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Yext Shares Surge on Q1 Results that Beat Expectations and Raised Full-Year Guidance
Yext shares climbed 41% in early trading on Wednesday after the company reported better-than-expected first-quarter results and raised its fiscal 2024 guidance. Yext is a marketing software company positioning itself as a play on generative artificial intelligence and also benefiting from cutting its workforce. The company has struggled with growth and share prices, plummeting to its lowest levels since its initial public offering in 2017, leading to former CEO and founder Howard Lerman stepping down last year in an attempt to mount a turnaround.
Yext’s Announcement on Q1 Results and Fiscal 2024 Guidance
Yext’s Q1 results showed that it broke even on a per-share basis for the quarter to April 30, compared to a loss of 20 cents a share from the first quarter of the previous fiscal year. The company earned 9 cents a share, adjusted for one-time items. Revenue rose slightly to $99.5 million. In contrast, analysts predicted an adjusted profit of 5 cents per share on sales of $98.5 million.
Yext raised its guidance for fiscal 2024, with an expected revenue range of $404 million to $407 million and adjusted EPS between 28 cents and 29 cents. This figure represents a previous estimate of revenue that ranged between $402 million-$406 million and adjusted EPS between 22 cents and 23 cents.
Experts’ Opinion on Yext Shares’ Growth
Experts have attributed Yext’s success to its focus on sales execution, profitable growth, and its AI efforts, including the launch of Content Generation Studio and Yext Chat. These AI products could unlock new total addressable market and reposition Yext as a de facto AI partner for large enterprises. For instance, Roth MKM upgraded its rating on the stock to Buy from Neutral, raising its target price to $12.50 from $8.50, highlighting these factors. DA Davidson analyst Tom White raised his target price on the stock to $11.50 from $10 previously. However, others remain Neutral rated given the still early stage of Yext’s turnaround and the fluid macro backdrop as it relates to enterprise spending.
Sections
Yext Shares Surge on Q1 Results that Beat Expectations and Raised Full-Year Guidance
Yext’s Announcement on Q1 Results and Fiscal 2024 Guidance
Experts’ Opinion on Yext Shares’ Growth
Conclusion
Yext’s shares increased by 41% in early trading on Wednesday after reporting Q1 results that beat analysts’ expectations, and raising its full-year guidance for fiscal 2024. Yext’s success has led to experts upgrading the company’s rating and raising its target price. The company’s focus on sales execution, profitable growth, and AI effort is driving its success. However, other experts remain Neutral rated due to Yext’s early turnaround stage and the fluid macro backdrop.
FAQs
What is Yext, and why is it significant?
Yext is a marketing software company that is positioning itself as a play on generative artificial intelligence while also benefiting from cutting its workforce. Its significance comes from its recent surge in shares after reporting Q1 results that beat analysts’ expectations and raising its full-year guidance.
What was Yext’s Q1 results announcement?
Yext reported in its Q1 results that it broke even on a per-share basis for the quarter to April 30, compared to a loss of 20 cents a share from the first quarter of the previous fiscal year. The company earned 9 cents a share, adjusted for one-time items. Revenue rose slightly to $99.5 million. This figure beat analysts’ expectations.
What was Yext’s Fiscal 2024 Guidance Announcement?
Yext raised its guidance for fiscal 2024, with expected revenue ranging from $404 million to $407 million and adjusted EPS between 28 cents and 29 cents. This represents a previous estimate of revenue that ranged between $402 million-$406 million and adjusted EPS between 22 cents and 23 cents.
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