Yext (YEXT) To Report Earnings Tomorrow: Here Is What To Expect

Kayode Omotosho /
2022/11/29 4:15 am EST

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

Last quarter Yext reported revenues of $100.8 million, up 2.79% year on year, beating analyst revenue expectations by 1.22%. It was a weak quarter for the company, with decelerating customer growth and underwhelming revenue guidance for the next quarter. The company added 40 customers to a total of 2,870.

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 0.09% year on year to $99.6 million, slowing down from the 11.7% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.01 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 2.09%.

Looking at Yext's peers in the sales and marketing software segment, some of them have already reported Q3 earnings results, giving us a hint of what we can expect. SEMrush delivered top-line growth of 33.5% year on year, beating analyst estimates by 2.84% and ZoomInfo reported revenues up 45.5% year on year, exceeding estimates by 3.27%. SEMrush traded flat on the results, ZoomInfo was down 12.00%. Read our full analysis of SEMrush's results here and ZoomInfo's results here.

There has been a stampede out of high valuation technology stocks and while some of the software stocks have fared somewhat better, they have not been spared, with share price declining 7.22% over the last month. Yext is up 1.87% during the same time, and is heading into the earnings with analyst price target of $5.9, compared to share price of $5.42.

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.