Yext (NYSE:YEXT), a leading online reputation and search platform, is set to release its Q3 earnings report. This article provides a preview of what investors should watch for.
Table Content:
Last quarter, Yext met revenue expectations with $97.89 million, a 4.6% year-over-year decline. However, the company significantly outperformed EBITDA estimates and issued strong full-year revenue guidance.
For Q3, analysts project a revenue increase of 11.9% year-over-year to $113.2 million, a notable improvement from the 1.9% growth in the same quarter last year. Adjusted earnings per share are anticipated to reach $0.12. Analysts have largely maintained their estimates over the past month, indicating confidence in Yext’s performance. However, it’s worth noting that Yext has fallen short of revenue estimates in four of the last eight quarters.
Peer Performance and Industry Trends
Examining Yext’s competitors in the sales and marketing software sector offers valuable context. Semrush reported a 23.7% year-over-year revenue increase, surpassing expectations by 0.7%. Zeta posted a 42% revenue surge, exceeding estimates by 6.3%. Despite these positive results, both Semrush and Zeta experienced post-earnings stock declines of 7.5% and 23.3%, respectively.
You can delve deeper into Semrush’s performance here and Zeta’s results here.
The sales and marketing software sector has seen positive investor sentiment recently, with average share prices rising 8.1% over the last month. Yext’s stock has climbed 6.6% during the same period. The average analyst price target for Yext is $7.06, lower than its current share price of $8.58.
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Conclusion: Yext’s Q3 Earnings – A Pivotal Moment
Yext’s Q3 earnings report will be crucial in assessing the company’s progress and future prospects. Investors should pay close attention to revenue growth, profitability, and management’s outlook. The performance of peers and broader industry trends, particularly the adoption of generative AI, will also provide valuable context. While recent market sentiment has been positive, Yext’s ability to meet or exceed expectations will be critical in determining its stock performance.
