Yext Revenue Miss

Yext Shares Tumble on Revenue Miss, Despite Stronger Profitability and AI-Driven Outlook

Yext shares plunged after the company reported first-quarter fiscal 2027 results that missed revenue expectations, with revenue of about $107.9 million falling short of analysts’ estimate of roughly $112.1 million and sending the stock down about 16% to 18% in after-hours trading. Investors highlighted concerns about Yext’s growth trajectory as subscription revenue (about 94% of total) softened, with customer attrition driving the year-over-year revenue decline and ARR slipping about 1% to $440.8 million despite dollar-based net retention of 95%, weaker among smaller customers. The company also reported margin pressure, including higher data center costs and asset impairments, even as operating cash flow and free cash flow remained strong at roughly $37 million. Yext completed a $140 million self-tender offer (partly funded by new debt) and authorized an additional $100 million for share repurchases, while some insider selling was also noted by market watchers. Despite the earnings miss, management said it is positioned for demand growth as AI moves beyond human users toward autonomous agents.

Key Points

Topics