Yext Reports Improved Adjusted EBITDA Margin Amid Revenue Declines
Yext (NYSE:YEXT) reported a fiscal second-quarter revenue decline of 1.8% year-over-year to $111.1 million, with annual recurring revenue (ARR) falling by approximately 1%. Despite the drop in top-line growth, Yext achieved an adjusted EBITDA margin expansion from 23.3% to 30.6%, reaching $34.0 million—up 29% year-over-year. The company attributed this improvement to cost discipline and operational efficiency. Enterprise ARR for customers with at least $50,000 in revenue grew by 2% to $405.9 million, representing 92% of total ARR. Dollar-based net retention improved from 96% a year ago to 98%, while gross retention rose slightly as well. However, the smaller customer segment saw significant declines—ARR fell 22% and net retention dropped to 79%. Yext is betting on enterprise growth and new AI initiatives like Corvo AI and GoShine acquisition integration to reverse broader trends. The company reported $53 million in trailing twelve-month free cash flow, offering financial flexibility. However, the challenge remains whether improved enterprise performance can offset continued losses from smaller clients.
Tickers: $YEXT
Topics: arr ebitda enterprise_growth revenue