Yext, Inc. (NYSE:YEXT) Has Found A Path To Profitability

We feel now is a pretty good time to analyse Yext, Inc.'s (NYSE:YEXT) business as it appears the company may be on the cusp of a considerable accomplishment. Yext, Inc. provides a platform that offers answers to consumer questions in North America and internationally. The US$745m market-cap company announced a latest loss of US$28m on 31 January 2025 for its most recent financial year result. As path to profitability is the topic on Yext's investors mind, we've decided to gauge market sentiment. We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.

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Consensus from 4 of the American Software analysts is that Yext is on the verge of breakeven. They anticipate the company to incur a final loss in 2025, before generating positive profits of US$18m in 2026. The company is therefore projected to breakeven around 12 months from now or less. We calculated the rate at which the company must grow to meet the consensus forecasts predicting breakeven within 12 months. It turns out an average annual growth rate of 46% is expected, which is rather optimistic! If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

Underlying developments driving Yext's growth isn’t the focus of this broad overview, though, keep in mind that generally a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

View our latest analysis for Yext

Before we wrap up, there’s one aspect worth mentioning. Yext currently has no debt on its balance sheet, which is quite unusual for a cash-burning growth company, which usually has a high level of debt relative to its equity. The company currently operates purely off its shareholder funding and has no debt obligation, reducing concerns around repayments and making it a less risky investment.

Next Steps:

There are too many aspects of Yext to cover in one brief article, but the key fundamentals for the company can all be found in one place – Yext's company page on Simply Wall St. We've also compiled a list of essential aspects you should further research:

1. Valuation: What is Yext worth today? Has the future growth potential already been factored into the price? The intrinsic value infographic in our free research report helps visualize whether Yext is currently mispriced by the market.
2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Yext’s board and the CEO’s background .
3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.