Yext posts lower than expected quarterly loss, stocks climb 18%
Yesext Inc (YEXT) posted a smaller-than-expected loss in the first quarter of fiscal 2022. Sales also exceeded analysts’ expectations of $ 88.55 million. Shares of the company rose nearly 18% to close at $ 14.47 on May 28.
Yext is a tech company that delivers brand updates using its network of cloud-based apps, search engines, and other facilities.
The company suffered a loss of $ 0.02 per share in the first quarter, compared to the loss of $ 0.06 per share estimated by analysts. A loss of $ 0.10 per share was reported in the same quarter last year.
Revenue generated in the quarter was $ 92 million, up 8% from the same period a year earlier.
Yext CEO Howard Lerman said, “We continue to grow our revenue while increasing our business efficiency and cash position. We are now expanding our search platform to include support search, and have an incredible track record that will allow us to deliver AI research across the business. Our team is full of energy and we are in a great position as the world begins to reopen. (See Yext stock market analysis on TipRanks)
For the second quarter of the year, revenue is expected to be between $ 94 million and $ 96 million, compared to a consensus estimate of $ 92.96 million. The adjusted net loss per share is expected to be between $ 0.09 and $ 0.07, compared to a loss of $ 0.05 estimated by analysts.
For fiscal 2022, the company expects revenue to be between $ 381 million and $ 386 million. The consensus estimate is set at $ 377.75 million. The adjusted net loss is expected to be between $ 0.22 and $ 0.17 per share. Analysts are forecasting a loss of $ 0.16 per share.
Following the announcement of first quarter results, Needham analyst Ryan MacDonald reiterated a buy note and a price target of $ 18 (upside potential 24.4%) on Yext.
MacDonald commented, “As investors anticipated the launch of the new Support Answers offering, which arrived earlier this week, Yext was also very busy behind the scenes bringing the new feature to customers at 1Q. This work resulted in two new crisp logos at Samsung and Focus Brands, and two major upsells with Altice and ASDA. Additionally, listings appear to have stabilized, with the NRR bottoming out in February. Combining this with the additional features that will launch later in FY22, we expect Answers to drive healthy bookings growth in FY22 and a re-acceleration of revenue growth in FY22. ‘exercise 23. “
Overall, the stock has a Hold consensus rating based on 2 buy, 2 take, and 1 sell. The analysts’ average price target of $ 15.75 implies upside potential of nearly 8.9% from current levels. Shares have fallen 13.1% over the past year.
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