What happened
Shares of Yext (YEXT 7.04%) were down 14.3% as of 3:15 p.m. EDT Friday after the online brand management specialist announced weaker-than-expected quarterly results and disappointing guidance.
So what
Still, Yext's top-line growth looked impressive at first glance. For its fiscal third quarter ended Oct. 31, revenue climbed 30% year over year to $76.4 million, roughly in line with analysts' consensus estimates. But that also translated to an adjusted net loss of $21.6 million, or $0.19 per share, widening from a $0.10-per-share loss in the same year-ago period and exceeding estimates for a loss of $0.18 per share.
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Yext blamed its steeper loss on higher operating expenses, largely due to a combination of headcount increases and new lease arrangements.
" ... Yext is well positioned to address the increased demand from enterprise and mid-market customers across multiple industries," CEO Howard Lerman said. "We continue to invest in our sales team, customer support, and the build-out of our new Global Headquarters in New York to support Yext's long-term future growth."
Now what
For the current fiscal fourth quarter, however, Yext told investors it expects revenue of $79 million to $81 million, and an adjusted net loss per share of $0.13 to $0.15. Even the top end of both ranges was well below Wall Street's average estimates for a loss of $0.08 per share on revenue closer to $83.9 million.
In the end, after coupling that outlook with Yext's relative underperformance in Q3, it's no surprise to see shares falling hard in response today.
