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Yext shares surge over 10% on upbeat guidance as Q2 earnings top estimates

EditorRachael Rajan
Published 04/09/2024, 21:30
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YEXT
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NEW YORK - Yext, Inc. (NYSE:YEXT) shares soared 10.3% in after-hours trading Wednesday after the digital presence platform provider reported better-than-expected second quarter earnings and raised its full-year outlook.

The company posted adjusted earnings per share of $0.05 for the quarter ended July 31, beating analyst estimates of $0.03. Revenue came in at $97.9 million, slightly below the consensus forecast of $98.14 million but down 4.6% from $102.6 million in the same quarter last year.

Despite the revenue decline, Yext raised its fiscal 2025 guidance, now expecting full-year revenue between $420 million and $421 million, up from its previous outlook and above analyst projections of $416.4 million. The company also forecast adjusted EBITDA of $66 million to $67 million for the year.

"Our second quarter results delivered significant margin expansion due to our continued focus on operating efficiency, positioning us for growing profitability," said Yext CEO and Chair Michael Walrath in a statement.

Yext reported adjusted EBITDA of $9.8 million for Q2, representing a 10% margin. The company's direct annual recurring revenue stood at $313.4 million at quarter-end, up slightly from $312.1 million at the end of the first quarter.

While total revenue declined YoY, Yext highlighted its improving profitability and raised outlook as signs of progress in its strategic initiatives.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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