Online reputation and search platform Yext (NYSE: YEXT) will be announcing earnings results tomorrow after market close. Here’s what investors should know.
Yext met analysts’ revenue expectations last quarter, reporting revenues of $113.1 million, up 11.9% year on year. It was an exceptional quarter for the company, with a solid beat of analysts’ annual recurring revenue estimates and an impressive beat of analysts’ billings estimates.
Is Yext a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Yext’s revenue to grow 12% year on year to $107.6 million, a reversal from the 3.5% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.11 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Yext has missed Wall Street’s revenue estimates five times over the last two years.
Looking at Yext’s peers in the sales and marketing software segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Semrush delivered year-on-year revenue growth of 22.4%, beating analysts’ expectations by 0.9%, and The Trade Desk reported revenues up 25.4%, topping estimates by 7%. Semrush traded down 1.6% following the results while The Trade Desk was up 18.4%.
Read our full analysis of Semrush’s results here and The Trade Desk’s results here.
There has been positive sentiment among investors in the sales and marketing software segment, with share prices up 7.6% on average over the last month. Yext is up 2% during the same time and is heading into earnings with an average analyst price target of $8.50 (compared to the current share price of $6.71).
When a company has more cash than it knows what to do with, buying back its own shares can make a lot of sense–as long as the price is right. Luckily, we’ve found one, a low-priced stock that is gushing free cash flow AND buying back shares. Click here to claim your Special Free Report on a fallen angel growth story that is already recovering from a setback.
