Yext (YEXT) Stock Forecast & Price Target

Yext Inc has demonstrated a solid financial performance, with total revenue increasing by 11.9% year-over-year, surpassing expectations primarily due to effective customer success initiatives and product innovation that mitigated foreign exchange impacts. The company's Total Annual Recurring Revenue (ARR) grew by 14.3% year-over-year to reach $442.7 million, with notable growth in both direct customer ARR and third-party reseller ARR, indicating a robust demand for its services. Additionally, the adjusted EBITDA margin improved to 21.7%, reflecting enhanced operational efficiency and a positive trajectory in net revenue retention, which rose from 91% to 93% quarter-over-quarter, further supporting a favorable outlook on future growth.

Yext Inc. is experiencing a downturn in its financial expectations, with its 1QF26 non-GAAP EPS falling below projections, prompting management to lower revenue and EBITDA forecasts for 1H25 due to foreign exchange headwinds. The company's adjusted EBITDA guidance has been set at $21.5 million to $22.0 million, which not only falls short of the consensus estimate of $23.8 million but also represents a decline in profit margins, raising concerns about revenue sustainability. Additional risks include a potential economic downturn, significant executive departures, and intensified competition from larger tech firms, all of which contribute to a negative outlook and warrant a valuation discount relative to peers in the SaaS sector.