Yext Inc.

Yext has had a tumultuous journey over the past few months and its market capitalization has been destroyed to the extent that it is in the small cap category now. The company had a decent quarter with revenue increasing by 7% year over year to $98.8 million beating Wall Street expectations. Despite economic uncertainty, inflation, and forex headwinds, its earnings were above expectations. Product innovation continues to be a key area of focus for the management and they are working to make their product platform more understandable by introducing refreshed brand positioning and their business by better describing their revenue categories and dynamics. Since third-party reseller revenue is currently limited to selling specific products, it is less predictable and indicative of the overall portfolio’s strength. However, Yext sees resellers as a future growth opportunity. We maintain our ‘Hold’ rating on their stock.