Yext, Inc. (NYSE: YEXT), a leading Answers Company, experienced significant movement in its stock during after-hours trading on Tuesday. The closing price in the after-hours session surged by 12.08% to reach $10.76, following the announcement of the company’s first-quarter fiscal 2024 results. In regular trading, Yext closed at $9.60, reflecting a change percentage of 4.01%.
First Quarter Fiscal 2024 Results
Yext reported a revenue of $99.5 million for the first quarter of fiscal 2024, representing a 1% increase compared to the same period in the previous year. The growth in revenue was slightly impacted by approximately $1.3 million due to foreign currency exchange rates. Gross profit for the quarter stood at $78.1 million, showing a 5% increase, and the gross margin improved to 78.5% from 75.0% in the first quarter of fiscal 2023.
The company reported a net loss of $0.4 million for the quarter, a significant improvement from the net loss of $25.8 million in the first quarter of fiscal 2023. However, on a non-GAAP basis, Yext achieved a net income of $10.6 million, compared to a net loss of $7.8 million in the same period last year.
Financial Outlook
Yext provided guidance for its second fiscal quarter ending July 31, 2023, and its full fiscal year ending January 31, 2024. For the second quarter, the company projects revenue in the range of $101.5 million to $102.5 million. Adjusted EBITDA is expected to be between $11.0 million and $12.0 million, while non-GAAP net income per share is projected to be in the range of $0.06 to $0.07.
Looking at the full fiscal year 2024, Yext anticipates revenue between $404.0 million and $407.0 million. The company expects adjusted EBITDA in the range of $49.0 million to $51.0 million, with non-GAAP net income per share projected to be between $0.28 and $0.29.
Recent Developments and Product Releases
Yext has been active in introducing new features and products to enhance its offerings. The Spring ’23 Release provides organizations with improved capabilities to leverage Yext’s Answers Platform across various digital touchpoints. With features like Studio, Content Generation, and the File field type, Yext aims to drive continuous innovation into its AI-enabled digital experience platform.
Moreover, Yext recently launched Studio, a no-code visual editor that allows both technical and non-technical teams to build high-performing websites using React. Studio’s intuitive drag-and-drop interface enables the creation of search engine optimized web properties, reducing development time and facilitating collaboration between developers, content editors, and designers.
Conclusion
Yext’s stock exhibited significant movement during after-hours trading, propelled by the company’s positive first-quarter fiscal 2024 results. The 1% increase in revenue and 5% growth in gross profit demonstrate the company’s progress. Furthermore, Yext’s financial outlook for the second quarter and full fiscal year 2024 provides investors with insights into the company’s projected performance.
Yext’s commitment to continuous innovation is evident in the recent product releases, such as the Spring ’23 Release and Studio. These enhancements position Yext to further leverage its Answers Platform and offer enhanced digital experiences across various channels.
