What To Expect From Yext’s (YEXT) Q1 Earnings

Adam Hejl /
2022/06/07 7:15 am EDT
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Online reputation and search platform Yext (NYSE:YEXT) will be reporting earnings tomorrow afternoon. Here's what to look for.

Last quarter Yext reported revenues of $100.9 million, up 9.47% year on year, missing analyst expectations by 0.1%. It was a weak quarter for the company, with slower customer growth and underwhelming guidance for the next year. The company kept the number of customers flat at a total of 2,700.

Is Yext buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting Yext's revenue to grow 5.12% year on year to $96.7 million, slowing down from the 7.78% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.07 per share.

Yext Total Revenue

Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company only missed Wall St's revenue estimates once over the last two years, and has on average exceeded top line expectations by 2.65%.

Looking at Yext's peers in the sales and marketing software segment, some of them have already reported Q1 earnings results, giving us a hint of what we can expect. SEMrush delivered top-line growth of 42.8% year on year, beating analyst estimates by 2.04% and Freshworks reported revenues up 42.2% year on year, exceeding estimates by 5.91%. SEMrush traded flat on the results, and Freshworks was down 0.52%. Read our full analysis of SEMrush's results here and Freshworks's results here.

There has been positive sentiment among investors in the software segment, with the stocks up on average 8.15% over the last month. Yext is up 0.19% during the same time, and is heading into the earnings with analyst price target of $6.5, compared to share price of $5.25.

One way to find opportunities in the market is to watch for generational shifts in the economy. Almost every company is slowly finding itself becoming a technology company and facing cybersecurity risks and as a result, the demand for cloud-native cybersecurity is skyrocketing. This company is leading a massive technological shift in the industry and with revenue growth of 70% year on year and best-in-class SaaS metrics it should definitely be on your radar.

The author has no position in any of the stocks mentioned.