Yext, Inc. (NYSE: YEXT) stock is trading in green today, rising over 11.3% on June 1st, 2018 driven by the better than expected first quarter of 2019 performance.
The group’s Revenue rose 38% during the first quarter last year, which was better than the high-end of their guidance for the quarter. Gross margins rose 100 basis points in the first quarter of last year to 75% while license count continues to grow at about 50% on a year-over-year basis. These results shows growing Yext brand performance. The group has been adding their sales capacity, particularly at the enterprise level, to leverage their growing momentum over the past year.
The group also won more than 60 new enterprise logos, including leading brands like Wendy’s Telefonica Germany, Nordstrom’s and 21st Century Oncology, and also a leading automakers in the world. They signed renewals with several current customers like Rite Aid, like Volvo, University Health System, one of the largest insurance providers in the United States, as well as one of the largest specialty retailers in the United States etc
Rising AI-powered services shows information about them has got to be discoverable by the consumer as a structured answer at that exact minute of intent which is in turn creating opportunity to the group. The target industry for Yext looks lucrative and as per Kleiner Perkins’ recent Internet trends report, over the past three years, Google has seen 900% increase in queries using the term near me on mobile phones.
Meanwhile, the group’s Deferred revenue rose 46% against pcp to $83.9 million. During the quarter, they closed a couple of large deals with shorter billing terms. While their standard agreements are for annual terms paid upfront, some deals had been annual deferred upfront, wherein the group would have grown 50% range and more in line as compared to their historical performance
Since the past year, more than 10.6 million attributes have been added to the group’s platform, or nearly 30,000 on average each day, and this is a rise of over 53% year-over-year. In licenses to Yext’s digital knowledge platform, rising over 49% as compared to last year.