Yext Shares Tumble Despite Revenue Growth and Improved Efficiency

Yext (NYSE:YEXT) faced a sharp decline in its stock, dropping over 10% in after-hours trading yesterday after reporting mixed results for its third quarter. While the company achieved strong revenue growth, earnings fell short of expectations, and a widened net loss appeared to weigh on investor sentiment.

For the quarter, Yext posted adjusted earnings of $0.12 per share, falling below the analyst estimate of $0.14. Revenue, however, climbed 13% year-over-year to $114 million, surpassing the Street consensus forecast of $99.57 million. The revenue boost was largely attributed to the integration of Hearsay Systems, an acquisition completed earlier in the year.

Annual recurring revenue increased 11% from the prior year to $441.8 million, underscoring steady progress in Yext’s subscription-based business model. Adjusted EBITDA for the quarter totaled $23.1 million, reflecting improved operating efficiencies.

For fiscal 2025, the company projected revenue between $420.3 million and $420.8 million, aligning with analysts’ expectations of $420.5 million. Despite meeting guidance targets, Yext reported a GAAP net loss of $12.8 million, or $0.10 per share, a notable increase from the $0.5 million loss recorded in the same quarter last year.