Why Yext Shares Are Jumping Today

Yext Inc YEXT reported a Q1 FY24 revenues increase of 1% Y/Y to $99.5 Million, exceeding the consensus of $98.6 million.

Customer count rose 5% Y/Y to more than 2,970 in the quarter. 

Annual recurring revenue (ARR) grew 3% Y/Y to $398 million as of April 30, 2023.

Gross profit rose 5% Y/Y to $78.1 million, with margins expanding to 78.5% from 75.0% a year ago.

Adjusted EBITDA stood at $14.4 million, vs. a loss of $(3.0) million in the prior year.

Adjusted EPS of $0.08 surpassed the consensus of $0.05.

Operating cash flow rose to $26.7 million from $17.9 million a year ago.

Cash and equivalents stood at $217 million at the end of the quarter.

Outlook: For Q2 FY24, the company expects revenues of $101.5 million- $102.5 million (vs. consensus: $100.12 million), adjusted EBITDA of $11.0 million-$12.0 million, and adjusted EPS of $0.06-$0.07 (consensus: $0.05). 

For FY24, YEXT increased guidance for revenue to $404.0 million-$407.0 million (from $402.0 million-$406.0 million earlier, consensus: $403.57 million) and adjusted EPS to $0.28-$0.29 (from $0.22 -$0.23, consensus: $0.21). 

The company raised the outlook for adjusted EBITDA to $49.0 million-$51.0 million (from $44.0 million-$46.0 million earlier). 

Also Read: EXCLUSIVE: Yext Is Bringing The Future Of Web Development; A Game Changer For Designers

Price Action: YEXT shares are trading higher by 16.67% at $11.20 premarket on the last check Wednesday.