Yext Inc (NYSE: 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
(NASDAQ: GOOGL) (NASDAQ: GOOG), Yelp Inc (NYSE: YELP) and Facebook Inc (NASDAQ: 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 (NASDAQ: 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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Image Credit: By Yext Inc. (http://www.yext.com/img/yext-logo.png) [Public domain], via Wikimedia Commons
Latest Ratings for YEXT
Date |
Firm |
Action |
From |
To |
May 2017 |
JP Morgan |
Initiates Coverage On |
|
Neutral |
May 2017 |
PiperJaffray |
Initiates Coverage On |
|
Overweight |
May 2017 |
RBC Capital |
Initiates Coverage On |
|
Outperform |
View More Analyst Ratings for
YEXT
View the Latest Analyst Ratings
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