I am upgrading Yext to a neutral rating due to stabilizing recurring revenue and improved profitability outlook, despite ongoing risks. Yext Scout, the new AI product, shows early traction with a waitlist of over 1,000 customers, offering potential for future growth. The valuation is attractive at 8.7x adjusted EBITDA, but risks include tough competition and historically weak customer retention rates.
Yext, Inc. remains unprofitable with muted revenue growth, despite cost-cutting and some margin expansion over the past two years. The upcoming Yext Scout product is the main hope for reigniting growth, but its current beta features seem underwhelming and its impact is uncertain. Financials show stable gross margins and improved retention, but growth remains sluggish and valuation appears fair, not compelling for long-term investors.
Yext (YEXT) shares have started gaining and might continue moving higher in the near term, as indicated by solid earnings estimate revisions.
3 Sep 2025 (In 2 months) Date | | 0.12 Cons. EPS | - EPS |
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3 Sep 2025 (In 2 months) Date | | 0.12 Cons. EPS | - EPS |
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Software - Infrastructure Industry | Technology Sector | Michael Walrath CEO | XSTU Exchange | US98585N1063 ISIN |
US Country | 1,150 Employees | - Last Dividend | - Last Split | 13 Apr 2017 IPO Date |
Founded in 2006 and based in New York, New York, Yext, Inc. specializes in the organization of business facts to effectively answer consumer queries across North America and globally. The company champions a comprehensive approach to ensure businesses control their digital presence across a wide array of platforms. By leveraging the Yext platform, businesses can centralize the management of vital information — from basic contact details to more intricate consumer reviews. This approach not only streamlines how businesses present themselves online but also enhances their discoverability across various digital avenues, catering specifically to the healthcare, retail, and financial services sectors.
The Yext platform, at its core, is a robust, cloud-based solution designed to empower businesses with control over their digital footprints. Key offerings include: