Overview
Yext fiscal Q2 rev grows 16% yr/yr, beating analyst expectations, per LSEG data
Adjusted net income for fiscal Q2 beats consensus, per LSEG data
CEO had proposed acquisition of outstanding shares of co at $9.00 per share in cash
Outlook
Yext declines to provide guidance due to pending acquisition proposal
Result Drivers
HEARSAY INTEGRATION - Revenue growth driven by integration of Hearsay Systems, contributing to 16% yr/yr increase
EXPENSE MANAGEMENT - Operating expenses reduced to 49% of revenue from 85% in prior yr, aiding profitability
ARR GROWTH - Annual recurring revenue rose 15% yr/yr, aided by direct customer growth and favorable currency effects
Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Beat
$113.10 mln
$111.20 mln (4 Analysts)
Q2 EPS
$0.22
Q2 Adjusted Net Income
Beat
$16.30 mln
$15.70 mln (4 Analysts)
Q2 Net Income
$26.80 mln
Q2 Gross Margin
75.2%
Q2 Annual Recurring Revenue
$444.40 mln
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the online services peer group is "buy"
Wall Street's median 12-month price target for Yext Inc is $9.75, about 8.2% above its September 5 closing price of $8.95
The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 13 three months ago
Press Release: ID:nBw8Nmq8na
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)