Yext Stock Falls On Q1 Results, Acquisition Of Hearsay Systems: The Details

Yext, Inc. YEXT shares are falling after the company announced it will acquire Hearsay Systems and reported its first-quarter financial results Monday.

Here's a look at the key figures from the report. 

The Details: Yext reported quarterly earnings of 5 cents per share which missed the analyst consensus estimate of 6 cents by 16.67%.

Quarterly sales came in at $96 million which missed the analyst consensus estimate of $96.325 million and is a 3.47% decrease from sales of $99.453 million from the same period last year.

“Our results were within the ranges we set forward in our guidance, with revenue of $96 million, Adjusted EBITDA of $9.6 million and non-GAAP EPS of $0.05. Overall, we executed well against our financial objectives: we generated nearly $40 million in cash flow from operations, maintained a high level of productivity in our sales team, managed our expenses and took action to further enhance operating efficiency and profitability,” said Michael Walrath, CEO of Yext.

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Yext also announced it has entered into a definitive agreement to acquire Hearsay Systems for $125 million and up to an additional $95 million if certain performance targets are achieved.

“Customers are increasingly looking to consolidate digital marketing channels into one platform to increase efficiency, improve performance, and reduce costs. Yext already provides access to more channels than any other provider. With Hearsay Systems, we’ll provide even more ways for brands to connect with their customers one-to-one,” said CEO Walrath.

Outlook:  Yext sees second-quarter earnings in a range of 2 cents to 3 cents per share, versus the 9 cents per share estimate, and second-quarter revenue in a range of $98M million to $98.4 million, versus the $98.423 million estimate.

The company sees fiscal year 2025 earnings of between 35 cents and 36 cents per share, versus the 34 cent estimate, and fiscal year revenue in a range of $394 million to $396 million, versus the $400.312 million estimate.

YEXT Price Action: According to Benzinga Pro, Yext shares are down 12.70% after-hours at $4.40 at the time of publication Monday.

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