Startups

Yext Files For $100 Million IPO; Could Become Public In April

Yext, the startup that powers the location information in online search results, is gearing up to go public on the stock market as early as April.

In a Securities and Exchange Commission filing covered by TechCrunch, Yext said it is aiming to raise $100 million in the IPO, but cautioned the amount may change. Yext counts Best Buy, McDonalds and Marriott as clients, providing the data that comes up when users search online, on social media and in maps.

According to TechCrunch, Yext had revenue of $88.6 million for the nine months that ended in October of 2016 and losses of $28.6 million in the same time period. In the year ago period, revenue was $64 million.

“We have a history of losses and may not achieve profitability in the future,” the company said in the risk factors areas of the filing. The company also warned that a large portion of their revenue comes from third party resellers, making it dependent on outside forces.

In September, Yext teamed up with Uber, the ride-hailing service, to enable brands to create in-app campaigns. The report said brands can use Yext’s software to put Uber’s API into their mobile apps, websites and emails. Clicking on the button will open Uber or prompt people to download the app, and then it will show customers where the store is located or other types of branded campaigns.

Brands can specify an exact address or location where they want customers dropped off. For example, Macy’s can ask Uber drivers to drop a customer off in front of its Herald Square New York City store, instead of, say, around the block.

Yext went live in 2006, and rumors have abounded for a few years now that it would eventually become public. During the past few years, it raised more than $117 million in venture funding and has a valuation of more than $500 million.

TechCrunch noted Sutter Hill Ventures has a 23.6 percent stake in Yext and is leading the initial public offer. Institutional Venture Partners, Marker Financial Advisors and Insight Venture Partners also have large positions in Yext. Yext’s IPO filing comes a few weeks after Snap Inc., makers of Snapchat, went public in the hottest tech IPO so far this year.

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