Good afternoon my name is Angela and I will be your conference operator today. At this time I would like to welcome everyone to the Yext Second Quarter 2018 Earnings Conference Call. [Operator Instructions] Thank you. James Hart you may begin your conference.

Thank you, Angela, and good afternoon, everyone. Welcome to our quarterly conference call. With me today are Howard Lerman, CEO of Yext; Steve Cakebread, CFO and Jim Steele, President and Chief Revenue Officer. As a reminder, this call cannot be taped or otherwise duplicated without the Company's prior consent. Before we begin, I would like to remind everyone that this call may contain statements that are forward-looking as that term is defined by the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, discussions regarding industry outlook, opinions, expectations regarding the performance of the Company's business, its liquidity and capital resources, its strategies and transactions, 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 risks related to our expectations regarding Yext's growth, industry, product, development and market opportunities and general economic and business conditions and are based on management's beliefs, as well as assumptions made by and information currently available to management. When you listen to this call, the words believe, anticipate, estimate, expect, intend, and similar expressions are intended to identify forward-looking statements. All forward-looking statements made today reflect the Company's current expectations only. And although management believes that its expectations reflected in these forward-looking statements are reasonable, the Company undertakes no obligation to revise or update any statement to reflect events or circumstances that occur after this call. Important risks, uncertainties, assumptions, and other factors that could cause actual results to differ materially from these forward-looking statements are identified and discussed in the reports filed by Yext with the Securities and Exchange Commission as well as in our press release that was issued this evening. During the call, management will provide certain information that will constitute non-GAAP financial measures under the SEC rules. Certain information required to be disclosed about these non-GAAP measures, including reconciliations with the most comparable GAAP measures, is available in the earnings press release that we issued this afternoon. With that, we will begin by turning the call over to Howard.

Thank you, James, and thank you to everyone for joining us this afternoon. We are very pleased with our results this quarter. We'll call out just a few highlights. Revenue grew 38% over the second quarter of last year. Our gross profit margins are at an all-time high of 74%. We added 57 new Enterprise logos this quarter, including Boston Market, Ermenegildo Zegna and Scotch & Soda in the United Kingdom. And I want to highlight the great success we had this quarter in healthcare, it is one of our largest verticals, we signed deals with Northwestern Medicine, Sharp Healthcare, Vanderbilt University Medical Center and the University of Miami Health System among many others. Structured knowledge in healthcare can help answer questions like, Hey Siri, where I find a doctor? [Presentation] And when are they open? [Presentation] Intelligent answers are replacing blue links in every vertical and we could not be more excited about digital knowledge management. To seize this huge opportunity, we added key sales talent around the world. We opened our office in Japan and we continued our incredible innovation with amazing new product features for our knowledge engine like our App Directory. These are all great indications with the phenomenal progress we're making in building an enduring and what we believe will be a very large Company. Digital knowledge management has a total adjustable market of more than $10 billion, it is in it's infancy and Yext is the clear leader. We could not be more excited about our long-term future. Let me take you through some of our accomplishments in the quarter. I am going to start with our App Directory, which we launched in June. Now to understand the potential of the App Directory, let me first take a step back. For 20 years, the…

Thanks, Howard. Dave and I spent much of the last six months getting to know our customers and understanding their needs. We learned about how we have been going to market, our end-to-end sales process and the strategies we've been using to sell. This learning process has helped us identify areas where we needed to add talent in order to scale our business to the next level. And over the last few months, we did just that by bringing some world-class additions to our sales leadership team. This past quarter, we created a new financial services vertical in North America, to lead the sales team for this vertical in the Eastern enterprise sales region, we hired a GVP who has significant enterprise experience and worked with the inside sales and also Salesforce. He brings deep expertise at creating and executing strategies to sell enterprise solutions to the Fortune 1000. Another example, during the quarter, we also hired an EVP to run our SMB in midmarket segments. He opened the Chicago office at Salesforce and scaled the team to 400 people in two years. And during his time at that office, the Chicago Tribune named Salesforce the number one rated technology company to work for in Chicago. He obviously understands how to build and scale an enterprise sales model and has held sales leadership positions at other leading software and technology companies. We couldn't be more excited with these additions to our team. I believe we now have a strong foundation in place to effectively scale the business at a rapid pace. So with the progress we have made in the first half of the year and the second quarter in particular, we plan to step on the cash with the expansion in our sales capacity in the second half of…

Thank you, Jim. Now whether our sellers based in North America, Europe or Asia, the best, most experienced people want to work in a well-run successful organization because that's the kind of environment where quality sales person can do really well. With our substantial total addressable market and greenfield in the enterprise market, sales people find its very compelling to join us at this early stage. And we work really hard to make Yext the kind of environment where people feel as though they have the opportunity to succeed big. Fortune magazine recently named Yext the Number One Place to Work in New York City for small and medium-sized businesses their methodology, local workplace culture, communication, transparency and opportunities for professional growth. And we could not be more proud of this accomplishment. Before I turn things over to Steve, I wanted to give you a quick update about ONWARD. This is our annual conference event. This year ONWARD will be held at the Conrad Hotel in New York City on November 1 and conclude from the floor of the New York Stock Exchange the following evening. This event is very important to us, because it's an opportunity to bring together leaders in marketing, technology, discuss how the world is changing. AI, digital assistants, intelligent agents, this is the intelligent future and that's the theme of our conference. This year, our Keynote speakers are Megan Smith, the Former CTO of the United States and VP of BD at Google and Mark Hamill, the legendary Jedi who plays Luke Skywalker and is a star of the upcoming Star Wars Episode VIII. We also have an incredible lineup of presenters in over 50 companies and to highlight just a couple of those presenters, we've got Amazon's Chief Evangelist for Alexa, David Isbitski; we've got Naomi Makofsky, Google's Head of Strategic Partnerships; and we have the Cofounder of Cortana and Microsoft's Director of AI, Dr. Ed Doran. The common thread across ONWARD is how AI, machine learning and voice search are revolutionizing the way that businesses engage with their customers. We are incredibly excited and hope you will be able to join us. But you should know we have a ton of demand and this is first come, first serve, so if you want to come, make sure you e-mail James ASAP. I'm now going to turn the call over to Steve. And after his remarks, we'll open this up for Q&A.

Howard, thank you. And I already have my ticket to ONWARD, so I'll be there.

Excellent.

We had a strong quarter and a solid first half. Our revenue of $40.8 million this quarter exceeded the high-end of our guidance range. This was an increase of 38% over the $29.6 million we reported in the year-ago quarter. Our annualized run rate basis now has more than $160 million. Our growth this quarter was again driven by continued success of our land and expand strategy. Our net retention this quarter excluding small businesses remained within our historical range of 113% to 120% on a trailing 12-month basis. Our logo retention, particularly in enterprise, continues to be very strong. As of July 31, our clients are managing nearly 23 million attributes on our platform. This is a 62% increase from last year, and it shows the growing usage of our platform and demonstrates our clear leadership in this category. Turning to profitability. Gross margins this quarter were 74.1% as compared to 69.3% in the second quarter last year. As expected, our publisher costs are continuing to decline as a percentage of revenue as a fixed component of these costs gets spread over an increasingly larger top line. Quarterly operating expenses increased from $29.5 million a year ago to $46.7 million this year. As in previous quarters, the increase was driven primarily by two items; one, higher sales and marketing expense, due mostly to the increases we’ve made in our sales organization and the expansion of our geographic footprint; and two, increased G&A to support the rapid growth of our businesses globally and to operate as a public company. Quarterly GAAP net loss increased from $9 million a year ago to $16.4 million this quarter. On the basis of our 90.1 million weighted average shares outstanding, our net loss per share of $0.18 this quarter compares to $0.29 net loss…

Okay, thank you, Steve. Angela, we're ready to begin the question-and-answer session.

Okay, well, doesn't look like – Angela, I think we're all set. Thank you, everyone, for joining us this afternoon. We look forward to you attending our ONWARD event. Please reach out to me if you are interested in attending the event. Thank you.

Thanks everybody.

Thank you.

This concludes today's conference call. You may now disconnect.