Yext, Inc. (NYSE:YEXT) Q3 2020 Earnings Conference Call - Final Transcript
Dec 05, 2019 • 05:00 pm ET
Good afternoon, and welcome to the Yext Third Quarter Fiscal 2020 Financial Results Call. [Operator Instructions] Please note this event is being recorded.
I would now like to turn the conference over to Dominic Paschel. Please go ahead.
Thank you, Ben, and good afternoon, everyone. Welcome to Yext third quarter fiscal 2020 conference call. With me today are Howard Lerman, Founder and CEO; Steve Cakebread, Chief Financial Officer; and Jim Steele, President and Chief Revenue Officer.
Before we begin, I'd like to remind everyone that this call may contain forward-looking statements, including statements about revenue and non-GAAP net income guidance, gross margin, cash flow, market opportunities, capital expenditure, retention rate, business performance, and other non-historical statements, as further described in our press release. These forward-looking statements are subject to certain risks, uncertainties and assumptions, including those related to Yext growth, evolution of our industry, product development and success, including the introduction, prospects and market opportunities of Answers and general economic and business conditions. These statements reflect the Company's current expectations based on its beliefs, assumptions and information currently available to it. Although we believe these expectations are reasonable, we undertake no obligation to revise any statements to reflect changes that occur after this call.
Descriptions of these and other risks that could cause actual results to materially differ from those forward-looking statements are discussed in our reports filed with the SEC, including our most recent report on Form 10-Q, and our press release that was issued this afternoon.
During the call, we also refer to non-GAAP financial measures. Reconciliations with the most comparable GAAP measures are also available in the press release, which is available at investor.yext.com.
With that, I will turn the call over to Howard.
Thank you, John. Hello, everyone, and welcome to our third quarter earnings call. Revenue grew 30% over the third quarter of last year. Unearned revenue for the third quarter grew 32% year-over-year. And the number of structured facts, it's an indication of engagement usage reached 259 million, which grew more than 65% from the year-ago quarter.
And during the quarter, we signed the largest new enterprise client deal in the history of the Company with Subway to provide -- to power brand verified Answers from more than 30,000 of its restaurants in the United States and Canada and Europe. This is a massively important milestone. And during Q3, we also signed contracts with leading brands like Liberty Tax, Pilot Travel Centers, Lucky Brands, and the Church of Jesus Christ of Latter Day Saints. We expanded and renewed contracts with the Toronto Dominion Bank, AutoZone, H-E-B, Wells Fargo, QDOBA and H&R Block. We've never been more excited about the demand for Yext. But in Q3 the launch of our new Answers product disrupted our sales execution. It elongated purchasing cycles as customers who are down a path with Yext got excited about Answers and wanted to learn more before buying Yext and it slowed some deal cycles.
All that said, we have never seen a