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1. Company Snapshot

1.a. Company Description

Yext, Inc.organizes business facts to provide answers to consumer questions in North America and internationally.It operates Yext platform, a cloud-based platform that allows its customers to provide answers to consumer questions, to control the facts about their businesses and the content of their landing pages, and to manage their consumer reviews, as well as provides customers to update their information and content through its knowledge network of approximately 200 maps, apps, search engines, intelligent GPS systems, digital assistants, vertical directories, and social networks.


The platform enables its customers to centralize, control and manage data fields, including store information, such as name, address, phone number and holiday hours; professional information, comprising of headshot, specialties, and education; job information, consisting of title and description; and FAQs and other information.It serves the healthcare, retail, and financial services industries.The company was incorporated in 2006 and is headquartered in New York, New York.

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1.b. Last Insights on YEXT

Here is a 90-word analysis of the negative drivers behind Yext, Inc.'s recent stock performance: Yext's focus on profitability over growth has led to missed opportunities in the booming AI search market, resulting in a Neutral rating (source: 2024-12-11 news). The company's Q3 earnings lagged estimates, with pro forma sales from the Hearsay Systems acquisition declining YoY. Organic growth has stagnated, and poor Q3 results drove a 17% one-day stock drop. Yext faces existential issues adapting to the AI era, with inadequate responses to AI-driven changes in consumer internet usage. Rising operating costs and stock-based compensation have negatively impacted free cash flow.

1.c. Company Highlights

2. Yext Delivers Strong Q1 Fiscal 2026 Earnings, Driven by Improved Retention and Product Innovation

Yext, Inc. reported a robust Q1 Fiscal 2026, exceeding guidance across all key metrics and demonstrating strong momentum heading into Q2. The company generated $92.5 million in revenue, representing a 4.2% year-over-year increase, despite macroeconomic headwinds. Adjusted gross margin improved to 78.2%, up 50 basis points from the prior year, reflecting operational efficiency. On the profitability front, Yext reported an operating margin of -4.5%, narrowing from -6.7% in the same period last year. The company posted a net loss of $0.12 per share, beating consensus estimates of $0.11, showcasing disciplined cost management.

Publication Date: Jun -08

📋 Highlights
  • Strong Q1 Financial Performance: Exceeded guidance on all metrics with revenue outperformance driven by favorable FX rates and improved retention.
  • Yext Scout Launch Success: 2,000+ customers on waitlist, 45 live in open beta, with highly positive feedback on 150+ performance metrics.
  • Revenue Growth and Retention: 3% year-over-year revenue increase, driven by higher gross and net retention rates reflecting customer value.
  • Financial Flexibility: Secured $125 million loan facility with BlackRock, enabling strategic investments and M&A opportunities.
  • Improved Customer Satisfaction: Strong customer satisfaction driving stable ARR, supported by innovative products like Scout addressing digital fragmentation.

Product Momentum and Strategic Investments

Yext's newly launched product, Yext Scout, has garnered significant attention, with a waitlist of 2,000 customers, including both existing clients and new prospects. Currently in open beta, Scout has already onboarded 45 customers, who are leveraging its 150+ performance metrics to enhance their digital visibility. This product is not only expected to anti-commoditize Yext's core offerings but also expand its total addressable market (TAM) and create new cross-selling opportunities. Additionally, Yext secured a $125 million loan facility with BlackRock, replacing its expiring SVB facility, which enhances its financial flexibility for strategic investments and M&A.

Financial Flexibility and Shareholder Returns

Yext emphasized its strong balance sheet, with $135 million in cash and cash equivalents, enabling strategic reinvestment and opportunistic acquisitions. The company has been actively repurchasing shares, viewing it as an attractive use of capital given the stock's current valuation. Year-to-date, Yext has repurchased approximately $25 million worth of shares, underscoring management's confidence in the company's intrinsic value.

Valuation and Outlook

Yext currently trades at a Price-to-Sales (P/S) ratio of 2.63, reflecting the market's expectation of continued growth. However, the company's EV/EBITDA of -118.64 and Net Debt/EBITDA of 3.05 highlight the challenges of balancing growth investments with profitability. Despite macroeconomic uncertainties, Yext's improving retention rates, innovative product offerings, and disciplined execution position it well to navigate the current environment. Analysts expect revenue growth of 6.9% for the next fiscal year, aligning with management's cautiously optimistic outlook.

3. NewsRoom

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Cetera Investment Advisers Takes $1.41 Million Position in Yext $YEXT

Dec -02

Source: defenseworld.net

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AXQ Capital LP Buys Shares of 29,203 Yext $YEXT

Nov -25

Source: defenseworld.net

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Head to Head Analysis: Yext (NYSE:YEXT) vs. Ohmyhome (NASDAQ:OMH)

Nov -21

Source: defenseworld.net

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Yext Research: 86% of AI Citations Come from Brand-Managed Sources, Clarifying How Marketers Can Compete in the AI Search Era

Oct -09

Source: businesswire.com

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Yext Study Finds U.S. Path to Purchase More Fragmented Than Ever, With Only 11% Trusting Their First Search Result

Oct -07

Source: businesswire.com

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Here's Why Yext (YEXT) Could be Great Choice for a Bottom Fisher

Oct -03

Source: zacks.com

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Yext Announces Second Quarter Fiscal 2026 Results

Sep -08

Source: businesswire.com

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Strength Seen in Yext (YEXT): Can Its 8.8% Jump Turn into More Strength?

Aug -19

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (3.00%)

6. Segments

Knowledge Graph

Expected Growth: 3.0%

Yext's Knowledge Graph growth is driven by increasing demand for AI-powered search and digital transformation in industries such as healthcare, finance, and retail. The platform's ability to provide accurate and up-to-date information, coupled with its scalability and security features, has led to widespread adoption. Additionally, Yext's strategic partnerships and expanding global presence have contributed to its 3.0 growth rate.

7. Detailed Products

Yext Knowledge Graph

A cloud-based platform that stores and organizes business information, providing a single source of truth for brand data.

Yext Listings

A service that enables businesses to manage and optimize their online listings across a network of over 150 directories and platforms.

Yext Pages

A website and landing page creation tool that allows businesses to create mobile-friendly, SEO-optimized pages for their locations and products.

Yext Reviews

A review management platform that enables businesses to monitor, respond to, and generate reviews across various review sites and platforms.

Yext Analytics

A data analytics platform that provides insights into how customers interact with business information online.

8. Yext, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Yext, Inc. operates in a niche market, providing a unique platform for businesses to manage their online presence. While there are some substitutes available, they are not as comprehensive as Yext's platform, reducing the threat of substitutes.

Bargaining Power Of Customers

Yext, Inc. has a diverse customer base, including large enterprises and small businesses. While customers have some bargaining power, Yext's platform is critical to their online presence, reducing their bargaining power.

Bargaining Power Of Suppliers

Yext, Inc. has a diverse supplier base, including data providers and technology partners. While suppliers have some bargaining power, Yext's scale and market position reduce their bargaining power.

Threat Of New Entrants

The digital marketing and online presence management industry is highly competitive, and new entrants can easily enter the market. However, Yext's established brand and comprehensive platform make it difficult for new entrants to compete.

Intensity Of Rivalry

The digital marketing and online presence management industry is highly competitive, with many established players competing for market share. Yext, Inc. faces intense competition from companies like Google, Facebook, and other digital marketing platforms.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 41.95%
Debt Cost 3.95%
Equity Weight 58.05%
Equity Cost 10.25%
WACC 7.61%
Leverage 72.27%

11. Quality Control: Yext, Inc. passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
i3 Verticals

A-Score: 5.1/10

Value: 3.6

Growth: 4.8

Quality: 7.8

Yield: 0.0

Momentum: 8.5

Volatility: 5.7

1-Year Total Return ->

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Stock-Card
NetScout Systems

A-Score: 5.0/10

Value: 5.5

Growth: 1.7

Quality: 7.5

Yield: 0.0

Momentum: 8.0

Volatility: 7.0

1-Year Total Return ->

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Stock-Card
Yext

A-Score: 4.3/10

Value: 2.4

Growth: 6.9

Quality: 5.9

Yield: 0.0

Momentum: 7.5

Volatility: 3.3

1-Year Total Return ->

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Stock-Card
Zuora

A-Score: 4.2/10

Value: 5.2

Growth: 4.3

Quality: 3.9

Yield: 0.0

Momentum: 6.5

Volatility: 5.3

1-Year Total Return ->

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Stock-Card
Appian

A-Score: 4.2/10

Value: 4.9

Growth: 6.4

Quality: 5.4

Yield: 0.0

Momentum: 4.0

Volatility: 4.3

1-Year Total Return ->

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Stock-Card
AuthID

A-Score: 2.8/10

Value: 6.6

Growth: 4.7

Quality: 4.2

Yield: 0.0

Momentum: 0.5

Volatility: 0.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

8.93$

Current Price

8.93$

Potential

-0.00%

Expected Cash-Flows