Yext Stock (YEXT): Why The Price Increased Today

By Amit Chowdhry ● Dec 3, 2021
  • The stock price of Yext Inc (NYSE: YEXT) increased by over 8% during intraday trading today. This is why it happened.

The stock price of Yext Inc (NYSE: YEXT) increased by over 8% during intraday trading today. Investors are responding positively to the company’s Q3 2022 results.

Q3 2022 Highlights:

— Revenue of $99.5 million, a 12% increase, compared to $89.1 million reported in the third quarter fiscal 2021.

— Gross Profit of $74.3 million, a 10% increase, compared to $67.4 million reported in the third quarter fiscal 2021. Gross margin of 74.6%, compared to 75.7% reported in the third quarter fiscal 2021.

Net Loss and Non-GAAP Net Loss:

— Net loss of $24.9 million, compared to the net loss of $22.0 million in the third quarter fiscal 2021.

— Non-GAAP net loss of $5.5 million, compared to the non-GAAP net loss of $2.8 million in the third quarter fiscal 2021.

— Net Loss Per Share and Non-GAAP Net Loss Per Share:

— Net loss per share of $0.19 in the third quarter fiscal 2022, compared to net loss per share of $0.18 in the third quarter fiscal 2021.

— Non-GAAP net loss per share of $0.04 in the third quarter fiscal 2022, compared to non-GAAP net loss per share of $0.02 in the third quarter fiscal 2021.

— Net loss per share and non-GAAP net loss per share were each based on 128.6 million and 120.7 million weighted-average basic shares outstanding for the third quarter fiscal 2022 and for the third quarter fiscal 2021, respectively.

— Balance Sheet: Cash and cash equivalents of $230 million as of October 31, 2021. Unearned revenue of $151 million as of October 31, 2021, compared to $129 million as of October 31, 2020.

— Remaining Performance Obligations (RPO): RPO of $337 million as of October 31, 2021. RPO expected to be recognized over the next 24 months of $315 million with the remaining balance expected to be recognized thereafter. RPO does not include amounts under contract subject to certain accounting exclusions.

— Cash Flow: Net cash used in operating activities was $9.7 million for the three months ended October 31, 2021, compared to net cash used in operating activities of $7.4 million for the three months ended October 31, 2020.

Financial Outlook:

Yext is also providing the following guidance for its fourth fiscal quarter ending January 31, 2022 and the fiscal year ending January 31, 2022.

Q4 Fiscal 2022 Outlook:

— Revenue is projected to be in the range of $100.0 million to $102.0 million.

— Non-GAAP net loss per share is projected to be $0.10 to $0.08 which assumes 130.3 million weighted-average basic shares outstanding.

Full Year Fiscal 2022 Outlook:

— Revenue is projected to be in the range of $389.7 million to $391.7 million.

— Non-GAAP net loss per share is projected to be $0.22 to $0.20 which assumes 127.8 million weighted-average basic shares outstanding.

KEY QUOTE:

“We are on the road to recovery. The solid results we delivered in the third quarter reflect strong execution against our growth plans. Answers is growing quickly, our Listings business is recovering, and our land-and-expand sales strategy is working. That, coupled with new growth vectors yet to tap, make us optimistic about the future.”

— Howard Lerman, Founder and CEO of Yext

Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.