DA Davidson analysts reduced their price target for YEXT (NYSE:YEXT) from $7.25 to $5.50, maintaining a Neutral rating, following the company's fiscal Q1/25 earnings report, which met expectations but included a lowered full-year revenue outlook. The company’s stock is currently down 5% intra-day.

YEXT announced the acquisition of Hearsay Systems but also revised its revenue forecast downward. As a result, DA Davidson lowered the 2025 revenue outlook by 1%, reducing the estimate from $400.2 million to $395.5 million.

However, the adjusted EBITDA estimate has been raised from $60.9 million to $66.2 million due to recent cost-cutting measures announced by YEXT. These cost reductions are expected to improve the company's profitability despite the revenue decline.