Yext (YEXT) Q2 Earnings: What To Expect

Adam Hejl /
2023/09/05 6:18 am EDT

Online reputation and search platform Yext (NYSE:YEXT) will be reporting earnings tomorrow after market hours. Here's what investors should know.

Last quarter Yext reported revenues of $99.5 million, flat year on year, in line with analyst expectations. It was a mixed quarter for the company, with a significant improvement in its gross margin but decelerating customer growth. The company added 10 customers to a total of 2,970.

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 1.1% year on year to $102 million, slowing down from the 2.8% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.06 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 missed Wall St's revenue estimates twice over the last two years.

Looking at Yext's peers in the sales and marketing software segment, some of them have already reported Q2 earnings results, giving us a hint of what we can expect. SEMrush delivered top-line growth of 19.3% year on year, beating analyst estimates by 0.37%, and Shopify reported revenues up 30.8% year on year, exceeding estimates by 4.27%. SEMrush traded flat on the results, and Shopify was down 1.67%.

Read our full analysis of SEMrush's results here and Shopify's results here.

Investors in the sales and marketing software segment have had steady hands going into the earnings, with the stocks down on average 0.78% over the last month. Yext is down 2.45% during the same time, and is heading into the earnings with analysts' average price target of $11.7, compared to share price of $9.16.

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