Yext Reports Better-Than-Expected Q1 Earnings but Sales Miss Estimates
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 39 minutes ago
0mins
Source: NASDAQ.COM
- Earnings Beat: Yext reported non-GAAP earnings per share of $0.14 for Q1 of fiscal 2027, exceeding analyst expectations by $0.01, indicating a short-term improvement in profitability despite other challenges.
- Sales Decline: The company’s revenue of $107.9 million represented a 1.4% year-over-year decline, missing analyst estimates by $4.2 million, which highlights a weakening market demand that could impact future growth.
- Increased Buyback Authorization: Yext's board approved an additional $100 million in stock buybacks, raising the total buyback authorization to approximately $115 million, aimed at enhancing shareholder value, although it may not offset the negative impact of declining sales.
- Gross Profit Drop: The gross profit for Q1 fell to about $78.7 million from $82.4 million year-over-year, and while operating income surged 399% to $5.6 million due to expense cuts, the declining sales and margins suggest limited long-term earnings growth potential.
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Analyst Views on YEXT
Wall Street analysts forecast YEXT stock price to rise
1 Analyst Rating
1 Buy
0 Hold
0 Sell
Moderate Buy
Current: 4.210
Low
10.00
Averages
10.00
High
10.00
Current: 4.210
Low
10.00
Averages
10.00
High
10.00
About YEXT
Yext, Inc. provides a digital presence platform for multi-location brands. The Company's artificial intelligence (AI) and machine learning technology powers the knowledge behind every customer engagement, automates workflows at scale, and delivers actionable cross-channel insights that enable data-driven decisions. Its digital presence platform (Answers Platform) lets businesses structure and organize information about their brands in its knowledge graph, Yext Content (Knowledge Graph), which is then delivered across first-and third-party websites and applications through its network of over 200 service and application providers (Publisher Network). These publishers include, among others, Amazon Alexa, Apple, Bing, Facebook, Google Business Profile, and Yelp. The Company's platform powers all of its key products, including listings, reviews, pages and search, each with robust analytics capabilities for businesses to easily track performance across customer experiences.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Yext Reports Earnings Growth in Q1
- Earnings Growth: Yext reported a net income of $2.62 million for Q1, translating to $0.02 per share, which marks a significant increase from last year's $0.77 million and $0.01 per share, indicating positive progress in cost control and operational efficiency.
- Adjusted Earnings Performance: Excluding non-recurring items, Yext's adjusted earnings reached $16.57 million, or $0.14 per share, demonstrating enhanced profitability in its core business despite a decline in overall revenue.
- Slight Revenue Decline: The company's revenue for the quarter was $107.92 million, down 1.4% from $109.48 million last year, a trend that may reflect increased market competition or shifts in customer demand, necessitating future strategic adjustments.
- Market Outlook: Despite the revenue decline, Yext's earnings growth and adjusted earnings performance highlight its resilience in the digital marketing sector, suggesting potential for market share enhancement through product and service optimization.
See More
Yext Stock Plummets Following Mixed Q1 Earnings Report
- Significant Stock Decline: Yext's stock fell by 11.3% on Wednesday, trading at $3.73 as of 2:15 PM, reflecting market disappointment over the company's latest earnings report amidst broader market sell-offs due to rising oil prices and bond yields.
- Disappointing Earnings Report: In Q1 of fiscal 2027, Yext reported non-GAAP earnings per share of $0.14, exceeding analyst expectations by $0.01; however, sales of $107.9 million declined 1.4% year-over-year, missing estimates by $4.2 million, indicating significant sales pressure.
- Recurring Revenue Decline: Yext's annual recurring revenue stood at $440.8 million at the end of Q1, down 1% year-over-year, suggesting challenges in revenue growth that could impact future profitability.
- Stock Buyback Authorization: Yext's board approved an additional $100 million in stock buybacks, bringing the total authorization to approximately $115 million, yet ongoing sales declines and falling gross margins may limit the company's long-term growth potential.
See More
Yext Reports Better-Than-Expected Q1 Earnings but Sales Miss Estimates
- Earnings Beat: Yext reported non-GAAP earnings per share of $0.14 for Q1 of fiscal 2027, exceeding analyst expectations by $0.01, indicating a short-term improvement in profitability despite other challenges.
- Sales Decline: The company’s revenue of $107.9 million represented a 1.4% year-over-year decline, missing analyst estimates by $4.2 million, which highlights a weakening market demand that could impact future growth.
- Increased Buyback Authorization: Yext's board approved an additional $100 million in stock buybacks, raising the total buyback authorization to approximately $115 million, aimed at enhancing shareholder value, although it may not offset the negative impact of declining sales.
- Gross Profit Drop: The gross profit for Q1 fell to about $78.7 million from $82.4 million year-over-year, and while operating income surged 399% to $5.6 million due to expense cuts, the declining sales and margins suggest limited long-term earnings growth potential.
See More
Yext Reports Mixed Q1 Results, Stock Drops 14%
- Revenue Decline: Yext's Q1 revenue of $107.9 million fell short of estimates by $4.2 million, indicating competitive pressures that could undermine investor confidence moving forward.
- Annual Recurring Revenue: The annual recurring revenue (ARR) at quarter-end was $440.8 million, down 1% year-over-year, reflecting challenges in customer retention that may impact long-term growth potential.
- Share Repurchase Program: The board authorized an additional $100 million share repurchase program, supplementing the remaining $15 million under the existing authorization, aimed at boosting earnings per share and restoring shareholder trust.
- Surge in Operating Income: Operating income surged nearly 399% year-over-year to $5.6 million, driven by a 10% decline in total operating expenses to $73.1 million, demonstrating effective cost control measures within the company.
See More
Yext Q1 Earnings Beat Expectations Despite Revenue Decline
- Earnings Beat: Yext reported a Q1 non-GAAP EPS of $0.15, exceeding expectations by $0.02, indicating resilience in profitability despite overall revenue decline.
- Revenue Decline: The company reported revenue of $107.9 million, a 1.4% year-over-year decrease, missing expectations by $4.2 million, reflecting challenges from increased market competition and fluctuating customer demand.
- Adjusted EBITDA Performance: Adjusted EBITDA reached $26.9 million, resulting in a 25% adjusted EBITDA margin, demonstrating ongoing efforts in cost control and operational efficiency despite revenue challenges.
- Annual Recurring Revenue: Yext's annual recurring revenue (ARR) stands at $440.8 million, showcasing stability in its subscription model, providing a foundation for future revenue growth despite market pressures.
See More
Yext to Announce Q1 Earnings on June 2
- Earnings Announcement: Yext is set to release its Q1 2023 earnings on June 2 after market close, with a consensus EPS estimate of $0.13, reflecting an 8.3% year-over-year increase, indicating potential improvement in profitability.
- Revenue Expectations: Analysts forecast Yext's revenue to reach $112.1 million, up 2.4% year-over-year, which, while modest, demonstrates some resilience in the company’s performance amidst a competitive software landscape.
- Historical Performance Review: Over the past two years, Yext has beaten EPS estimates 50% of the time and revenue estimates 38% of the time, suggesting a degree of volatility in its financial performance that investors should carefully consider moving forward.
- Market Risk Advisory: With the buyout no longer on the table, Yext is viewed as a risky declining software company, leading to cautious sentiment regarding its future growth potential, which may impact investor confidence and stock price performance.
See More
Yext Reports Earnings Growth in Q1
- Earnings Growth: Yext reported a net income of $2.62 million for Q1, translating to $0.02 per share, which marks a significant increase from last year's $0.77 million and $0.01 per share, indicating positive progress in cost control and operational efficiency.
- Adjusted Earnings Performance: Excluding non-recurring items, Yext's adjusted earnings reached $16.57 million, or $0.14 per share, demonstrating enhanced profitability in its core business despite a decline in overall revenue.
- Slight Revenue Decline: The company's revenue for the quarter was $107.92 million, down 1.4% from $109.48 million last year, a trend that may reflect increased market competition or shifts in customer demand, necessitating future strategic adjustments.
- Market Outlook: Despite the revenue decline, Yext's earnings growth and adjusted earnings performance highlight its resilience in the digital marketing sector, suggesting potential for market share enhancement through product and service optimization.
See More
Yext Stock Plummets Following Mixed Q1 Earnings Report
- Significant Stock Decline: Yext's stock fell by 11.3% on Wednesday, trading at $3.73 as of 2:15 PM, reflecting market disappointment over the company's latest earnings report amidst broader market sell-offs due to rising oil prices and bond yields.
- Disappointing Earnings Report: In Q1 of fiscal 2027, Yext reported non-GAAP earnings per share of $0.14, exceeding analyst expectations by $0.01; however, sales of $107.9 million declined 1.4% year-over-year, missing estimates by $4.2 million, indicating significant sales pressure.
- Recurring Revenue Decline: Yext's annual recurring revenue stood at $440.8 million at the end of Q1, down 1% year-over-year, suggesting challenges in revenue growth that could impact future profitability.
- Stock Buyback Authorization: Yext's board approved an additional $100 million in stock buybacks, bringing the total authorization to approximately $115 million, yet ongoing sales declines and falling gross margins may limit the company's long-term growth potential.
See More
Yext Reports Better-Than-Expected Q1 Earnings but Sales Miss Estimates
- Earnings Beat: Yext reported non-GAAP earnings per share of $0.14 for Q1 of fiscal 2027, exceeding analyst expectations by $0.01, indicating a short-term improvement in profitability despite other challenges.
- Sales Decline: The company’s revenue of $107.9 million represented a 1.4% year-over-year decline, missing analyst estimates by $4.2 million, which highlights a weakening market demand that could impact future growth.
- Increased Buyback Authorization: Yext's board approved an additional $100 million in stock buybacks, raising the total buyback authorization to approximately $115 million, aimed at enhancing shareholder value, although it may not offset the negative impact of declining sales.
- Gross Profit Drop: The gross profit for Q1 fell to about $78.7 million from $82.4 million year-over-year, and while operating income surged 399% to $5.6 million due to expense cuts, the declining sales and margins suggest limited long-term earnings growth potential.
See More
Yext Reports Mixed Q1 Results, Stock Drops 14%
- Revenue Decline: Yext's Q1 revenue of $107.9 million fell short of estimates by $4.2 million, indicating competitive pressures that could undermine investor confidence moving forward.
- Annual Recurring Revenue: The annual recurring revenue (ARR) at quarter-end was $440.8 million, down 1% year-over-year, reflecting challenges in customer retention that may impact long-term growth potential.
- Share Repurchase Program: The board authorized an additional $100 million share repurchase program, supplementing the remaining $15 million under the existing authorization, aimed at boosting earnings per share and restoring shareholder trust.
- Surge in Operating Income: Operating income surged nearly 399% year-over-year to $5.6 million, driven by a 10% decline in total operating expenses to $73.1 million, demonstrating effective cost control measures within the company.
See More
Yext Q1 Earnings Beat Expectations Despite Revenue Decline
- Earnings Beat: Yext reported a Q1 non-GAAP EPS of $0.15, exceeding expectations by $0.02, indicating resilience in profitability despite overall revenue decline.
- Revenue Decline: The company reported revenue of $107.9 million, a 1.4% year-over-year decrease, missing expectations by $4.2 million, reflecting challenges from increased market competition and fluctuating customer demand.
- Adjusted EBITDA Performance: Adjusted EBITDA reached $26.9 million, resulting in a 25% adjusted EBITDA margin, demonstrating ongoing efforts in cost control and operational efficiency despite revenue challenges.
- Annual Recurring Revenue: Yext's annual recurring revenue (ARR) stands at $440.8 million, showcasing stability in its subscription model, providing a foundation for future revenue growth despite market pressures.
See More
Yext to Announce Q1 Earnings on June 2
- Earnings Announcement: Yext is set to release its Q1 2023 earnings on June 2 after market close, with a consensus EPS estimate of $0.13, reflecting an 8.3% year-over-year increase, indicating potential improvement in profitability.
- Revenue Expectations: Analysts forecast Yext's revenue to reach $112.1 million, up 2.4% year-over-year, which, while modest, demonstrates some resilience in the company’s performance amidst a competitive software landscape.
- Historical Performance Review: Over the past two years, Yext has beaten EPS estimates 50% of the time and revenue estimates 38% of the time, suggesting a degree of volatility in its financial performance that investors should carefully consider moving forward.
- Market Risk Advisory: With the buyout no longer on the table, Yext is viewed as a risky declining software company, leading to cautious sentiment regarding its future growth potential, which may impact investor confidence and stock price performance.
See More
