LOS ANGELES--(BUSINESS WIRE)--The Law Offices of Frank R. Cruz announces an investigation of Yext, Inc. ("Yext†or the "Company†) (NYSE: YEXT) on behalf of investors concerning the Company's possible violations of federal securities laws. IF YOU ARE AN INVESTOR WHO LOST MONEY ON YEXT, INC. (YEXT), CLICK HERE TO INQUIRE ABOUT POTENTIALLY PURSUING A CLAIM TO RECOVER YOUR LOSS. What Is The Investigation About? On February 2, 2026, Yext disclosed that its CEO, Michael Walrath, had withdrawn his pro. ...

Core Insights - Yext, Inc. reported an Earnings per Share (EPS) of $0.04, missing the expected $0.12, and revenue of approximately $112 million, slightly below the estimated $113 million [1][6] Financial Metrics - The company has a Price-to-Earnings (P/E) ratio of 41.17, indicating high investor confidence in its future growth potential despite the recent earnings miss [2][6] - Yext's Price-to-Sales ratio is 2.43, and the Enterprise Value to Sales ratio is 2.30, suggesting that the company is valued fairly in terms of its sales performance [3] - The Enterprise Value to Operating Cash Flow ratio stands at 15.93, and the Earnings Yield is 2.43%, providing insight into the return on investment for shareholders [4] - The Debt-to-Equity ratio is 0.54, indicating a balanced approach to financing, while the Current Ratio of 1.09 suggests sufficient short-term assets to cover short-term liabilities [5] Strategic Considerations - Yext's Board of Directors is actively exploring strategic alternatives to enhance shareholder value, including evaluating a non-binding proposal from Michael Walrath [5]

Core Viewpoint - Yext reported quarterly earnings of $0.14 per share, exceeding the Zacks Consensus Estimate of $0.12 per share, marking a 16.67% earnings surprise compared to the previous year's earnings of $0.12 per share [1][2]. Financial Performance - Yext's revenues for the quarter ended October 2025 were $112 million, slightly missing the Zacks Consensus Estimate by 0.72%, and down from $113.99 million year-over-year [2]. - Over the last four quarters, Yext has surpassed consensus EPS estimates two times and topped consensus revenue estimates three times [2]. Stock Performance - Yext shares have increased approximately 39.5% since the beginning of the year, outperforming the S&P 500's gain of 16.8% [3]. - The current Zacks Rank for Yext is 3 (Hold), indicating that the shares are expected to perform in line with the market in the near future [6]. Future Outlook - The consensus EPS estimate for the upcoming quarter is $0.13 on revenues of $114.79 million, and for the current fiscal year, it is $0.66 on revenues of $450.17 million [7]. - The outlook for the Technology Services industry, where Yext operates, is currently in the top 38% of Zacks industries, suggesting a favorable environment for stock performance [8].

Financial Performance - Revenue for the three months ended October 31, 2025, was $111,998, a decrease of 1.7% compared to $113,989 for the same period in 2024[19]. - Gross profit for the three months ended October 31, 2025, was $82,795, down from $87,742 in the prior year, reflecting a gross margin of 73.9%[19]. - Operating expenses decreased to $75,015 for the three months ended October 31, 2025, compared to $98,110 in the same period of 2024, a reduction of 23.5%[19]. - Net income for the three months ended October 31, 2025, was $6,136, compared to a net loss of $12,799 for the same period in 2024[19]. - Total revenue for the nine months ended October 31, 2025, was $334.6 million, representing an increase of 8.6% from $307.9 million in the same period of 2024[49]. - For the nine months ended October 31, 2025, Yext reported a net income of $33.7 million, compared to a net loss of $20.7 million for the same period in 2024[31]. - Revenue from North America for the nine months ended October 31, 2025, was $270.6 million, up 10.9% from $244.2 million in 2024[49]. - The company reported a net income of $6.1 million for the three months ended October 31, 2025, compared to a net loss of $12.8 million for the same period in 2024, resulting in a basic net income per share of $0.05[131]. - Non-GAAP net income for the three months ended October 31, 2025, was $17.495 million, an increase from $15.615 million in the same period of 2024[194]. - Adjusted EBITDA for the three months ended October 31, 2025, was $27.220 million, compared to $23.094 million in the same period of 2024, reflecting a growth of 18.4%[194]. Assets and Liabilities - Total assets as of October 31, 2025, were $555,773, down from $610,078 as of January 31, 2025, a decrease of 8.9%[17]. - Total liabilities decreased to $400,601 as of October 31, 2025, from $456,885 as of January 31, 2025, a reduction of 12.3%[17]. - Cash and cash equivalents increased to $139,916 as of October 31, 2025, compared to $123,133 as of January 31, 2025, an increase of 13.6%[17]. - The company’s accumulated deficit improved to $(673,463) as of October 31, 2025, from $(707,120) as of January 31, 2025[17]. - The company’s total stockholders' equity increased to $155,172 as of October 31, 2025, from $153,193 as of January 31, 2025[17]. - As of October 31, 2025, the Company's total marketable securities amounted to $88.2 million, with money market funds comprising $28.4 million[76]. - Accounts payable and accrued expenses totaled $39.030 million as of October 31, 2025, a decrease from $70.022 million as of January 31, 2025[97]. Cash Flow and Financing - Cash provided by operating activities for the nine months ended October 31, 2025, was $26.3 million, compared to $11.9 million in 2024[31]. - Free cash flow for the three months ended October 31, 2025, was $(20.335) million, compared to $(16.372) million in the same period of 2024[199]. - The company reported net cash used in investing activities of $(20,451) thousand for the nine months ended October 31, 2025, compared to $(91,176) thousand in the same period of 2024[214]. - Net cash provided by financing activities was $10.1 million for the nine months ended October 31, 2025, compared to $(13,213) thousand in the same period of 2024[214]. - The company entered into a May 2025 Credit Agreement providing for a senior secured initial term loan facility of up to $100 million, maturing on May 15, 2030[110]. - As of October 31, 2025, the Company's principal debt obligation was $100 million, with a net carrying amount of $98.167 million after accounting for unamortized costs[117]. - The company incurred original issue discount costs of $1.0 million and debt issuance costs of $0.7 million in connection with the May 2025 Credit Agreement[211]. - The May 2025 Credit Agreement requires the company to maintain minimum qualified cash of at least $35.0 million at all times[210]. - As of October 31, 2025, the company was in compliance with all debt covenants[212]. Acquisitions - The company completed the acquisition of Hearsay on August 1, 2024, to enhance its digital presence platform capabilities[57]. - The total consideration transferred for the acquisition of Hearsay amounted to $180.7 million, which includes cash consideration of $132.5 million and contingent consideration of $39.8 million[58][60][61]. - The contingent consideration is tied to an earnout arrangement that could require payments of up to $75.0 million based on achieving specific Annual Recurring Revenue (ARR) milestones by September 2026[61]. - The Company recognized acquisition-related costs totaling $11.2 million, which were expensed as incurred and included $8.8 million related to the incentive pool for Hearsay founders and early employees[65]. - The purchase price allocation for the acquisition of Hearsay included identifiable intangible assets valued at $101.9 million, with customer relationships valued at $76.2 million and technology at $24.8 million[66][70]. - The acquisition of Places Scout was completed for a purchase price of $20.3 million, with $5.6 million allocated to technology and $0.9 million to customer relationships[73][74]. - The Company issued approximately 2.1 million replacement equity awards with a fair value of $11.8 million as part of the Hearsay acquisition, with $7.8 million allocated to pre-acquisition services[62]. - The company completed the acquisition of KabanaSoft for $20.3 million, enhancing its competitive intelligence and AI capabilities[142]. Revenue Recognition and Backlog - As of October 31, 2025, unearned revenue was $154.6 million, indicating a strong backlog of future revenue[54]. - The company had $415.6 million in remaining performance obligations as of October 31, 2025, with $377.1 million expected to be recognized as revenue over the next 24 months[56]. - Revenue from direct customers was $93.3 million for the three months ended October 31, 2025, down $2.2 million or 2% from $95.5 million in 2024, primarily due to customer attrition[166]. - Revenue from direct customers for the nine months ended October 31, 2025, was $279.2 million, an increase of $27.1 million or 11% from $252.2 million in 2024[176]. - Total Annual Recurring Revenue (ARR) decreased by 1% to $444.36 million in 2025 from $448.65 million in 2024[151]. Stock-Based Compensation - Stock-based compensation expense for the nine months ended October 31, 2025, was $38.0 million, slightly up from $37.1 million in 2024[31]. - Total stock-based compensation expense for the three months ended October 31, 2025, was $12.338 million, a decrease of 2.8% from $12.693 million in the same period of 2024[99]. - For the nine months ended October 31, 2025, total stock-based compensation expense increased to $37.959 million, up 2.3% from $37.091 million in 2024[99]. - The balance of restricted stock and restricted stock units (RSUs) as of October 31, 2025, was 8,857,312, with a weighted-average grant date fair value of $7.30[102]. - The Company granted 1,025,000 performance-based restricted stock units (PSUs) during the nine months ended October 31, 2025, which vest based on achieving specific metrics[103]. Tax and Compliance - The Company recorded a provision for income taxes of $0.5 million for the three months ended October 31, 2025, compared to $3.0 million for the same period in 2024[120]. - The effective tax rate differs from the U.S. federal statutory tax rate primarily due to full valuation allowances related to net deferred tax assets[121]. - The projected tax rate for non-GAAP income was updated to 25.5% for fiscal year 2026, compared to 25% in fiscal year 2025[187]. Market Conditions and Strategic Initiatives - Macroeconomic conditions, including inflation and foreign currency fluctuations, may adversely impact the company's financial condition and operating results in future periods[139]. - Michael Walrath, CEO of Yext, proposed to acquire all outstanding shares at $9.00 per share, with no decision made yet by the Board[141]. - The company operates as a single segment, with consolidated net income (loss) used to measure segment profit or loss[132]. - The company’s digital presence platform, known as the Answers Platform, is utilized by over 200 service and application providers, enhancing its market reach[135].

Revenue Performance - Revenue for Q3 FY 2026 was $112.0 million, a 2% decrease compared to $114.0 million in Q3 FY 2025[4] - Total revenue for the three months ended October 31, 2025, was $111,998, a decrease of 1.7% compared to $113,989 for the same period in 2024[43] - Revenue for the nine months ended October 31, 2025, was $334.575 million, representing a 9% increase from $307.866 million in 2024[63] - Total Annual Recurring Revenue (ARR) as of October 31, 2025, was $444.360 million, down 1% from $448.649 million in 2024[65] Profitability Metrics - Gross profit was $82.8 million, a decrease of 6% from $87.7 million in Q3 FY 2025, resulting in a gross margin of 73.9%[8] - The company reported a net income of $6,136 for the three months ended October 31, 2025, compared to a net loss of $12,799 in the same period of 2024[43] - GAAP net income for Q3 2025 was $6,136, compared to a loss of $12,799 in Q3 2024, representing a significant turnaround[47] - Non-GAAP net income for Q3 2025 was $17,495, compared to $15,615 in Q3 2024, reflecting a year-over-year increase of 11.3%[56] - GAAP net income for the nine months ended October 31, 2025, was $33.657 million, compared to a loss of $20.673 million in 2024[60] - Non-GAAP net income for the same period was $50.329 million, up from $28.717 million year-over-year[60] Cash Flow and Liquidity - Cash, cash equivalents, and restricted cash totaled $158.9 million as of October 31, 2025, up from $138.7 million as of January 31, 2025[11] - Cash and cash equivalents at the end of the period were $139,916, an increase from $123,133 at the beginning of the period[41] - The company reported a net cash provided by operating activities of $26,312 for the nine months ended October 31, 2025, compared to $11,865 in 2024[45] - Free cash flow for the nine months ended October 31, 2025, was $24.662 million, compared to $10.096 million in 2024[63] Customer Metrics - Dollar-Based Net Retention Rate (NRR) for total and direct customers was 96%, while NRR for third-party reseller customers was 99%[10] - Direct customers represented 83% of total ARR, totaling $368.6 million, a 2% year-over-year decrease[15] - The dollar-based net retention rate for total customers was 96% as of October 31, 2025, compared to 92% a year earlier[65] - The dollar-based gross retention rate for total customers improved to 88% as of October 31, 2025, from 84% in the same period last year[65] Operating Expenses - Operating expenses for the three months ended October 31, 2025, were $75,015, down from $98,110 in the same period of 2024, reflecting a reduction in sales and marketing expenses[43] - GAAP operating expenses for Q3 2025 were $75,015, down from $98,110 in Q3 2024, leading to a GAAP operating margin of 7%[53] - Non-GAAP operating expenses for Q3 2025 were $62,285, compared to $70,288 in Q3 2024, with a non-GAAP operating margin of 22%[53] Stock and Shareholder Returns - Share repurchase program year-to-date totaled $59.6 million, with approximately $22.3 million remaining for future purchases[11] - GAAP net income per share attributable to common stockholders (diluted) was $0.06 for the nine months ended October 31, 2025, compared to a loss of $0.16 in 2024[60] - Non-GAAP net income per share attributable to common stockholders (diluted) increased to $0.38 from $0.22 year-over-year[60] Performance Obligations - Remaining Performance Obligations (RPO) were $415.6 million, with $377.1 million expected to be recognized as revenue over the next 24 months[10]

Core Insights - Yext, Inc. is transitioning from its Knowledge Assistant tool to a new suite of features aimed at enhancing flexibility and brand control in its digital experience platform [1][3] - The company is focusing on a modular, mobile-optimized web architecture, reflecting a strategic pivot towards a mobile-first future [2][3] Product Updates - Yext has deprecated its Knowledge Assistant tool and introduced new features such as a user-editable schema for technical SEO, optional starting locations for map-based locator pages, and customizable banner sections for directory and locator modules [2][3] - The recent updates follow a beta release of the new Yext mobile app, indicating a shift in the platform's core functionality [3] Company Overview - Yext, Inc. provides a platform for managing digital knowledge and customer-facing content across various digital endpoints, including websites and search engines [4]

Core Thesis - Yext, Inc. is experiencing a significant business transformation, highlighted by a take-private proposal from CEO Michael Walrath at $9 per share, which represents an 11.2% premium and is viewed as a potential floor price by investors [2][4] Business Developments - The company has made two transformative acquisitions, Hearsay Systems and Places Scout, enhancing its capabilities in digital client engagement, structured data, and search analytics [2] - The launch of Yext Scout, an AI-driven visibility and benchmarking platform, is expected to provide real-time insights across various search platforms, including ChatGPT and Gemini [2] Financial Performance - Yext has shown strong early momentum with over 1,000 waitlist sign-ups and renewed customer interest, alongside back-to-back quarters of double-digit revenue growth [3] - The company has achieved record Adjusted EBITDA margins above 23% and steady Annual Recurring Revenue (ARR) expansion [3] - Valuation metrics indicate an undemanding position for the software platform, with an EV/Adjusted EBITDA of approximately 9–10x and a sales multiple of around 2x [3] Shareholder Dynamics - Major shareholders, including Lead Edge Capital and Lynrock Lake, may advocate for a higher bid, potentially attracting additional bidders [4] - The current $9 offer is seen as a floor, with expectations for an increase to $9.75 or higher due to strategic momentum and investor alignment [4]

Core Viewpoint - Yext (YEXT) shares have recently declined by 5.7% over the past two weeks, but the formation of a hammer chart pattern suggests potential support and a possible trend reversal in the future [1][2]. Technical Analysis - The hammer chart pattern indicates a potential bottom, suggesting that selling pressure may be subsiding [2][5]. - This pattern typically forms during a downtrend, where the stock opens lower, makes a new low, but then closes near or above the opening price, indicating buying interest [4][5]. - Hammer candles can appear on various timeframes and are utilized by both short-term and long-term investors [5]. Fundamental Analysis - There is a strong consensus among Wall Street analysts to raise earnings estimates for Yext, which supports a bullish outlook for the stock [2][7]. - Over the last 30 days, the consensus EPS estimate for the current year has increased by 300%, indicating that analysts expect better earnings than previously predicted [8]. - Yext currently holds a Zacks Rank of 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks, which typically outperform the market [9][10].

Core Viewpoint - Yext (YEXT) has been upgraded to a Zacks Rank 2 (Buy) due to an upward trend in earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Movement - The Zacks rating system is based on the consensus measure of EPS estimates from sell-side analysts, reflecting the company's changing earnings picture [1][2]. - A strong correlation exists between earnings estimate revisions and near-term stock price movements, making the Zacks rating system valuable for investors [4][6]. Institutional Investor Influence - Institutional investors utilize earnings estimates to determine the fair value of a company's shares, impacting stock price movements through their large transactions [4]. Yext's Earnings Outlook - The recent rating upgrade for Yext indicates an improvement in the company's underlying business, which is expected to drive the stock price higher [5]. - Yext is projected to earn $0.66 per share for the fiscal year ending January 2026, with a significant increase of 300% in the Zacks Consensus Estimate over the past three months [8]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a proven track record of Zacks Rank 1 stocks generating an average annual return of +25% since 1988 [7]. - Yext's upgrade to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, indicating a strong potential for market-beating returns in the near term [10].

Group 1 - The main theme in the stock market for 2025 is the influx of investors into large-cap growth stocks, leading to unbalanced valuations [1] - The article highlights the author's extensive experience in covering technology companies and involvement with startups, indicating a deep understanding of current industry trends [1] Group 2 - The article does not provide any specific financial data or performance metrics related to the companies mentioned [2][3]