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YEXT

Yext NYSE:YEXT Stock Report

Last Price

US$5.15

Market Cap

US$636.5m

7D

4.7%

1Y

-59.1%

Updated

12 Aug, 2022

Data

Company Financials +
YEXT fundamental analysis
Snowflake Score
Valuation6/6
Future Growth0/6
Past Performance0/6
Financial Health5/6
Dividends0/6

YEXT Stock Overview

Yext, Inc. organizes business facts to provide answers to consumer questions in North America and internationally.

Yext, Inc. Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Yext
Historical stock prices
Current Share PriceUS$5.15
52 Week HighUS$14.07
52 Week LowUS$4.20
Beta1.32
1 Month Change15.21%
3 Month Change-2.83%
1 Year Change-59.10%
3 Year Change-73.41%
5 Year Change-60.63%
Change since IPO-61.60%

Recent News & Updates

Jul 14
We're Interested To See How Yext (NYSE:YEXT) Uses Its Cash Hoard To Grow

We're Interested To See How Yext (NYSE:YEXT) Uses Its Cash Hoard To Grow

Just because a business does not make any money, does not mean that the stock will go down. For example, although...

Jul 10

Yext: Take A Chance Here

After falling nearly 50% this year, shares of Yext are trading near all-time lows. The stock's Growth is slim right now in the mid single digits, yet the company has brought on a new leadership team to re-charge sales efforts. Yext's powerful technology and cheap price makes it a likely candidate for an acquisition. As the market looks to welcome rebound momentum again, my advice for investors is not to ignore small caps. Small-cap growth stocks have been among the hardest-hit stocks all year, and many are trading at incredibly low valuations. Look no further than Yext (YEXT) for one of the cheapest stocks in the tech sector at the moment. Now, Yext has also been plagued by sales growth saturation issues plus a changeover in leadership, but I think the stock's ~50% fall year to date severely undervalues a company that still operates a unique and powerful technology base. Data by YCharts Yext has never been a major hit with investors – during the growth-boom years, it wasn't growing quickly enough to keep up with hotter tech peers, and during this year's massive correction, Yext's red ink also made investors nervous. Yet, due purely to valuation, I'm still staying bullish on Yext. I'll be clear here: I don't think Yext is necessarily the highest-quality software company on the market, but I do think its collection of merits is a worth way more than where it's currently trading. Here is a refreshed view of what I believe to be the new bullish thesis for Yext: Broad evolution of its platform greatly increases Yext's available market. Yext started out with just its location data platform, but over the past few years, it has morphed into a very versatile software vendor. Yext Answers and the embedded AI search technologies are a very nascent opportunity. Listing/reviews tools and webpage creators are other complementary, yet not overlapping, products. It has also built a new tool called Extractive Question Answering, which can answer questions against long-form documents and other pieces of unstructured data. Still growing, albeit modestly. Though Yext has a reputation for being stagnant, the company is still managing to grow post-pandemic, with single-digit revenue growth and double-digit growth in customer counts. “Land and expand” is still a powerful tool for Yext, which now has a full portfolio of products to cross-sell to its customers. Recurring revenue. Nearly the entirety of Yext's revenue base is recurring revenue. We may have forgotten this fact amid general fear of tech in 2022, but recurring revenue is a powerful base of business, and it's highly coveted by acquirers. Easy to swallow for potential buyers. And speaking of which, Yext's <$400 million enterprise value makes the company quite an easy acquisition target, especially for a larger “portfolio” software company looking to add an extra ~$400 million in recurring revenue. In particular, I think Alphabet (GOOG) is quite a synergistic buyer, especially given Yext's original focus on location-based data and Google Maps. At its current share price near $5, Yext has a market cap of just $628 million, making it one of the smallest stocks in the software sector. Note as well that the company is executing quite a large buyback program relative to its size ($45 million left to go on a total $100 million authorization). After netting off the $248 million of cash on Yext's most recent balance sheet, the company's resulting enterprise value is just $380 million. For the current fiscal year, meanwhile, Yext has guided to revenue of $399.3-$403.3 million, representing 2-3% y/y growth. (Note that this is a cut from a prior outlook of $403.3-$407.3 million, but bakes in a $6 million impact of FX movement – so on a constant currency basis, this does represent a slight $2 million bump to Yext's prior guidance). Yext guidance update (Yext Q1 earnings release) Against the midpoint of Yext's new revenue range, the company trades at just 0.9x EV/FY23 revenue. Now, I'll fully admit that Yext is a company undergoing a transition, and that its fundamentals are far from perfect – but its valuation is too low to ignore. We've seen plenty of underperforming software stocks get snapped up in acquisitions lately (recent examples include Zendesk (ZEN)), and I think the possibility of that outcome for Yext is worth buying the stock at less than one turn of revenues. Don't bet the farm here, but Yext is certainly worth a small position. Q1 Download Let's now cover Yext's latest Q1 results in greater detail. The Q1 earnings summary is shown below: Yext Q1 results (Yext Q1 earnings release) Yext's revenue in Q1 grew 7% y/y to $98.8 million, beating Wall Street's expectations of $96.7 million (+5% y/y) by a two-point margin. We do note, however, that revenue did decelerate from 10% y/y growth in Q4, but unfavorable currency movements are partially to blame. I won't shy away from the fact that Yext's results certainly aren't perfect, and the one red flag worth mentioning is a slight sequential decline in ARR. ARR of $387.0 million in the quarter still did grow 5% y/y, but represented a ~$3.5 million slip quarter over quarter. For a company like Yext that does do business with many smaller companies, this churn isn't overly surprising, but it is a concern if the trend continues.

Shareholder Returns

YEXTUS SoftwareUS Market
7D4.7%0.7%3.2%
1Y-59.1%-15.5%-10.1%

Return vs Industry: YEXT underperformed the US Software industry which returned -16.6% over the past year.

Return vs Market: YEXT underperformed the US Market which returned -11.7% over the past year.

Price Volatility

Is YEXT's price volatile compared to industry and market?
YEXT volatility
YEXT Average Weekly Movement8.9%
Software Industry Average Movement10.1%
Market Average Movement7.7%
10% most volatile stocks in US Market16.9%
10% least volatile stocks in US Market3.2%

Stable Share Price: YEXT is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 9% a week.

Volatility Over Time: YEXT's weekly volatility (9%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
20061,400Mike Walrathhttps://www.yext.com

Yext, Inc. organizes business facts to provide answers to consumer questions in North America and internationally. It operates Yext platform, a cloud-based platform that allows its customers to provide answers to consumer questions, to control the facts about their businesses and the content of their landing pages, and to manage their consumer reviews, as well as provides customers to update their information and content through its knowledge network of approximately 200 maps, apps, search engines, intelligent GPS systems, digital assistants, vertical directories, and social networks. The platform enables its customers to centralize, control and manage data fields, including store information, such as name, address, phone number and holiday hours; professional information, comprising of headshot, specialties, and education; job information, consisting of title and description; and FAQs and other information.

Yext, Inc. Fundamentals Summary

How do Yext's earnings and revenue compare to its market cap?
YEXT fundamental statistics
Market CapUS$636.48m
Earnings (TTM)-US$101.47m
Revenue (TTM)US$397.39m

1.6x

P/S Ratio

-6.3x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
YEXT income statement (TTM)
RevenueUS$397.39m
Cost of RevenueUS$101.17m
Gross ProfitUS$296.21m
Other ExpensesUS$397.68m
Earnings-US$101.47m

Last Reported Earnings

Apr 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)-0.82
Gross Margin74.54%
Net Profit Margin-25.53%
Debt/Equity Ratio0%

How did YEXT perform over the long term?

See historical performance and comparison