Yext, the marketing-software company positioning itself as a leader in generative artificial intelligence, reported first-quarter results that exceeded expectations and raised its full-year guidance. Notably, Yext shares soared by 41% in early trading on Wednesday, reaching $13.58 per share and marking its largest daily percentage gain to date. With the stock price already more than doubling this year, this significant boost comes as a welcome development for Yext, which has been focused on gaining momentum following a challenging period.
In an effort to deliver growth and address any setbacks, Yext initiated a turnaround strategy after former CEO and founder Howard Lerman stepped down last year. This move was accompanied by a workforce reduction, yielding positive results and adding to the company’s recent successes.
For the first quarter ending April 30, Yext announced that it achieved breakeven per-share earnings, compared to a loss of 20 cents per share in the same period the previous year. When adjusted for one-time items, Yext’s earnings amounted to 9 cents per share – surpassing estimates. Furthermore, the company experienced a 1% increase in revenue, totaling $99.5 million for the quarter.
Analysts had predicted an adjusted profit of 5 cents per share on sales of $98.5 million, according to FactSet. Yext’s actual results signify its progress towards greater efficiency, particularly following its recent decision to lay off approximately 8% of its workforce earlier this year. The executive team also underscored the company’s advancements in artificial intelligence capabilities.
As a specialist in enhancing businesses’ online search performance, Yext continues to demonstrate resilience and adaptability in an ever-evolving market. With strong Q1 results and an optimistic outlook for the rest of the year, the company positions itself at the forefront of the industry’s AI revolution.
Yext’s Advances in Generative AI Spark Discussion Among Industry Experts
Yext, a leader in the field of AI technology, has recently made significant strides in the development of their Content Generation Studio and Yext Chat platforms. These advancements have prompted extensive discussions surrounding the potential of Generative AI among industry experts.
Roth MKM analysts, under the guidance of Rohit Kulkarni, have upgraded their rating on Yext’s stock from Neutral to Buy. Furthermore, they have raised their target price to $12.50, up from $8.50. This decision is based on management’s dedicated focus on sales execution and profitable growth. Kulkarni also highlights the upcoming AI products, which have the potential to unlock new opportunities in the market and position Yext as the leading AI partner for enterprises on a large scale.
In light of these positive developments, Yext has raised its guidance for fiscal 2024. The company now anticipates revenue to range between $404 million and $407 million, with an adjusted EPS of 28 to 29 cents. Previously, the revenue projection stood at $402 million to $406 million, with an adjusted EPS between 22 and 23 cents.
D.A. Davidson analyst Tom White has also demonstrated confidence in Yext’s performance by raising his target price from $10 to $11.50. White highlights Yext’s ability to deliver better-than-expected expense efficiencies and encouraging trends in their core business.
Although acknowledging these positive factors, White maintains a Neutral rating due to the early stage of Yext’s turnaround and the unpredictable macro backdrop affecting enterprise spending.
In conclusion, Yext’s recent advancements in Generative AI have generated excitement and discussion within the industry. With continued focus on growth and innovative AI products on the horizon, Yext has positioned itself as a key player in the evolving AI market.