No matter what consumers want to accomplish with their smartphones, there’s almost certainly an app for that. In fact, Yext believes there is a fundamental shift going on right now where traffic is changing from a company’s website platform to third-party sites such as Yelp, Google, and Facebook, among many others; Yext’s proprietary study from February 2017 shows that third-party traffic averages 2.7 times more views than a company’s website.
What does Yext do exactly? Think of Yext as a digital knowledge master that has all of the facts and information a business wants the public to know — anything from if a random hotel is wheelchair-accessible, has Wi-Fi, and offers gluten-free food options. Think of Yext as a middleman between businesses and the plethora of apps that try to feed their own consumers business information. Businesses pay Yext to provide all of the apps with the most up-to-date information in a usable format. In return, Yext offers businesses a way to drive revenue more efficiently from online consumers while improving brand visibility and web traffic in general.
Yext offers businesses a number of subscription packages that range from a base product to an ultimate professional package with advanced analytics and other features. Typically, Yext inks contracts between one and three years with a strong retention rate, and the subscription-as-a-service provides recurring revenue. Yext’s third-quarter revenue was up a strong 39% compared to the prior year, and its gross margins jumped 290 basis points to 73.7%, but it has lucrative long-term potential if it can continue to improve its customers’ ability to reach and monetize consumers more effectively through the ever-growing number of apps.