Yext, Inc. - 10-Q filing on 2023-06-07

Equity

3 Months Ended

Apr. 30, 2023

The following table summarizes the changes in stockholders' equity during the three months ended April 30, 2023:


						Accumulated
				Additional		Other						Total
	Common Stock			Paid-In		Comprehensive		Accumulated		Treasury		Stockholders’
(in thousands)	Shares	Amount		Capital		Loss		Deficit		Stock		Equity
Balance, January 31, 2023	122,335	$	142	$	897,368	$	(3,617)	$	(676,542)	$	(89,328)	$	128,023
Exercise of stock options	1,256	1		7,243		—		—		—		7,244
Vested restricted stock units converted to common shares, net of shares withheld for employee taxes	682	1		(3,241)		—		—		—		(3,240)
Issuance of restricted stock	13	—		—		—		—		—		—
Issuance of common stock under employee stock purchase plan	492	1		2,119		—		—		—		2,120
Stock-based compensation	—	—		11,119		—		—		—		11,119
Repurchase of common stock	(564)	—		—		—		—		(4,613)		(4,613)
Other comprehensive income	—	—		—		346		—		—		346
Net loss	—	—		—		—		(412)		—		(412)
Balance, April 30, 2023	124,214	$	145	$	914,608	$	(3,271)	$	(676,954)	$	(93,941)	$	140,587

The following table summarizes the changes in stockholders' equity during the three months ended April 30, 2022:


						Accumulated
				Additional		Other						Total
	Common Stock			Paid-In		Comprehensive		Accumulated		Treasury		Stockholders’
(in thousands)	Shares	Amount		Capital		Loss		Deficit		Stock		Equity
Balance, January 31, 2022	131,157	$	137	$	834,429	$	(187)	$	(610,604)	$	(11,905)	$	211,870
Exercise of stock options	123	—		302		—		—		—		302
Vested restricted stock units converted to common shares	1,165	1		(1)		—		—		—		—
Issuance of common stock under employee stock purchase plan	457	1		2,353		—		—		—		2,354
Stock-based compensation	—	—		18,201		—		—		—		18,201
Repurchase of common stock	(4,838)	—		—		—		—		(30,554)		(30,554)
Other comprehensive loss	—	—		—		(3,414)		—		—		(3,414)
Net loss	—	—		—		—		(25,839)		—		(25,839)
Balance, April 30, 2022	128,064	$	139	$	855,284	$	(3,601)	$	(636,443)	$	(42,459)	$	172,920

Preferred Stock

Effective April 2017, the Company’s Board of Directors is authorized to issue up to 50,000,000 shares of preferred stock, $0.001 par value, in one or more series without stockholder approval. The Company's Board of Directors has the discretion to determine the rights, preferences, privileges and restrictions, including voting rights, dividend rights, conversion rights, redemption privileges and liquidation preferences, of each series of preferred stock. The issuance of preferred stock could have the effect of restricting dividends on the Company’s common stock, diluting the voting power of its common stock, impairing the liquidation rights of its common stock, or delaying or preventing changes in control or management of the Company. As of April 30, 2023 and January 31, 2023, no shares of preferred stock were issued or outstanding.

Common Stock

As of April 30, 2023 and January 31, 2023, the Company had authorized 500,000,000 shares of voting $0.001 par value common stock. Each holder of the Company's common stock is entitled to one vote for each share on all matters to be voted upon by the stockholders and there are no cumulative rights. Subject to any preferential rights of any outstanding preferred stock, holders of the Company's common stock are entitled to receive ratably the dividends, if any, as may be declared from time to time by the Company's Board of Directors out of legally available funds. If there is a liquidation, dissolution or winding up of the Company, holders of the Company's common stock would be entitled to share in the Company's assets remaining after the payment of liabilities and any preferential rights of any outstanding preferred stock.

Holders of the Company's common stock have no preemptive or conversion rights or other subscription rights, and there are no redemption or sinking fund provisions applicable to the common stock. All outstanding shares of the Company's common stock will be fully paid and non-assessable. The rights, preferences and privileges of the holders of the Company's common stock are subject to, and may be adversely affected by, the rights of the holders of shares of any series of preferred stock which the Company may designate and issue in the future.

Treasury Stock

As of April 30, 2023, the Company had 20,913,182 shares of treasury stock carried at its cost basis of $93.9 million. As of January 31, 2023, the Company had 20,349,613 shares of treasury stock carried at its cost basis of $89.3 million.

Share Repurchase Program

In March 2022, the Company's Board of Directors authorized a $100.0 million share repurchase program of the Company’s common stock. During the three months ended April 30, 2023, 563,569 shares were purchased for a total cost of $4.6 million. As of April 30, 2023, 14,407,848 shares have been purchased for a total cost of $82.0 million since the commencement of the program and approximately $18.0 million remains available for future purchases.

As part of the share repurchase program, shares may be purchased in open market transactions or pursuant to any trading plan that may be adopted in accordance with Rule 10b5-1 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). The timing, manner, price and amount of any repurchases will be determined at the Company’s discretion, and the share repurchase program may be suspended, terminated or modified at any time for any reason. The repurchase program does not obligate the Company to acquire any specific number of shares, and all open market repurchases will be made in accordance with Exchange Act Rule 10b-18, which sets certain restrictions on the method, timing, price and volume of open market stock repurchases.