YextNYSE: YEXT

Yext stock slumped after weak FQ1'25 results, but the company remains profitable. The digital management company disappointed on revenues and growth targets, but positive cash flows allow for the acquisition of Hearsay Systems to build momentum. The stock trades at only 1x EV/S targets, providing a substantial upside on the ability to return to growth.

Yext is struggling to retain clients and show growth, which has led to a tremendous share price decline. The company's recent decision to acquire Hearsay Systems, while simultaneously laying off 12% of its own staff, may lead to confusion and not produce margin gains. YEXT stock is trading cheaply at ~6x adjusted EBITDA, but there are too many risks here to bank on this stock. Downgrading to sell.

Software-development firm Yext reported disappointing first-quarter earnings, and agreed to buy a client-engagement firm for $125 million.

U.S. stock futures were lower this morning, with the Dow futures falling over 100 points on Tuesday.

Yext's sales and earnings for fiscal Q1 fell short of Wall Street's expectations. The company also announced that it will be acquiring Hearsay Systems.

Yext plans to acquire Hearsay Systems, saying the move will create a single digital marketing platform to power the customer journey and accelerate brands' conversion of prospects into loyal customers.

Shares of Yext Inc. tumbled on Monday after the online-marketing platform trimmed its full-year sales outlook and forecast second-quarter results that were below Wall Street's expectations, amid what management called a “challenged” environment marked by tighter customer spending.

Yext (YEXT) came out with quarterly earnings of $0.05 per share, missing the Zacks Consensus Estimate of $0.07 per share. This compares to earnings of $0.08 per share a year ago.

Search engine optimization (SEO) firm Yext is reportedly considering a sale. The company has hired investment bankers after attracting takeover interest, Reuters reported Friday (June 7), citing unnamed sources.