Brand visibility platform Yext Q2 revenue beats estimates

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

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