Yext released an overall positive Q2 financial year 2021 earnings report yesterday. And CEO Howard Lerman described overall improved market conditions in Q2 compared with Q1.
Yext grew Q2 revenue by 22% to $88.1 million. The company cut its net loss per share to $0.21 from $0.26 in Q2 2020. The non-GAAP loss was $0.07. The company’s $66.1 million gross profit, up 24% over Q2 2020. The quarter ended on July 31.
Expanding Answers
On yesterday’s earnings call, Lerman said Yext has succeeded through the COVID-19 crisis by focusing on elements within its control.
“We are living in a highly chaotic and unpredictable time. But in Q2, we learned that as a company, we can accomplish great things when we focus on what we can control. First, we’re focused on top-line growth. We reported $88.1 million in revenue, $2 million above the high end of our guidance range.
“And next, we are focused on efficiency and especially sales efficiency. And so we reported a $0.07 non-GAAP loss per share in the quarter, which is a $0.04 beat to the high end of our guidance range. Finally, we’re focused on our mission to help every business and organization around the world deliver official answers every time people search, and we saw 30% of our Enterprise North America new and upsell bookings as Answers led in the Q. We’ve now got over 150 Answers customers live.”
Answers, launched in fall 2019, has been a key focus for Yext. It’s a site search engine designed to keep users on a company’s website versus bouncing off to Google because of a poor site search experience.
“When you give someone a great experience, they come back and we can show that quantitatively. Every customer journey starts with a search. And it’s our vision to make a business’ website, be the first and the last place people look when they have a question about that business. And that’s what the official Answers engine is designed to do to give every company in the world a Google-like experience on their own domain,” Lerman said.
During Q2 the company expanded Answers into four new languages — French, Spanish, Italian, and German.
Improving Sales
Dave Rudnitsky, Executive Vice President, North American Enterprise Sales, was on the call as well and reported that sales conditions improved in Q2. Yext announced that Rudnitsky, along with David Blair, will be promoted to Chief Revenue Officer.
“We’re seeing more customers engaging in, either working on new projects or picking up on temporarily paused projects,” Rudnitsky said. “In Q2, Yext overall closed 114 new and renewal deals with at least $100,000 of total contract value. This includes nine deals with more than $1 million of total contract value. The total number of Yext mid-market and enterprise customers increased 27% year over year to nearly 2,200.”
Other Highlights
Yext cited these other highlights from Q2 2021.
- Its customer count, which excludes our small business and third-party reseller customers, increased 27% year-over-year to nearly 2,200 as of July 31, 2020.
- Structured facts in the Yext Knowledge Graph increased 71% year-over-year to over 385 million as of July 31, 2020. More than one-third of that increase is attributable to a large U.S. cable company, which added a large amount of information this period.
- Yext’s annual recurring revenue (“ARR”) increased 22% year-over-year to $338 million as of July 31, 2020. This is compared to $277 million as of July 31, 2019.
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