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What changed in Yext, Inc.'s 10-K — 2022 vs 2023

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Paragraph-level year-over-year comparison of Yext, Inc.'s 2022 and 2023 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2023 report.

+395 added−381 removedSource: 10-K (2023-03-17) vs 10-K (2022-03-18)

Top changes in Yext, Inc.'s 2023 10-K

395 paragraphs added · 381 removed · 290 edited across 5 sections

Item 1. Business

Business — how the company describes what it does

56 edited+13 added−12 removed49 unchanged
Biggest changeYext’s integrations through its App Directory offer our customers the ability to connect Yext with other systems to enable customers to accomplish key tasks including the following: • powering chatbots with data stored in the Knowledge Graph; • joining insights from Yext with other platforms to perform deeper business analysis; • optimize marketing campaigns with location data stored in the Knowledge Graph; and • optimize scheduling and appointment bookings.
Biggest changeYext’s integrations through its App Directory and Connectors framework offer our customers the ability to connect Yext with other systems to enable customers to accomplish some or all of the following key tasks: • consolidate content from different systems into the Knowledge Graph • sync content from the Knowledge Graph to various systems and applications • power chatbots; • join insights from Yext with other platforms to perform deeper business analysis; • optimize marketing campaigns; and • optimize scheduling, appointment bookings, and other specific tasks.
Answers delivers a natural-language search experience on a company’s website and other digital properties, where consumers can search a company’s Knowledge Graph and get direct answers in the form of knowledge cards, maps and other relevant results. Our platform contains various other features.
Search delivers a natural-language search experience on a company’s website and other digital properties, where consumers can search a company’s Knowledge Graph and get direct answers in the form of knowledge cards, maps and other relevant results. Our platform contains various other features.
Poor search experience on a business’s own website may result in lost sales opportunities or may cause consumers to visit a competitor’s website. 6 Consumer Reviews Are of Critical Importance. Many major applications include consumer review data in their search results and may rank businesses and professional service providers based on the number, quality and recency of reviews.
Poor search experience on a business’s own website may result in lost sales opportunities or may cause consumers to visit a competitor’s website. Consumer Reviews Are of Critical Importance. Many major applications include consumer review data in their search results and may rank businesses and professional service providers based on the number, quality and recency of reviews.
Our platform's advanced analytics inform businesses about their digital public presence and consumer interactions on their Yext Listing, Pages and Answers experiences that can drive customer revenue. • Reduced Support Costs. We have tailored our products and features to resolve a customer’s specific search needs such as support search on both internal and external platforms.
Our platform's advanced analytics inform businesses about their digital public presence and consumer interactions on their Yext Listing, Pages and Search experiences that can drive customer revenue. • Reduced Support Costs. We have tailored our products and features to resolve a customer’s specific search needs such as support search on both internal and external platforms.
However, there can be no assurance that our patent applications will be approved, that any patents issued will adequately protect our intellectual property, or that such patents will not be challenged by third parties or found by a judicial authority to be invalid or unenforceable. 10 Trademarks We rely on registered and unregistered trademarks to protect our brand.
However, there can be no assurance that our patent applications will be approved, that any patents issued will adequately protect our intellectual property, or that such patents will not be challenged by third parties or found by a judicial authority to be invalid or unenforceable. Trademarks We rely on registered and unregistered trademarks to protect our brand.
The Yext Platform Yext's cloud-based platform powers products and features that allow our customers to provide accurate and direct answers to consumer questions, to control the facts about their businesses and the content of their landing pages and to manage their consumer reviews, all from a single login.
The Answers Platform Yext's cloud-based platform powers products and features that allow our customers to provide accurate and direct answers to consumer questions, to control the facts about their businesses and the content of their landing pages and to manage their consumer reviews, all from a single login.
By providing accurate and direct answers to questions and guiding consumers to transact directly from search results, we believe businesses are able to capture, convert and retain more of their customers. • Create and Manage Compelling Landing Pages for Consumers at Scale.
By providing accurate and direct answers to questions and guiding consumers to transact directly from search results, we believe businesses are able to capture, convert and retain more of their customers. 7 • Create and Manage Compelling Landing Pages for Consumers at Scale.
A limited number of reviews or a few poor reviews without offsetting positive reviews may result in an otherwise lower search ranking in certain applications. Growth Strategy Key elements of our strategy include: • Grow Our Customer Base.
A limited number of reviews or a few poor reviews without offsetting positive reviews may result in an otherwise lower search ranking in certain applications. 6 Growth Strategy Key elements of our strategy include: • Grow Our Customer Base.
With structured data stored in the Knowledge Graph coupled with the applications in our Knowledge Network, our customers provide search engines and voice assistants with the data they need to answer questions about their businesses.
With structured data stored in the Knowledge Graph coupled with the applications in our Publisher Network, our customers provide search engines and voice assistants with the data they need to answer questions about their businesses.
For example, we rely on integrations with each of the applications in our Knowledge Network to accomplish some or all of the following key tasks with members of our Knowledge Network: • search for existing listings and retrieve details about them, in order to match our customers’ data in the Knowledge Graph to existing listing data; • claim listings and deliver updated content; • retrieve or get notified about reviews and allow review response; and • obtain statistics about traffic on listings to display to our customers in the platform.
For example, we rely on integrations with each of the applications in our Publisher Network to accomplish some or all the following key tasks: • search for existing listings and retrieve details about them, in order to match our customers’ data in the Knowledge Graph to existing listing data; • claim listings and deliver updated content; • retrieve or get notified about reviews and allow review response; and • obtain statistics about traffic on listings to display to our customers in the platform.
Analytics provides businesses a holistic view of where and how consumers interact with their brand both on their own websites and on third-party applications as well as insight into consumer interactions on their Yext Listing, Pages and Answers experiences that can drive customer revenue. Ultimately, our platform helps businesses deliver accurate, consistent, up to date and compelling information to consumers.
Analytics provides businesses a holistic view of where and how consumers interact with their brand both on their own websites and on third-party applications as well as insight into consumer interactions on their Yext Listing, Pages and Search experiences that can drive customer revenue. Ultimately, our platform helps businesses deliver accurate, consistent, up to date and compelling information to consumers.
Pages enables businesses to create landing pages on their website to capture traffic from search engines and establish a call-to-action for consumers who reach those pages. • Answers .
Pages enables businesses to create landing pages on their website to capture traffic from search engines and establish a call-to-action for consumers who reach those pages. • Search .
As the Yext platform can be used by a number of different roles throughout the organization, for an additional fee, we also offer field user support which includes one-on-one training, review of content based on brand guidelines, and other support services. 9 Professional Services We offer professional services to customize our platform for our customers.
As the Answers platform can be used by a number of different roles throughout the organization, for an additional fee, we also offer field user support which includes one-on-one training, review of content based on brand guidelines, and other support services. 9 Professional Services We offer professional services to customize our platform for our customers.
The issued patents have expiration dates ranging from 2032 to 2039. Although we actively attempt to utilize patents to protect our technologies, we believe that none of our patents, individually or in the aggregate, are material to our business. We will continue to file and prosecute patent applications when appropriate to attempt to protect our rights in our proprietary technologies.
The issued patents have expiration dates ranging from 2032 to 2047. Although we actively attempt to utilize patents to protect our technologies, we believe that none of our patents, individually or in the aggregate, are material to our business. We will continue to file and prosecute patent applications when appropriate to attempt to protect our rights in our proprietary technologies.
The SEC also maintains a website at http://www.sec.gov that contains our SEC filings. None of the information contained on, or that can be accessed through, our website, our investor relations website or the SEC's website is part of this Form 10-K nor is such information incorporated by reference herein. 12
The SEC also maintains a website at http://www.sec.gov that contains our SEC filings. None of the information contained on, or that can be accessed through, our website, our investor relations website or the SEC's website is part of this Annual Report on Form 10-K nor is such information incorporated by reference herein. 12
We believe that we generally compete favorably with our competitors because of the size and breadth of our integrations and relationships with the applications in our Knowledge Network, the features and performance of our platform, the ease of integration of our platform with the technological infrastructures of our customers and the incremental marketing benefits and return on investment that our various products and features offer to our customers.
We believe that we generally compete favorably with our competitors because of the size and breadth of our integrations and relationships with the applications in our Publisher Network, the features and performance of our platform, the ease of integration of our platform with the technological infrastructures of our customers and the incremental marketing benefits and return on investment that our various products and features offer to our customers.
Our platform is the system of record that enables our customers to control and centralize the facts about their businesses, resulting in the elimination of inaccurate and duplicate data and the ability to seamlessly update data across our Knowledge Network. • Flexibility for Optimized Management of Business Attributes.
Our platform is the system of record that enables our customers to control and centralize the facts about their businesses, resulting in the elimination of inaccurate and duplicate data and the ability to seamlessly update data across our Publisher Network. • Flexibility for Optimized Management of Business Attributes.
With the introduction of natural language processing and the growing prevalence of voice assistants and chatbots, search has become more conversational.
With natural language processing and the growing prevalence of voice assistants and chatbots, search has become more conversational.
Our customers can then use information from the Knowledge Graph to answer consumers' questions, to power and update their landing pages and to make this information available through our Knowledge Network of approximately 200 maps, apps, search engines, intelligent GPS systems, digital assistants, vertical directories and social networks in a complete, up to date and accurate manner.
Our customers can then use information from the Knowledge Graph to answer consumers' questions, to power and update their landing pages and to make this information available through our Publisher Network of over 200 maps, apps, search engines, intelligent GPS systems, digital assistants, vertical directories and social networks in a complete, up to date and accurate manner.
Reviews enables customers to encourage and facilitate reviews, thereby increasing the quantity and quality of the reviews available to potential consumers and provides tools to manage their reviews from multiple sources across our Knowledge Network from a single location.
Reviews enables customers to encourage and facilitate reviews, thereby increasing the quantity and quality of the reviews available to potential consumers and provides tools to manage their reviews from multiple sources across our Publisher Network from a single location.
No single customer accounted for more than 10% of our revenue for the fiscal years ended January 31, 2022, 2021 and 2020, respectively. Customer Support Our customer support group responds to inquiries about the use of our products.
No single customer accounted for more than 10% of our revenue for the fiscal years ended January 31, 2023, 2022 and 2021, respectively. Customer Support Our customer support group responds to inquiries about the use of our products.
Yext Reviews helps our customers to gather additional genuine consumer reviews and add those reviews to a customer's website as well as monitor and respond to reviews posted across the Knowledge Network. • Ability to Perform Advanced Analytics.
Yext Reviews helps our customers to gather additional genuine consumer reviews and add those reviews to a customer's website as well as monitor and respond to reviews posted across the Publisher Network. • Ability to Perform Advanced Analytics.
To support our employees in the fiscal year ended January 31, 2022 and to promote their health and safety, our offices are open on a voluntary basis in accordance with guidance provided by government agencies, although currently the majority of our employees are still working remotely. While we continue to hold virtual events, we have also resumed in-person marketing events.
To support our employees in the fiscal year ended January 31, 2023 and to promote their health and safety, our offices are open on a voluntary basis in accordance with guidance provided by government agencies, although currently many of our employees are still working remotely. While we continue to hold virtual events, we have also resumed in-person marketing events.
Over the years, we have developed special integrations with a number of the applications in our Knowledge Network and App Directory. We have also worked with the major application providers to develop trust and strong working relationships, resulting in specific operational workflows, processes for issue resolution, and specialized technology and processes tailored to the nuances of each.
Over the years, we have developed special integrations with a number of the applications in our Publisher Network, App Directory, and Connectors framework. We have also worked with the major application providers to develop trust and strong working relationships, resulting in specific operational workflows, processes for issue resolution, and specialized technology and processes tailored to the nuances of each.
As we develop our platform, we will introduce products and features that compete in new markets and as a result we will face more established businesses in these markets. For example, Answers, our search product was launched in 2019 and competes with more established search products and legacy search features.
As we develop our platform, we will introduce products and features that compete in new markets and as a result we will face more established businesses in these markets. For example, Search, previously known as Answers, was launched in 2019 and competes with more established search products and legacy search features.
Our platform is built to leverage the structured data stored in the Knowledge Graph to deliver a modern search experience on a business’s or organization’s own website, as well as across approximately 200 service and application providers, which we refer to as our Knowledge Network, and includes Amazon Alexa, Apple Maps, Bing, Cortana, Facebook, Google, Google Assistant, Google Maps, Siri and Yelp.
Our platform is built to leverage the structured data stored in the Knowledge Graph to deliver a modern search experience on a business’s or organization’s own website, as well as across over 200 service and application providers, which we refer to as our Publisher Network, previously referred to as our Knowledge Network, and includes Amazon Alexa, Apple Maps, Bing, Cortana, Facebook, Google, Google Assistant, Google Maps, Siri and Yelp.
When potential consumers reached through those efforts want to make a purchase, businesses need to be able to answer consumers' questions accurately and directly. Inaccurate or incomplete information may result in lost sales opportunities, negative brand experiences and organizational inefficiencies. Search Drives Commerce.
When potential consumers want to make a purchase, businesses need to be able to answer consumers' questions accurately and directly. Inaccurate or incomplete information may result in lost sales opportunities, negative brand experiences and organizational inefficiencies. Search Drives Commerce.
Poor Search Experience Results in Lost Transactions. While consumer online search behavior has changed, we believe the search experience on many businesses' websites has not evolved to meet consumer expectations. Many searches on a business’s website are unable to understand natural language queries and instead return a list of links based on keywords rather than direct answers.
While consumer online search behavior has changed, we believe the search experience on many businesses' websites has not evolved to meet consumer expectations. Many searches on a business’s website are unable to understand natural language queries and instead return a list of links based on keywords rather than direct answers.
The key products and features that comprise the Yext platform include: • Listings . Listings allows our customers to sync and update the content they store in the Yext platform across our Knowledge Network providing customers with greater control and consistency over their brand. • Pages .
The key products and features that comprise the Answers platform include: • Listings . Listings allows our customers to sync and update the content they store in the Answers platform across our Publisher Network providing customers with greater control and consistency over their brand. • Pages .
Our platform powers all of our key features, including Listings, Pages, and Answers, along with its other features and capabilities. We believe a business is the ultimate authority on its own facts, and it is our mission to put that business in control of it, everywhere. The online consumer journey is changing.
Our platform powers all of our key features, including Listings, Pages, and Search, along with its other features and capabilities. We believe a business is the ultimate authority on its own facts, and it is our mission to put that business in control of it, everywhere. The online consumer journey continues to change.
Our platform, coupled with our Knowledge Network of approximately 200 maps, apps, search engines, intelligent GPS systems, digital assistants, vertical directories and social networks, provides our customers with the ability to update their information and content across this network with a single click. 7 • Increased Discoverability and Conversions.
Our platform, coupled with our Publisher Network of over 200 maps, apps, search engines, intelligent GPS systems, digital assistants, vertical directories and social networks, provides our customers with the ability to update their information and content across this network with a single click. • Increased Discoverability and Conversions.
As of January 31, 2022, we had 149 trademarks registered globally. “Yext” is a registered trademark in the United States and in certain other countries. Competition The market for our platform is new and rapidly evolving, and we face many competitors with a variety of product offerings.
As of January 31, 2023, we had 170 trademarks registered globally. “Yext” is a registered trademark in the United States and in certain other countries. 10 Competition The market for our platform is new and rapidly evolving, and we face many competitors with a variety of product offerings.
We provided two weeks of emergency family leave for employees to take care of a child or parent due to COVID-19 disruptions. As of January 31, 2022, we had over 1,400 full-time employees, the majority of whom are based in our New York headquarters.
We provided two weeks of emergency family leave for employees to take care of a child or parent due to COVID-19 disruptions. As of January 31, 2023, we had approximately 1,200 full-time employees, the majority of whom are based in our New York headquarters.
For example, some businesses may initially purchase our platform only for their stores in a particular country with opportunities to expand to other stores in the geographic region. We continue to sell additional features, such as Pages, Reviews and Answers, to existing customers.
For example, some businesses may initially purchase our Listings product for their stores in a particular country with opportunities to expand to other stores in the geographic region. We continue to sell additional features of our platform, such as Pages, Reviews and Search, to existing customers.
We are increasing our focus on adding more industry vertical-specific and international services to our Knowledge Network as well as including new services that may become more commonly used in the future • Expand Integrations. Yext offers integrations with a number of other platforms accessible through the Yext App Directory.
We continue to focus on adding more industry vertical-specific and international services to our Publisher Network as well as including new services that may become more commonly used in the future. • Expand Integrations. Yext offers integrations with a number of other platforms through the Yext App Directory and Yext Connectors framework.
In transactions with resellers, we are only a party to the transaction with the reseller and are not a party to the reseller’s transaction with its customer. We are also developing programs comprised of technology companies and consultants to promote the Yext platform to their customers.
In transactions with resellers, we are only a party to the transaction with the reseller and are not a party to the reseller’s transaction with its customer. We continue to develop programs comprised of technology companies and consultants to promote the Answers platform to their customers.
See "—Sales and Marketing" for a discussion of customer retention and our ability to expand customer relationships. • Expand Internationally. We sell our platform throughout the world and believe there are substantial opportunities to increase sales to customers outside of the United States as well as to help our existing U.S.-based customers manage data for more of their international business.
We sell our platform throughout the world and believe there are substantial opportunities to increase sales to customers outside of the United States as well as to help our existing U.S.-based customers manage data for more of their international business.
For smaller application providers, we have developed our own application programming interface, or API specifications that each provider builds and implements for integration with our platform. Our Customers We serve businesses with locations throughout the world. These include many leading businesses in a diverse set of industries, such as healthcare, retail and financial services.
For smaller application providers, we have developed our own API specifications that can be used to build and implement integration with our platform. Our Customers We serve businesses with locations throughout the world. These include many leading businesses in a diverse set of industries, such as healthcare, retail and financial services.
Patents and Patent Applications As of January 31, 2022, we had fifteen issued U.S. patents, one issued national stage patent, nineteen non-provisional and three provisional U.S. patent applications, two U.S. design patent applications, six international Patent Cooperation Treaty patent applications pending, and sixteen national stage applications outside of the U.S.
Patents and Patent Applications As of January 31, 2023, we had 17 issued U.S. patents, five issued design patents, one issued national stage patent, 25 non-provisional, two U.S. design patent applications, three international design applications, 10 international Patent Cooperation Treaty patent applications pending, and 21 national stage applications outside of the U.S.
We have an established presence in the United Kingdom, Germany, France, Italy, the Netherlands, Spain, Switzerland and Japan and we intend to further expand our footprint to other regions. • Develop and Market New Products and Features.
We have an established presence in the United Kingdom, Germany, France, Italy, the Netherlands, Spain, Switzerland and Japan and we intend to continue to grow our business in those locations, while exploring additional opportunities for expansion in other regions. • Develop and Market New Products and Features.
For this purpose, we define a customer as a separate and distinct buying entity, such as a company, a government institution, a franchisor, a service provider or agency or a distinct business unit of a large corporation that has an active contract directly with us.
For this purpose, we define a customer as a separate and distinct entity, such as a company, a government institution, or a business unit of a large corporation, that has its own separate contract with us to access our platform.
We refer to these locations, persons, and other entities collectively as “licenses.” Our packages start with basic access to the Knowledge Graph and successively include access to additional capabilities at a higher cost.
We refer to these locations, persons, and other entities collectively as “licenses.” Our packages start with basic access to the Knowledge Graph and successively include access to additional capabilities at a higher cost. We offer our enterprise and mid-size customers the option to purchase our products separately, in addition to packages with pricing based on licenses as well as capacity.
We continue to invest in platform and features development to help our customers better control the facts about their business and have released new products and features to all of our customers multiple times a year. 8 Our Technology Our cloud-based platform is designed to scale as we continue to add customers and allows us to support the entities managed with our platform and the millions of associated facts.
We continue to invest in platform and features development to help our customers better control the facts about their business and have released new products and features to all of our customers multiple times a year.
Item 1. Business Overview Yext, Inc. (“Yext” or the “Company”) organizes a business’s facts so it can provide official answers to consumer questions starting with the business's own website and then extending across search engines and voice assistants. Our platform lets businesses structure the facts about their brands in a database called the Knowledge Graph.
Item 1. Business Overview Yext, Inc. (“Yext” or the “Company”) organizes a business’s facts so it can deliver relevant, actionable answers to consumer questions throughout the digital ecosystem. Our platform lets businesses structure the facts about their brands in a database called the Knowledge Graph.
The platform is built primarily with industry-standard open source technology. We use a microservices-based architecture to maximize the manageability, flexibility and scalability of our software as it continues to grow more complex. We also employ a modern continuous delivery approach to building, testing and deploying our software.
We use a microservices-based architecture to maximize the manageability, flexibility and scalability of our software as it continues to grow more complex. We also employ a modern continuous delivery approach to building, testing and deploying our software. 8 Hosting The majority of our customer-facing software is run from two co-location data centers.
We are committed to developing and marketing innovative capabilities and we will continue to invest in our platform and develop products and features to help our customers better control the facts about their businesses online.
We are committed to developing and marketing innovative capabilities, and we will continue to invest in our platform to help our customers better control the facts about their businesses online. • Drive Usage of Our Platform. Our customer success professionals are responsible for building relationships and increasing our customers' adoption of the Answers platform.
Hosting The majority of our customer-facing software is run from two co-location data centers. To provide the highest level of up-time and lowest latency for our platform capabilities, key high-volume services are hosted by third-party hosting services, which allows easier and greater scalability and provides for redundancy.
To provide the highest level of up-time and lowest latency for our platform capabilities, key high-volume services are hosted by third-party hosting services, which allows easier and greater scalability and provides for redundancy. Data Structure The Answers platform allows customers to collect, store and manage structured data, consistent with standards published by schema.org.
We may make additional changes to our sales approach as we update our strategy. We offer annual and multi-year subscriptions to our platform. Revenue is a function of the number of customers, the number of licenses or capacity purchased by each customer, the package to which each customer subscribes, the price of the package and renewal rates.
Revenue is a function of the number of customers, the number of licenses or capacity purchased by each customer, the package to which each customer subscribes, the price of the package and renewal rates.
Traditional methods for managing facts about brands include paper or legacy software-based solutions, such as word processors or spreadsheets. Simply managing and updating information within the few core search engines, such as Google and Bing, through these traditional methods is already very challenging, and becomes even more so when implementing updates on newer services such as Instagram, Snapchat and Uber.
Simply managing and updating information within the few core search engines, such as Google and Bing, through these traditional methods is already very challenging, and becomes even more so when implementing updates on an increasing number of other services such as Instagram, Snapchat and Uber. Poor Search Experience Results in Lost Transactions.
In addition, other companies may offer products and services at lower price points than us or that compete with some of the features present in our platform. For example certain local marketing and reputation management companies offer one or more products that manage location information across search platforms or facilitate monitoring and responding to reviews.
For example, certain local marketing and reputation management companies offer one or more products that manage location information across search platforms or facilitate monitoring and responding to reviews.
Integrations with our Knowledge Network and App Directory The functionality of our platform is dependent on integrations with a variety of third-party technologies that comprise our Knowledge Network and App Directory.
We actively monitor and track the schema.org standards so that our platform stores and publishes data in accordance with the most current schema.org specifications. Integrations with our Publisher Network, and App Directory, and Connectors framework The functionality of our platform is dependent on integrations with a variety of third-party technologies that comprise our Publisher Network, App Directory, and Connectors framework.
Data Structure The Yext platform allows customers to collect, store and manage structured data, consistent with standards published by schema.org. Schema.org is an open and collaborative initiative launched by certain large search engines that defines the vocabulary and format for structured markup.
Schema.org is an open and collaborative initiative launched by certain large search engines that defines the vocabulary and format for structured markup. Search engines like Google and Bing consume data through structured markup placed in the underlying code of web pages.
Key Benefits of Our Platform The Yext platform provides the following benefits depending on a customer’s subscription level and enabled products and features: • Control over Facts.
The continued expansion of the Yext App Directory and Yext Connectors framework will give organizations additional flexibility to support new and varied use cases, growing our market opportunity and further increasing customer retention. Key Benefits of Our Platform The Answers platform provides the following benefits depending on a customer’s subscription level and enabled product features: • Control over Facts.
Our sales organization varies by market within each country and will change over time as we build critical mass and address various verticals within a market. Our quota-carrying sales representatives were approximately 225 and approximately 250 at January 31, 2022 and January 31, 2021, respectively. In connection with our recent management changes, we reduced such headcount by approximately 35 representatives.
Our sales organization varies by market within each country and will change over time as we build critical mass and address various verticals within a market. We may make changes to our sales approach as we update our strategy. We offer annual and multi-year subscriptions to our platform.
You can access our website at www.yext.com and our investor relations website at http://investors.yext.com. Our telephone number is (212) 994-3900.
You can access our website at www.yext.com and our investor relations website at http://investors.yext.com. We webcast via our investor relations website our earnings calls and certain events we participate in or host with members of the investment community.
Upward, our rotational program, offers analysts early in their careers the opportunity to rotate through three functional areas to gain an understanding not only of how our platform and systems work, but also how our customers interact with our products. In addition, we conduct an annual employee survey to gauge employee engagement and identify areas of focus.
In addition, we conduct an annual employee survey to gauge employee engagement and identify areas of focus.
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Recent Developments On March 7, 2022, Howard Lerman notified our Board of Directors of his intention to step down from his position as Chief Executive Officer of the Company effective March 25, 2022. Michael Walrath, the Chairman of the Board of Directors, will succeed Mr.
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Organizational Changes We undertook a substantial management and strategic realignment in our fiscal year ended January 31, 2023. On March 25, 2022, Howard Lerman, our co-founder and former Chief Executive Officer, and Steven Cakebread, our former Chief Financial Officer, departed the Company. Michael Walrath, Chairman of our Board of Directors, succeeded Mr. Lerman as Chief Executive Officer.
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Lerman as Chief Executive Officer, principal executive officer and principal operating officer of the Company, effective March 25, 2022. On March 7, 2022, Steven Cakebread notified our Board of Directors of his intention to step down from his position as Chief Financial Officer of the Company effective March 25, 2022.
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Darryl Bond, then the Company’s Executive Vice President and Chief Accounting Officer, succeeded Mr. Cakebread as Chief Financial Officer. Concurrently with these changes, Marc Ferrentino, then our Chief Strategy Officer, was named as President and Chief Operating Officer. Additionally, on June 7, 2022, David Rudnitsky, then our Chief Revenue Officer, resigned from Yext.
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Darryl Bond, the Company’s Executive Vice President and Chief 5 Accounting Officer, will succeed Mr. Cakebread as Chief Financial Officer and principal financial officer of the Company, effective March 25, 2022. Mr. Bond will continue to serve as the Company’s Chief Accounting Officer.
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Brian Distelburger, head of the Company’s international and partner sales and a co-founder of our company, served as interim Chief 5 Revenue Officer until we hired Tom Nielsen as our Chief Revenue Officer in October 2022. Mr. Distelburger stepped back as an executive officer of our business at such time. Mr.
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On March 7, 2022, the Board also appointed Marc Ferrentino, the Company’s Chief Strategy Officer, as President and Chief Operating Officer of the Company. In connection with the changes in our senior management, our Board of Directors and new management anticipate certain additional changes to our strategy and personnel that have not yet been determined.
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Distelburger further announced in March 2023 that he would be stepping back as an employee as well although he will continue to serve on our Board of Directors. As a result, we have undergone a significant evolution of our strategy and leadership in the past year, and our results and plans reflect those changes.
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In the fiscal year ended January 31, 2022, we tailored our products and features for various use cases so that our platform could be deployed more quickly to resolve a customer’s specific search needs such as support search on both internal and external platforms. • Drive Usage of Our Platform.
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Traditional methods for managing facts about brands include paper or legacy software-based solutions, such as word processors or spreadsheets.
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Our customer success professionals are responsible for building relationships with customers, increasing customer’s adoption and engagement with the Yext platform. Our Hitchhikers program, a comprehensive training program and community for professionals, helps our customers and the developer community develop skills to build custom search solutions for their business using our platform. • Extend the Knowledge Network.
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See "Sales and Marketing" for a discussion of customer retention and our ability to expand customer relationships. • Expand Our International Business.
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We plan to continue to expand our Knowledge Network. In the fiscal year ended January 31, 2022 our Knowledge Network is comprised of approximately 200 applications.
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Our comprehensive training program and community helps our customers and the developer community develop skills to build custom solutions on our platform. • Extend the Publisher Network. We plan to continue to expand our Publisher Network. As of January 31, 2023, our Publisher Network was comprised of over 200 applications.
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These integrations offer our customers the ability to connect Yext with other systems to give customers programmatic control of their organization’s facts. As the number of integrations in the Yext App Directory grows, we believe that it will further expand the ways that our platform can be utilized and increase customer retention.
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These integrations offer our customers the ability to connect Yext with other systems. The App Directory includes integrations with third-party applications that can supplement our existing platform capabilities. The Connectors framework provides organizations with pre-built or custom integrations that can be used to pull content into the Yext Knowledge Graph.
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For example, in the fiscal year ended January 31, 2022, we launched integrations with Salesforce and Zendesk enabling mutual customers to implement Yext's search experience on help centers as well as support agent's workspaces and decrease case creation by recommending related content within the case submission form.
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During the fiscal year ended January 31, 2023, we added several new integrations to the App Directory and Connectors framework, including Freshworks, Outreach, Snowflake and WordPress, amongst others. We also made significant updates to many of our existing integrations.
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Search engines like Google and Bing consume data through structured markup placed in the underlying code of web pages. We actively monitor and track the schema.org standards so that our platform stores and publishes data in accordance with the most current schema.org specifications.
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Our Technology Our cloud-based platform is designed to scale as we continue to add customers and allows us to support the entities managed with our platform and the millions of associated facts. The platform is built primarily with industry-standard open source technology.
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More recently we have offered our enterprise and mid-size customers the option to purchase our products separately, in addition to packages, with pricing based on licenses as well as capacity. Our marketing efforts are focused on promoting our brand and generating demand for our products.
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Our marketing efforts are focused on driving brand awareness and generating demand for our products. We use a variety of marketing programs across traditional and emerging channels to reach our target audiences. Our primary marketing activities include campaigns, paid media, thought leadership content, communications, and Yext-led third-party events.
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We use a variety of marketing programs across traditional and social channels to target our prospective and current customers. Our primary marketing activities include integrated marketing campaigns, sponsorships of leading industry conferences, and thought leadership such as webinars, whitepapers and blog posts.
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Businesses may also attempt to use in-house resources to develop their own solutions for some or all of the features that our platform provides. In addition, other companies may offer products and services at lower price points than us or that compete with some of the features present in our platform.

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Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

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Biggest changeRisks Related to Our Business and Industry • Our revenue growth rate in recent periods may not be indicative of our future performance. • We have a history of losses and may not achieve profitability in the future. • The effects of the COVID-19 pandemic have had and are expected to continue to have an adverse effect on our business, operations and financial results as well as the business and operations of our customers and potential customers. • Because we recognize revenue from subscriptions for our platform over the term of the subscription, downturns or upturns in new business may not be immediately reflected in our operating results. • We have a limited operating history and our business has evolved, which makes it difficult to predict our future operating results. • We have experienced rapid growth and significant changes to our organization and structure and may not be able to effectively manage such growth. • Failure to adequately scale our sales force will impede our growth. • We have expanded and intend to continue to expand our international operations, which exposes us to significant risks. • Our growth depends in part on the success of our strategic relationships with existing and prospective Knowledge Network application providers. • We do not have a long history with our pricing models and changes could adversely affect our operating results. • Our success depends on a fragmented internet environment for finding information, particularly information about businesses. • Our platform faces competition in the marketplace.
Biggest changeRisks Related to Our Business and Industry • Our revenue growth rate has slowed in recent periods. • We have a history of losses and may not achieve profitability in the future. • Adverse economic conditions including inflation or reduced technology spending may adversely impact our business. • Because we recognize revenue from subscriptions for our platform over the term of the subscription, downturns or upturns in new business may not be immediately reflected in our operating results. • We have a limited operating history and our business has evolved, which makes it difficult to predict our future operating results. • We have experienced significant changes to our organization and structure and may not be able to effectively manage such changes. • Failure to adequately manage our sales force will impede our growth. • We have expanded our international operations, which exposes us to significant risks. • Our growth depends in part on the success of our strategic relationships with existing and prospective Publisher Network application providers. • Changes in our pricing models could adversely affect our operating results. • Our success depends on a fragmented internet environment for finding information, particularly information about businesses. • Our platform faces competition in the marketplace.
Risks Related to Information Technology, Intellectual Property, and Data Security • A security breach, network attack or information security incident could delay or interrupt service to our customers, result in the unauthorized access to, or use, modification or publishing of customer content or other information, harm our reputation or subject us to significant liability. 13 • Assertions by third parties of infringement or other violations by us of their intellectual property rights could result in significant costs and harm our business and operating results. • We could incur substantial costs in protecting or defending our intellectual property rights, and any failure to protect our intellectual property could adversely affect our business, results of operations and financial condition. • Our platform utilizes open source software, and any failure to comply with the terms of one or more of these open source licenses could negatively affect our business. • We employ third-party licensed software for use in or with our platform, and the inability to maintain these licenses or errors in the software we license could result in increased costs, or reduced service levels, which could adversely affect our business. • The reliability of our network and support infrastructure will be critical to our success.
Risks Related to Information Technology, Intellectual Property, and Data Security • A security breach, network attack or security incident could delay or interrupt service to our customers, result in the unauthorized access to, or use, modification or publishing of customer content or other information, harm our reputation or subject us to significant liability. • Assertions by third parties of infringement or other violations by us of their intellectual property rights could result in significant costs and harm our business and operating results. • We could incur substantial costs in protecting or defending our intellectual property rights, and any failure to protect our intellectual property could adversely affect our business, results of operations and financial condition. 13 • Our platform utilizes open source software, and any failure to comply with the terms of one or more of these open source licenses could negatively affect our business. • We employ third-party licensed software for use in or with our platform, and the inability to maintain these licenses or errors in the software we license could result in increased costs, or reduced service levels, which could adversely affect our business. • The reliability of our network and support infrastructure will be critical to our success.
Risks Related to Information Technology, Intellectual Property, and Data Security A security breach, network attack or information security incident could delay or interrupt service to our customers, result in the unauthorized access to, or use, modification or publishing of customer content or other information, harm our reputation or subject us to significant liability.
Risks Related to Information Technology, Intellectual Property, and Data Security A security breach, network attack or security incident could delay or interrupt service to our customers, result in the unauthorized access to, or use, modification or publishing of customer content or other information, harm our reputation or subject us to significant liability.
We are subject to anti-corruption, anti-bribery, anti-money laundering and similar laws, and non-compliance with such laws can subject us to criminal penalties or significant fines and harm our business and reputation. We are subject to anti-corruption and anti-bribery and similar laws, such as the U.S.
We are subject to anti-corruption and anti-bribery laws, and anti-money laundering laws and similar laws, and non-compliance with such laws can subject us to criminal penalties or significant fines and harm our business and reputation. We are subject to anti-corruption and anti-bribery and similar laws, such as the U.S.
Factors that may cause fluctuations in our quarterly results include: • our ability to attract new customers; • our ability to execute on our business strategy; • the launch of significant new products and features; • the addition or loss of large customers, including third-party reseller customers, including through acquisitions or consolidations; • the timing of recognition of revenue; 33 • a change in accounting principles; • the timing of billing and cash collections; • the timing of significant marketing events and related expenses; • the amount and timing of operating expenses; • network outages and security breaches; • natural disasters, pandemics including the COVID-19 pandemic, acts of terrorism and other events beyond our control; • general economic, industry and market conditions; • customer renewal rates; • pricing changes upon any renewals of customer agreements; • changes in our pricing policies or those of our competitors; • the timing and success of new feature introductions by us or our competitors or any other change in the competitive dynamics of our industry, including consolidation among competitors, customers or application providers; • our ability to adequately scale our sales force and retain key employees; • the timing of expenses related to the development or acquisition of technologies or businesses and potential future charges for impairment of goodwill from acquired companies; and • unforeseen litigation.
Factors that may cause fluctuations in our quarterly results include: • our ability to attract new customers; • our ability to execute on our business strategy; • the launch of significant new products and features; 33 • the addition or loss of large customers, including third-party reseller customers, including through acquisitions or consolidations; • the timing of recognition of revenue; • a change in accounting principles; • the timing of billing and cash collections; • the timing of significant marketing events and related expenses; • the amount and timing of operating expenses; • network outages and security breaches and incidents; • natural disasters, pandemics including the COVID-19 pandemic, acts of terrorism and other events beyond our control; • general economic, industry and market conditions; • customer renewal rates; • pricing changes upon any renewals of customer agreements; • changes in our pricing policies or those of our competitors; • the timing and success of new feature introductions by us or our competitors or any other change in the competitive dynamics of our industry, including consolidation among competitors, customers or application providers; • our ability to adequately scale our sales force and retain key employees; • the timing of expenses related to the development or acquisition of technologies or businesses and potential future charges for impairment of goodwill from acquired companies; and • unforeseen litigation.
Such endeavors may involve significant risks and uncertainties, including insufficient revenue from such investments to offset any new liabilities assumed and expenses associated with these new investments, inadequate return of capital on our investments, distraction of management from current operations, failure to adequately develop and enhance existing products and unidentified issues not discovered in our due diligence of such strategies and offerings that could cause us to fail to realize the anticipated benefits of such investments and incur unanticipated liabilities.
Such endeavors may involve significant risks and uncertainties, including insufficient revenue from such investments to offset any new liabilities assumed and expenses associated with these new 19 investments, inadequate return of capital on our investments, distraction of management from current operations, failure to adequately develop and enhance existing products and unidentified issues not discovered in our due diligence of such strategies and offerings that could cause us to fail to realize the anticipated benefits of such investments and incur unanticipated liabilities.
See also "—If customers do not renew their subscriptions for our platform or if they reduce their subscriptions at the time of renewal, our revenue 21 will decline and our business will suffer." Lower demand from certain of our reseller customers has and may continue to result in them not renewing their subscriptions with us, purchasing fewer licenses, attempting to renegotiate contracts to obtain concessions and requesting extended billing and payment terms.
See also "—If customers do not renew their subscriptions for our platform or if they reduce their subscriptions at the time of renewal, our revenue will decline and our business will suffer." Lower demand from certain of our reseller customers has and may continue to result in them not renewing their subscriptions with us, purchasing fewer licenses, attempting to renegotiate contracts to obtain concessions and requesting extended billing and payment terms.
If we experience additional compromises to our security that result in performance or availability problems, the complete shutdown of our platform or the actual or perceived loss of, or unauthorized access to, unavailability of, or unauthorized use, disclosure, destruction, or other unauthorized processing of, personal information or other types of confidential information, our customers or application providers may assert claims against us for credits, refunds or other damages, and may lose trust and confidence in our platform.
If we experience compromises to our security that result in performance or availability problems, the complete shutdown of our platform or the actual or perceived loss of, or unauthorized access to, unavailability of, or unauthorized use, disclosure, destruction, or other unauthorized processing of, personal information or other types of confidential information, our customers or application providers may assert claims against us for credits, refunds or other damages, and may lose trust and confidence in our platform.
Our competitors in enterprise search may have greater experience in these areas as well as greater name recognition, more established relationships with current and potential customers and larger customer bases. As a result, potential customers may be unwilling to use or switch to our product. 18 We also face many other competitors with a variety of product offerings.
Our competitors in enterprise search may have greater experience in these areas as well as greater name recognition, more established relationships with current and potential customers and larger customer bases. As a result, potential customers may be unwilling to use or switch to our product. We also face many other competitors with a variety of product offerings.
If we are unable to develop new features that address our customers' needs, or to enhance and 20 improve our platform in a timely manner, we may not be able to maintain or increase market acceptance of our platform. Our ability to grow is also subject to the risk of future disruptive technologies.
If we are unable to develop new features that address our customers' needs, or to enhance and improve our platform in a timely manner, we may not be able to maintain or increase market acceptance of our platform. Our ability to grow is also subject to the risk of future disruptive technologies.
The techniques used to obtain unauthorized access, disable or degrade service or sabotage systems change frequently, often are not recognized until launched against a target and 26 may originate from less regulated countries, we may be unable to proactively address these techniques or to implement adequate preventative measures.
The techniques used to obtain unauthorized access, disable or degrade service or sabotage systems change frequently, often are not recognized until launched against a target and may originate from less regulated countries, we may be unable to proactively address these techniques or to implement adequate preventative measures.
We are subject to governmental regulation and other legal obligations, including those related to privacy, data protection and information security, and our actual or perceived failure to comply with such obligations could harm our business. Compliance with such laws could also impair our efforts to maintain and expand our customer base, and thereby decrease our revenue.
We are subject to governmental regulation and other legal obligations, including those related to privacy, data protection and information security, and our actual or perceived failure to comply with such obligations could harm our business. Compliance with such obligations could also impair our efforts to maintain and expand our customer base, and thereby decrease our revenue.
We may be subject to audits and investigations relating to our government contracts and any violations could result in various civil and criminal penalties and administrative sanctions, including termination of contracts, payment of fines, and suspension or debarment from future government business, as well as harm to our reputation and financial results.
We may be subject to audits and investigations relating to our government contracts and any violations could result in various civil and criminal penalties and 30 administrative sanctions, including termination of contracts, payment of fines, and suspension or debarment from future government business, as well as harm to our reputation and financial results.
If we fail to attract new personnel or fail to retain and motivate our current personnel, our growth prospects could be severely harmed. If we fail to provide high-quality customer support and professional services, our business and reputation may suffer. High-quality customer support and professional services are important for the successful retention of existing customers.
If we fail to attract new personnel or fail to retain and motivate our current personnel, our growth prospects could be severely harmed. 23 If we fail to provide high-quality customer support and professional services, our business and reputation may suffer. High-quality customer support and professional services are important for the successful retention of existing customers.
Our credit facility contains restrictive covenants that may limit our ability to transfer or dispose of assets, merge with other companies or consummate certain changes of control, acquire other companies, pay dividends or repurchase Yext stock, incur additional indebtedness and liens and enter into new businesses.
Our credit facility contains restrictive covenants that limit our ability to transfer or dispose of assets, merge with other companies or consummate certain changes of control, acquire other companies, pay dividends or repurchase Yext stock, incur additional indebtedness and liens and enter into new businesses.
Our disaster recovery program contemplates 28 transitioning our platform to our backup center in the event of a catastrophe and our platform may be unavailable, in whole or in part, during any transition procedure. We have experienced, and will in the future experience, interruptions, outages and other performance problems.
Our disaster recovery program contemplates transitioning our platform to our backup center in the event of a catastrophe and our platform may be unavailable, in whole or in part, during any transition procedure. We have experienced, and will in the future experience, interruptions, outages and other performance problems.
However, we expect our growth in the coming year to be slower. Our historical revenue growth rates are not indicative of future growth, and we may not achieve similar revenue growth rates in future periods. You should not rely on our revenue for any prior quarterly or annual periods as an indication of our future revenue or revenue growth.
We expect our growth in the coming year to be slower. Our historical revenue growth rates are not indicative of future growth, and we may not achieve similar revenue growth rates in future periods. You should not rely on our revenue for any prior quarterly or annual periods as an indication of our future revenue or revenue growth.
If we cannot 19 continue to effectively make our platform available on these mobile devices and offer the information, services and functionality required by enterprises that widely use mobile devices, we may experience difficulty attracting and retaining customers, which could negatively affect our revenue.
If we cannot continue to effectively make our platform available on these mobile devices and offer the information, services and functionality required by enterprises that widely use mobile devices, we may experience difficulty attracting and retaining customers, which could negatively affect our revenue.
Any decreased use of our products or limitation on our ability to export or sell our products would likely adversely affect our business. Although we take precautions to prevent transactions with U.S. sanction targets, we could inadvertently provide our platform to persons prohibited by U.S. sanctions.
Any decreased use of our products or limitation on our ability to export or sell our products would likely adversely affect our business. Additionally, although we take precautions to prevent transactions with U.S. sanction targets, we could inadvertently provide our platform to persons prohibited by U.S. sanctions.
Our renewal rates may decline or fluctuate as a result of a number of factors, including limited customer resources, changes in our pricing and subscription models, customer satisfaction with our platform, the acquisition of our customers by other companies and deteriorating general economic conditions.
Our renewal rates may decline or fluctuate as a result of a number of factors, including limited customer resources, changes in our pricing and subscription models, customer satisfaction with our platform and/or our services, the acquisition of our customers by other companies and deteriorating general economic conditions.
Our ability to increase revenue and achieve profitability depends, in large part, on widespread acceptance of our platform by enterprises. As we target our sales efforts at these customers, we face greater costs, longer sales cycles and less predictability in completing some of our sales.
Our ability to increase revenue and achieve profitability depends, in large part, on widespread acceptance of our platform by enterprises. As we target our sales efforts at these customers, we face greater costs, longer sales cycles and less predictability in 20 completing some of our sales.
In order to grow our business, we anticipate that we will need to continue to maintain and potentially expand these relationships. We may be unsuccessful in renegotiating our agreements with these third-party application providers or third-party application 17 providers may insist on fees to access their applications.
In order to grow our business, we anticipate that we will need to continue to maintain and potentially expand these relationships. We may be unsuccessful in renegotiating our agreements with these third-party application providers or third-party application providers may insist on fees to access their applications.
Accordingly, our efforts to protect our intellectual property rights in such countries may be inadequate. In addition, changes in the law and legal decisions by courts in the United States and foreign countries may affect our ability to obtain adequate protection for our technology and the enforcement of intellectual property.
Accordingly, our efforts to protect our intellectual property rights in such countries may be 27 inadequate. In addition, changes in the law and legal decisions by courts in the United States and foreign countries may affect our ability to obtain adequate protection for our technology and the enforcement of intellectual property.
Additionally, security breaches and incidents or other unauthorized access to, unavailability of, or unauthorized use, disclosure, destruction, acquisition, or other processing of, personal information or other types of confidential information that we or our services providers maintain, or the perception that any of these have occurred, could result in claims against us for identity theft or other similar fraud claims, breach of contract or indemnity, governmental enforcement actions, litigation, fines and penalties or adverse publicity, or other claims and litigation, and could cause our customers and partners to lose trust in us, any of which could have an adverse effect on our business, reputation, operating results and financial condition.
Additionally, security breaches and incidents or other unauthorized access to, unavailability of, or unauthorized use, disclosure, destruction, acquisition, or other processing of, personal information or other types of confidential information that we or our service providers maintain, or the perception that any of these have occurred, could result in claims against us for identity theft or other similar fraud claims, breach of contract or indemnity, governmental enforcement actions, litigation, fines and penalties or adverse publicity, or other claims and litigation, and could cause our customers and partners to lose trust in us, any of which could have an adverse effect on our business, reputation, operating results and financial condition.
The target markets in which we operate are also subject to a high degree of uncertainty and risk. Our customers as well as analysts, market participants, and others may disagree with our assessment of our target markets and we may never successfully compete in these markets.
The target markets in which we operate are also subject to a high degree of uncertainty and risk. Our customers as well as analysts, market participants, and others may disagree with 24 our assessment of our target markets and we may never successfully compete in these markets.
Our business activities are subject to various restrictions under U.S. export and import controls and trade and economic sanctions laws, including U.S. customs regulations, the U.S. Commerce Department's Export Administration Regulations and economic and trade sanctions regulations maintained by the U.S. Treasury Department's Office of Foreign Assets Control.
Our business activities are subject to various restrictions under U.S. export and import controls and trade and economic sanctions laws, including U.S. customs regulations, the U.S. Commerce Department's Export Administration Regulations and economic and 31 trade sanctions regulations maintained by the U.S. Treasury Department's Office of Foreign Assets Control.
The U.S. export control laws and U.S. economic sanctions laws include prohibitions on the sale or supply of certain products and services to U.S. embargoed or sanctioned countries, governments, persons and entities and also require authorization for the export of certain encryption items.
The U.S. export control laws and U.S. economic sanctions laws include prohibitions on the sale or supply of certain products and services to U.S. embargoed or sanctioned countries, governments, persons and entities and also require authorization for the export of certain items including encryption items.
As we develop our platform, we will introduce products and features that compete in new markets and as a result we will face new competitors. For example, in October 2019 we launched Answers, our search product, and as a result we face competition from established companies in enterprise search.
As we develop our platform, we will introduce products and features that compete in new markets and as a result we will face new competitors. For example, in October 2019 we launched our search product, and as a result we face competition from established companies in enterprise search.
In addition, others may independently discover our trade secrets and proprietary information, and in 27 these cases, we would not be able to assert any trade secret rights against those parties.
In addition, others may independently discover our trade secrets and proprietary information, and in these cases, we would not be able to assert any trade secret rights against those parties.
If we are unable to compete effectively, our operating results could be adversely affected. • Business and professional service providers may not widely adopt our platform to manage their information or as an important part of their marketing strategy, which would limit our ability to grow our business. • If customers do not renew their subscriptions for our platform or if they reduce their subscriptions at the time of renewal, our revenue will decline and our business will suffer. • If we are unable to attract new customers, our revenue growth could be slower than we expect and our business may be harmed. • If we fail to integrate our platform with a variety of third-party technologies, our platform may become less marketable and less competitive or obsolete and our operating results would be harmed. • If we are unable to successfully develop and market new features, make enhancements to our existing features, or expand our offerings into new markets, our business, results of operations and competitive position may suffer. • If we fail to adapt and respond effectively to rapidly changing technology, evolving industry standards and changing customer needs or requirements, our platform may become less competitive. • If customers do not expand their use of our platform beyond their current subscriptions and licenses, our ability to grow our business and operating results may be adversely affected. • Because our platform is sold to enterprises that often have complex operating environments, we may encounter long and unpredictable sales cycles, which could adversely affect our operating results in any given period. • A portion of our revenue is dependent on a few customers. • A significant portion of our revenue is dependent on third-party reseller customers, the efforts of which we do not control. • Adverse economic conditions or reduced technology spending may adversely impact our business. • We may require additional capital to support our business, and this capital might not be available on acceptable terms, if at all.
If we are unable to compete effectively, our operating results could be adversely affected. • Business and professional service providers may not widely adopt our platform to manage their information or as an important part of their marketing strategy, which would limit our ability to grow our business. • If customers do not renew their subscriptions for our platform or if they reduce their subscriptions at the time of renewal, our revenue will decline and our business will suffer. • If we are unable to attract new customers, our revenue growth could be slower than we expect and our business may be harmed. • If we fail to integrate our platform with a variety of third-party technologies, our platform may become less marketable and less competitive or obsolete and our operating results would be harmed. • If we are unable to successfully develop and market new features, make enhancements to our existing features, or expand our offerings into new markets, our business, results of operations and competitive position may suffer. • If we fail to adapt and respond effectively to rapidly changing technology, evolving industry standards and changing customer needs or requirements, our platform may become less competitive. • If customers do not expand their use of our platform beyond their current subscriptions and licenses, our ability to grow our business and operating results may be adversely affected. • Because our platform is sold to enterprises that often have complex operating environments, we may encounter long and unpredictable sales cycles, which could adversely affect our operating results in any given period. • A portion of our revenue is dependent on a few customers. • A significant portion of our revenue is dependent on third-party reseller customers, the efforts of which we do not control. • We may require additional capital to support our business, and this capital might not be available on acceptable terms, if at all.
Such tax assessments, penalties and interest, or future requirements may adversely affect our operating results and financial condition. Our ability to use our net operating losses to offset future taxable income may be subject to certain limitations. As of January 31, 2022, we had significant U.S. federal and state net operating loss carryforwards, or NOLs, due to prior period losses.
Such tax assessments, penalties and interest, or future requirements may adversely affect our operating results and financial condition. Our ability to use our net operating losses to offset future taxable income may be subject to certain limitations. As of January 31, 2023, we had significant U.S. federal and state net operating loss carryforwards, or NOLs, due to prior period losses.
These domestic and foreign laws and regulations relating to privacy and data security are evolving, can be subject to significant change and may result in ever-increasing regulatory and public scrutiny and escalating levels of enforcement and sanctions. Interpretation of certain requirements remains unclear and may evolve, in particular for regulations that have recently been enacted.
These domestic and foreign laws and regulations relating to privacy and information security are evolving, can be subject to significant change, and may result in ever-increasing regulatory and public scrutiny and escalating levels of enforcement and sanctions. Interpretation of certain requirements remains unclear and may evolve, in particular for laws and regulations that have recently been enacted.
In order to maintain relationships with application providers, we may need to modify our products or strategies in a way that may be adverse to our business and financial results. Furthermore, if we were to lose access to these applications, either in whole or in part, our Knowledge Network would not be as efficient, accurate or competitive.
In order to maintain relationships with application providers, we may need to modify our products or strategies in a way that may be adverse to our business and financial results. Furthermore, if we were to lose access to these applications, either in whole or in part, our Publisher Network would not be as efficient, accurate or competitive.
We will need to generate and sustain increased revenue levels in future periods to become profitable, and, even if we do, we may not be able to maintain or increase our level of profitability. As a result, we may continue to experience operating losses for the indefinite future.
We will need to generate and sustain increased revenue levels and reduced expenses in future periods to become profitable, and, even if we do, we may not be able to maintain or increase our level of profitability. As a result, we may continue to experience operating losses for the indefinite future.
For example, in order to offer our products to certain customers in the health care industry we have implemented certain security and privacy measures and related procedures to comply with the Health Insurance Portability and Accountability Act of 1996, or HIPAA, and the Health Information Technology for Economic and Clinical Health Act, or HITECH.
As another example, in order to offer our products to certain customers in the health care industry we have implemented certain security and privacy measures and related procedures to comply with the Health Insurance Portability and Accountability Act of 1996, or HIPAA, and the Health Information Technology for Economic and Clinical Health Act, or HITECH.
Even if we are able to successfully manage the risks of international operations, our business may be adversely affected if these customers and application providers are not able to successfully manage these risks. Our growth depends in part on the success of our strategic relationships with existing and prospective Knowledge Network application providers.
Even if we are able to successfully manage the risks of international operations, our business may be adversely affected if these customers and application providers are not able to successfully manage these risks. Our growth depends in part on the success of our strategic relationships with existing and prospective Publisher Network application providers.
In addition, the proper functioning of our platform is dependent on the ability of our Knowledge Network application providers and partners to maintain the availability and proper functioning of their software integrations with our systems and also is dependent on the ability of our third-party application providers to maintain the availability and proper functioning of their websites and applications on which business listing information is published for customers.
In addition, the proper functioning of our platform is dependent on the ability of our Publisher Network application providers and partners to maintain the availability and proper functioning of their software integrations with our systems and also is dependent on the ability of our third-party application providers to maintain the availability and proper functioning of their websites and applications on which business listing information is published for customers.
Application of laws may be inconsistent or may conflict among jurisdictions resulting in additional complexity and increased legal risk.
Application of laws and regulations may be inconsistent or may conflict among jurisdictions resulting in additional complexity and increased legal risk.
Any failure to manage our anticipated growth and organizational changes in a manner that preserves the key aspects of our culture could hurt our chance for future success, including our ability to recruit and retain personnel and effectively focus on and pursue our corporate objectives.
Any failure to manage organizational changes in a manner that preserves the key aspects of our culture could hurt our chance for future success, including our ability to recruit and retain personnel and effectively focus on and pursue our corporate objectives.
In general, worldwide economic conditions may remain unstable, and these conditions would make it difficult for our customers, prospective customers and us to forecast and plan future business activities accurately, and they could cause our customers or prospective customers to reevaluate their decision to purchase our features.
In general, worldwide economic conditions may remain unstable, including inflation, and these conditions would make it difficult for our customers, prospective customers and us to forecast and plan future business activities accurately, and they could cause our customers or prospective customers to reevaluate their decision to purchase our features.
In addition, these regulations have increased our compliance costs and may impair our ability to grow our business or offer our service in some locations, may subject us to liability for non-compliance, may require us to modify our data processing and transferring practices and policies and may strain our technical capabilities.
In addition, these requirements have increased our compliance costs and may impair our ability to grow our business or offer our service in some locations, may subject us to liability for non-compliance, may require us to modify our data processing and transferring practices and policies, and may strain our technical capabilities.
Our failure to manage any of these risks successfully could harm our international operations, and adversely affect our overall business, operating results and financial condition. Some of our customers and Knowledge Network application providers also have international operations and are subject to the risks described above.
Our failure to manage any of these risks successfully could harm our international operations, and adversely affect our overall business, operating results and financial condition. Some of our customers and Publisher Network application providers also have international operations and are subject to the risks described above.
Any failure or perceived failure by us to comply with laws, regulations, policies, legal or contractual obligations, industry standards, or regulatory guidance relating to privacy or data security, may result in governmental investigations and enforcement actions, litigation, fines and penalties or adverse publicity, and could cause our customers and partners to lose trust in us, which could have an adverse effect on our reputation and business.
Any failure or perceived failure by us to comply with laws, regulations, policies, legal or contractual obligations, industry standards, or regulatory guidance relating to privacy or information security may result in governmental investigations and enforcement actions, litigation, fines and penalties, consumer actions, and/or adverse publicity, and could cause our customers and partners to lose trust in us, which could have an adverse effect on our reputation and business.
We have implemented many of these systems and procedures only recently, and they may not work as we expect or at all. Our anticipated additional headcount and capital investments will increase our costs, which will make it more difficult for us to address any future revenue shortfalls by reducing expenses in the short term.
We have implemented many of these systems and procedures only recently, and they may not work as we expect or at all. If we grow in the future, additional headcount and capital investments will increase our costs, which will make it more difficult for us to address any future revenue shortfalls by reducing expenses in the short term.
Furthermore, in a rapidly changing business environment, for example in connection with the COVID-19 pandemic, our Knowledge Network application providers may experience limitations and delays, which could limit the functionality of our platform.
Furthermore, in a rapidly changing business environment, for example in connection with the COVID-19 pandemic, our Publisher Network application providers may experience limitations and delays, which could limit the functionality of our platform.
In addition, other mechanisms that we use or may use in the future in an effort to legitimize cross-border data transfers may be challenged or invalidated or may evolve such that they do not function as appropriate means for us to transfer certain personal data from the European Union, Switzerland and the United Kingdom to the United States.
In addition, other mechanisms that we use or may use in the future in an effort to legitimize cross-border data transfers may be challenged or invalidated or may evolve such that they do not function as appropriate means for us to transfer certain personal data from the European Economic Area, Switzerland, and the United Kingdom to the United States.
For the fiscal years ended January 31, 2022, 2021 and 2020, the aggregate of our top five customers accounted for approximately 8%, 9% and 11%, respectively, of our revenue. We anticipate that sales of our platform to a relatively small number of customers will continue to account for a significant portion of our revenue in future periods.
For the fiscal years ended January 31, 2023, 2022 and 2021, the aggregate of our top five customers accounted for approximately 9%, 8% and 9%, respectively, of our revenue. We anticipate that sales of our platform to a relatively small number of customers will continue to account for a significant portion of our revenue in future periods.
This direct access enables our customers to control their business listings on the Knowledge Network application providers' websites and applications and to push real-time or nearly real-time updates to those business listings.
This direct access enables our customers to control their business listings on the Publisher Network application providers' websites and applications and to push real-time or nearly real-time updates to those business listings.
For example, a number of our Knowledge Network application providers provide us with an Application Program Interface, or API, on which our ability to interface with that provider is based.
For example, a number of our Publisher Network application providers provide us with an Application Program Interface, or API, on which our ability to interface with that provider is based.
Additionally, the FTC and many state attorneys general are interpreting federal and state consumer protection laws as imposing standards for the online collection, use, dissemination and security of data.
Additionally, the FTC and many state attorneys general are interpreting federal and state consumer protection laws as imposing standards for the collection, use, dissemination, and security of personal data.
If we are unsuccessful in establishing or maintaining our relationships with third-party application providers, our ability to compete in the marketplace or to grow our revenue could be impaired and our operating results could suffer. Changes to our pricing models could adversely affect our operating results. Any changes we make to our pricing models could adversely affect our operating results.
If we are unsuccessful in establishing or maintaining our relationships with third-party application providers, our ability to compete in the marketplace or to grow our revenue could be impaired and our operating results could suffer. 17 Changes to our pricing models could adversely affect our operating results.
We can be held liable for the corrupt or other illegal activities of our employees, representatives, contractors, business partners, resellers and agents, even if we do not explicitly authorize, control or have actual knowledge of such activities.
We can be held liable for the corrupt or other illegal activities of our employees, representatives, contractors, business partners, resellers, agents and third-party intermediaries, even if we do not explicitly authorize, control or have actual knowledge of such activities.
We have established strategic relationships with approximately 200 third-party service and application providers that comprise our Knowledge Network, including Amazon Alexa, Apple Maps, Bing, Cortana, Facebook, Google, Google Assistant, Google Maps, Siri, Yelp and many others. These application providers provide us with direct access to update content on their websites and applications.
We have established strategic relationships with over 200 third-party service and application providers that comprise our Publisher Network, including Amazon Alexa, Apple Maps, Bing, Cortana, Facebook, Google, Google Assistant, Google Maps, Siri, Yelp and many others. These application providers provide us with direct access to update content on their websites and applications.
The market price of our common stock has been and may continue to be subject to wide fluctuations in response to many risk factors listed in this section, and others beyond our control, including: • actual or anticipated fluctuations in our financial condition and operating results; • changes in projected operational and financial results; • addition or loss of significant customers; • addition or loss of significant strategic relationships with application providers in the Knowledge Network; • changes in laws or regulations applicable to our platform; • actual or anticipated changes in our growth rate relative to our competitors; • announcements of technological innovations or new offerings by us or our competitors; • announcements by us or our competitors of significant acquisitions, strategic partnerships, joint ventures or capital-raising activities or commitments; • additions or departures of key personnel; • changes in our financial guidance or securities analysts' estimates of our financial performance; 34 • discussion of us or our stock price by the financial press and in online investor communities; • reaction to our press releases and filings with the SEC; • changes in accounting principles; • announcements related to litigation, regulation or disputes; • fluctuations in the valuation of companies perceived by investors to be comparable to us; • sales of our common stock by us or our stockholders; • share price and volume fluctuations attributable to inconsistent trading volume levels of our shares; • natural disasters, pandemics including the COVID-19 pandemic, acts of terrorism and other events beyond our control; and • general economic and market conditions.
The market price of our common stock has been and may continue to be subject to wide fluctuations in response to many risk factors listed in this section, and others beyond our control, including: • actual or anticipated fluctuations in our financial condition and operating results; • changes in projected operational and financial results; • addition or loss of significant customers; • addition or loss of significant strategic relationships with application providers in the Publisher Network; • changes in laws or regulations applicable to our platform; • actual or anticipated changes in our growth rate relative to our competitors; • announcements of technological innovations or new offerings by us or our competitors; 34 • announcements by us or our competitors of significant acquisitions, strategic partnerships, joint ventures or capital-raising activities or commitments; • additions or departures of key personnel; • changes in our financial guidance or securities analysts' estimates of our financial performance; • discussion of us or our stock price by the financial press and in online investor communities; • reaction to our press releases and filings with the SEC; • changes in accounting principles; • announcements related to litigation, regulation or disputes; • fluctuations in the valuation of companies perceived by investors to be comparable to us; • sales of our common stock by us or our stockholders; • effects of inflation and increased interest rates; • share price and volume fluctuations attributable to inconsistent trading volume levels of our shares; • natural disasters, pandemics, acts of terrorism and other events beyond our control; and • general economic and market conditions and overall market slowdowns.
We have added personnel and may need to continue to scale and adapt our operational, financial and management controls, as well as our reporting systems and procedures. The expansion of our systems and infrastructure may require us to commit additional financial, operational and management resources before our revenue increases and without any assurances that our revenue will increase.
We have added personnel and may need to continue to scale and adapt our operational, financial and management controls, as well as our reporting systems and procedures. Changes to our systems and infrastructure may require us to commit additional financial, operational and management resources before our revenue increases and without any assurances that our revenue will increase.
Bribery Act, import and export control laws, tariffs, trade barriers, economic sanctions 16 and other regulatory or contractual limitations on our ability to sell in certain foreign markets, and the risks and costs of non-compliance; • compliance with international laws and regulations, including without limitation, those governing privacy, data security and data transfer, such as the General Data Protection Regulation, or GDPR, which may impair our ability to grow our business or offer our service in some locations, may subject us to liability for non-compliance or may require us to change our business practices; • expanded demands on, and distraction of, senior management; • difficulties with differing technical and environmental standards, data privacy and telecommunications regulations and certification requirements outside the United States; • varying levels of internet technology adoption and infrastructure; • tariffs and other non-tariff barriers, such as quotas and local content rules; • more limited protection for intellectual property rights in some countries; • adverse tax consequences; • fluctuations in currency exchange rates, which could increase the price of our products outside of the United States, increase the expenses of our international operations and expose us to foreign currency exchange rate risk; • currency control regulations, which might restrict or prohibit our conversion of other currencies into U.S. dollars; • restrictions on the transfer of funds; • deterioration of political relations between the United States and other countries; • natural disasters, pandemics including the ongoing COVID-19 pandemic, acts of terrorism and other events beyond our control; and • political or social unrest or economic instability in a specific country or region in which we operate, which could have an adverse impact on our operations in that location.
Bribery Act, import and export control laws, tariffs, trade barriers, economic sanctions and other regulatory or contractual limitations on our ability to sell in certain foreign markets, and the risks and costs of non-compliance; • compliance with international laws and regulations, including without limitation, those governing privacy, data security and data transfer, such as the General Data Protection Regulation, or GDPR, which may impair our ability to grow our business or offer our service in some locations, may subject us to liability for non-compliance or may require us to change our business practices; • expanded demands on, and distraction of, senior management; • difficulties with differing technical and environmental standards, data privacy and telecommunications regulations and certification requirements outside the United States; • varying levels of internet technology adoption and infrastructure; 16 • tariffs and other non-tariff barriers, such as quotas and local content rules; • more limited protection for intellectual property rights in some countries; • adverse tax consequences; • currency control regulations, which might restrict or prohibit our conversion of other currencies into U.S. dollars; • restrictions on the transfer of funds, including the repatriation of cash; • deterioration of political relations between the United States and other countries; • natural disasters, pandemics, acts of terrorism and other events beyond our control; and • political or social unrest or economic instability in a specific country or region in which we operate, which could have an adverse impact on our operations in that location.
Market volatility may affect the value of an investment in our common stock and could subject us to litigation. Technology stocks have historically experienced high levels of volatility.
Market volatility may affect the value of an investment in our common stock and could subject us to litigation. Technology stocks have historically experienced high levels of volatility, and have heavily declined recently.
We expect that there will continue to be new proposed laws, regulations and industry standards relating to privacy, data protection, marketing, consumer communications, information security and local data residency in the United States, the European Union and other jurisdictions, and we cannot determine the impact such future laws, regulations and standards may have on our business.
We expect that there will continue to be new proposed laws, regulations and industry standards relating to privacy, data protection, marketing, consumer communications, information security and cross-border data transfer in the United States, the European Union and other jurisdictions, and we cannot determine the impact such future laws, regulations and standards may have on our business.
If any service provider fails to provide sufficient capacity to support our platform, experiences service outages, reduces or suspends service due to a natural disaster or pandemic such as the COVID-19 pandemic, or otherwise ceases to do business, such failure could interrupt our customers' access to our services.
If any service provider fails to provide sufficient capacity to support our platform, experiences service outages, reduces or suspends service due to a natural disaster or pandemic, or otherwise ceases to do business, such failure could interrupt our customers' access to our services.
Our ability to attract new customers and increase revenue from existing customers depends, in part, on our ability to enhance and improve our existing features, increase adoption and usage of our platform and introduce new products and features, including Yext Answers.
Our ability to attract new customers and increase revenue from existing customers depends, in part, on our ability to enhance and improve our existing features, increase adoption and usage of our platform and introduce new products and features.
If we fail to meet appropriate compliance levels, this could negatively impact our ability to utilize credit cards as a method of payment, and/or collect and store credit card information, which could disrupt our business.
If we fail to meet appropriate compliance levels for payment card data specifically, this could negatively impact our ability to utilize payment cards as a method of payment, and/or collect and store payment card information, which could disrupt our business.
Foreign Corrupt Practices Act of 1977, as amended, or the FCPA, the U.S. domestic bribery statute contained in 18 U.S.C. § 201, the U.S. Travel Act, the USA PATRIOT Act, the U.K. Bribery Act 2010, the Proceeds of Crime Act 2002 and possibly other anti-corruption, anti-bribery and anti-money laundering laws in countries in which we conduct activities.
Foreign Corrupt Practices Act of 1977, as amended, or the FCPA, the U.S. domestic bribery statute contained in 18 U.S.C. § 201, the U.S. Travel Act, the U.K. Bribery Act 2010, and possibly other anti-corruption and anti-bribery laws and anti-money laundering laws in countries in which we conduct activities.
We have encountered and will encounter risks and uncertainties frequently experienced by growing companies in rapidly changing industries, such as the risks and uncertainties described herein. In addition, the duration and extent of the impact of the COVID-19 pandemic on our business and industry are uncertain and introduce additional uncertainty to our forecasts of future operating results.
We have encountered and will encounter risks and uncertainties frequently experienced by growing companies in rapidly changing industries, such as the risks and uncertainties described herein. In addition, the duration and extent of the impact of volatile macroeconomic conditions on our business and industry are uncertain and introduce additional uncertainty to our forecasts of future operating results.
We experienced revenue growth rates of 31% from the fiscal year ended January 31, 2019 to the fiscal year ended January 31, 2020, 19% from the fiscal year ended January 31, 2020 to the fiscal year ended January 31, 2021, and 10% from the fiscal year ended January 31, 2021 to the fiscal year ended January 31, 2022.
We experienced revenue growth rates of 19% from the fiscal year ended January 31, 2020 to the fiscal year ended January 31, 2021, 10% from the fiscal year ended January 31, 2021 to the fiscal year ended January 31, 2022, and 3% from the fiscal year ended January 31, 2022 to the fiscal year ended January 31, 2023.
Some of the specific risks we will face in conducting business internationally that could adversely affect our business include: • the difficulty of recruiting and managing international operations and the increased operations, travel, infrastructure and legal compliance costs associated with numerous international locations; • our ability to effectively price our multi-tiered subscriptions in competitive international markets; • our ability to identify and manage sales partners; • new and different sources of competition in each country or region; • potentially greater difficulty collecting accounts receivable and longer payment cycles; • the need to adapt and localize our products for specific countries, including differences in the location attributes and formats used in each country and differences in languages, for example in the case of our search product, which relies on natural language processing; • the need to develop integrations with new third-party applications used by international customers; • the need to offer customer support in various languages; • difficulties in understanding and complying with local laws, regulations and customs in foreign jurisdictions; • compliance with U.S. laws and regulations for foreign operations, including, without limitation, the Foreign Corrupt Practices Act, or FCPA, the U.K.
Some of the specific risks we will face in conducting business internationally that could adversely affect our business include: • the difficulty of recruiting and managing international operations and the increased operations, travel, infrastructure and legal compliance costs associated with numerous international locations; • our ability to effectively price our multi-tiered subscriptions in competitive international markets; • our ability to identify and manage sales partners; • new and different sources of competition in each country or region; • potentially greater difficulty collecting accounts receivable and longer payment cycles; • the need to adapt and localize our products for specific countries, including differences in the location attributes and formats used in each country and differences in languages, for example in the case of our search product, which relies on natural language processing; • the need to develop integrations with new third-party applications used by international customers; • the need to offer customer support in various languages; • fluctuations in currency exchange rates, which could increase the price of our products outside of the United States, increase the expenses of our international operations, or have a negative impact on our revenue and expose us to foreign currency exchange rate risk; • difficulties in understanding and complying with local laws, regulations and customs in foreign jurisdictions; • compliance with U.S. laws and regulations for foreign operations, including, without limitation, the Foreign Corrupt Practices Act, or FCPA, the U.K.
Unanticipated changes in our effective tax rate may impact our financial results. We are subject to income taxes in the United States and various jurisdictions outside of the United States, and we continue to expand our operations internationally.
Unanticipated changes in our effective tax rate may impact our financial results. We are subject to income taxes in the United States and various jurisdictions outside of the United States.
If we fail to successfully manage our growth, we likely will be unable to successfully execute our business strategy, which could have a negative impact on our business, operating results and financial condition. Failure to adequately expand and scale our sales force will impede our growth. Our revenue growth is substantially reliant on our sales force.
If we fail to successfully manage this organizational complexity, we likely 15 will be unable to successfully execute our business strategy, which could have a negative impact on our business, operating results and financial condition. Failure to adequately manage our sales force will impede our growth. Our revenue growth is substantially reliant on our sales force.
Any such attack, or any information security incident from any other source affecting us or our services providers, including through employee error or misconduct or additional vulnerabilities introduced by remote work arrangements, could lead to interruptions, delays, website or application shutdowns, loss of data or unauthorized access to, or use or acquisition of, personal information, confidential information or other data that we or our services providers process or maintain.
Any such attack, or any security incident from any other source affecting us or our service providers, including, for example, through employee error or misconduct or additional vulnerabilities introduced by remote work arrangements, third-party integrations or other sources, could lead to interruptions, delays, website or application shutdowns, loss of data or unauthorized access to, or use or acquisition of, personal information, confidential information or other data that we or our service providers process or maintain.
Several foreign countries and governmental bodies, including the European Union, Switzerland and the United Kingdom have laws and regulations dealing with the handling and processing of personal information obtained from their residents, which in certain cases are more restrictive than those in the United States, and we expect additional jurisdictions may enact similar regulations.
Several foreign countries and governmental bodies, including the European Union, Switzerland and the United Kingdom, have laws and regulations dealing with the processing of personal data obtained about their residents, which in certain cases are more restrictive than those in the United States. We expect that additional jurisdictions may enact similar requirements.
Our financial results will suffer if our efforts to expand, scale and train our sales force do not generate a corresponding increase in revenue. We have hired a significant number of sales personnel in recent years.
Our financial results will suffer if our efforts to recruit for, train and retain our sales force do not generate a corresponding increase in revenue. We have hired a significant number of sales personnel in recent years.
Some errors in our software may only be discovered after the software has been deployed. Any errors, bugs, or vulnerabilities discovered in our software after it has been deployed could result in damage to our reputation, loss of customers, partners or application providers, loss of revenue or liability for damages.
Any errors, bugs, or vulnerabilities discovered in our software after it has been deployed could result in damage to our reputation, loss of customers, partners or application providers, loss of revenue or liability for damages.
If we are unable to maintain or replace our contractual relationships with our existing reseller customers, efficiently manage our relationships with them or establish new contractual relationships with other third parties, we may fail to retain customers or acquire potential new customers and may experience delays and increased costs in adding or replacing customers that were lost, any of which could materially adversely affect our business, operating results and financial condition.
If we are unable to maintain or replace our contractual relationships with our existing reseller customers, efficiently manage our relationships with them or establish new contractual relationships with other third parties, we may fail to retain customers or acquire potential new customers and may experience delays and increased costs in adding or replacing customers that were lost, any of which could materially adversely affect our business, operating results and financial condition. 21 We previously identified material weaknesses in our internal control over financial reporting.
We previously identified material weaknesses in our internal control over financial reporting. We may identify additional material weaknesses in the future or otherwise fail to maintain an effective system of internal control over financial reporting, and as a result, investor confidence in us and the value of our common stock could be materially and adversely affected.
We may identify additional material weaknesses in the future or otherwise fail to maintain an effective system of internal control over financial reporting, and as a result, investor confidence in us and the value of our common stock could be materially and adversely affected. As a public company, we are required to establish and maintain internal control over financial reporting.
However, to the extent we cannot scale our information technology infrastructure, we will continue to rely on manual processes that are costly, inefficient and subject to error. Finally, in order to successfully manage our rapid growth, our organizational structure has become more complex.
However, to the extent we cannot scale our information technology infrastructure, we will continue to rely on manual processes that are costly, inefficient and subject to error. Finally, our organizational structure has become more complex.
However, the United Kingdom’s decision to exit the European Union, known as Brexit, has created uncertainty regarding the regulation of data protection in the United Kingdom in the medium to long term, which may delay or deter transactions with customers that transfer personal data to and from the United Kingdom. We participate in and have certified under the EU-U.S.
However, the United Kingdom’s decision to exit the European Union, known as Brexit, has created uncertainty regarding the regulation of data protection in the United Kingdom in the medium to long term, which may delay or deter transactions with customers that transfer personal data to and from the United Kingdom.
We generated a net loss of $93.3 million, $94.7 million and $121.5 million for the fiscal years ended January 31, 2022, 2021 and 2020, respectively. As of January 31, 2022, we had an accumulated deficit of $610.6 million, reflecting our losses recognized historically on a GAAP basis.
We generated a net loss of $65.9 million, $93.3 million and $94.7 million for the fiscal years ended January 31, 2023, 2022 and 2021, respectively. As of January 31, 2023, we had an accumulated deficit of $676.5 million, reflecting our losses recognized historically on a GAAP basis.
We also may not achieve the anticipated benefits from the acquired business due to a number of factors, including: • unanticipated liabilities associated with the acquisition; • difficulty incorporating acquired technology and rights into our platform and of maintaining quality and security standards consistent with our brand; • inability to generate sufficient revenue to offset acquisition or investment costs; • incurrence of acquisition-related costs; 22 • difficulties and additional expenses associated with supporting legacy products and hosting infrastructure of the acquired business; • difficulty converting the customers of the acquired business into our customers; • diversion of our management's attention from other business concerns; • adverse effects to our existing business relationships as a result of the acquisition; • potential loss of key employees; • use of resources that are needed in other parts of our business; and • use of substantial portions of our available cash to consummate the acquisition.
We also may not achieve the anticipated benefits from the acquired business due to a number of factors, including: • unanticipated liabilities associated with the acquisition; • difficulty incorporating acquired technology and rights into our platform and of maintaining quality and security standards consistent with our brand; • inability to generate sufficient revenue to offset acquisition or investment costs; • incurrence of acquisition-related costs; • difficulties and additional expenses associated with supporting legacy products and hosting infrastructure of the acquired business; • difficulty converting the customers of the acquired business into our customers; • diversion of our management's attention from other business concerns; • adverse effects to our existing business relationships as a result of the acquisition; • potential loss of key employees; • use of resources that are needed in other parts of our business; and • use of substantial portions of our available cash to consummate the acquisition. 22 In addition, a significant portion of the purchase price of companies we acquire may be allocated to acquired goodwill and intangible assets, which must be assessed for impairment at least annually.
We have granted and expect to grant equity awards from our equity incentive plan and under the terms of such plan, shares of our common stock reserved for future issuance will be subject to annual increases, which would cause dilution.
In addition, equity compensation comprises a significant component of our compensation strategy. We have granted and expect to grant equity awards from our equity incentive plan and under the terms of such plan, shares of our common stock reserved for future issuance will be subject to annual increases, which would cause dilution.
We may be subject to rules of the FTC, the Federal Communications Commission, or FCC, and potentially other federal agencies, state laws as well as international regulations related to commercial electronic mail and other messages. Compliance with these 30 provisions may limit our ability to send certain types of messages.
We also may be subject to laws and rules implemented and enforced by the FTC, the Federal Communications Commission, or FCC, and potentially other federal agencies, state laws, as well as international laws and regulations related to marketing, advertising, commercial electronic mail and other messages. Compliance with these requirements may limit our ability to send certain types of messages.
We believe that continuing to develop and maintain awareness of our brand is critical to achieving widespread acceptance of our platform and is an important element in attracting and retaining customers.
If we fail to continue to develop our brand, our business may suffer. We believe that continuing to develop and maintain awareness of our brand is critical to achieving widespread acceptance of our platform and is an important element in attracting and retaining customers.

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Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

5 edited+2 added−1 removed6 unchanged
Biggest changeSuch future increases are not reflected in the table above. 38 Performance Graph The following shall not be deemed soliciting material or to be filed with the SEC, nor shall such information be incorporated by reference into any of our other filings under the Securities Exchange Act of 1934, as amended, or the Securities Act of 1933, as amended.
Biggest changeThis grant was outside of the Company’s 2016 Equity Incentive Plan in reliance on the inducement award exception contained in NYSE Listing Rule 303A.08. 39 Performance Graph The following shall not be deemed soliciting material or to be filed with the SEC, nor shall such information be incorporated by reference into any of our other filings under the Securities Exchange Act of 1934, as amended, or the Securities Act of 1933, as amended.
In addition, our revolving credit facility agreement contains customary covenants restricting our ability to pay dividends. Stockholders As of March 1, 2022, there were 45 registered stockholders of record of our common stock. The number of registered stockholders of record does not include beneficial holders whose shares are held by banks, brokers and other institutions.
In addition, our revolving credit facility agreement contains customary covenants restricting our ability to pay dividends. Stockholders As of March 1, 2023, there were 37 registered stockholders of record of our common stock. The number of registered stockholders of record does not include beneficial holders whose shares are held by banks, brokers and other institutions.
(4) This amount includes 1,425,786 shares of our common stock available for issuance under our 2016 Equity Incentive Plan and 3,543,696 shares of our common stock available for issuance under our 2017 Employee Stock Purchase Plan. The number of shares available for issuance under these plans automatically increase each February 1 st subject to the terms of the respective plans.
(4) This amount includes 3,072,343 shares of our common stock available for issuance under our 2016 Equity Incentive Plan and 4,058,651 shares of our common stock available for issuance under our 2017 Employee Stock Purchase Plan. The number of shares available for issuance under these plans automatically increase each February 1 st subject to the terms of the respective plans.
Plan category (a) Number of securities to be issued upon exercise of outstanding options, and vesting of restricted stock and restricted stock units (b) Weighted-average exercise price of outstanding options (1) (c) Number of securities remaining available for future issuance under equity compensation plans (excludes securities reflected in column (a)) Equity compensation plans approved by security holders (2) 16,804,915 (3) $ 7.28 4,969,482 (4) Equity compensation plans not approved by security holders — — — Total 16,804,915 $ 7.28 4,969,482 (1) The weighted-average exercise price is calculated based solely on the exercise prices of the outstanding options to purchase shares of our common stock.
Plan category (a) Number of securities to be issued upon exercise of outstanding options, and vesting of restricted stock and restricted stock units (b) Weighted-average exercise price of outstanding options (1) (c) Number of securities remaining available for future issuance under equity compensation plans (excludes securities reflected in column (a)) Equity compensation plans approved by security holders (2) 16,158,571 (3) $ 6.45 7,130,994 (4) Equity compensation plans not approved by security holders 2,000,000 — — (5) Total 18,158,571 $ 6.45 7,130,994 (1) The weighted-average exercise price is calculated based solely on the exercise prices of the outstanding options to purchase shares of our common stock.
(3) This amount includes 6,620,701 shares subject to outstanding options and 10,184,214 shares subject to outstanding restricted stock and restricted stock units granted under our 2008 Equity Incentive Plan and 2016 Equity Incentive Plan.
(3) This amount includes 4,593,704 shares subject to outstanding options and 11,564,867 shares subject to outstanding restricted stock and restricted stock units granted under our 2008 Equity Incentive Plan and 2016 Equity Incentive Plan.
Removed
Sales of Unregistered Equity Securities None. Purchases of Equity Securities by the Issuer and Affiliated Purchasers None. Securities Authorized for Issuance under Equity Compensation Plans The following table sets forth information regarding our equity compensation plans as of January 31, 2022.
Added
Purchases of Equity Securities by the Issuer The following table sets forth issuer purchases of equity securities related to our share repurchase program for the fiscal year ended January 31, 2023: Period Total number of shares purchased Average price paid per share Total number of shares purchased as part of publicly announced program Approximate dollar value of shares that may yet to be purchased under the program (in millions) March 1, 2022 - March 31, 2022 665,366 $ 7.06 665,366 $ 95.3 April 1, 2022 - April 30, 2022 4,172,818 $ 6.20 4,172,818 $ 69.4 May 1, 2022 - May 31, 2022 4,558,694 $ 5.33 4,558,694 $ 45.2 June 1, 2022 - June 30, 2022 391,858 $ 5.30 391,858 $ 43.1 July 1, 2022 - July 31, 2022 435,359 $ 4.65 435,359 $ 41.1 August 1, 2022 - August 31, 2022 512,573 $ 4.68 512,573 $ 38.7 September 1, 2022 - September 30, 2022 464,858 $ 4.56 464,858 $ 36.5 October 1, 2022 - October 31, 2022 1,204,269 $ 4.66 1,204,269 $ 30.9 November 1, 2022 - November 30, 2022 799,035 $ 5.30 799,035 $ 26.7 December 1, 2022 - December 31, 2022 331,490 $ 6.36 331,490 $ 24.6 January 1, 2023 - January 31, 2023 307,959 $ 6.51 307,959 $ 22.6 38 Securities Authorized for Issuance under Equity Compensation Plans The following table sets forth information regarding our equity compensation plans as of January 31, 2023.
Added
Such future increases are not reflected in the table above. (5) In March 2022, the Company made a grant to an executive in the form of 2,000,000 performance-based restricted stock units.

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

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Biggest changeGeneral and administrative expenses also include lease expenses associated with our office spaces, as well as software expense, each of which are allocated based on employee headcount, and other professional related costs. 41 Results of Operations (in thousands) Fiscal year ended January 31, Statements of Operations Data: 2022 2021 2020 Revenue $ 390,577 $ 354,661 $ 298,829 Cost of revenue (1) 98,299 86,404 77,030 Gross profit 292,278 268,257 221,799 Operating expenses: Sales and marketing (1) 230,467 228,417 218,076 Research and development (1) 68,350 58,146 49,445 General and administrative (1) 83,420 76,026 77,231 Total operating expenses 382,237 362,589 344,752 Loss from operations (89,959) (94,332) (122,953) Interest income 22 532 4,099 Interest expense (544) (614) (308) Other expense, net (1,501) (181) (1,285) Loss from operations before income taxes (91,982) (94,595) (120,447) (Provision for) benefit from income taxes (1,277) (97) (1,097) Net loss $ (93,259) $ (94,692) $ (121,544) (1) Amounts include stock-based compensation expense as follows: Fiscal year ended January 31, (in thousands) 2022 2021 2020 Cost of revenue $ 7,099 $ 5,724 $ 4,115 Sales and marketing 26,496 32,581 31,421 Research and development 20,654 17,071 13,212 General and administrative 19,231 16,918 19,022 Total stock-based compensation expense $ 73,480 $ 72,294 $ 67,770 42 The following table sets forth selected consolidated statements of operations data for each of the periods indicated as a percentage of total revenue: Fiscal year ended January 31, 2022 2021 2020 Revenue 100 % 100 % 100 % Cost of revenue 25 24 26 Gross profit 74.8 75.6 74.2 Operating expenses: Sales and marketing 59 65 73 Research and development 18 16 16 General and administrative 21 21 26 Total operating expenses 98 102 115 Loss from operations (23) (26) (41) Interest income — — 1 Interest expense — (1) — Other expense, net — — — Loss from operations before income taxes (23) (27) (40) (Provision for) benefit from income taxes — — (1) Net loss (23) % (27) % (41) % Fiscal Year Ended January 31, 2022 Compared to Fiscal Year Ended January 31, 2021 Revenue and Cost of Revenue Fiscal year ended January 31, Variance (in thousands) 2022 2021 Dollars Percent Revenue $ 390,577 $ 354,661 $ 35,916 10 % Cost of revenue 98,299 86,404 $ 11,895 14 % Gross profit $ 292,278 $ 268,257 $ 24,021 9 % Gross margin 74.8 % 75.6 % Total revenue was $390.6 million for the fiscal year ended January 31, 2022, compared to $354.7 million for the fiscal year ended January 31, 2021, an increase of $35.9 million or 10%, primarily driven by new customer subscriptions to our platform, and to a lesser extent included expanded subscriptions for existing customers.
Biggest changeGeneral and administrative expenses also include lease expenses associated with our office spaces, as well as software expense, each of which are allocated based on employee headcount, and other professional related costs. 43 Results of Operations The following table sets forth selected consolidated statement of operations data for each of the periods indicated: (in thousands) Fiscal year ended January 31, Statements of Operations Data: 2023 2022 2021 Revenue $ 400,850 $ 390,577 $ 354,661 Cost of revenue (1) 103,960 98,299 86,404 Gross profit 296,890 292,278 268,257 Operating expenses: Sales and marketing (1) 211,479 230,467 228,417 Research and development (1) 70,903 68,350 58,146 General and administrative (1) 79,336 83,420 76,026 Total operating expenses 361,718 382,237 362,589 Loss from operations (64,828) (89,959) (94,332) Interest income 1,684 22 532 Interest expense (589) (544) (614) Other expense, net (125) (1,501) (181) Loss from operations before income taxes (63,858) (91,982) (94,595) Provision for income taxes (2,080) (1,277) (97) Net loss $ (65,938) $ (93,259) $ (94,692) (1) Amounts include stock-based compensation expense as follows: Fiscal year ended January 31, (in thousands) 2023 2022 2021 Cost of revenue $ 5,042 $ 7,099 $ 5,724 Sales and marketing 22,961 26,496 32,581 Research and development 16,401 20,654 17,071 General and administrative 18,674 19,231 16,918 Total stock-based compensation expense $ 63,078 $ 73,480 $ 72,294 Decreases in stock-based compensation expense for the fiscal year ended January 31, 2023, compared to the fiscal year ended January 31, 2022 are largely due to decreases in the fair value of awards granted. 44 The following table sets forth selected consolidated statements of operations data for each of the periods indicated as a percentage of total revenue: Fiscal year ended January 31, 2023 2022 2021 Revenue 100 % 100 % 100 % Cost of revenue 26 25 24 Gross profit 74 75 76 Operating expenses: Sales and marketing 53 59 65 Research and development 17 18 16 General and administrative 20 21 21 Total operating expenses 90 98 102 Loss from operations (16) (23) (26) Interest income — — — Interest expense — — (1) Other expense, net — — — Loss from operations before income taxes (16) (23) (27) Provision for income taxes — — — Net loss (16) % (23) % (27) % Note: Numbers rounded for presentation purposes and may not sum.
Financing Activities Net cash provided by financing activities of $24.6 million for the fiscal year ended January 31, 2022 was primarily related to proceeds from exercise of stock options of $19.2 million, and net proceeds from employee stock purchase plan withholdings of $5.7 million, partially offset by payments of deferred financing costs of $0.3 million.
Net cash provided by financing activities of $24.6 million for the fiscal year ended January 31, 2022 was primarily related to proceeds from exercise of stock options of $19.2 million, and net proceeds from employee stock purchase plan withholdings of $5.7 million, partially offset by payments of deferred financing costs of $0.3 million.
The increase reflected a $5.5 million increase in personnel- 43 related costs, inclusive of a $3.5 million increase in costs to obtain revenue contracts. In addition, there was a $2.3 million increase in depreciation expense and a $0.9 million increase in advertising costs associated with certain brand media campaigns.
The increase reflected a $5.5 million increase in personnel-related costs, inclusive of a $3.5 million increase in costs to obtain revenue contracts. In addition, there was a $2.3 million increase in depreciation expense and a $0.9 million increase in advertising costs associated with certain brand media campaigns.
The Credit Agreement provides for a senior secured revolving loan facility of up to $50.0 million that matures three years after the effective date, with the right subject to certain conditions to add an incremental revolving loan facility of up to $50.0 million in the aggregate.
The Credit Facility provides for a senior secured revolving loan facility of up to $50.0 million that matures three years after the effective date, with the right subject to certain conditions to add an incremental revolving loan facility of up to $50.0 million in the aggregate.
These increases were partially offset by Knowledge Network application provider fees which decreased $5.1 million due to favorable contract renewal terms with certain providers in the prior year. Gross margin was 74.8% for the fiscal year ended January 31, 2022, compared to 75.6% for the fiscal year ended January 31, 2021 as reflected in the discussion above.
These increases were partially offset by Publisher Network application provider fees which decreased $5.1 million due to favorable contract renewal terms with certain providers in the prior year. Gross margin was 74.8% for the fiscal year ended January 31, 2022, compared to 75.6% for the fiscal year ended January 31, 2021 as reflected in the discussion above.
We offer subscriptions in a discrete range of packages, with pricing based on specified feature sets and the number of licenses managed by the customer as well as on a capacity-basis. Fiscal Year Our fiscal year ends on January 31 st . References to fiscal 2022, for example, are to the fiscal year ended January 31, 2022.
We offer subscriptions in a discrete range of packages, with pricing based on specified feature sets and the number of licenses managed by the customer as well as on a capacity-basis. Fiscal Year Our fiscal year ends on January 31 st . References to fiscal 2023, for example, are to the fiscal year ended January 31, 2023.
In certain instances, we enter into a contract that includes a promise to provide certain technical or customized professional services, in addition to a promise to provide its subscription and associated support. Our professional services performance obligation is distinct as it does not significantly change or enhance the functionality of the Yext platform.
In certain instances, we enter into a contract that includes a promise to provide certain technical or customized professional services, in addition to a promise to provide its subscription and associated support. Our professional services performance obligation is distinct as it does not significantly change or enhance the functionality of the Answers platform.
The obligations under the Credit Agreement are secured by a lien on substantially all of our tangible and intangible property and by a pledge of all of our equity interests of material direct and indirect domestic subsidiaries and 66% of each class of capital stock of any material first-tier foreign subsidiaries, subject to limited exceptions.
The obligations under the Credit Facility are secured by a lien on substantially all of our tangible and intangible property and by a pledge of all of our equity interests of material direct and indirect domestic subsidiaries and 66% of each class of capital stock of any material first-tier foreign subsidiaries, subject to limited exceptions.
See Note 2 "Summary of Significant Accounting Policies" to our consolidated financial statements for further discussion on our accounting policies. Our most critical accounting policies and estimates, based on the degree of judgment and complexity, are discussed below. Revenue Recognition We derive our revenue primarily from our subscriptions and associated support to the Yext platform.
See Note 2 "Summary of Significant Accounting Policies" to our consolidated financial statements for further discussion on our accounting policies. Our most critical accounting policies and estimates, based on the degree of judgment and complexity, are discussed below. Revenue Recognition We derive our revenue primarily from our subscriptions and associated support to the Answers platform.
Our platform is built to leverage the structured data stored in the Knowledge Graph to deliver a modern search experience on a business's or organization's own website, as well as across approximately 200 service and application providers, which we refer to as our Knowledge Network and includes Amazon Alexa, Apple Maps, Bing, Cortana, Facebook, Google, Google Assistant, Google Maps, Siri and Yelp.
Our platform is built to leverage the structured data stored in the Knowledge Graph to deliver a modern search experience on a business's or organization's own website, as well as across over 200 service and application providers, which we refer to as our Publisher Network and includes Amazon Alexa, Apple Maps, Bing, Cortana, Facebook, Google, Google Assistant, Google Maps, Siri and Yelp.
Cost of revenue also includes fees associated with our Knowledge Network application provider arrangements, the nature of which may be unpaid, fixed, or variable, and are unpaid with many of our larger providers, as well as the costs associated with our data centers.
Cost of revenue also includes fees associated with our Publisher Network application provider arrangements, the nature of which may be unpaid, fixed, or variable, and are unpaid with many of our larger providers, as well as the costs associated with our data centers.
Our subscription and associated support performance obligation is distinct because a customer's use of the Yext platform is fully functional upon access, does not require any additional development, modification or customization, and is often sold separately.
Our subscription and associated support performance obligation is distinct because a customer's use of the Answers platform is fully functional upon access, does not require any additional development, modification or customization, and is often sold separately.
We determine the average benefit period by considering both qualitative and quantitative factors, which include the estimated life of capitalized software development costs resulting from additional functionality to the Yext platform and estimated customer life, among other such factors.
We determine the average benefit period by considering both qualitative and quantitative factors, which include the estimated life of capitalized software development costs resulting from additional functionality to the Answers platform and estimated customer life, among other such factors.
Our platform powers all of our key features, including Listings, Pages, and Answers, along with its other features and capabilities. We sell our platform throughout the world to customers of all sizes, including our enterprise, mid-size, and third-party reseller customers.
Our platform powers all of our key features, including Listings, Pages, and Search, along with its other features and capabilities. We sell our platform throughout the world to customers of all sizes, including our enterprise, mid-size, and third-party reseller customers.
We divide the single month revenue from each of those customer cohorts for the applicable month in the current year by the single month revenue of that same customer cohort for the corresponding month in the prior year.
We divided the single month revenue from each of those customer cohorts for the applicable month in the current year by the single month revenue of that same customer cohort for the corresponding month in the prior year.
The Credit Agreement contains customary affirmative and negative covenants and restrictions, as well as financial covenants that require us to maintain the year-over-year growth rate of its ordinary course recurring revenue for a trailing four fiscal quarter period above specified rates when certain liquidity thresholds are not met and to maintain a consolidated quick ratio of at least 1.50 to 1.00 tested on a monthly basis.
The Credit Facility contains customary affirmative and negative covenants and restrictions, as well as financial covenants that require us to maintain the year-over-year growth rate of its recurring revenue for a trailing four fiscal quarter period above specified 49 rates when certain liquidity thresholds are not met and to maintain a consolidated quick ratio of at least 1.50 to 1.00 tested on a monthly basis.
Investing Activities Net cash used in investing activities of $13.4 million for the fiscal year ended January 31, 2022 reflected capital expenditures primarily associated with our new corporate headquarters in New York, NY.
Investing Activities Net cash used in investing activities of $6.2 million for the fiscal year ended January 31, 2023 reflected capital expenditures. Net cash used in investing activities of $13.4 million for the fiscal year ended January 31, 2022 reflected capital expenditures primarily associated with our new corporate headquarters in New York, NY.
Cost of revenue was $98.3 million for the fiscal year ended January 31, 2022, compared to $86.4 million for the fiscal year ended January 31, 2021, an increase of $11.9 million, or 14%.
Cost of Revenue and Gross Margin Cost of revenue was $98.3 million for the fiscal year ended January 31, 2022, compared to $86.4 million for the fiscal year ended January 31, 2021, an increase of $11.9 million, or 14%.
In transactions with resellers, we are only party to the transaction with the reseller and are not a party to the reseller's transaction with its customer. Revenue is a function of the number of customers, the number of licenses with each customer, the package to which each customer subscribes, the price of the package and renewal rates.
In transactions with resellers, we are only party to the transaction with the reseller and are not a party to the reseller's transaction with its customer. Revenue is a function of the number of customers, the number of licenses or capacity purchased by each customer, the package to which each customer subscribes, the price of the package and renewal rates.
In addition, there were changes in unearned revenue of $12.7 million, operating lease liabilities of $8.9 million, and costs to obtain revenue contracts of $2.4 million.
In addition, there were positive adjustments resulting from changes in unearned revenue of $12.7 million, operating lease liabilities of $8.9 million, and costs to obtain revenue contracts of $2.4 million.
In addition, cost of revenue includes depreciation expense, including with respect to certain capitalized software development costs incurred in connection with additional functionality to our platform. Cost of revenue also includes lease expenses associated with our office spaces, which are allocated based on employee headcount.
In addition, cost of revenue includes depreciation expense, which includes amounts allocated based on employee headcount, as well as amounts related to certain capitalized software development costs incurred in connection with additional functionality to our platform. Cost of revenue also includes lease expenses associated with our office spaces, which are allocated based on employee headcount.
The estimated number of stock-based awards that will ultimately vest requires judgment, and to the extent actual results, or updated estimates, differ from our current estimates, such amounts will be recorded as a cumulative adjustment in the period actual results are realized or estimates are revised.
The estimated forfeiture rate applied to employee awards is based on historical forfeiture rates. The estimated number of stock-based awards that will ultimately vest requires judgment, and to the extent actual results, or updated estimates, differ from our current estimates, such amounts will be recorded as a cumulative adjustment in the period actual results are realized or estimates are revised.
Our cash flows, including net cash used in or provided by operating activities, may vary significantly from quarter to quarter, due to the timing of billings, cash collections, lease payments and capital expenditures, significant marketing events and related expenses, the potential effects of the COVID-19 pandemic, among other factors.
Our cash flows, including net cash used in or provided by operating activities, may vary significantly from quarter to quarter, due to the timing of billings, cash collections and lease payments, significant marketing events and related expenses, and other factors.
Research and development expenses also include lease expenses associated with our office spaces, as well as software expense, each of which are allocated based on employee headcount. General and administrative expenses .
Research and development expenses also include data centers costs associated with pre-production costs for testing and quality assurance, as well as lease expenses associated with our office spaces, and software expense, each of which are allocated based on employee headcount. General and administrative expenses .
In addition, other companies may not publish this or similar metrics. Thus, our non-GAAP net loss should be considered in addition to, not as a substitute for, nor superior to or in isolation from, measures prepared in accordance with GAAP.
In addition, other companies may not publish these or similar metrics. Thus, our revenue on a constant currency basis should be considered in addition to, not as a substitute for, nor superior to or in isolation from, measures prepared in accordance with GAAP.
We believe non-GAAP net loss provides investors and other users of our financial information consistency and comparability with our past financial performance and facilitates period-to-period comparisons of our results of operations.
We define non-GAAP net loss as our GAAP net loss as adjusted to exclude the effects of stock-based compensation expense. We believe non-GAAP net loss provides investors and other users of our financial information consistency and comparability with our past financial performance and facilitates period-to-period comparisons of our results of operations.
We use non-GAAP net loss in conjunction with traditional GAAP net loss as part of our overall assessment of our performance, including the preparation of our annual operating budget and quarterly forecasts, and to evaluate the effectiveness of our business strategies. Our definition may differ from the definitions used by other companies and therefore comparability may be limited.
We use non-GAAP net loss in conjunction with traditional GAAP net loss as part of our overall assessment of our performance, including the preparation of our annual operating budget and quarterly forecasts, and to evaluate the effectiveness of our business strategies.
Under the Credit Agreement, loans bear interest, at our option, at an annual rate based on LIBOR or a base rate. Loans based on LIBOR shall bear interest at a rate between LIBOR plus 2.50% and LIBOR plus 3.00%, depending on our average daily usage of the revolving loan facility.
As amended, the revolving loans bear interest, at our election, at an annual rate based on SOFR or a base rate. Loans based on SOFR shall bear interest at a rate between SOFR plus 2.50% and SOFR plus 3.00%, depending on our average daily usage of the revolving loan facility and subject to a SOFR floor of 1.00%.
We then determine the dollar-based weighted average of each of the monthly rates, and this average represents the dollar-based net retention rate for the period.
We then determined the dollar-based weighted average of each of the monthly rates, which represented the dollar-based net retention rate for the period.
We may continue to see some existing and potential customers, in particular customers in industries that have been highly impacted by the pandemic such as retail and food services as well as certain geographies such as Europe, reduce, suspend or delay technology spending, request to renegotiate contracts to obtain concessions such as, extended billing and payment terms; shorten the duration of contracts; or elect not to renew their subscriptions which could materially adversely impact our business, financial condition and results of operations in future periods.
However, if the macroeconomic uncertainty increases, we may continue to experience a negative impact on existing and potential customers that may reduce, suspend or delay technology spending, request to renegotiate contracts to obtain concessions such as, extended billing and payment terms; shorten the duration of contracts; or elect not to renew their subscriptions which could materially adversely impact our business, financial condition and results of operations in future periods.
Factors that could cause or contribute to these differences include, but are not limited to, those discussed in the section titled "Risk Factors" under Part I, Item 1A in this Annual Report on Form 10-K.
Factors that could cause or contribute to these differences include, but are not limited to, those discussed in the section titled "Risk Factors" under Part I, Item 1A in this Annual Report on Form 10-K. Overview Yext organizes a business's facts so it can deliver relevant, actionable answers to consumer questions throughout the digital ecosystem.
Revenue recognized from subscriptions and associated support to our platform was 93% and 95%, while revenue recognized from professional services was 7% and 5%, for the fiscal years ended January 31, 2021 and 2020, respectively.
Revenue recognized from subscriptions and associated support to our platform was 91% and 92%, while revenue recognized from professional services was 9% and 8%, for the fiscal years ended January 31, 2023 and 2022, respectively.
Fiscal Year Ended January 31, 2021 Compared to Fiscal Year Ended January 31, 2020 Revenue and Cost of Revenue Fiscal year ended January 31, Variance (in thousands) 2021 2020 Dollars Percent Revenue $ 354,661 $ 298,829 $ 55,832 19 % Cost of revenue 86,404 77,030 $ 9,374 12 % Gross profit $ 268,257 $ 221,799 $ 46,458 21 % Gross margin 75.6 % 74.2 % Total revenue was $354.7 million for the fiscal year ended January 31, 2021, compared to $298.8 million for the fiscal year ended January 31, 2020, an increase of $55.8 million or 19%, primarily driven by new customer subscriptions to our platform, and to a lesser extent included expanded subscriptions for existing customers.
Fiscal Year Ended January 31, 2022 Compared to Fiscal Year Ended January 31, 2021 Revenue and Cost of Revenue Fiscal year ended January 31, Variance (in thousands) 2022 2021 Dollars Percent Revenue $ 390,577 $ 354,661 $ 35,916 10 % Cost of revenue 98,299 86,404 $ 11,895 14 % Gross profit $ 292,278 $ 268,257 $ 24,021 9 % Gross margin 74.8 % 75.6 % Total revenue was $390.6 million for the fiscal year ended January 31, 2022, compared to $354.7 million for the fiscal year ended January 31, 2021, an increase of $35.9 million or 10%, primarily driven by new customer subscriptions to our platform, and to a lesser extent included expanded subscriptions for existing customers.
Loans based on the base rate shall bear interest at a rate between the base rate minus 0.50% and the base rate plus 0.00%, depending on our average daily usage of the revolving loan facility.
Loans based on the base rate shall bear interest at a rate between the base rate minus 0.50% and the base rate plus 0.00%, depending on our average daily usage of the revolving loan facility. See Part I Item 1A “Risk Factors - Our credit facility contains restrictive covenants that may limit our operating flexibility".
Critical Accounting Policies and Estimates Our management's discussion and analysis of our financial condition and results of operations is based on our financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP").
Contractual Obligations See Note 14 "Commitments and Contingencies", to the consolidated financial statements for our discussion on contractual obligations. Critical Accounting Policies and Estimates Our management's discussion and analysis of our financial condition and results of operations is based on our financial statements, which have been prepared in accordance with GAAP.
We encourage investors and others to review our financial information in its entirety, not to rely on any single financial measure and to view non-GAAP net loss in conjunction with GAAP net loss.
We compensate for these limitations by providing a reconciliation of our non-GAAP financial measures to the most closely related GAAP financial measures. We encourage investors and others to review our financial information in its entirety, not to rely on any single financial measure and to view non-GAAP net loss and Adjusted EBITDA in conjunction with GAAP net loss.
This was partially offset by a $1.3 million decrease in bad debt expense as the prior year period had higher expense to reflect the initial impacts of the COVID-19 pandemic.
This was partially offset by a $1.3 million decrease in bad debt expense as the prior year period had higher expense to reflect the initial impacts of the COVID-19 pandemic. Net Loss Net loss was $65.9 million, $93.3 million, and $94.7 million for the fiscal years ended January 31, 2023, 2022 and 2021, respectively.
These adjustments included stock-based compensation expense of $72.3 million, amortization of operating lease right-of-use assets of $12.2 million, depreciation and amortization expense of $10.6 million, and bad debt expense of $2.5 million, reflecting an increase in the allowance for doubtful accounts in light of impacts from the COVID-19 pandemic.
Net cash provided by operating activities of $1.2 million for the fiscal year ended January 31, 2021 reflected our net loss of $94.7 million, adjusted by non-cash charges including stock-based compensation expense of $72.3 million, amortization of operating lease right-of-use assets of $12.2 million, depreciation and amortization expense of $10.6 million, and bad debt expense of $2.5 million, reflecting an increase in the allowance for doubtful accounts in light of impacts from the COVID-19 pandemic.
Our contracts are typically one year in length, but may be up to three years or longer in length. Revenue is a function of the number of customers, the number of licenses or capacity purchased by each customer, the package to which each customer subscribes, the price of the package and renewal rates.
Revenue is a function of the number of customers, the number of licenses or capacity purchased by each customer, the package to which each customer subscribes, the price of the package and renewal rates.
Costs Capitalized to Obtain Revenue Contracts We capitalize costs of obtaining revenue contracts that are incremental and recoverable. Incremental costs primarily include sales commissions, certain related incentives, and associated payroll tax and fringe benefit costs.
See Note 2 "Summary of Significant Accounting Policies" and Note 3 "Revenue" to our consolidated financial statements for further discussion on our revenue recognition. 51 Costs Capitalized to Obtain Revenue Contracts We capitalize costs of obtaining revenue contracts that are incremental and recoverable. Incremental costs primarily include sales commissions, certain related incentives, and associated payroll tax and fringe benefit costs.
The fair value of restricted stock units and restricted stock are calculated based on the fair value of our common stock on the date of grant, while the fair value of stock options are calculated using a Black-Scholes option-pricing model.
The fair value of restricted stock units and restricted stock are estimated on the date of grant based on the fair value of our Company’s common stock. The fair value of performance-based restricted stock units are estimated on the date of grant using a Monte Carlo simulation model.
Amortization of costs capitalized to obtain revenue contracts is included in sales and marketing expense in the consolidated statements of operations and comprehensive loss. Stock-Based Compensation Stock-based compensation for all employee and non-employee stock-based awards, including restricted stock units and restricted stock, is measured at fair value on the date of grant and recognized over the service period.
Stock-Based Compensation Stock-based compensation for all employee and non-employee stock-based awards, including restricted stock units, restricted stock, performance-based restricted stock units, and options to purchase common stock, is measured at fair value on the date of grant and recognized over the service period.
Net cash used in investing activities of $65.1 million for the fiscal year ended January 31, 2021 reflected capital expenditures primarily associated with our new corporate headquarters in New York, NY, and our office spaces in Rosslyn, VA and Tokyo, Japan, among others.
Net cash used in investing activities of $65.1 million for the fiscal year ended January 31, 2021 reflected capital expenditures primarily associated with our new corporate headquarters in New York, NY, and our office spaces in Rosslyn, VA and Tokyo, Japan, among others. 50 Financing Activities Net cash used in financing activities of $79.0 million for the fiscal year ended January 31, 2023 was primarily related to $77.3 million in cash outflows associated with repurchases of common stock as part of our share repurchase program, as well as payments for taxes related to the net share settlement of stock-based compensation awards of $5.1 million and payments of deferred financing costs of $0.5 million.
Our revenue is predominately derived from our enterprise, mid-size, and third-party reseller customers. Revenue from our small business customers represented less than 5% of total revenue for each period.
Our revenue is predominately derived from our enterprise, mid-size, and third-party reseller customers.
The incremental borrowing rate is determined based on what we would estimate to pay for a collateralized loan over a similar term and economic environment for each lease arrangement.
The incremental borrowing rate is determined based on what we would estimate to pay for a collateralized loan over a similar term and economic environment for each lease arrangement. 52 With respect to our operating lease arrangements, we account for lease components, and non-lease components that are fixed, as a single lease component in the measurement of operating lease liabilities and right-of-us assets.
Stock-based compensation expense is recognized over the requisite service periods of awards, which is typically one to four years for restricted stock units and restricted stock. The estimated forfeiture rate applied to employee awards is based on historical forfeiture rates.
The fair value of stock options are estimated on the date of grant using a Black-Scholes option-pricing model. Stock-based compensation expense is generally recognized over the requisite service periods of awards, which is typically one to four years for restricted stock units and restricted stock, and four years for options and performance-based restricted stock units.
We continue to be committed to our business, the strength of our platform, our ability to continue to execute on our strategy, and our efforts to support our customers.
The uncertain duration of these measures has had and may continue to have an adverse impact on our financial condition and operating results in future periods. We continue to be committed to our business, the strength of our platform, our ability to continue to execute on our strategy, and our efforts to support our customers.
This overall increase primarily reflects the increases in costs associated with our data centers of $3.2 million, personnel-related costs of $1.6 million, stock-based compensation expense of $1.6 million, and software expense of $1.4 million.
The increase was primarily driven by a $4.9 million increase in personnel-related costs and a $1.3 million increase in costs associated with our data centers. These increases were partially offset by a $4.3 million decrease in stock-based compensation expense, largely due to decreases in the fair value of awards granted.
Amounts that have been invoiced for non-cancelable contracts are recorded 49 in accounts receivable and unearned revenue or revenue. See Note 2 "Summary of Significant Accounting Policies" and Note 3 "Revenue" to our consolidated financial statements for further discussion on our revenue recognition.
Amounts that have been invoiced for non-cancelable contracts are recorded in accounts receivable and unearned revenue or revenue.
Lease arrangements with an initial term of 12 months or less are recognized on a straight-line basis over the lease term and are not recorded on the consolidated balance sheet. Recent Accounting Pronouncements See Note 2 "Summary of Significant Accounting Policies" to the consolidated financial statements for our discussion about adopted and pending recent accounting pronouncements. 51
Recent Accounting Pronouncements See Note 2 "Summary of Significant Accounting Policies- Recent Accounting Pronouncements", to the consolidated financial statements for our discussion about adopted and pending recent accounting pronouncements. 53
No significant debt issuance costs were incurred in association with the Credit Agreement. In January 2021, we amended the Credit Agreement which modified the conditions pursuant to which subsidiaries are required to become guarantors.
Credit Arrangements On March 11, 2020, we entered into a credit agreement with Silicon Valley Bank (the “Credit Agreement”). In January 2021, we amended the Credit Agreement which modified the conditions pursuant to which subsidiaries are required to become guarantors.
Net Loss Net loss was $93.3 million, $94.7 million, and $121.5 million for the fiscal years ended January 31, 2022, 2021 and 2020. Non-GAAP Net Loss In addition to our financial results determined in accordance with GAAP, we believe that non-GAAP net loss is useful in evaluating our operating performance and our business.
Non-GAAP Financial Measures In addition to our financial results determined in accordance with GAAP, we believe that certain non-GAAP financial measures are useful in evaluating our operating performance and our business. 47 Non-GAAP net loss is a financial measure that is not calculated in accordance with GAAP.
These adjustments included stock-based compensation expense of $73.5 million, depreciation and amortization expense of $16.8 million, amortization of operating lease right-of-use assets of $9.3 million, and bad debt expense of $1.3 million. In addition, there were changes in unearned revenue of $33.3 million and changes in prepaid expenses and other current assets of $4.2 million.
In addition, there were positive adjustments resulting from changes in unearned revenue of $33.3 million and changes in prepaid expenses and other current assets of $4.2 million.
Research and development expense was $58.1 million for the fiscal year ended January 31, 2021, compared to $49.4 million for the fiscal year ended January 31, 2020, an increase of $8.7 million, or 18%.
These decreases were partially offset by a $3.1 million increase in conferences and events and a $2.8 million increase in employee travel. Research and development expense was $70.9 million for the fiscal year ended January 31, 2023, compared to $68.4 million for the fiscal year ended January 31, 2022, an increase of $2.6 million, or 4%.
Operating Expenses Fiscal year ended January 31, Variance (in thousands) 2021 2020 Dollars Percent Sales and marketing $ 228,417 $ 218,076 $ 10,341 5 % Research and development $ 58,146 $ 49,445 $ 8,701 18 % General and administrative $ 76,026 $ 77,231 $ (1,205) (2) % Sales and marketing expense was $228.4 million for the fiscal year ended January 31, 2021, compared to $218.1 million for the fiscal year ended January 31, 2020, an increase of $10.3 million, or 5%.
Operating Expenses Fiscal year ended January 31, Variance (in thousands) 2023 2022 Dollars Percent Sales and marketing $ 211,479 $ 230,467 $ (18,988) (8) % Research and development $ 70,903 $ 68,350 $ 2,553 4 % General and administrative $ 79,336 $ 83,420 $ (4,084) (5) % Sales and marketing expense was $211.5 million for the fiscal year ended January 31, 2023, compared to $230.5 million for the fiscal year ended January 31, 2022, a decrease of $19.0 million, or 8%.
However, because we generally recognize revenue from our customer contracts ratably over the term of the contract, changes in our contracting activity in the near term may not be fully reflected in our results of operations and overall financial performance until future periods.
Therefore, changes in our contracting activity in the near term may not be fully reflected in our results of operations and overall financial performance until future periods. See Part I Item 1A “Risk Factors” for further discussion of the possible impact of the current macroeconomic conditions on our business.
We calculate this metric for a particular period by first establishing a cohort of the enterprise, mid-size, and third-party reseller customers, who had active contracts at the end of each month of the same period in the prior year.
The following table provides our dollar-based net retention rate for the fiscal years ended January 31, 2023, 2022 and 2021: January 31, 2023 2022 2021 Dollar-Based Net Retention Rate (ARR) Direct Customers 97% 101% 100% Third-Party Reseller Customers 92% 101% 92% Total Customers 96% 101% 98% Historically, we presented dollar-based net retention rate on a revenue basis whereby we first established a cohort of enterprise, mid-size, and third-party reseller customers, who had active contracts at the end of each month of the same period in the prior year.
As of such date, the $50.0 million revolving loan facility had $35.7 million available and $14.3 million in letters of credit allocated as security in connection with office space. 47 Cash Flows The following table summarizes our cash flows: Fiscal year ended January 31, (in thousands) 2022 2021 2020 Net cash provided by (used in) operating activities $ 21,849 $ 1,204 $ (30,768) Net cash (used in) provided by investing activities $ (13,418) $ (65,111) $ 39,308 Net cash provided by financing activities $ 24,617 $ 22,548 $ 168,373 Operating Activities Net cash provided by operating activities of $21.8 million for the fiscal year ended January 31, 2022 was primarily due to positive adjustments in reconciling our net loss of $93.3 million to net cash provided by operating activities.
Cash Flows The following table summarizes our cash flows: Fiscal year ended January 31, (in thousands) 2023 2022 2021 Net cash provided by operating activities $ 17,853 $ 21,849 $ 1,204 Net cash used in investing activities $ (6,193) $ (13,418) $ (65,111) Net cash (used in) provided by financing activities $ (79,021) $ 24,617 $ 22,548 Operating Activities Net cash provided by operating activities of $17.9 million for the fiscal year ended January 31, 2023 reflected our net loss of $65.9 million, adjusted by non-cash charges including stock-based compensation expense of $63.1 million, depreciation and amortization expense of $17.6 million and amortization of operating lease right-of-use assets of $8.8 million.
With respect to our operating lease arrangements, we account for lease components, and non-lease components that are fixed, as a single lease component in the measurement of operating lease liabilities and right-of-us assets. Non-lease components that are variable are expensed as incurred in the consolidated statement of operations and comprehensive loss.
Non-lease components that are variable are expensed as incurred in the consolidated statement of operations and comprehensive loss. Lease arrangements with an initial term of 12 months or less are recognized on a straight-line basis over the lease term and are not recorded on the consolidated balance sheet.
We assess our performance in this respect using a metric we refer to as our dollar-based net retention rate. Our dollar-based net retention rate was 98%, 102%, and 106% for the fiscal years ended January 31, 2022, 2021 and 2020, respectively.
We assess our performance in this area using a metric we refer to as our dollar-based net retention rate, which compares the ARR from a set of subscription customers across comparable periods.
These increases were partially offset by a decrease in Knowledge Network application provider costs of $1.0 million as a result of more favorable contract terms with certain providers. Gross margin was 75.6% for the fiscal year ended January 31, 2021, compared to 74.2% for the fiscal year ended January 31, 2020 as reflected in the discussion above.
These increases were partially offset by a $2.1 million decrease in stock-based compensation expense, largely due to decreases in the fair value of awards granted, as well as a $1.2 million decrease in Publisher Network provider fees due to favorable contract renewal terms with certain providers in the prior year.
Overview Yext organizes a business's facts so it can provide official answers to consumer questions starting with the business's own website and then extending across search engines and voice assistants. Our platform lets businesses structure the facts about their brands in a database called the Knowledge Graph.
Our platform lets businesses structure the facts about their brands in a database called the Knowledge Graph.
The increase was primarily due to a $3.9 million increase 44 in stock-based compensation expense, a $3.0 million increase in personnel-related costs, reflecting higher headcount, which mainly consisted of salaries and wages, and a $0.8 million increase in software expense.
This was partially offset by a $0.7 million increase in personnel-related costs, reflecting higher headcount, a $0.7 million increase in software expense and a $0.4 million increase in depreciation expense.
Cost of revenue was $86.4 million for the fiscal year ended January 31, 2021, compared to $77.0 million for the fiscal year ended January 31, 2020, an increase of $9.4 million, or 12%.
Revenue attributable to third-party reseller customers was $87.2 million for the fiscal year ended January 31, 2022, compared to $88.9 million for the fiscal year ended January 31, 2021, a decrease of $1.7 million or 2% primarily due to customer attrition.
In addition, net cash used in operating activities was also partially offset by changes in unearned revenue of $42.3 million and accounts payable, accrued expenses and other liabilities of $8.3 million.
In addition, there were positive adjustments resulting from changes in costs to obtain revenue contracts of $8.0 million, unearned revenue of $3.5 million and accounts payable, accrued expenses and other current liabilities of $2.7 million.
The following table provides a reconciliation of GAAP net loss to non-GAAP net loss: Fiscal year ended January 31, (in thousands) 2022 2021 2020 Net loss $ (93,259) $ (94,692) $ (121,544) Plus: Stock-based compensation expense 73,480 72,294 67,770 Non-GAAP net loss $ (19,779) $ (22,398) $ (53,774) Dollar-Based Net Retention Rate We believe that our ability to retain our customers and expand the revenue they generate for us over time is an important component of our growth strategy and reflects the long term value of our customer relationships.
January 31, Variance 2023 2022 Dollars Percent Annual Recurring Revenue Direct Customers $ 327,017 $ 312,132 $ 14,885 5 % Third-Party Reseller Customers 73,343 78,353 (5,010) (6) % Total Annual Recurring Revenue $ 400,360 $ 390,485 $ 9,875 3 % Dollar-Based Net Retention Rate We believe that our ability to retain our customers and expand the ARR they generate for us over time is an important component of our growth strategy and reflects the long term value of our customer relationships.
General and administrative expense was $76.0 million for the fiscal year ended January 31, 2021, relatively consistent compared to $77.2 million for the fiscal year ended January 31, 2020, as decreases of $2.1 million in stock-based compensation expense and $2.0 million in employee travel, were generally offset by a $1.3 million increase in the allowance for doubtful accounts and a $0.8 million increase in software expense.
General and administrative expense was $79.3 million for the fiscal year ended January 31, 2023, compared to $83.4 million for the fiscal year ended January 31, 2022, a decrease of $4.1 million or 5%.
The increase was primarily due to a $23.6 million increase in personnel-related costs, reflecting higher headcount, which mainly consisted of salaries and wages and costs to obtain revenue contracts, a $2.8 million increase in software expense, a $1.4 million increase in operating and short-term lease expenses, a $1.3 million increase in depreciation expense, and a $1.2 million increase in stock-based compensation expense.
The decrease was primarily driven by a $4.2 million decrease in professional related costs, a $1.1 million decrease in bad debt expense and a $0.6 million decrease in stock-based compensation expense, largely due to decreases in the fair value of awards granted.
This was partially offset by positive reconciling adjustments related to non-cash charges of stock-based compensation expense of $67.8 million, amortization of operating lease right-of-use assets of $11.1 million and depreciation and amortization expense of $8.1 million.
Net cash provided by operating activities of $21.8 million for the fiscal year ended January 31, 2022 reflected our net loss of $93.3 million, adjusted by non-cash charges including stock-based compensation expense of $73.5 million, depreciation and amortization expense of $16.8 million, amortization of operating lease right-of-use assets of $9.3 million, and bad debt expense of $1.3 million.
Our revenue is predominately derived from our enterprise, mid-size, and third-party reseller customers. Revenue recognized from subscriptions and associated support to our platform was 92% and revenue recognized from professional services was 8%, for the fiscal year ended January 31, 2022, compared to 93% and 7%, respectively, for the fiscal year ended January 31, 2021.
Revenue recognized from subscriptions and associated support to our platform was 92% and revenue recognized from professional services was 8%, for the fiscal year ended January 31, 2022, compared to 93% and 7%, respectively, for the fiscal year ended January 31, 2021. 46 The following table summarizes our revenue by sales channel for the periods presented: Fiscal year ended January 31, Variance 2022 2021 Dollars Percent (in thousands) Direct Customers $ 303,338 $ 265,756 $ 37,582 14 % Third-Party Reseller Customers 87,239 88,905 (1,666) (2) % Total Revenue $ 390,577 $ 354,661 $ 35,916 10 % Revenue attributable to direct customers was $303.3 million for the fiscal year ended January 31, 2022, compared to $265.8 million for the fiscal year ended January 31, 2021, an increase of $37.6 million or 14%, primarily driven by new customer subscriptions to our platform, as well as expanded subscriptions for existing customers.
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COVID-19 Update The COVID-19 pandemic has significantly disrupted business operations for us and our customers, as well as suppliers, and other parties with whom we do business. Such disruptions are expected to continue for an indefinite period of time.
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Macroeconomic Conditions Our results of operations may be influenced by general macroeconomic conditions, including, but not limited to, the impact of foreign currency fluctuations, interest rates, inflation, recession risks and the COVID-19 pandemic.
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We have adopted several measures in response to the COVID-19 pandemic and continue to monitor regional developments to inform our operational decisions. Our offices have been open on a voluntary basis in accordance with guidance provided by government agencies, although currently the majority of our employees are still working remotely.
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Fluctuations in foreign exchange rates and rising inflation have had, and may continue to have an adverse impact on our financial condition and operating results in future periods. The extent to which such disruptions will continue in future periods remains uncertain.
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While we continue to hold virtual events, we have also resumed in-person marketing events. The uncertain duration of these measures have had and may continue to have negative effects on our sales efforts and revenue growth rates.
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Near-term revenues are relatively predictable as a result of our subscription-based business model.
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The ultimate extent of the impact of the pandemic will depend on future developments, which continue to be highly uncertain and cannot be predicted, including the severity and duration of the COVID-19 pandemic and its variants, vaccination rates and efficacy and the actions taken to contain and address the impact of the pandemic, among others.
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Key Metrics We monitor the following key operational and financial metrics to evaluate our business, measure our performance, identify trends affecting our business, formulate business plans and make strategic decisions.
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See Part I Item 1A “Risk Factors” for further discussion of the possible impact of the COVID-19 pandemic on our business. Recent Developments On March 7, 2022, Howard Lerman notified our Board of Directors of his intention to step down from his position as Chief Executive Officer of the Company effective March 25, 2022.
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Customer Count Customer count is defined as the total number of customers with contracts executed as of the last day of the reporting period and a unique administrative account identifier on our platform.

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Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

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Biggest changeA hypothetical 10% change in interest rates during any of the periods presented would not have had a material impact on our financial statements. 52
Biggest changeA hypothetical 10% change in interest rates during any of the periods presented would not have had a material impact on our financial statements. Financial Institution Risk While we seek to minimize our exposure to third-party losses of our cash and cash equivalents, we hold our balances in a number of large financial institutions.
Based on the size of our international operations and the amount of our expenses denominated in foreign currencies, we would not expect a 10% change in the value of the U.S. dollar from rates on January 31, 2022 to have a material effect on our financial position or results of operations.
Based on the size of our international operations and the amount of our expenses denominated in foreign currencies, we would not expect a 10% change in the value of the U.S. dollar from rates on January 31, 2023 to have a material effect on our financial position or results of operations.
The primary objective of our investments is the preservation of capital to fulfill liquidity needs. We do not enter into investments for trading or speculative purposes. We do not believe our cash equivalents have significant risk of default or illiquidity.
Interest Rate Risk As of January 31, 2023, we had cash and cash equivalents of $190.2 million. The primary objective of our investments is the preservation of capital to fulfill liquidity needs. We do not enter into investments for trading or speculative purposes. We do not believe our cash equivalents have significant risk of default or illiquidity.
These exposures may change over time as business practices evolve and economic conditions change, including market impacts associated with COVID-19. Inflation Risk We do not believe that inflation has had a material effect on our business, financial condition or results of operations, other than its impact on the general economy.
These exposures may change over time as business practices evolve and economic conditions change, including recent foreign currency impacts due to the macroeconomic environment. Inflation Risk We do not believe that inflation has had a material effect on our business, financial condition or results of operations, other than its impact on the general economy which includes labor costs.
Nonetheless, if our costs were to become subject to inflationary pressures, we may not be able to fully offset such higher costs through price increases. Our inability or failure to do so could harm our business, financial condition and results of operations. Interest Rate Risk As of January 31, 2022, we had cash and cash equivalents of $261.2 million.
Nonetheless, if our costs, in particular personnel-related costs, continue to become subject to significant inflationary pressures, we may not be able to fully offset such higher costs through price increases. Our inability or failure to do so could harm our business, financial condition and results of operations.
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Notwithstanding, those institutions are subject to risk of failure and our balances may be uninsured in certain cases.
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For example, on March 10, 2023, SVB was unable to continue their operations and the Federal Deposit Insurance Corporation was appointed as receiver for SVB and created the National Bank of Santa Clara to hold the deposits of SVB after SVB was unable to continue their operations.
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As of March 15, 2023, substantially all of our cash and cash equivalents are held with other large financial institutions and we do not expect further developments with SVB to have a material impact on our cash and cash equivalents balance, expected results of operations or financial performance for the foreseeable future.
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However, if further failures in financial institutions occur where we hold deposits, we could experience additional risk. 54

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