technological are in

to solutions. and customers we're back of best continue after have the these we customers go And set that so proving going to to winning

think this the in thing happening other I environment, the really And play becomes is that's consolidation important.

together, for in of multiple to and are cost bundle a help lot being savings. a offer So multiple services package environment able can lot where and looking an companies

I'd say highlight Marc? three it. so that's And those driving that, and things,

Marc Ferrentino

saw Yeah. sort thing COVID. top low-cost, what happened really that's downturn is said Mike The piling to on the around ago years of during just that some only few a we of low-quality of providers that, a the flight economic

you pay you And that what get for. feel

And the so promises that of made these to were just points they price maybe some a -- starting customers were false that for of promises -- are made cases. recognize are in that the sort lot

that recognition, of quality So does. the to that what see of our products recognition and the we're quality starting and

see you so that coming back. -- to you And start start to those ultimately see boomerangs

expanded as to products set us a we just seeing we multiple see a point the single In really Yext, and products, for lot actually product, our adding have existing for but that, while partner -- they forward addition product moves a different not of a solution because are areas. as new

of some win of the in help that talked single the about in as As that those can was Mike the script. areas. we them driving reasons multiple vendor of said, And some the backs, consolidation behind

Ryan MacDonald

color. Appreciate the again. Congrats Awesome.

Marc Ferrentino

Thanks.

Operator

Rohit go Please The comes MKM. from next ROTH question ahead. Kulkarni with

Rohit Kulkarni

any had is that customers, at impressive be pretty feedback a the were at questions of heard thought looking you you getting Investor AI demo with have and how out. Couple -- where and just and are Day may nice demos. you the very thanks. flushed that that on from the One quarter. I products to may Hey, and market

from in on about to was and AI how love an interesting all very much to anything real an do in or opportunity up strategy, customers' terms update with versus getting talk customers how those six regards versus thanks would you wins? hands have choose wins? net of for the getting versus renewed next boomerang you and have an versus your new upsells boomerang back-end then And follow upsell net new, So that again the over of go-to-market As boomerang cross-sells that get color. where, prioritize the new customers perspective. the real months if products on customer new to would Maybe you prioritize or

Michael Walrath

Yeah.

little we -- you, more a got color hearing was can some products and that? first around give And on market and provide bit some in the lost -- the question, AI the but of think can Content we're products Chat Marc, it a what of from of I customers Marc Generation. momentum around So, we newer the like

Marc Ferrentino

ways we tangible it's not that leverage just right really hype, what actually story, their companies. Generative they their bring overall inside of been market AI happening special Yeah. helped tangible products, what's I I It's by just of inside AI to really is, now in position, can it's we're AI been amazing for market now. being the what an is not in and a is right that think enterprise, organizations. interest in a overall in do with Generative can are interest What we mean

got in them them understanding has these the how conversations, will lives AI productivity interest can and us that as where maybe teams or what advantage Board. we door. that what the so the lives show an we real, be of the their quickly and given that their turn we're the product. we for us increased maybe in in across do enterprise or seeing show of definitely the And -- But into tactical something then actual something And how initial in enhanced

by our will see across We products. some the leveraging Board of

experience to products. natural is the AI very the And of And set it, set about such spurred is you of it, hypothetical. broader And what's really and though, a it's we The of has customer demonstrable we're the gateway this the of that an imagination entryway product a then have, show And us such side, course the the becomes can this. we're Chat it some captivating when a see we new not in share so lot or a of talking larger it's demonstrable of and can you really platform. a a ultimately a folks products that on of of it's entire to conversation that around sort interest. ton for room the have on

lot And doing we've coming. more there's really a front roadmap. a robust and on a long got that time We've been this for product

energizing -- have customers. we're these So it's with conversations to super

-- and question the the on opportunity. think I above, boomerang the of it's basically focus prioritizing versus about your on customer customers versus upsell new, it's all

focus where week engaged was those had who talked and customers left had felt the been had an just were had like that issue. I in it an one issue our think And with I the things one this only service to the of who customer of been of clear one listings discussions became customers I Interestingly, us. early

consolidate and had three of the open we're I opportunity to years. and This tentatively to somewhat over and last an opportunity respect And we advanced functions with up as opportunity has everything do showed to customer as I the how years but think set been two or think the updated we far listings. solutions, the so updated a as as this products platform few

on full the discussion a boomerang products become initially non-listing platform a a full a be listings. has discussion what around became was And about ultimately platform customer what would

things less on my I'm a built broader focusing together software to what about know underscores, -- broadly inside think, market, and is other services I work doing it shelfware that using systems. of platform own contracts not I our you in that integrated we're of instead business, which it, can and And less with are how well and seeing is I how less be and we're anecdotally so and can have the well talking really it everybody and

but so demand we different all -- to aggressively across we And all categories as pursue as qualified those can. will continue

Rohit Kulkarni

Marc. Great. Mike. Thanks, Thanks,

Operator

Blair. comes [Operator Instructions] Arjun William The Bhatia question from next ahead. with Please go

Christopher Madison

for you. on Thank is This Hi. Chris Arjun.

of Generative before to due how if to wanting long-term larger in what's decisions. first that is purchasing and buyer the was, of kind quickly space the thing down moving obviously, evolving things settle talk so, space very So to AI some much maybe right you about the to let I And bit adoption the or past wait wanted a message barrier? get commitments quickly. customers seen just the general Have is hesitation making

Michael Walrath

Yes.

Marc about this detail. the will talk give you So I'll color.

changed think the keep of we And the market mind enterprise in bolt that elongation, lightning about think that Everyone's that's that was seen. ago, six normal so nine right? being about course, clearly months. in I six months to in the cycles ChatGPT, sort talking I talked

from months started still have to six from three three probably we're So might months getting from cycles the is the the around like that industry of road. deal AI end the in deal the cycle actually Generative

to much, be which to world these is think reluctance willingness left if kind to I in going do it. I things. of has this are and think opine business into so to behind problem, on competitors or really your enterprises the fear And it it's too the you're of going early you dive every use

and regulated that. you to don't going to going you're enough, If be fear embarrassed or and industries like you're mistakes worse things it in make

making platforms. where digital shouldn't are really who going the bit are to experience. to things it consumer-grade modernizing but you And fear a a to refuse paralyze competing focusing really you it's these from because them experience take companies time of have should so how their delivering of a -- thing if on who And Goldilocks your advantage of business, bring use about hard technologies little healthy with companies these a have digital to you

So that's my may stuff. high-level view and specific have customer Marc

Marc Ferrentino

technology. -- expect Yes. I I'm that by There's of new sort technology. in normal backed up we're a is said not right of sort mean fear seeing any of not I'm the anecdotally, not seeing everything this you What is Mike cycle for I'm seeing what that a hesitation. would seeing buying of now. piece market

talking mean, cycles adding of piloting when products, about the like should thoughtful, of something experience changing of of be in for that processes specifically, those they they on to major chat sort your is should experience. were cases, that The you be we're span We digital through channel set types I the phase rest many dominant and a to and normal you're channel line-up. the digital go steps a need

are cases, the technology the this really of of maybe considered, which still seeing new there's before. have previous up quite up think before considered it's that we're is opposite is this cases actually, been chat one use many technology is the new version that would cases opening in never coming is that is cooler use of now that that never parts I So that had been

Michael Walrath

Okay.

you one, Chris? another So have

Christopher Madison

for space? demand as how meet seems how a you AI, bit other kind market? color. and this was, well? much company in hearing really That's one play you of road of even maps you've shifting head surging about strategy we're generally, that you. are product out start evolving of had in kind the thinking internally for that -- Thank Yes talking a One Just of like so helpful quickly about every product you it that Generative nearly to dynamic are we're current seeing to the Are

Michael Walrath

far every a everybody day. whole this this disruption a probably created I to Yes. of curve it's lots seems been map to in up. But of really road around about reprioritize We're have it. internally until have beauty and is think we think having attention at it. of catch have I that, seeing ahead this We're mean, of And companies -- strategies couple their lot generative talked that for that's think the drawing and long terms built now we being to or generative that's less a too quarters we've good ago -- of the never time.

I down that, lets really that the product benefit confident without number keep we've is think heads And break this our prioritization just all of And what well -- the reacting always deliver that we going. customers the significant think, innovation really company us been, every prioritization trying good but been distracted down have good. I our feel and I of years for does -- having to a to around to we're our market we and where mean able want getting product have is we're or having

Marc Ferrentino

Yes.

path that paying ago now. definitely heading few foresight think in this had is the I right we down a years dividends

flows product map orientation road around a ebbs of our our by customer sort needs while. mostly the for of and So driven road map are general. product been in That's

are things will. can that out them are -- of customer help problems that look at with, set set we there then we Let's of that the

and types things quite have models multiple forms map We part AI, some that our AI time. of of have Difficulty] been on different had road generative built different we've of transformer-based [Technical for

radical the to a of hasn't been which change terrific. there is to ways market has lot in lot knee-jerk been of us, sort a coming because So of

Operator

attending has our concludes the question-and-answer presentation. concluded. This session you today's and for now call Thank

You may now disconnect.

Yext (YEXT) 6 Jun 232024 Q1 Earnings call transcript