Yext, Inc.

Good afternoon and welcome to the Yext Second Quarter Fiscal 2022 Earnings Conference Call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on your telephone keypad. To withdraw your question, please press star then two. Please note, this event is being recorded. I would now like to turn the conference over to Jeff Houston, Vice President of Investor Relations. Please go ahead.

Thank you, Gary, and good afternoon, everyone. Welcome to the Yext Fiscal Second Quarter 2022 Conference Call. With us today is CEO Howard Lerman, President and Chief Revenue Officer David Reneske, CFO Steve Cakebread, and Don Peschel, Senior Vice President. Before we begin, I'd like to remind everyone that this call may contain forward-looking statements, including statements about revenue, non-GAAP net loss, operating cash flows, operating margins, product roadmap and timing, demand for our new 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 risks, uncertainties, and assumptions, including those related to Yext's growth. the evolution of our industry, our product development and success, including answers, and general economic and business conditions, such as the impact of the COVID-19 pandemic. 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 have material difference from these forward-looking statements are discussed in our reports filed with the SEC. including our most recent earnings, quarter, and annual reports, and our press release that was issued this afternoon. During the call, we also refer to non-GAAP financial measures. Reconciliations with those most comparable GAAP measures are also available in the press release, which is available at investors.dex.com. With that, I will turn the call over to Howard. Howard? Thank you, Jeff.

pleased to report we had a solid second quarter. Revenue of $98 million exceeded the high end of our guidance by $2 million, driven by new customers and upsells. Non-GAAP EPS exceeded our guidance by one cent as we continue to increase operating efficiencies while maintaining a strong cash position. And we continue to build momentum with Answers, the cornerstone of our AI search platform. During the second quarter, we closed 70 Answers deals, compared to 38 in Q2 of last year. And we increased the answers average new logo ACV by 19% compared to Q1 of the year. Last quarter, we expanded our platform into customer support with our support answers offering. During the second quarter, support answers drove an upsell to First Citizens Bank and new logo deals with Frontier Communications, First National Bank, and Revlon. Support Answers continues to drive larger deals, and it's helping to expand our relationship with existing customers and unlock opportunities in new industries. In fact, Support Answers has helped our pipeline of digital companies grow beyond our traditional base of customers with many physical locations. We've also won new Support Answers business over legacy search players, Algolia, Coveo, and Lucidworks, proving that our continuous innovation is helping distance Yext from the competition. And to further scale support answers opportunities, we announced an integration with Zendesk. This enables our mutual customers to use Yext and Zendesk together to strengthen their overall customer support offerings. Our integration enables businesses to add an AI-powered search engine to their existing help sites so that customers can more easily get accurate answers to their questions directly from a brand's knowledge graph and By enabling customers to more efficiently self-serve, support answers helps reduce ticket volume and save on operational costs. Naturally, there are issues that require a more hands-on approach, and support answers helps agents with their customer interactions. Yext's AI search directly on a company's internal Zendesk agent help desk. With that, agents can access relevant answers in real time as customers are filling out the details of their issue. This means agents are more empowered and more efficient, reducing friction in the customer experience, which leads to higher customer SAT scores. The Zendesk integration follows our successful collaboration with Adobe, which contributed to the frontier communications win. Most recently, we announced Yext AI Search for Salesforce Service Cloud on the Salesforce AppExchange. Our collaboration brings the best of our platforms together as it enables our mutual clients to augment their existing Salesforce Service Cloud-powered help sites agent consoles, and support forms with support answers. We're excited about this integration with Salesforce as it highlights the large market opportunity that exists for support answers. In addition to scaling our solutions through new product relationships with notable companies like Zendesk and Salesforce, we continue to innovate our platform to unlock more opportunities. Our summer release introduced many cutting-edge features, including an updated data connector framework, enabling businesses to extract their data from multiple new sources and connect it to their knowledge graph. For example, with these connections, UX customers can integrate with their Zendesk account in only about 15 minutes. We built multiple connectors and plan to significantly increase that number by the end of next quarter. In an effort, To make our search results even more powerful, we updated our search algorithm to enable dynamic re-ranking. That means search results will be delivered in order of what users have previously engaged with, since that is a strong indication of preference. We also added semantic search. This serves as pictures and GIFs to the already rich text-based results. And these key enhancements are just a few examples of how we are helping to move the enterprise away from outdated index-based keyword search. to more intelligent, dynamic way of delivering answers to customer questions using natural language and from a knowledge graph. In summary, we navigated the quarter well. I'm proud of our team for their focus and execution. While full global reopening remains difficult to predict, I am confident that Yext will continue to play a critical role in helping businesses accelerate their growth with AI search. Now I'm going to turn the call over to David Reninsky, our President and Chief Revenue Officer to share more quarterly information on the second quarter.