Yext (NYSE:YEXT) is a New York-based company that organizes business facts to provide answers to consumer questions in North America and around the world. Shares of Yext have dropped 8.04% month-over-month as of close on Tuesday, June 11, 2024. Meanwhile, Yext stock has dropped 13.4% in the year-to-date period. Its shares have plunged 62% year over year. What has caused this bout of volatility? Let’s jump in.
This company released its first quarter (Q1) fiscal 2025 earnings on Monday, June 10. Yext reported total revenues of $99.4 million – up from $95.9 million in the prior year. Moreover, gross profit jumped to $78.1 million compared to $74.4 million in the first quarter of fiscal 2024. Ultimately, Yext posted a net loss of $412,000, which was up from a wider net loss of $3.81 million. It reported a net loss per share of $0.03.
These sales and earnings fell short of market expectations for the quarter, resulting in a retreat for the stock. Yext also announced that it would acquire Hearsay Systems, a California-based company that seeks to empower financial services teams to “authentically and intelligently engage with customers through compliant social media”, for $220 million.
Looking ahead to the second quarter of fiscal 2025, Yext is projecting total sales between $98 million and $98.4 million. At the midpoint, that would mean sales would have been down 4.3% year-over-year if those numbers come to fruition.
