S&P 500   5,137.08
DOW   39,087.38
QQQ   445.61
Lawyers who successfully argued Musk pay package was illegal seek $5.6 billion in Tesla stock
Critical asset just had biggest fall on record (Ad)
Sports analytics may be outnumbered when it comes to artificial intelligence
Chicago 'mansion' tax to fund homeless services stuck in legal limbo while on the ballot
Critical asset just had biggest fall on record (Ad)
Norway's hospitalized king gets a pacemaker in Malaysia after falling ill during vacation
Head Start preschools aim to fight poverty, but their teachers struggle to make ends meet
Critical asset just had biggest fall on record (Ad)
What to watch for as China's major political meeting of the year gets underway
S&P 500   5,137.08
DOW   39,087.38
QQQ   445.61
Lawyers who successfully argued Musk pay package was illegal seek $5.6 billion in Tesla stock
Critical asset just had biggest fall on record (Ad)
Sports analytics may be outnumbered when it comes to artificial intelligence
Chicago 'mansion' tax to fund homeless services stuck in legal limbo while on the ballot
Critical asset just had biggest fall on record (Ad)
Norway's hospitalized king gets a pacemaker in Malaysia after falling ill during vacation
Head Start preschools aim to fight poverty, but their teachers struggle to make ends meet
Critical asset just had biggest fall on record (Ad)
What to watch for as China's major political meeting of the year gets underway
S&P 500   5,137.08
DOW   39,087.38
QQQ   445.61
Lawyers who successfully argued Musk pay package was illegal seek $5.6 billion in Tesla stock
Critical asset just had biggest fall on record (Ad)
Sports analytics may be outnumbered when it comes to artificial intelligence
Chicago 'mansion' tax to fund homeless services stuck in legal limbo while on the ballot
Critical asset just had biggest fall on record (Ad)
Norway's hospitalized king gets a pacemaker in Malaysia after falling ill during vacation
Head Start preschools aim to fight poverty, but their teachers struggle to make ends meet
Critical asset just had biggest fall on record (Ad)
What to watch for as China's major political meeting of the year gets underway
S&P 500   5,137.08
DOW   39,087.38
QQQ   445.61
Lawyers who successfully argued Musk pay package was illegal seek $5.6 billion in Tesla stock
Critical asset just had biggest fall on record (Ad)
Sports analytics may be outnumbered when it comes to artificial intelligence
Chicago 'mansion' tax to fund homeless services stuck in legal limbo while on the ballot
Critical asset just had biggest fall on record (Ad)
Norway's hospitalized king gets a pacemaker in Malaysia after falling ill during vacation
Head Start preschools aim to fight poverty, but their teachers struggle to make ends meet
Critical asset just had biggest fall on record (Ad)
What to watch for as China's major political meeting of the year gets underway

Can Yext A.I. Search Platform Drive Growth in 2023?

Can Yext A.I. Search Platform Drive Growth in 2023?

Key Points

  • Yext integrates its artificial intelligence (A.I.) powered search Answers Platform to answer questions about a client's business to its customers, partners, and workers.
  • The strong U.S. dollar impacted revenues by $12.4 million in Q3 2022.
  • Yext announced layoffs of 8% of its workforce in restricting on Jan. 23, 2023.
  • Yext shares have a 2.9% short interest.
  • 5 stocks we like better than Yext

Enterprise artificial intelligence (A.I.) powered search platform provider Yext Inc. NASDAQ: YEXT stock has been rising as it implements its restructuring program. The Company uses AI-powered search technology to deliver relevant answers about its client's companies to customers, workers, and partners.

It collects and organizes content about a company into a knowledge graph to leverage the Answers Platform to deliver relevant and actionable answers everywhere. These endpoints include mobile apps, search engines, social media, chatbots, intranets, customer portals, and websites.

Thousands of organizations globally utilize the platform to distribute information about their business from a single platform. The platform is connected to many major networks, including Apple Inc NASDAQ: AAPL Business Connect, Microsoft Co. NASDAQ: MSFT Bing, Alphabet Inc. NASDAQ: GOOGL Google, and Amazon.com Inc. NASDAQ: AMZN Alexa. Some well-known corporate brands using the Yext platform include Samsung, Verizon, Campbell’s, Subway, and Lego.

Growth Slowdown

On Nov. 30, 2022, Yext released its fiscal third-quarter 2023 results for the quarter that ended in October 2022. The Company reported an earnings-per-share (EPS) profit of $0.02 versus a loss of ($0.01) consensus analyst estimates, a $0.03 beat. The Company had a net loss of (-$12.3 million) compared to ($24.9) million in the year-ago period. Non-GAAP net income was $2.5 million versus ($5.5 million) in the year-ago period. Revenues fell (0.2%) year-over-year (YoY) to $99.3 million, missing analyst estimates of $99.63 million.


Annual run rate (ARR) rose 1% YoY to $390 million compared to $387 million in the year-ago period. Nearly $12.4 million was the negative impact of a strong U.S. dollar. The Company closed the quarter with $162 million in cash and cash equivalents and unearned revenues of $153 million at quarter’s end. The remaining performance obligation (RPO)  was $365 million, with $313 million expected to be recognized over the next 24 months.

Yext CEO and Chairman Michael Walrath commented, “Our value proposition resonates with customers across various verticals, including financial services, healthcare, government, e-commerce and hospitality. While we continue to look for ways to further optimize our efficiency, we are now operating from a position of improved strength. We are confident in our ability to deliver responsible, sustainable growth."

Mixed Guidance 

Yext expected Q4 2022 EPS of $0.02 to $0.03 versus $0.01 consensus analyst estimates. It sees revenues of $100 million to $101 million versus $101.44 analyst estimates. The full-year 2022 revenue is projected between $399 million to $400 million versus $400.74 million analyst estimates. Non-GAAP net loss is expected between (-$0.05) to (-$0.04) versus (-$0.09) consensus analyst estimates.

Restructuring Program

On Jan. 24, 2023, Yext indicated an 8% layoff of its workforce from 1,400 to 1,100 workers as part of its restructuring program in a regulatory filing. The cuts will come from its sales and customer service divisions. It will also integrate a new cost structure removing layers of management.

Yext will take a $2 million restructuring cash charge for Q4 2022. It made no changes to its Q4 2022 guidance. As has been the trend lately, the layoff announcement resulted in shares rising nearly 2%.

Can Yext A.I. Search Platform Drive Growth in 2023?

Weekly Lip Line Breakout or Cup and Handle

YEXT weekly candlestick chart illustrates a rounding bottom formation since peaking at $7.55 in March 2022 and falling to a low of $4.01 in August 2022. Shares started to make higher lows until triggering the weekly market structure low (MSL) breakout above $5.16.

The weekly stochastic formed a mini pup driving up shares higher as stochastic blasted through the 80-band overbought level, where it has hovered since late November 2022.

The weekly 20-period exponential moving average (EMA) support has crossed through the 50-period M.A. and is rising at $5.89. The lip line of the cup sits at $7.00.

A pullback from the lip starts to form the handle. From there, it can either bounce and breakout through the lip line triggering the cup and handle breakout, or continue to fall through the weekly MSL trigger level to form a breakdown. Pullback support levels are $6.01, $5.62, $5.16, and the $4.56 weekly MSL trigger.

 

→ Critical asset just had biggest fall on record (From Stansberry Research) (Ad)

Should you invest $1,000 in Yext right now?

Before you consider Yext, you'll want to hear this.

MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Yext wasn't on the list.

While Yext currently has a "Moderate Buy" rating among analysts, top-rated analysts believe these five stocks are better buys.

View The Five Stocks Here

Beginner's Guide to Pot Stock Investing Cover

Click the link below and we'll send you MarketBeat's guide to pot stock investing and which pot companies show the most promise.

Get This Free Report

Companies Mentioned in This Article

CompanyMarketRank™Current PricePrice ChangeDividend YieldP/E RatioConsensus RatingConsensus Price Target
Yext (YEXT)
2.018 of 5 stars
$5.98+1.0%N/A-66.44Moderate Buy$11.95
Apple (AAPL)
4.9121 of 5 stars
$179.66-0.6%0.53%27.98Moderate Buy$205.27
Amazon.com (AMZN)
4.8904 of 5 stars
$178.22+0.8%N/A61.46Buy$197.95
Alphabet (GOOGL)
3.4127 of 5 stars
$137.14-1.0%N/A23.64Moderate Buy$153.65
Microsoft (MSFT)
4.8718 of 5 stars
$415.50+0.4%0.72%37.57Moderate Buy$411.06
Compare These Stocks  Add These Stocks to My Watchlist 

Jea Yu

About Jea Yu

  • JeaYu21@gmail.com

Contributing Author

Trading Strategies

Experience

Jea Yu has been a contributing writer for MarketBeat since 2018.

Areas of Expertise

Equities, options, ETFs and futures; fundamental, qualitative, quantitative and technical analysis and pattern identification; active and swing trading; trading systems and methodology development

Education

Bachelor of Arts, University of Maryland, College Park

Past Experience

U.S. equity markets trader, writer and analyst for over 25 years. Published four books by publishers McGraw-Hill, John Wiley & Sons, Marketplace Books and Bloomberg Press. Speaker at various expos and seminars and has been quoted and featured in USA Today, The Wall Street Journal, Traders Magazine, The Financial Times and various trade publications, including Stocks & Commodities, Active Trader and Online Investor.


Featured Articles and Offers

Microsoft Stock to $450? Here's How

Microsoft Stock to $450? Here's How

Microsoft's stock price is pulling back following the Q4 results, suggesting a top is in play, but investors should not be so quick to shed their shares.

Search Headlines: