Slides
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June 2025
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Safe Harbor Statement This presentation includes forward-looking statements including, but not limited to, statements regarding our revenue, non-GAAP net income (loss), shares outstanding and Adjusted EBITDA for our second quarter and full year fiscal 2026 and general expectations beyond that fiscal year; statements regarding the expected effects of our acquisitions and integrations of each Hearsay Social, Inc. ("Hearsay") and KabanaSoft, LLC d/b/a Places Scout ("Places Scout"); statements regarding the expected effects and benefits of the new credit facility (the "BlackRock facility"), including our ability to effectively use the capital provided by the BlackRock facility to execute on our long-term strategy; and statements regarding our expectations related to the growth of our company, our market opportunity, product roadmap, including artificial intelligence, sales efficiency efforts and our industry. In some cases, you can identify forward-looking statements by terminology such as "may," "will," "should," "could," "expect," "plan," "anticipate," "believe," "estimate," "predict," "intend," "potential," "might," "would," "continue," or the negative of these terms or other comparable terminology. Actual events or results may differ from those expressed in these forward-looking statements, and these differences may be material and adverse. We have based the forward-looking statements contained in this presentation primarily on our current expectations and projections about future events and trends that we believe may affect our business, financial condition, results of operations, strategy, short-and long-term business operations, prospects, business strategy and financial needs. Our actual results could differ materially from those stated or implied in forward-looking statements due to a number of factors, including, but not limited to, our ability to renew and expand subscriptions with existing customers especially enterprise customers and attract new customers generally; our ability to successfully expand and compete in new geographies and industry verticals; our ability to integrate Hearsay's and Places Scout's businesses with ours; our ability to retain personnel necessary for the success of our acquisition and integration of Hearsay and Places Scout; the quality of our sales pipeline and our ability to convert leads; our ability to expand and scale our sales force; our ability to expand our service and application provider network; our ability to develop or acquire new product and platform offerings to expand our market opportunity; our ability to release new products and updates that are adopted by our customers; our ability to manage our growth effectively; the effects of acquisitions of businesses or products and the related integration; weakened or changing global economic conditions, downturns, or uncertainty, including higher inflation, higher interest rates, and fluctuations or volatility in capital markets or foreign currency exchange rates; and former employees; and the accuracy of the assumptions and estimates underlying our financial projections. Moreover, we operate in a very competitive and rapidly changing environment. New risks and uncertainties emerge from time to time and it is not possible for us to predict all risks and uncertainties that could have an impact on the forward-looking statements contained in this presentation. We cannot assure you that the results, events and circumstances reflected in the forward-looking statements will be achieved or occur, and actual results, events or circumstances could differ materially from those described in the forward-looking statements. All written and oral forward-looking statements attributable to us, or persons acting on our behalf, are expressly qualified in their entirety by these cautionary statements as well as other cautionary statements that are made from time to time in our SEC filings and public communications, including, without limitation, in the sections titled, “Special Note Regarding Forward Looking Statements” and “Risk Factors” in our most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q, which are available at http://investors.yext.com and on the SEC's website at https://www.sec.gov. The forward-looking statements made in this presentation relate only to events as of the date on which such statements are made. We undertake no obligation to update any forward-looking statements after the date hereof or to conform such statements to actual results or revised expectations, except as required by law.
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Yext is the leading built for a world where discovery and engagement Yext is the leading brand visibility platform built for a world where discovery and engagement happen everywhere.
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The Evolution of Search to AI Search
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Looking ahead, content needs to be optimized for humans and AI agents .
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Visibility, Intelligence, and Action — All in One Platform Yext empowers brands with 3 core capabilities: Transparency Get a unified, accurate view of local brand performance benchmarked against local competitors. Insights & Recommendations Know exactly where your brand is underperforming and what actions will have the greatest impact. Actionability Execute recommendations to improve performance, from one integrated platform. Visibility, Intelligence, and Action Yext gives you the visibility to see how your brand is performing, the intelligence to know what’s driving it, and the tools to take action fast — all in one platform.
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June 2025 Financial Overview
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M A R G I N S Non-GAAP Gross Margin Non-GAAP Opex as a % of Revenue Adjusted EBITDA Margin Non-GAAP Operating Margin O T H E R K P I s Gross Retention Net Retention Rule of 40 (TTM) Share Repurchases *Based on 125.7M weighted-average basic shares outstanding as of April 30, 2025. $’s in millions except per share and % data. Adjusted EBITDA, Adjusted EBITDA Margin, Non-GAAP Net Income, Non-GAAP EPS, Non-GAAP Gross Margin, Non-GAAP Opex as a % of Revenue, Non-GAAP Operating Margin, and Free Cash Flow are non-GAAP measures; ARR, Gross Retention and Net Retention are operating metrics; see Appendix for further information, including definitions and reconciliations of GAAP to non-GAAP measures. Rule of 40 includes TTM revenue growth % and Adj. EBITDA margin. T O P L I N E ARR ARR Growth Revenue Revenue Growth B O T T O M L I N E Adjusted EBITDA Non-GAAP Net Income Non-GAAP EPS* Free Cash Flow $446M 15% $109M 14% $25M $17M $0.13 $37M 79% 59% 23% 20% 87% 95% 27% $28M Q1 FY26 Performance
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Enhancing ARR Growth ARR as presented includes usage and is an operating metric. Prior to Q4 FY25, we defined ARR to exclude usage as disclosed in filings through Q3 FY25. Refer to the Appendix for current and legacy definitions of ARR.
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Improving Net Retention Rate *NRR prior to Q4 FY24 is based on our legacy methodology which excludes usage. Refer to the Appendix for current and legacy definitions of NRR.
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Improving Revenue Performance
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Producing Opex Efficiency See Appendix for reconciliations of GAAP to non-GAAP measures. Numbers rounded for presentation purposes and may not sum.
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*Represents the midpoint of our Adj. EBITDA guidance range of $103 - $105M as of June 3, 2025. **Q1 FY26 Adjusted EBITDA Margin. Adjusted EBITDA and Adjusted EBITDA Margin are non-GAAP measures; see Appendix for definitions and reconciliations of GAAP to non-GAAP measures. Driving Profitable Growth
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Progress Towards Rule of 40 Adj. EBITDA margin is a non-GAAP measure; see Appendix for definition and reconciliation of GAAP to non-GAAP measure. Rule of 40 includes TTM revenue growth % and Adj. EBITDA margin.
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Guidance Projected Q2 FY’26* $111.0 to $111.5 $24.5 to $25.0 $0.12 to $0.13 124.4 23.5% Projected FY’26* $103.0 to $105.0 $0.52 to $0.54 126.1 23.5% *As of June 3, 2025 **Adjusted EBITDA and Non-GAAP net income per share are non-GAAP measures. We have not reconciled these forward-looking measures to their most directly comparable GAAP financial measures of net income (loss) and net income (loss) per share. Information on which this reconciliation would be based on is not available without unreasonable efforts due to the uncertainty and inherent difficulty of predicting within a reasonable range, the timing, occurrence and financial impact of when such items may be recognized. Revenue ($ millions) Adjusted EBITDA** ($ millions) Non-GAAP net income per share** Weighted-average basic shares outstanding (millions) Non-GAAP tax rate
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Capital Allocation Framework ● Fund internal R&D priorities and go-to-market initiatives ● Accelerate innovation and product roadmap through strategic M&A ○ Hearsay, Places Scout ● Optimize cost of capital through prudent use of debt ○ $200 million BlackRock secured debt facility announced in May ○ $100 million funded at close ● Repurchase shares to manage dilution and on an opportunistic basis ○ $146 million of share repurchases* since fiscal year 2023 ○ Continued repurchase activity in May 2025 totaled 1.2 million shares * As of April 30, 2025.
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Appendix
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In addition to disclosing financial measures prepared in accordance with U.S. generally accepted accounting principles ("GAAP"), this presentation and the accompanying tables include non-GAAP cost of revenue, non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses (sales and marketing, research and development, general and administrative), non-GAAP operating expenses (sales and marketing, research and development, general and administrative) as a percentage of revenue, non-GAAP income (loss) from operations, non-GAAP operating margin, non-GAAP net income (loss), non-GAAP net income (loss) per share, and non-GAAP net income (loss) as a percentage of revenue, which are referred to as non-GAAP financial measures. These non-GAAP financial measures are not calculated in accordance with GAAP as they have been adjusted to exclude the effects of stock-based compensation expenses, acquisition-related costs, and amortization of acquired intangibles. Acquisition-related costs include transaction and related costs, subsequent fair value movements in contingent consideration, and compensation arrangements. Non-GAAP gross margin, non-GAAP operating expenses (sales and marketing, research and development, general and administrative) as a percentage of revenue, non-GAAP operating margin, and non-GAAP net income (loss) as a percentage of revenue are calculated by dividing the applicable non-GAAP financial measure by revenue. Non-GAAP net income (loss) per share is defined as non-GAAP net income (loss) on a per share basis. We define non-GAAP net income (loss) per share, basic, as non-GAAP net income (loss) divided by weighted average shares outstanding and non-GAAP net income (loss) per share, diluted, as non-GAAP net income (loss) divided by weighted average diluted shares outstanding, which includes the potentially dilutive effect of shares using the treasury stock method or the if-converted method depending on the arrangement. Beginning in fiscal 2026, we are utilizing a projected tax rate of 23.5% in our computation of the non-GAAP income tax provision, which was updated from 25% in fiscal year 2025. Our estimated tax rate on non-GAAP income is determined annually and may be adjusted during the year to take into account events or trends that we believe materially impact the estimated annual rate including, but not limited to, significant changes resulting from tax legislation, material changes in the geographic mix of revenue and expenses and other significant events. Our estimated tax rate on non-GAAP income may differ from our GAAP tax rate and from our actual tax liabilities. We believe these non-GAAP financial measures provide investors and other users of our financial information consistency and comparability with our past financial performance and facilitate period-to-period comparisons of our results of operations. With respect to non-GAAP gross margin, non-GAAP operating expenses (sales and marketing, research and development, general and administrative) as a percentage of revenue, non-GAAP operating margin and non-GAAP net income (loss) as a percentage of revenue, we believe these non-GAAP financial measures are useful in evaluating our profitability relative to the amount of revenue generated, excluding the impact of stock-based compensation expense, acquisition-related costs, and amortization of acquired intangibles. We also believe non-GAAP financial measures are useful in evaluating our operating performance compared to that of other companies in our industry, as these metrics eliminate the effects of stock-based compensation and certain acquisition-related costs, which may vary for reasons unrelated to overall operating performance. We also discuss Adjusted EBITDA and Adjusted EBITDA margin, non-GAAP financial measures that we believe offer a useful view of overall operations used to assess the performance of core business operations and for planning purposes. We define Adjusted EBITDA as GAAP net income (loss) before (1) interest income (expense), net, (2) benefit from (provision for) income taxes, (3) depreciation and amortization, (4) other income (expense), net, (5) stock-based compensation expense, and (6) acquisition-related costs. The most directly comparable GAAP financial measure to Adjusted EBITDA is GAAP net income (loss). Users should consider the limitations of using Adjusted EBITDA, including the fact that this measure does not provide a complete measure of our operating performance. Adjusted EBITDA is not intended to purport to be an alternate to GAAP net income (loss) as a measure of operating performance. Adjusted EBITDA margin is calculated by dividing Adjusted EBITDA by revenue. Non-GAAP Measurements
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In addition, we present non-GAAP constant currency measures of revenue. Constant currency as it relates to revenue provides a framework for assessing Company performance which excludes the effect of foreign currency rate fluctuations. Current period results for entities reporting in currencies other than U.S. Dollars (“USD”) are converted into USD at the average monthly exchange rates in effect during the comparative period, as opposed to the average monthly exchange rates in effect during the current period. We also present free cash flow, which is a non-GAAP measure defined as net cash provided by (used in) operating activities, less cash used for purchases of capital expenditures, inclusive of capitalized software development costs. Free cash flow margin is calculated as free cash flow divided by total revenue. We believe this is meaningful to investors because it is a measure of liquidity that provides useful information in understanding and evaluating the strength of our liquidity and future ability to generate cash that can be used for strategic opportunities or investing in our business. We also discuss future free cash flow conversion rates, which we calculate as free cash flow divided by Adjusted EBITDA. We use these non-GAAP financial measures in conjunction with traditional GAAP measures as part of our overall assessment of our performance, including the preparation of our annual operating budget and quarterly forecasts, and to evaluate the effectiveness of our business strategies. Our definition may differ from the definitions used by other companies and therefore comparability may be limited. In addition, other companies may not publish these or similar metrics. Thus, our non-GAAP financial measures should be considered in addition to, not as a substitute for, nor superior to or in isolation from, measures prepared in accordance with GAAP. These non-GAAP financial measures may be limited in their usefulness because they do not present the full economic effect of our use of stock-based compensation and certain acquisition-related costs. We compensate for these limitations by providing investors and other users of our financial information a reconciliation of the non-GAAP financial measure to the most closely related GAAP financial measures. However, we have not reconciled the non-GAAP guidance measures disclosed under "Financial Outlook" to their corresponding GAAP measures because certain reconciling items such as stock-based compensation, certain acquisition-related costs, and the corresponding provision for income taxes depend on factors such as the stock price at the time of award of future grants, and certain purchase accounting adjustments including subsequent measurements, among others, and thus cannot be reasonably predicted. Accordingly, reconciliations to the non-GAAP guidance measures is not available without unreasonable effort. We encourage investors and others to review our financial information in its entirety, not to rely on any single financial measure and to view non-GAAP net income (loss) and non-GAAP net income (loss) per share in conjunction with GAAP net income (loss) and net income (loss) per share. We have not reconciled our forward-looking Adjusted EBITDA to its most directly comparable GAAP financial measure of net income (loss). Information on which this reconciliation would be based on is not available without unreasonable efforts due to the uncertainty and inherent difficulty of predicting within a reasonable range, the timing, occurrence and financial impact of when such items may be recognized. In particular, Adjusted EBITDA excludes certain items including interest income (expense), net, provision for income taxes, depreciation and amortization, other income (expense), net, stock-based compensation expense, and acquisition-related costs. Non-GAAP Measurements
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This presentation also includes certain operating metrics that we believe are useful in providing additional information in assessing the overall performance of our business. Annual recurring revenue, or ARR, for Direct customers is defined as the annualized recurring amount of all contracts in our enterprise, mid-size and small business customer base as of the last day of the reporting period. The recurring amount of a contract is determined based upon the terms of a contract and is calculated by dividing the amount of a contract by the term of the contract and then annualizing such amount. The calculation assumes no subsequent changes to the existing subscription. Contracts include portions of professional services contracts that are recurring in nature. ARR for Third-party Reseller customers is defined as the annualized recurring amount of all contracts with Third-party Reseller customers as of the last day of the reporting period. The recurring amount of a contract is determined based upon the terms of a contract and is calculated by dividing the amount of a contract by the term of the contract and then annualizing such amount. The calculation assumes no subsequent changes to the existing subscription. The calculation includes the annualized contractual minimum commitment and amounts related to usage above the contractual minimum commitment. Contracts include portions of professional services contracts that are recurring in nature. Total ARR is defined as the annualized recurring amount of all contracts executed as of the last day of the reporting period. The recurring amount of a contract is determined based upon the terms of a contract and is calculated by dividing the amount of a contract by the term of the contract and then annualizing such amount. The calculation assumes no subsequent changes to the existing subscription, and where relevant, includes the annualized contractual minimum commitment and amounts related to usage above the contractual minimum commitment. Contracts include portions of professional services contracts that are recurring in nature. We calculate usage by annualizing monthly amounts in excess of contractual minimum commitments in the current month. ARR is independent of historical revenue, unearned revenue, remaining performance obligations or any other GAAP financial measure over any period. It should be considered in addition to, not as a substitute for, nor superior to or in isolation from, these measures and other measures prepared in accordance with GAAP. We believe ARR-based metrics provides insight into the performance of our recurring revenue business model while mitigating fluctuations in billing and contract terms. Dollar-based net retention rate, or net retention or NRR, is a metric we use to assess our ability to retain our customers and expand the ARR they generate for us. We calculate NRR by first determining the ARR generated 12 months prior to the end of the current period for a cohort of customers who had active contracts at that time. We then calculate ARR from the same cohort of customers at the end of the current period, which includes customer expansion, contraction and churn. The current period ARR is then divided by the prior period ARR to arrive at NRR. Any ARR obtained through merger and acquisition transactions does not affect the dollar-based net retention rate until one year from the date on which the transaction closed. The cohorts of customers that we present NRR for include direct, third-party reseller, and total customers. Direct customers include enterprise, mid-size and small business customers. We also present dollar-based gross retention rate, or gross retention or GRR, which is a metric we use to assess our ability to retain our customers. We calculate dollar-based gross retention rate by first determining the ARR generated 12 months prior to the end of the current period for a cohort of customers who had active contracts at that time. We then calculate ARR from the same cohort of customers at the end of the current period, which includes customer contraction and churn, and excludes customer expansion. The current period ARR is then divided by the prior period ARR to arrive at our dollar-based gross retention rate. Operating Metrics
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Condensed Consolidated Balance Sheets Assets April 30, 2025 January 31, 2025 Current assets: Cash and cash equivalents $ 114,994 $ 123,133 Restricted cash, current 17,021 9,671 Accounts receivable, net of allowances of $1,966 and $2,014, respectively 71,464 112,942 Prepaid expenses and other current assets 23,113 18,094 Costs to obtain revenue contracts, current 20,386 21,961 Total current assets 246,978 285,801 Property and equipment, net 37,871 39,689 Operating lease right-of-use assets 65,903 67,452 Restricted cash, non-current — 5,850 Costs to obtain revenue contracts, non-current 10,185 11,145 Goodwill 110,667 96,782 Intangible assets, net 97,250 94,247 Other long term assets 3,502 9,112 Total assets $ 572,356 $ 610,078 In thousands, except share and per share data; Unaudited
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Condensed Consolidated Balance Sheets Liabilities and stockholders’ equity April 30, 2025 January 31, 2025 Current liabilities: Accounts payable, accrued expenses and other current liabilities $ 72,364 $ 70,022 Unearned revenue, current 210,695 229,144 Operating lease liabilities, current 18,869 18,604 Contingent consideration, current 25,313 26,944 Total current liabilities 327,241 344,714 Operating lease liabilities, non-current 73,902 76,809 Contingent consideration, non-current 21,787 18,056 Other long term liabilities 7,401 17,306 Total liabilities 430,331 456,885 Commitments and contingencies Stockholders’ equity: Preferred stock, $0.001 par value per share; 50,000,000 shares authorized at April 30, 2025 and January 31, 2025; zero shares issued and outstanding at April 30, 2025 and January 31, 2025 — — Common stock, $0.001 par value per share; 500,000,000 shares authorized at April 30, 2025 and January 31, 2025; 153,957,539 and 153,017,243 shares issued at April 30, 2025 and January 31, 2025, respectively; 123,466,124 and 126,999,461 shares outstanding at April 30, 2025 and January 31, 2025, respectively 154 153 Additional paid-in capital 1,009,084 996,477 Accumulated other comprehensive loss (2,686) (5,969) Accumulated deficit (706,350) (707,120) Treasury stock, at cost (158,177) (130,348) Total stockholders’ equity 142,025 153,193 Total liabilities and stockholders’ equity $ 572,356 $ 610,078 In thousands, except share and per share data; Unaudited
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Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) Three months ended April 30, 2025 2024 Revenue $ 109,483 $ 95,990 Cost of revenue 27,105 21,546 Gross profit 82,378 74,444 Operating expenses: Sales and marketing 36,209 43,254 Research and development 21,896 17,059 General and administrative 23,155 19,557 Total operating expenses 81,260 79,870 Income (loss) from operations 1,118 (5,426) Interest income 632 2,360 Interest expense (642) (392) Other expense, net (355) (138) Income (loss) from operations before income taxes 753 (3,596) Benefit from (provision for) income taxes 17 (221) Net income (loss) $ 770 $ (3,817) Net income (loss) per share attributable to common stockholders, basic and diluted $ 0.01 $ (0.03) Weighted-average number of shares used in computing net income (loss) per share attributable to common stockholders, basic 125,651,595 125,387,162 Weighted-average number of shares used in computing net income (loss) per share attributable to common stockholders, diluted 131,272,117 125,387,162 Other comprehensive income (loss): Foreign currency translation adjustment $ 3,283 $ (417) Unrealized loss on marketable securities, net — (8) Total comprehensive income (loss) $ 4,053 $ (4,242) In thousands, except share and per share data; Unaudited
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Three months ended April 30, 2025 2024 Operating activities: Net income (loss) $ 770 $ (3,817) Adjustments to reconcile net income (loss) to net cash provided by operating activities: Depreciation and amortization expense 6,855 2,963 Bad debt expense 286 28 Stock-based compensation expense 12,659 12,065 Amortization of operating lease right-of-use assets 2,315 2,110 Adjustments to contingent consideration 1,800 — Other, net 432 366 Changes in operating assets and liabilities, net of assets acquired and liabilities assumed in business acquisitions: Accounts receivable 43,140 54,316 Prepaid expenses and other current assets (4,985) (660) Costs to obtain revenue contracts 3,234 4,270 Other long term assets 5,863 80 Accounts payable, accrued expenses and other current liabilities 834 (4,028) Unearned revenue (21,688) (26,697) Operating lease liabilities (3,509) (2,847) Other long term liabilities (10,281) 160 Net cash provided by operating activities 37,725 38,309 Condensed Consolidated Statements of Cash Flows In thousands; Unaudited
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Condensed Consolidated Statements of Cash Flows Three months ended April 30, 2025 2024 Investing activities: Capital expenditures (562) (647) Cash paid in acquisitions, net of cash acquired (18,801) — Net cash used in investing activities (19,363) (647) Financing activities: Proceeds from exercise of stock options 118 283 Repurchase of common stock (27,635) — Payments for taxes related to net share settlement of stock-based compensation awards (2,137) (2,039) Payments of deferred financing costs (59) (338) Proceeds, net from employee stock purchase plan withholdings 690 920 Net cash used in financing activities (29,023) (1,174) Effect of exchange rate changes on cash, cash equivalents and restricted cash 4,022 (558) Net (decrease) increase in cash, cash equivalents and restricted cash (6,639) 35,930 Cash, cash equivalents and restricted cash at beginning of period 138,654 210,184 Cash, cash equivalents and restricted cash at end of period $ 132,015 $ 246,114 Supplemental reconciliation of cash, cash equivalents and restricted cash reported within the condensed consolidated balance sheets: Three months ended April 30, 2025 2024 Cash and cash equivalents $ 114,994 $ 246,114 Restricted cash, current and non-current 17,021 — Total cash, cash equivalents and restricted cash $ 132,015 $ 246,114 In thousands; Unaudited
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Note: Numbers rounded for presentation purposes and may not sum. Reconciliation of GAAP to Non-GAAP Financial Measures In thousands; Unaudited Three months ended April 30, 2025 2024 GAAP net income (loss) to Adjusted EBITDA: GAAP net income (loss) $ 770 $ (3,817) Interest expense (income), net 10 (1,968) (Benefit from) provision for income taxes (17) 221 Depreciation and amortization 6,855 2,963 Other expense (income), net 355 138 Stock-based compensation expense 12,659 12,065 Acquisition-related costs 4,048 — Adjusted EBITDA $ 24,680 $ 9,602 GAAP net income (loss) as a percentage of revenue 0.7 % (4.0) % Adjusted EBITDA margin 22.5 % 10.0 %
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Three months ended April 30, 2025 2024 Cost of revenue GAAP cost of revenue $ 27,105 $ 21,546 Less: Stock-based compensation expense (671) (688) Less: Acquisition-related costs (527) — Less: Amortization of acquired intangibles (2,447) — Non-GAAP cost of revenue $ 23,460 $ 20,858 GAAP cost of revenue as a % of revenue 25 % 22 % Non-GAAP cost of revenue as a % of revenue 21 % 22 % Sales and marketing GAAP sales and marketing $ 36,209 $ 43,254 Less: Stock-based compensation expense (2,411) (2,751) Less: Acquisition-related costs (497) — Less: Amortization of acquired intangibles (1,694) — Non-GAAP sales and marketing $ 31,607 $ 40,503 GAAP sales and marketing as a % of revenue 33 % 45 % Non-GAAP sales and marketing as a % of revenue 29 % 42 % Reconciliation of GAAP to Non-GAAP Financial Measures In thousands; Unaudited Note: Numbers rounded for presentation purposes and may not sum.
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Three months ended April 30, 2025 2024 Research and development GAAP research and development $ 21,896 $ 17,059 Less: Stock-based compensation expense (3,134) (2,783) Less: Acquisition-related costs (688) — Non-GAAP research and development $ 18,074 $ 14,276 GAAP research and development as a % of revenue 20 % 18 % Non-GAAP research and development as a % of revenue 17 % 15 % General and administrative GAAP general and administrative $ 23,155 $ 19,557 Less: Stock-based compensation expense (6,443) (5,843) Less: Acquisition-related costs (2,336) — Non-GAAP general and administrative $ 14,376 $ 13,714 GAAP general and administrative as a % of revenue 21 % 20 % Non-GAAP general and administrative as a % of revenue 13 % 14 % Reconciliation of GAAP to Non-GAAP Financial Measures In thousands; Unaudited Note: Numbers rounded for presentation purposes and may not sum.
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Three months ended April 30, 2025 2024 Gross profit GAAP gross profit $ 82,378 $ 74,444 Plus: Stock-based compensation expense 671 688 Plus: Acquisition-related costs 527 — Plus: Amortization of acquired intangibles 2,447 — Non-GAAP gross profit $ 86,023 $ 75,132 GAAP gross margin 75.2 % 77.6 % Non-GAAP gross margin 78.6 % 78.3 % Operating expenses GAAP operating expenses $ 81,260 $ 79,870 Less: Stock-based compensation expense (11,988) (11,377) Less: Acquisition-related costs (3,521) — Less: Amortization of acquired intangibles (1,694) — Non-GAAP operating expenses $ 64,057 $ 68,493 GAAP operating expenses as a percentage of revenue 74 % 83 % Non-GAAP operating expenses as a percentage of revenue 59 % 71 % Income/Loss from operations GAAP income (loss) from operations $ 1,118 $ (5,426) Plus: Stock-based compensation expense 12,659 12,065 Plus: Acquisition-related costs 4,048 — Plus: Amortization of acquired intangibles 4,141 — Non-GAAP income from operations $ 21,966 $ 6,639 GAAP operating margin 1 % (6) % Non-GAAP operating margin 20 % 7 % Reconciliation of GAAP to Non-GAAP Financial Measures In thousands; Unaudited Note: Numbers rounded for presentation purposes and may not sum.
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Three months ended April 30, 2025 2024 GAAP net income (loss) $ 770 $ (3,817) Plus: Stock-based compensation expense 12,659 12,065 Plus: Acquisition-related costs 4,048 — Plus: Amortization of acquired intangibles 4,141 — Less: Tax adjustment(1) (5,093) (1,896) Non-GAAP net income $ 16,525 $ 6,352 GAAP net income (loss) as a percentage of revenue 0.7 % (4.0) % Non-GAAP net income as a percentage of revenue 15.1 % 6.6 % GAAP net income (loss) per share attributable to common stockholders, basic $ 0.01 $ (0.03) Non-GAAP net income per share attributable to common stockholders, basic $ 0.13 $ 0.05 GAAP net income (loss) per share attributable to common stockholders, diluted $ 0.01 $ (0.03) Non-GAAP net income per share attributable to common stockholders, diluted $ 0.12 $ 0.05 Weighted-average number of shares used in computing GAAP net income (loss) per share attributable to common stockholders Basic 125,651,595 125,387,162 Diluted 131,272,117 125,387,162 Weighted-average number of shares used in computing non-GAAP net income per share attributable to common stockholders Basic 125,651,595 125,387,162 Diluted(2) 133,407,752 126,451,154 (1) For fiscal year 2026 we utilize a projected tax rate of 23.5% in our computation of the non-GAAP income tax provision. (2) For the three months ended April 30, 2025, includes the dilutive effect of the earnout arrangement. Reconciliation of GAAP to Non-GAAP Financial Measures In thousands; Unaudited Note: Numbers rounded for presentation purposes and may not sum.
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Three months ended April 30, 2025 2024 Growth Rates Constant Currency Revenue Revenue (GAAP) $ 109,483 $ 95,990 14 % Effects of foreign currency rate fluctuations (533) Revenue on a constant currency basis (Non-GAAP) $ 108,950 14 % Reconciliation of GAAP to Non-GAAP Financial Measures In thousands; Unaudited Note: Numbers rounded for presentation purposes and may not sum. Three months ended April 30, 2025 2024 Free Cash Flow Net cash provided by operating activities $ 37,725 $ 38,309 Less: Capital expenditures inclusive of capitalized software development costs (562) (647) Free cash flow $ 37,163 $ 37,662 Operating cash flow margin 34 % 40 % Free cash flow margin 34 % 39 %
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Supplemental Information April 30, Variance 2025 2024 Dollars Percent Annual Recurring Revenue Direct Customers $ 371,851 $ 312,060 $ 59,791 19 % Third-Party Reseller Customers 74,618 75,218 (600) (1) % Total Annual Recurring Revenue $ 446,469 $ 387,278 $ 59,191 15 % Apr. 30, 2025 Jan. 31, 2025 Oct. 31, 2024 Jul. 31, 2024 Apr. 30, 2024 Annual Recurring Revenue Trend Direct Customers $ 371,851 $ 368,201 $ 374,502 $ 313,392 $ 312,060 Third-Party Reseller Customers 74,618 74,461 74,147 73,904 75,218 Total Annual Recurring Revenue $ 446,469 $ 442,662 $ 448,649 $ 387,296 $ 387,278 The following tables provides our ARR for the periods presented: In thousands; Unaudited Note: Numbers rounded for presentation purposes and may not sum.
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Supplemental Information The following table provides our dollar-based net retention rate for the periods presented: In thousands; Unaudited Note: Numbers rounded for presentation purposes and may not sum. Apr. 30, 2025 Jan. 31, 2025 Oct. 31, 2024 Jul. 31, 2024 Apr. 30, 2024 Dollar-Based Net Retention Rate Direct Customers 95% 92% 91% 91% 91% Third-Party Reseller Customers 96% 95% 94% 93% 92% Total Customers 95% 93% 92% 91% 91% Apr. 30, 2025 Jan. 31, 2025 Oct. 31, 2024 Jul. 31, 2024 Apr. 30, 2024 Dollar-Based Gross Retention Rate Direct Customers 87% 86% 83% 83% 83% Third-Party Reseller Customers 88% 87% 87% 88% 86% Total Customers 87% 86% 84% 84% 83% The following table provides our dollar-based gross retention rate for the periods presented: