Yext Inc.

Over the past few years, Yext has been going through many ups and downs and it had a particularly tough fiscal year with its CEO and CFO stepping down. The company’s performance has been disappointing and the 4% forecast for the coming fiscal further killed the market enthusiasm. There is little doubt that Yext is facing a challenging operating environment. The management has started to work on streamlining its go-to-market with a unified product and customer approach. It has launched quality products like Answers in recent years but the company’s revenue growth has slowed tremendously. Fragmentation is seen in the interaction with its customers and the ability of the company to deliver premium support and service. However, the expansion of the addressable market through the launch of new products could be interesting for Yext. The company could see an improvement in in gross retention, and this could improve further with a more customer-centric approach and more upsells. We remain optimistic about Yext’s future growth and give its stock a ‘Hold’ rating with a revised target price.