What happened

Shares of Yext (NYSE:YEXT), a provider of cloud-based software that helps improve search data, took a hit on Friday. The stock was down about 17% as of 1:30 p.m. EST.

The stock's decline follows the tech company's third-quarter earnings report. Though the company beat analyst estimates for Q3, management's guidance for the fourth quarter was more conservative than expected.

A chalkboard sketch of a stock price falling

Image source: Getty Images.

So what

Yext's third-quarter revenue jumped 17% year over year to $89 million. Adjusted loss per share for the period was $0.02 -- narrower than the company's $0.19 loss per share in the year-ago quarter. These figures beat analysts' average forecast for third-quarter revenue of $87.2 million and a loss per share of $0.08. 

"We had a solid third quarter, indicating that people are hungry for a disruption in search," Yext founder and CEO Howard Lerman said in a statement. "We're on a mission to bring modern search to every business website on the planet, and we're now closer to realizing that goal."

It was the company's Q4 outlook, however, that missed the mark. Management said it expected the quarter's revenue to be between $87 million and $89 million -- below a consensus forecast for $94 million.

Now what

Several analysts lowered their price targets on Yext stock following the earnings release. Notably, however, Truist analyst Naved Khan noted that Yext's growth could reaccelerate in 2021 as the economy reopens. Khan lowered his 12-month price target for the stock from $26 to $23 but still reiterated a buy rating.