Yext, Inc.

Good afternoon, and welcome to the Yext, Inc. Third Quarter Fiscal 2025 Financial Results 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 Nils Erdmann, Senior Vice President, Investor Relations. Please go ahead.

Thank you, Operator, and good afternoon, everyone. Welcome to Yext's third quarter fiscal 2025 earnings conference call. With me today are CEO and Chair of the Board, Mike Walrath, and CFO, Daryl Bond. During this call, we will make forward-looking statements, including statements related to our future financial performance, statements regarding the expected effects of our acquisition and integration of hearsay systems, expectations regarding the growth of our business, our outlook for the fourth quarter and full year fiscal 2025, our strategy and estimates of financial and operating metrics, capital expenditures, and other indications of future opportunities, as further described in our third quarter shareholder letter. 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, our ability to integrate hearsay systems business with ours, our management performance, and general economic and business conditions. These forward-looking statements represent our beliefs and assumptions only as of the date made, and we undertake no obligation to revise or update any statements to reflect changes that occur after this call. Further information on factors and other risks that could cause actual results to materially differ from these forward-looking statements is included in our reports filed with the SEC, including in the sections titled Special Note Regarding Forward-Looking Statements and Risk Factors, and our most recent quarterly report on Form 10-Q for the three and nine months ended October 31st, 2024, and our earnings release and our shareholder letter that were issued this afternoon. During the call, we also refer to certain metrics, including non-GAAP financial measures, Reconciliations with the most comparable historical gap measures are available in the shareholder letter, which is available at investors.yext.com. We also provide definitions of these metrics in the shareholder letter. I will now turn the call over to Mikey.

Good afternoon. Thank you all for joining us today. Our quarterly shareholder letter has been posted to our investor relations site. I hope you've all had a chance to read it. Before we jump into Q&A, I'd like to emphasize a few points from the letter. We're pleased with our results for Q3. Our revenue grew 13% year over year with the inclusion of hearsay systems. The core Yext business is very stable, and we're seeing growth contribution from hearsay. The selling environment appears to have stabilized in the second half of the year, and we're seeing early signs of the extreme cost optimization moderating. We're seeing the early phases of a fragmenting search environment driven by generative AI search experiences. We believe this environment is positive for Yext. as brands will need to lean into the best ways to structure their content and data and deliver it to a much broader set of consumer search and find experiences. I am pleased with our operating results. We're a much more efficient business today. And while there is still opportunity to continue to improve our margin profile, we are increasingly focused on accelerating growth. None of this would be possible without the commitment and efforts of our global team. And I'd like to take a moment to thank them for their ongoing contributions here. Now we'd like to open it up for questions.