Yext (YEXT) Stock Forecast & Price Target

Yext Inc. reported a total revenue increase of 11.9% year-over-year, surpassing expectations, driven by a stable selling environment, customer success initiatives, and product innovation that mitigated foreign exchange impacts. The company achieved total Annual Recurring Revenue (ARR) growth of 14.3% year-over-year, reaching $442.7 million, with direct customer ARR increasing by 16.7% to $368.2 million, indicating strong demand for its subscription services. Additionally, adjusted EBITDA rose by approximately $9.7 million year-over-year to $24.6 million, reflecting a solid margin of 21.7%, combined with improved Net Revenue Retention (NRR) from 91% to 93%, showcasing the effectiveness of upselling and customer retention strategies.

Yext Inc. reported a non-GAAP EPS for 1QF26 that fell short of expectations, prompting management to lower guidance for 1H25, including revenue and EBITDA projections due to foreign exchange headwinds. The company faces heightened risks from economic downturns, executive turnover, and increased competition, which contribute to a negative outlook, as demonstrated by the revised adjusted EBITDA guidance of $21.5 million to $22.0 million—below the consensus estimate of $23.8 million. Furthermore, despite the median EV/sales multiple for comparable SaaS companies being 3.8x, Yext's shares are considered to deserve a discount owing to a lower anticipated out-year growth rate, leading to potential valuation compression.