Yext (YEXT) Stock Forecast & Price Target

Yext Inc. experienced a robust total revenue increase of 11.9% year-over-year, surpassing expectations, driven by its sustained focus on customer success and innovative product offerings that mitigated foreign exchange impacts. The company reported a substantial total Annual Recurring Revenue (ARR) growth of 14.3% year-over-year, amounting to $442.7 million, with direct customer ARR growing by 16.7% to $368.2 million. Additionally, the adjusted EBITDA rose by approximately $9.7 million year-over-year to reach $24.6 million, reflecting a healthy margin of 21.7%, further underscoring the company's positive financial trajectory.

Yext Inc. reported a non-GAAP EPS for 1QF26 that was below market expectations, with management projecting a range of $0.11 to $0.12, contributing to a revised outlook for revenue and EBITDA in 1H25 due to foreign exchange (FX) challenges. The company's Adjusted EBITDA guidance of $21.5 million to $22.0 million fell short of consensus estimates, highlighting a margin of just 20.2%, which raises concerns about its financial stability amidst fewer operational days in the quarter and increased competitive pressures. Additionally, Yext's growth prospects appear dim as its stock is expected to trade at a discount to the median EV/sales multiple of its peers, reflecting a lower average growth rate compared to the broader below 20% growth SaaS market.