Item 5. Market for Registrant’s Common Equity
Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities
Market Information for Common Stock
Our common stock began trading on the New York Stock Exchange under the symbol “YEXT” on April 13, 2017. Prior to that date, there was no public trading market for our common stock.
Dividend Policy
We have never declared or paid any dividends on our capital stock. We anticipate that we will retain any earnings to support operations and to finance the growth and development of our business. Accordingly, we do not expect to pay cash dividends on our common stock in the foreseeable future. In addition, our revolving credit facility agreement contains customary covenants restricting our ability to pay dividends.
Stockholders
As of March 1, 2021, there were 45 registered stockholders of record of our common stock. The number of registered stockholders of record does not include beneficial holders whose shares are held by banks, brokers and other institutions.
Use of Proceeds from Public Offering of Common Stock
On April 12, 2017, our Registration Statement on Form S-1, as amended (Reg. No. 333-216642), was declared effective in connection with the initial public offering of our common stock. We registered an aggregate of 12,075,000 shares of our common stock, all of which were sold by us, including the underwriters’ over-allotment, at a price to the public of $11.00 per share. The offering closed on April 19, 2017. There has been no material change in the planned use of proceeds from our initial public offering as described in the final prospectus relating to that offering dated April 12, 2017.
On March 20, 2019, we closed a common stock offering, in which we issued and sold 7,000,000 shares of common stock, inclusive of the fully exercised underwriters' option to purchase additional shares. The price per share to the public was $21.50. We received aggregate proceeds of $147.0 million from this offering, net of underwriters' discounts and commissions, before deducting offering costs of approximately $0.5 million, which were recorded in additional paid in capital in our consolidated statements of stockholders' equity.
Sales of Unregistered Equity Securities
None.
Purchases of Equity Securities by the Issuer and Affiliated Purchasers
None.
Securities Authorized for Issuance under Equity Compensation Plans
The following table sets forth information regarding our equity compensation plans as of January 31, 2021.
Plan category (a) Number of securities to be issued upon exercise of outstanding options, and vesting of restricted stock and restricted stock units (b) Weighted-average exercise price of outstanding options (1) (c) Number of securities remaining available for future issuance under equity compensation plans (excludes securities reflected in column (a))
Equity compensation plans approved by security holders (2) 18,417,242 (3) $ 7.64 4,335,440 (4)
Equity compensation plans not approved by security holders — — —
Total 18,417,242 $ 7.64 4,335,440
(1) The weighted-average exercise price is calculated based solely on the exercise prices of the outstanding options to purchase shares of our common stock. It does not reflect the shares of our common stock that will be issued upon the vesting of outstanding restricted stock and restricted stock units.
(2) These plans consist of our 2008 Equity Incentive Plan, 2016 Equity Incentive Plan and 2017 Employee Stock Purchase Plan. The 2008 Equity Incentive Plan was terminated in connection with the adoption of the 2016 Equity Incentive Plan and since its termination, we have not granted and will not grant any additional awards under the 2008 Equity Incentive Plan. However, the 2008 Equity Incentive Plan will continue to govern the terms and conditions of the outstanding awards previously granted thereunder.
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(3) This amount includes 8,871,890 shares subject to outstanding options and 9,545,352 shares subject to outstanding restricted stock and restricted stock units granted under our 2008 Equity Incentive Plan and 2016 Equity Incentive Plan.
(4) This amount includes 1,500,883 shares of our common stock available for issuance under our 2016 Equity Incentive Plan and 2,834,557 shares of our common stock available for issuance under our 2017 Employee Stock Purchase Plan. The number of shares available for issuance under these plans automatically increase each February 1 st subject to the terms of the respective plans. Such future increases are not reflected in the table above.
Performance Graph
The following shall not be deemed soliciting material or to be filed with the SEC, nor shall such information be incorporated by reference into any of our other filings under the Securities Exchange Act of 1934, as amended, or the Securities Act of 1933, as amended.
The graph below compares the cumulative total stockholder return on our common stock with the cumulative total return on the Standard & Poor’s 500 Index and the Nasdaq Computer Index. The graph assumes an initial investment of $100 in our common stock at the market close on April 13, 2017, which was our initial trading day. Data for the Standard & Poor’s 500 Index and the Nasdaq Computer Index assume reinvestment of dividends.
The comparisons in the graph below are based upon historical data and are not indicative of, nor intended to forecast, future performance of our common stock.
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Item 6. Selected Financial Data
The following selected financial data should be read in conjunction with “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and the consolidated financial statements and related notes included elsewhere in this Annual Report on Form 10-K. The statements of operations data for the fiscal years ended January 31, 2021, 2020 and 2019, and the balance sheet data as of January 31, 2021 and 2020 are derived from our audited consolidated financial statements and related notes included elsewhere in this Annual Report on Form 10-K. The statement of operations data for the fiscal years ended January 31, 2018 and 2017 and the balance sheet data as of January 31, 2019, 2018 and 2017 are derived from audited consolidated financial statements which are not included in this Form 10-K. Our historical results are not necessarily indicative of our future results. The selected financial data in this section is not intended to replace our consolidated financial statements and the related notes, and is qualified in their entirety by the consolidated financial statements and related notes included elsewhere in this Annual Report on Form 10-K.
Fiscal year ended January 31,
(in thousands, except share and per share data)
2021 (1)
2020 (1)
2019 (1)
2018 2017
Statements of Operations Data:
Revenue $ 354,661 $ 298,829 $ 228,283 $ 170,201 $ 124,261
Cost of revenue (2)
$ 86,404 $ 77,030 $ 57,413 $ 44,095 $ 36,950
Gross profit
$ 268,257 $ 221,799 $ 170,870 $ 126,106 $ 87,311
Sales and marketing (2)
$ 228,417 $ 218,076 $ 158,845 $ 126,980 $ 81,529
Research and development (2)
$ 58,146 $ 49,445 $ 36,098 $ 25,687 $ 19,316
General and administrative (2)
$ 76,026 $ 77,231 $ 51,572 $ 40,079 $ 29,166
Total operating expenses $ 362,589 $ 344,752 $ 246,515 $ 192,746 $ 130,011
Loss from operations $ (94,332) $ (122,953) $ (75,645) $ (66,640) $ (42,700)
Net loss
$ (94,692) $ (121,544) $ (74,837) $ (66,565) $ (43,150)
Net loss per share attributable to common stockholders, basic and diluted (3)
$ (0.79) $ (1.09) $ (0.76) $ (0.85) $ (1.39)
Weighted-average number of shares used in computing net loss per share attributable to common stockholders, basic and diluted (3)
119,690,378 111,758,946 98,387,366 78,632,448 31,069,695
(1) Results for the fiscal years ended January 31, 2021, 2020 and 2019, respectively, reflect our modified retrospective adoption of ASU 2014-09 (Topic 606). Results for the fiscal years ended January 31, 2018 and 2017, respectively, continue to be reported in accordance with historical accounting standards under ASC 605.
(2) Amounts include stock-based compensation expense as follows:
Fiscal year ended January 31,
(in thousands)
2021 2020 2019 2018 2017
Cost of revenue $ 5,724 $ 4,115 $ 2,915 $ 1,459 $ 590
Sales and marketing 32,581 31,421 22,519 11,121 4,359
Research and development 17,071 13,212 8,475 3,756 1,954
General and administrative 16,918 19,022 10,324 6,024 2,948
Total stock-based compensation expense $ 72,294 $ 67,770 $ 44,233 $ 22,360 $ 9,851
(3) See Note 14 "Net Loss Per Share Attributable to Common Stockholders" to our consolidated financial statements for an explanation of the method used to calculate basic and diluted net loss per share attributable to common stockholders.
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As of January 31,
(in thousands)
2021 2020 2019 2018 2017
Balance Sheet Data:
Cash and cash equivalents $ 230,411 $ 256,076 $ 91,755 $ 34,367 $ 24,420
Marketable securities $ — $ — $ 51,021 $ 83,974 $ —
Total current assets $ 376,184 $ 377,812 $ 230,069 $ 180,042 $ 61,829
Total assets $ 595,989 $ 563,620 $ 267,128 $ 203,489 $ 86,465
Unearned revenue, current (1)
$ 191,810 $ 176,806 $ 135,544 $ 89,474 $ 57,112
Total liabilities $ 388,754 $ 362,408 $ 182,579 $ 122,036 $ 93,605
Accumulated deficit $ (517,345) $ (422,653) $ (301,109) $ (233,450) $ (166,885)
Total stockholders' equity (deficit) $ 207,235 $ 201,212 $ 84,549 $ 81,453 $ (127,755)
(1) The "Unearned revenue, current" financial statement line item represents: (i) current unearned revenue in accordance with ASU 2014-09 (Topic 606) as of January 31, 2021, 2020 and 2019, respectively and (ii) "Deferred revenue" as of January 31, 2018 and 2017, respectively, as reported in accordance with ASC 605.
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