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Q1 2022 Earnings Conference Call
spk_2: Good day and welcome to the next first quarter fiscal 2022 financial results Conference call. All participants will be in listen only mode. Should you need assistance? Please signal a conference specialist by pressing the Starkey followed by zero after today's presentation. There will be an opportunity to ask questions. Please note this event is being recorded. I would now like to turn the conference over to Dominic Peschel Senior vice president. Please go ahead.
spk_1: Thank you. Gary and good afternoon everyone. Welcome to the next
spk_0: fiscal first Quarter
spk_1: 2022. Conference calls with me today are Ceo and founder Howard Lemon president and chief Revenue officer, David Winnitzki, CFO steve cakebread. Before we begin, I would like to remind everyone that this call may contain forward looking statements including statements about revenue, non gap, net income operating margins, product roadmap, gettin, timing, demand for our products, net dollar retention, capital expenditures and other non historical statements. As further described in our press release, These forward looking statements are subject to certain certain risks, uncertainties and assumptions including those related to yes growth, the evolution of our industry, our product development and success including with answers and general economic and business conditions such as the impact of Covid ninth, the Covid 19 impact. We undertake no obligation to revise any statements to reflect changes that occur after this call, descriptions of these and other risks that could cause actual results. To differ materially from these forward looking statements are discussed in our reports filed with the sec including our most recent quarter and the annual reports and other press release that was issued this afternoon. During the call, we refer to non gap financial measures, reconciliations with the most comparable gap measures are also available in the press release, which is available at investors dot x dot com. With that, I will turn the call over to howard.
spk_0: Thanks tom I am pleased to report. We're kicking off the new fiscal year with a very strong quarter. As the world gets back to business revenue of $92 million exceeded the high end of our guidance by $3 million in non gap GPS exceeded the high end of our guidance by three cents as we continue to reduce our operating costs while increasing our business efficiencies and strength of our cash position. Non gap sales and marketing expenses decreased by 500 basis points as a percentage of revenue from 59% in Q1 last year to 54% this year, driving continued leverage and net cash flow from operations for Q1 was a positive $35 million. Yes, it is in a great position to bring a I search to the enterprise as the world begins to reopen and return to normal. There is a renewed sense of energy here. At next we've opened a number of our offices back up, including our new headquarters in new york city. It's been amazing. Scene teams off zoom and working together in person. The excitement is palpable. We've also expanded our answers platform and have an absolutely incredible product roadmap that will allow us to deliver our ai search solutions everywhere across the enterprise. As we said at investor day, we intend to solve for five specific search use cases, marketing answers, support answers, developer answers, e commerce answers and workplace answers. We continue to lead closing deals with answers. During the first quarter, we closed 69 answers. Lead deals up from 14 a year ago. As we see momentum building With answers, search queries growing in more than 25 million yen is well along its way to becoming a global leader in search and specifically Ai search enterprises are increasingly selecting yes for a I search for three reasons. First, we are natural language and knowledge graph based. Nearly every other search technology is based on legacy index based keyword search and while others serve Blue links, kind of like yahoo or lycos from the 90s, we understand questions and offer a google like experience with answers. And speaking of google, The second reason customers choose the X is because of our Federated architecture for each query, we run multiple algorithms and return multiple sets of results. Think of a google search results page that may contain featured snippets and maps and knowledge cards and more. That's exactly how yes works. And it presents the user with several potential answers that change depending on context. Third reason that customers are choosing yes.