Yext, Inc. (NYSE:YEXT) Q4 2024 Earnings Call Transcript

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And so this is not really surprising, but we’ve now been at it with this — with our — with Ran and Tom and their teams for whatever it is five or six quarters now and the machine is getting better. It’s getting more efficient. And we’re figuring out what’s working better. And I think when you combine that with messages and discussions with customers that feel much more focused on their needs and what they need next, right? So when we talk about social management and those capabilities. It’s one of the things we’re hearing consistently from customers is I don’t necessarily want to have multiple systems doing these different things. And so that, combined with the productivity that we’ve seen, which is all related to that, gives us confidence that we can start increasing once again.

I think we are quota-carrying and direct revenue-generating headcount, which we’re not disclosing numbers, but has been decreasing for most of the last four or so years. I think we’re ready to start increasing that again because we finally have the signal that we need to feel really confident there.

Ryan MacDonald: Okay. That’s super helpful. Maybe just on the topic of the Boomerang customers. Of the ones that you were able to win in fourth quarter, how has the initial land trending? Or how did the initial land trend in the fourth quarter relative to the size of customer they were when they left you? And then as we think about fiscal ’25 what’s the rough mix of the pipeline that’s from Boomerang customers versus sort of net new?

Mike Walrath: Yes. I don’t know that I would be able to tell you the mix of boomerang versus net new. And again, because our product has become so broad, the boomerang customer could be multiple product or single product. And so we’re not I wouldn’t be able to quantify it for you that way. I think there are a lot of trends that drive boomerangs. I think in a lot of cases, what we’re seeing with Boomerang customers is that they left for a less costly solution that didn’t deliver the return on investment they wanted. There were promises were made that weren’t kept. And also, in a lot of cases, the platform that these customers may have — we haven’t stood still. So the innovation that we’ve driven through our platform creates more additional value as well.

I think our — one of the big shifts is that our overall approach to how we deal with customers and how we how we bundle and how we package and how we deliver services has become and will continue to become more customer-friendly. As we’ve really gotten our arms around the types of services and support that our customers want. So that’s another area that I anticipate that we’ll just continue to improve the overall customer experience, the amount of support that they get, the proactive nature of that support as we’ve been doing a lot of really hard work on that front over the course of the last year, 1.5 years.

Ryan MacDonald: Appreciate the color. Thanks.

Operator: As there are no further questions, this concludes our question-and-answer session. I would like to turn the conference back over to Mike Walrath for any closing remarks.

Mike Walrath: We’d just like to thank everybody for joining, and we look forward to speaking with you next quarter.

Operator: The conference has now concluded. Thank you for attending today’s presentation. You may now disconnect.

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