What's Next For Yext After Beating First Post-IPO Quarterly Estimates ?

Yext Inc YEXT delivered a strong beat during its first quarter as a public company. Total revenue was $37.1 million against a consensus of $35.1 million, and EPS was ahead of consensus by $0.02.

The company also issued an outlook above consensus: Yext estimates second-quarter revenue of $40 million–$40.5 million versus $39.7 million. For fiscal 2018, estimated revenue is $169 million–$170 million versus a $165.5 million consensus, but with an EPS of negative $0.48–$0.52 versus a negative $0.46.

Yext is a knowledge engine provider that helps link companies to search services including Alphabet Inc GOOGL GOOG, Yelp Inc YELP and Facebook Inc FB.

What’s Next, Yext?

“We’d characterize this as a ‘vanilla’ quarter with the potential for upside in the [second half of fiscal 2018] being driven by enterprise reps ramping more quickly than the nine-month plan,” Piper Jaffray analyst Alex Zukin said in a note.

Piper Jaffray reiterated an Overweight on Yext with a $17 price target.

In Q1, Yext added 12 quota carriers from companies including eBay Inc EBAY, Facebook and Google. The company plans to continue hiring high quality representatives to drive sales capacity.

Yext’s international business is focusing on central and southern Europe, hoping to build on success with Volvo, BBVA Compass, and large shipping companies, according to Piper Jaffray. 

"We continue to view Yext as a multiyear 30 percent-plus growth story in an exciting new market, with the potential for growth to accelerate as the company’s enterprise sales organization matures,” said Zukin.

Also From The Street

Piper Jaffray initiated coverage of Yext on May 8. RBC Capital also rates the company with an Outperform, while JPMorgan and Morgan Stanley initiated with Neutral and Equal Weight, respectively.

At time of publication, shares of Yext were down 9.36 percent at $13.40.

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