What To Expect From Yext’s (YEXT) Q4 Earnings

Radek Strnad /
2022/03/07 7:08 am EST
Add to Watchlist

Online reputation and search platform Yext (NYSE:YEXT) will be announcing earnings results tomorrow after market hours. Here's what to expect.

Last quarter Yext reported revenues of $99.5 million, up 11.7% year on year, beating analyst revenue expectations by 1.34%. It was a decent quarter for the company, with slower growth but revenue guidance for the next quarter above analyst estimates. The company added 100 customers to 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 9.53% year on year to $100.9 million, slowing down from the 13.2% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.08 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 has a history of exceeding Wall St's expectations, beating revenue estimates every single time over the past two years on average by 2.85%.

Looking at Yext's peers in the sales and marketing software segment, some of them have already reported Q4 earnings results, giving us a hint of what we can expect. SEMrush delivered top-line growth of 47.4% year on year, beating analyst estimates by 3.12% and BigCommerce reported revenues up 50.4% year on year, exceeding estimates by 4.96%. SEMrush traded down 1.07% on the results, BigCommerce was down 19.5%. Read our full analysis of SEMrush's results here and BigCommerce's results here.

Tech stocks have been under pressure since the end of last year and while some of the software stocks have fared somewhat better, they have not been spared, with share price declining 12% over the last month. Yext is down 19% during the same time, and is heading into the earnings with analyst price target of $14.1, compared to share price of $6.55.

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.