What Happened:
Shares of online reputation and search platform Yext (NYSE:YEXT) jumped 18.4% in the morning session after the company reported an impressive "beat and raise" quarter. First quarter results exceeded analysts' revenue estimates. Similarly, profitability metrics came in strong with gross margin, free cash flow, adjusted EBITDA, and earnings per share (EPS) all beating Consensus estimates. Guidance was also strong, with the revenue and adjusted EBITDA guidance for the next quarter exceeding Consensus estimates. Similarly, the full-year revenue and adjusted EBITDA guidance beat and were both raised. A slowdown in customer growth was the only minor negative we'd highlight. Regardless, it was a very strong quarter with solid results and impressive guidance that should increase investors' optimism.
What is the market telling us:
Yext's shares are quite volatile and over the last year have had 25 moves greater than 5%. But moves this big are very rare even for Yext and that is indicating to us that this news had a significant impact on the market's perception of the business.
Yext is up 102% since the beginning of the year. Investors who bought $1,000 worth of Yext's shares five years ago would now be looking at an investment worth $751.26.
Is now the time to buy Yext? Access our full analysis of the earnings results here, it's free.