New York-based Yext files for IPO



Yext, the company that powers location data in search results, has revealed its IPO filing. The company will be able to join the stock market as soon as April.

The offering is said to raise $100 million, but that number is subject to change. We will get more of an indication in the coming weeks about how Yext plans to price its shares.

With clients like Best Buy, McDonalds and Marriott, Yext is responsible for the location results that appear on search engines, social media and maps. The company had the early vision that consumers would prefer to find nearby locations without visiting brand websites.

The company brought in $88.6 million in revenue in the nine months ending in October of last year, with losses of $28.6 million for the same timeframe. Revenue is up from $64 million in the same period the year before and losses narrowed to $18.2 million.

“We have a history of losses and may not achieve profitability in the future,” the company warned in its risk factors section of the filing.  They also cautioned about their dependences on third-party resellers, which accounts for a “significant portion” of revenue.

With an army of Salesforce alums, some Yext employees look up to charismatic leader Howard Lerman and often compare him to Marc Benioff. 

Founded in 2006, Yext has been rumored to go public for several years now. The company raised over $117 million in venture funding at over a $500 million valuation.

Sutter Hill Ventures owns 23.6% of Yext, leading into the IPO. Institutional Venture Partners, Marker Financial Advisors and Insight Venture Partners also have large stakes.

The filing Yext on a short-list of New York tech companies that have made the journey from startup to the stock market. Etsy and OnDeck are also on that list.

 

 



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