Curious about Yext net worth in 2024? Yext, a leader in the digital presence management space, has experienced shifts in revenue and partnerships impacting its financial position.
n this article, I’ll break down key factors influencing Yext’s financial performance.
Written by Ando Money, you’ll get an in-depth look into the numbers behind the company. Let’s dive into how Yext’s partnerships and operational strategy have shaped its revenue.
Quick Facts
| FACT | DETAIL |
|---|---|
| Name | Yext, Inc. |
| Full Name | Yext, Inc. |
| Website | yext.com |
| Industry | Software |
| Traded as | NYSE: YEXT |
| ISIN | US98585N1063 |
| Founded | 2006 |
| Founders | Howard Lerman, Brian Distelburger, Brent Metz |
| Country/Territory | United States |
| Headquarters | New York, NY |
| Chief Executive Officer | Michael Walrath |
| Number of Employees | 1,100 |
| Market Cap | $0.91 billion |
| Total Assets | $458.2 million |
| Total Equity | $162.8 million |
| Revenue | $193.9 million (6 months ending July 2024) |
| Net Income | ($7.9 million) |
What is the Net Worth/Market Cap of Yext in 2024?
As of 2024, Yext has a market cap of $0.91 billion, positioning it within the competitive digital software industry. When compared to other companies in the same sector, Yext remains a notable player, though not the largest.
Companies like Google, Facebook, and Microsoft far surpass Yext in terms of total market capitalization. Despite this, Yext’s steady financial performance and strong revenue streams keep it relevant.
Competitors/Partners related to Yext include:
Yext may not be the richest company in the tech industry, but its $0.91 billion market value showcases a solid financial standing in 2024.
Yext Financial Performance Overview
Subscription-based Revenue Model
Yext derives a significant portion of its revenue from its subscription-based model.
Businesses use Yext’s platform to manage their digital presence across multiple platforms, making this a consistent and predictable revenue stream.
For the first six months of 2024, Yext generated $193.9 million in revenue, with a majority coming from these subscriptions.
The flexibility of the subscription model allows Yext to cater to enterprises of different sizes, ensuring a steady inflow of revenue over time.
Geographical Revenue Distribution
Yext’s revenue comes primarily from two regions: North America and Europe. 78% of total revenue is generated in North America, while Europe, including countries like the UK, contributes 20%.
This geographic distribution shows the company’s strength in its domestic market but leaves room for growth in international markets.
With plans for further expansion, Yext is poised to capture even more revenue globally in the coming years.
Key Factors Affecting Revenue Growth
Client Base Expansion and Retention
Yext’s ability to grow its revenue is heavily influenced by its capacity to attract new clients and retain existing ones.
The company’s ARR (Annual Recurring Revenue) hit $381.8 million in 2024, but client attrition remains a concern.
The loss of a large customer earlier this year dented the company’s revenue growth.
However, Yext is continually striving to maintain a strong client base while exploring new markets to offset any losses.
Partnerships with Third-Party Platforms
Yext has established partnerships with over 200 third-party platforms, including Google, Amazon Alexa, and Facebook, which serve as distribution channels for businesses using Yext’s tools.
These partnerships play a crucial role in Yext’s revenue stream by providing customers with integrated solutions for managing their online presence across multiple platforms.
Maintaining and expanding these relationships is pivotal for future growth.
Analyzing Product Line Impact on Revenue
Listings
Yext’s Listings product, which allows businesses to manage their digital information across search engines, social media, and maps, remains a core component of its revenue.
This product ensures companies can update their information in real-time, making it a popular choice for businesses looking for accurate digital representation.
Pages
Yext’s Pages product helps companies create landing pages optimized for search engines, another key driver of revenue.
As businesses seek to improve their visibility online, Yext has found success in selling this product alongside its other offerings.
Search Product
Introduced in 2019, Yext’s Search product is designed to revolutionize how businesses manage on-site search.
This feature leverages natural language processing (NLP) to provide businesses with a smart search solution that customers can use on their websites.
As search optimization continues to grow in importance, this product has the potential to become a major contributor to Yext’s financial growth.
Operational Costs and Their Effect on Profitability
Sales and Marketing Expenses
Yext spent $85.2 million on sales and marketing during the first half of 2024, representing a significant portion of its overall expenses.
This investment is necessary to maintain customer acquisition and brand presence, but it does put pressure on the company’s overall profitability.
Research and Development Investments
Innovation is central to Yext’s growth, and the company spent $35.6 million on research and development in the first six months of 2024.
These investments ensure that Yext remains competitive in a fast-evolving digital market, particularly with its ongoing improvements to its product offerings like Listings and Search.
General and Administrative Costs
General and administrative costs, including wages and operational expenses, totaled $42.2 million in the first six months of 2024.
Although these costs are necessary for the company’s day-to-day functions, they also contribute to Yext’s operating losses.
Financial Impact of Strategic Acquisitions
Yext’s acquisition of Hearsay Social in August 2024, for $125 million, marked a strategic expansion in the financial services sector.
Hearsay Social’s platform, combined with Yext’s capabilities, opens new revenue streams in managing digital interactions for businesses.
This move is expected to contribute positively to Yext’s revenue in the coming years as the company integrates Hearsay into its existing platform.
Challenges and Opportunities for Future Financial Growth
Yext has plenty of room to grow in international markets, particularly outside of Europe and North America.
Although it’s been successful in the United States and the UK, Yext has opportunities to expand in Asia and South America, which could drive significant new revenue streams.
Yext’s focus on developing new products, such as improving its Search functionality, will likely open doors to new markets.
The company is well-positioned to continue developing cutting-edge products that will help it remain competitive in the evolving digital landscape.
FAQs About Yext
What are Yext’s primary revenue sources?
Its revenue primarily comes from subscription-based services, where businesses pay for access to manage their digital presence. This includes products like Listings, Pages, and Search.
What is Yext’s current market cap?
As of 2024, Yext’s market cap stands at $0.91 billion, reflecting its valuation in the software sector.
How many employees does Yext have?
It has approximately 1,100 employees globally, working across various divisions to manage and grow its platform.
What was Yext’s revenue for the first half of 2024?
For the first half of 2024, the company generated $193.9 million in revenue, driven by its subscription model and expanding client base.
Who is the current CEO of Yext?
Michael Walrath is the CEO of Yext, leading the company’s financial and operational strategy.
Conclusion
Yext continues to evolve financially, with plenty of growth opportunities ahead.
Feel free to share your thoughts in the comments or explore more content on Ando Money.
