Yext, Inc. (YEXT): history, ownership, mission, how it works & makes money

A Brief History of Yext, Inc. (YEXT)

Founding and Early Years

Yext, Inc. was founded in 2006 by Howard Lerman, Brian Distelburger, and John D. McGowan. The company initially focused on being a directory service for local businesses, helping them manage their online presence across various directories and search engines.

Initial Funding

In 2009, Yext raised $10 million in Series B funding led by Accel Partners. This initial investment was pivotal in facilitating their growth and product development.

Product Expansion

By 2012, Yext had expanded its product offerings, launching Yext PowerListings, a service that allowed businesses to manage their listings on over 50 different directories and platforms simultaneously.

Growth and Market Position

In 2015, Yext announced it had raised $50 million in Series F funding, bringing its total funding to over $100 million. By this time, the company had established itself as a leader in digital knowledge management.

IPO and Financials

Yext went public on April 12, 2017, trading under the ticker symbol YEXT. The IPO raised approximately $116 million, with an initial stock price of $11 per share.

Recent Developments

As of the fiscal year ending January 31, 2023, Yext reported revenues of $440.6 million, an increase compared to $407.9 million in the prior year.

Stock Performance

As of October 2023, Yext’s stock price is approximately $7.50. The market capitalization stands at around $1 billion.

Customer Base

Yext serves more than 200,000 businesses, including notable clients like Marriott, Domino's, and Yelp. The company focuses on providing comprehensive solutions for managing brand visibility and customer engagement.

Strategic Partnerships

Yext has formed strategic partnerships with various technology companies, including:

• Google
• Facebook
• Amazon Alexa
• Apple Maps

Future Initiatives

Yext is continually investing in artificial intelligence and machine learning to enhance its platform's capabilities. Focus areas include improving local search functionalities and automating knowledge management processes.

A Who Owns Yext, Inc. (YEXT)

Ownership Structure

As of the latest data, Yext, Inc. (YEXT) has various stakeholders including institutional investors, insiders, and retail investors. The ownership distribution is as follows:

Major Shareholders

The following table outlines some of the major shareholders of Yext, Inc. as of the most recent filings:

Recent Changes in Ownership

In the past fiscal year, there have been notable transactions concerning Yext's shares:

• Institutional ownership increased by 3.2%.
• Insider ownership decreased slightly following the exercise of stock options.
• Retail investor ownership saw a rise due to increased market participation.

Stock Performance and Market Capitalization

As of the latest trading data, Yext, Inc. has shown the following financial metrics:

Future Projections

Analysts have provided the following forecasts for Yext, Inc.:

• Projected revenue growth for the upcoming fiscal year: 15%.
• Expected earnings per share (EPS) growth: 10% year-over-year.
• Analyst price target range: $9.00 - $11.00.

Yext, Inc. (YEXT) Mission Statement

Core Mission

The mission of Yext, Inc. is to empower companies to provide accurate information about their brands across all digital platforms. Yext focuses on ensuring that its clients can be found, engaged with, and trusted by consumers in an increasingly digital world.

Key Objectives

• Enable businesses to manage their digital knowledge efficiently.
• Ensure consistency of information across various platforms and channels.
• Drive customer engagement through accurate brand representation.
• Support local businesses in enhancing their online presence.

Financial Overview

As of fiscal year 2023, Yext reported the following financial figures:

Market Position

Yext operates primarily in the digital knowledge management market, which is projected to grow at a CAGR of 18% from 2021 to 2027, reaching a total market size of approximately $12 billion by 2027. As of now, Yext holds more than 10,000 global customers.

Product Offering

The main product offerings include:

• Yext Knowledge Graph
• Yext Listings
• Yext Reviews
• Yext Answers
• Yext Pages

Recent Milestones

In 2023, Yext achieved significant growth milestones:

• Introduced 3 major product updates.
• Expanded its partner ecosystem to include over 200 partners.
• Opened new offices in Europe, expanding its global footprint.

Customer Engagement Metrics

Strategic Goals

Yext's strategic goals for the next few years include:

• Enhancing product capabilities through AI and machine learning.
• Increasing market share within local SEO and knowledge management.
• Expanding partnerships with major platforms and services.
• Improving customer support and service delivery.

Vision for the Future

Yext envisions a future where businesses seamlessly integrate their digital presence with their overall marketing strategies, driving growth and customer satisfaction. The focus remains on innovation, reliability, and enhancing user experience.

How Yext, Inc. (YEXT) Works

Business Model

Yext, Inc. operates as a digital knowledge management platform that focuses on helping businesses manage their brand information across various online platforms. The company’s primary revenue streams include:

• Subscription services
• Professional services
• Other ancillary revenue streams

Financial Performance

For the fiscal year ending January 31, 2023, Yext reported the following financial metrics:

Key Services

Yext provides several key services that aid businesses in managing their online presence:

• Knowledge Graph: Centralizes information to control brand messaging.
• Yext Listings: Ensures accurate information across search engines and directories.
• Yext Answers: Provides a search experience that allows businesses to answer customer queries effectively.
• Yext Reviews: Manages and analyzes customer reviews and feedback.

Market Position

As of 2023, Yext holds a significant position in the digital knowledge management market. Key statistics include:

Competitive Landscape

Yext competes with various companies in the digital marketing and knowledge management sector, including:

• Google My Business
• BrightLocal
• Moz Local
• HubSpot

Recent Developments

In 2023, Yext introduced several enhancements to its platform to improve functionality, including:

• AI-driven insights for better customer engagement
• Enhanced integration capabilities with third-party applications
• Expansion of service offerings to include visual search technologies

Future Prospects

The company's growth strategy focuses on:

• Geographic expansion into emerging markets
• Investing in artificial intelligence and machine learning
• Increasing partnerships with tech firms and agencies

Conclusion

Yext, Inc. continues to evolve its offerings in response to market demands and customer needs, leveraging its technology to maintain a competitive edge.

How Yext, Inc. (YEXT) Makes Money

Subscription Revenue

Yext generates a majority of its revenue through subscription services that enable businesses to manage their digital knowledge across various platforms. For the fiscal year 2023, Yext reported subscription revenue of approximately $398 million.

Products and Services

The company offers a range of products, including:

• Yext Listings
• Yext Pages
• Yext Answers
• Yext Reviews
• Yext Knowledge Graph

In FY 2023, Yext’s Listings product accounted for roughly $220 million of total revenue.

Customer Segmentation

Yext serves various industries, such as:

• Healthcare
• Retail
• Hospitality
• Financial Services
• Education

As of Q2 2023, Yext had over 40,000 customers worldwide, including large enterprises and small businesses.

Average Revenue Per User (ARPU)

Yext reported an increase in ARPU to approximately $1,080 for the fiscal year 2023, demonstrating higher value derived from existing customers.

International Expansion

In FY 2023, Yext generated about $60 million from international markets, reflecting its strategy to enhance global reach.

Financial Performance Overview

Cost Structure

Yext’s major expense categories include:

• Research and Development
• Sales and Marketing
• General and Administrative

In FY 2023, Yext reported total costs and expenses of approximately $443 million.

Market Position and Competition

Yext operates in a competitive landscape, facing rivals such as:

• Google My Business
• Moz
• BrightLocal
• SEMrush

The company holds a significant portion of the market share in the digital knowledge management sector, although precise figures vary.

Growth Strategies

Yext is focused on:

• Product innovation
• Acquisition of complementary technologies
• Expanding its sales team
• Enhancing customer support

These efforts aim to drive customer retention and acquisition as well as overall revenue growth.

Recent Developments

In 2023, Yext launched several new features aimed at improving user experience, including:

• AI-powered search capabilities
• Enhanced analytics for clients
• Integration with third-party software

These innovations are designed to increase customer engagement and satisfaction.