Yext Tops 2Q, Shares Rise 4% In Pre-Market
Yext shares rose over 4% in pre-market session on Friday after delivering upbeat 2Q results. Its revenue of $88.1 million soared 22% year-over-year and also came ahead of analysts’ expectations of $85.2 million.
The software developer reported 2Q loss of $0.07 per share, but it was narrower than analysts’ loss expectations of $0.12 per share. The company posted a loss of $0.11 per share in the year-ago quarter.
Yext (YEXT) CEO Howard Lerman commented: “We had a solid second quarter, exceeding the high end of our revenue and EPS guidance, while also driving sales efficiencies.” The 2Q revenues were $2 million above the high end of its guidance range, while the $0.07 loss was a $0.04 beat to the high end of guidance.
For 3Q, the company expects revenue to be between $86 million and $88 million. It also anticipates adjusted loss per share between $0.07 and $0.09. (See YEXT stock analysis on TipRanks).
Just after its 2Q results, on Sept. 3, RBC Capital analyst Mark Mahaney reiterated his Buy rating while marginally reducing his price target from $22 to $21. He told investors: “Yext posted a solid quarter w/ Revenue, EBITDA, & Non-GAAP EPS all coming in better than RBC/Street. Revenue & Unearned Revenue growth rates decelerated modestly, with a FQ3 guide calling for deceleration mostly over macro concerns and tougher comps.”
Currently, the Street has a cautiously optimistic outlook on the stock. The Moderate Buy analyst consensus is based on 7 Buys, 1 Hold and 1 Sell. The average price target of $19.56 implies upside potential of 11.6% to current levels. Shares were up by 21.6% year-to-date.
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