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Yext Inc (YEXT)
NYSE:YEXT

Yext (YEXT) AI Stock Analysis

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Yext

(NYSE:YEXT)

61Neutral
Yext's overall score reflects solid revenue growth and positive cash flow trends, tempered by profitability challenges and negative valuation metrics. The technical outlook is mixed, with short-term caution advised. The earnings call provided a positive outlook with new product successes, counterbalancing some of the financial risks.
Positive Factors
Acquisition Impact
The acquisition of PlacesScout strengthens Yext's ability to deliver deep insights across major search channels, aiding in driving larger deals and upsells.
Earnings
Quarterly results came in ahead of expectations.
Product Development
Management is optimistic about new products gaining traction.
Negative Factors
Foreign Exchange
Despite a foreign exchange headwind, expectations are to meet or exceed previously stated ranges, showing resilience.
Guidance
Shares are implied lower due to a below consensus 4Q25 guide, primarily due to a reversal of the FX tailwinds in 3Q to headwinds in 4Q.

Yext (YEXT) vs. S&P 500 (SPY)

Yext Business Overview & Revenue Model

Company DescriptionYext, 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.
How the Company Makes MoneyYext generates revenue primarily through a subscription-based model, where businesses pay for access to its digital knowledge management platform. Key revenue streams include subscription fees for its core products, such as listings management, pages, and reviews management. The company also offers additional services like data analytics and insights to help businesses optimize their digital presence. Significant partnerships with search engines, social media platforms, and other digital services providers enhance the company's value proposition, making it a crucial intermediary for businesses looking to maintain accurate and comprehensive online information.

Yext Financial Statement Overview

Summary
Yext shows strong revenue growth and cash flow improvements, but it continues to face challenges with profitability. The balance sheet is stable with manageable debt levels. The company needs to address operational losses to improve financial health.
Income Statement
65
Positive
Yext's revenue has consistently grown over the past few years, with a revenue growth rate of 4.1% from 2024 to 2025. However, profitability remains a concern with negative net profit margins and EBIT margins. The gross profit margin is relatively healthy at about 77.1% for 2025, indicating strong control over production costs. Despite growing revenues, the company is still operating at a loss, which is a significant risk factor.
Balance Sheet
60
Neutral
The balance sheet shows moderate leverage with a debt-to-equity ratio of 0.62, indicating a balanced approach to financing with debt. Stockholders' equity has increased, enhancing the equity ratio to 25.1% in 2025. However, the company has a history of net losses, impacting the return on equity, which remains negative. The cash position is robust, providing some financial flexibility.
Cash Flow
72
Positive
Yext demonstrates improving cash flow performance, with a solid free cash flow growth rate of 10.8% from 2024 to 2025. The operating cash flow to net income ratio exceeds 1, indicating effective cash generation relative to net losses. The business is successfully converting revenue into cash, which is a positive indicator for future stability.
Breakdown
Mar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income StatementTotal Revenue
420.96M404.32M400.85M390.58M354.66M
Gross Profit
324.59M316.85M296.89M292.28M268.26M
EBIT
-32.45M-6.20M-64.83M-89.96M-94.33M
EBITDA
169.00K24.74M-36.89M-65.36M-71.17M
Net Income Common Stockholders
-27.95M-2.63M-65.94M-93.26M-94.69M
Balance SheetCash, Cash Equivalents and Short-Term Investments
123.13M210.18M190.21M261.21M230.41M
Total Assets
610.08M508.81M523.76M620.34M595.99M
Total Debt
95.41M106.36M118.69M132.62M137.75M
Net Debt
-27.72M-103.82M-71.53M-128.59M-92.66M
Total Liabilities
456.88M361.64M395.74M408.46M388.75M
Stockholders Equity
153.19M147.17M128.02M211.87M207.24M
Cash FlowFree Cash Flow
48.13M43.43M11.66M8.43M-63.91M
Operating Cash Flow
50.21M46.16M17.85M21.85M1.20M
Investing Cash Flow
-91.49M-2.73M-6.19M-13.42M-65.11M
Financing Cash Flow
-28.54M-23.25M-79.02M24.62M22.55M

Yext Technical Analysis

Technical Analysis Sentiment
Negative
Last Price6.18
Price Trends
50DMA
6.47
Negative
100DMA
6.88
Negative
200DMA
6.34
Negative
Market Momentum
MACD
-0.03
Negative
RSI
42.62
Neutral
STOCH
49.72
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For YEXT, the sentiment is Negative. The current price of 6.18 is below the 20-day moving average (MA) of 6.32, below the 50-day MA of 6.47, and below the 200-day MA of 6.34, indicating a bearish trend. The MACD of -0.03 indicates Negative momentum. The RSI at 42.62 is Neutral, neither overbought nor oversold. The STOCH value of 49.72 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for YEXT.

Yext Risk Analysis

Yext disclosed 61 risk factors in its most recent earnings report. Yext reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Yext Peers Comparison

Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
$17.34B16.7568.18%7.78%1345.45%
CRCRM
75
Outperform
$259.44B42.4310.26%0.57%8.72%51.47%
NONOW
72
Outperform
$165.30B116.6216.53%22.44%-18.31%
67
Neutral
$30.36B6,784.500.29%21.07%
61
Neutral
$781.68M-18.61%4.11%-935.85%
59
Neutral
$57.11B-32.59%23.19%11.01%
58
Neutral
$21.06B10.51-17.38%2.43%4.55%-24.07%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
YEXT
Yext
6.18
0.24
4.04%
CRM
Salesforce
269.97
-31.00
-10.30%
NOW
ServiceNow
797.76
29.39
3.82%
HUBS
HubSpot
582.11
-54.74
-8.60%
TEAM
Atlassian
217.99
24.62
12.73%
DOCU
DocuSign
83.18
24.95
42.85%

Yext Earnings Call Summary

Earnings Call Date: Mar 5, 2025 | % Change Since: -5.79% | Next Earnings Date: Jun 4, 2025
Earnings Call Sentiment Positive
The call highlighted significant positives, including strong performance metrics and successful product launches, particularly Yext Scout. However, challenges such as a sequential decline in ARR and ongoing macroeconomic headwinds were noted. Despite these challenges, the sentiment was largely positive due to the strategic positioning and strong customer response to new products.
Highlights
Positive Trends in Performance Metrics
Gross ARR retention increased to the high 80%s, net retention increased across both direct and reseller, and EBITDA margins are above 20%, with an outlook for over $100 million in EBITDA for fiscal year '26.
Successful Product Launch and Innovation
The launch of Yext Scout received an enthusiastic response from customers, with hundreds of waitlist signups for the beta just two days after the announcement.
Strong Demand for Hearsay Integration
The integration of Hearsay is generating go-to-market and cost synergies as expected, with positive demand signals in the financial services and healthcare verticals.
Lowlights
Sequential ARR Decline
ARR declined sequentially, primarily due to a $3.5 million impact from FX and some downgrades, although it was not driven by logo churn.
Macroeconomic Challenges
The macroeconomic environment remains challenging, with continued cost optimizations and headwinds from store closures and reduced numbers of licenses.
Company Guidance
During the Yext Fourth Quarter Fiscal 2025 Financial Results Conference Call, the company provided guidance for fiscal year 2026, highlighting several key metrics and strategic priorities. Yext expects its EBITDA margins to exceed 20%, projecting over $100 million in EBITDA for fiscal 2026. The company noted an increase in both gross ARR retention to the high 80% range and net retention rates across direct and reseller channels. Despite a challenging macroeconomic environment, Yext anticipates ARR growth driven by new product developments, such as the launch of Yext Scout and the integration of Hearsay, which have already generated significant customer interest. The company is focused on leveraging its strong product portfolio to capitalize on market opportunities, with a particular emphasis on addressing customer needs in a fragmented search landscape. Additionally, Yext is committed to maintaining financial discipline, with plans to manage expenses conservatively while considering strategic investments to support growth.

Yext Corporate Events

Executive/Board Changes
Julie Richardson Resigns from Yext Board; CEO Awarded Bonus
Neutral
Jan 30, 2025

On January 28, 2025, Julie Richardson announced her resignation from Yext, Inc.’s board of directors effective January 31, 2025, after nearly a decade of service. Her departure was not due to any disagreements with the company’s operations or policies. Additionally, on January 29, 2025, the company’s Compensation Committee awarded CEO Michael Walrath a one-time cash bonus of $500,000 for his contributions to enhancing operational efficiency and due to his prior unpaid service as CEO.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.