Yext, Inc.

Our Efficiency Journey

Over the past several years, we have been on a journey to achieve best-in-class operating efficiency. To illustrate the progress we have made, we compared our results for the first half of fiscal year 2027 to our results for the first half of fiscal year 2026. In the first half of FY27, we generated 25% more bookings with 24% fewer quota-carrying (QC) sales reps than we did in the first half of FY26, a 66% increase in bookings per QC sales rep. Moreover, the quality of bookings last quarter was significantly better, with a higher proportion of bookings from the ≥$50K cohort, providing structurally higher retention and customer lifetime value per dollar of bookings relative to the existing SMB cohort.

Last quarter, we said Adjusted EBITDA margin would build towards 30% through the balance of the year, and in the second quarter, we reported a 31% Adjusted EBITDA margin. We are delivering ahead of schedule as we continue to drive efficiencies across sales and marketing, R&D, and overhead - even as we accelerate our product development and return to growth in our customers with ARR ≥$50K.