Shares of Yext (NYSE:YEXT) have soared today, up by 15% as of 12:30 p.m. EDT, after the company announced a partnership with Amazon.com (NASDAQ:AMZN). Yext's Digital Knowledge Management (DKM) platform will be integrated directly into Amazon's massively popular virtual assistant, Alexa.
Yext's DKM platform allows businesses to manage their listings across over 100 digital services, including apps, search engines, online directories, social networks, virtual assistants, and more, making it easier for consumers to find accurate and up-to-date information about the business across the internet.
Alexa users will soon be able to simply ask the virtual assistant for details about businesses and know that they will be getting accurate responses.
NPR and Edison Research recently estimated that there are 43 million U.S. adults that now own smart speakers, and Amazon has long been a market leader, as it essentially created the product category with the original Echo. Alexa has an estimated installed base of approximately 31 million units, according to Statista.
Partnering with Amazon is a huge win for Yext, dramatically expanding the reach of its DKM. That in turn strengthens its value proposition with its business customers, who pay anywhere from $199 to $999 per year, depending on the plan that best suits the business's needs. In order to get listed across more sites and services, business customers need to pick the pricier plans, so the Alexa integration will improve Yext's pricing power.
John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Evan Niu, CFA has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Amazon. The Motley Fool has a disclosure policy.