Bearish stock to watch: Yext Inc (NYSE: YEXT)

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Yext Inc (NYSE: YEXT) stock lost over 14.1% on December 6th, 2019 (Source: Investing.com) as the company posted lower than expected results for the third quarter of FY 20. The company has delivered the 28% increase in the gross Profit to $56.0 million as compared to the $43.7 million reported in the third quarter fiscal 2019. Gross margin of 73.3% as compared to 74.6% reported in third quarter fiscal 2019. The company has generated the Net cash used by operating activities for the third quarter of fiscal 2020 of $31.8 million, as compared to net cash used by operating activities of $22.6 million in the same period of fiscal 2019. Cash and cash equivalents stood at $244.8 million as of October 31, 2019. The stock made a slight recovery rising over 1.8% (As of 11:28:04 December 9th, 2019; Source: Investing.com)

Meanwhile, during the third quarter, the company has signed the largest new enterprise client deal in the history of the company with Subway to offer power brand verified Answers from more than 30,000 of its restaurants, in the United States and Canada and Europe. The company during Q3, had also signed contracts with leading brands like Liberty Tax, Pilot Travel Centers, Lucky Brands, and the Church of Jesus Christ of Latter Day Saints. The company has expanded and renewed contracts with the Toronto Dominion Bank, AutoZone, EGB, Wells Fargo, Quedoba and HR Block.

YEXT in the third quarter of FY 20 has reported the adjusted loss per share of 19 cents, missing the analysts’ estimates for the adjusted loss per share of 18 cents, according to Zacks Investment Research. The company had reported the adjusted revenue growth of 30 percent to $76.4 million in the third quarter of FY 20, slightly missing the analysts’ estimates for revenue of $76.5 billion. Unearned revenue for the third quarter has posted the growth of 32% year-over-year. And the number of structured facts, which is an indication of engagement usage, had reached 259 million which grew more than 65% from the year ago quarter.

For the fourth quarter ending in January, Yext expects its earnings to be in the range of a loss of 15 cents per share to a loss of 13 cents per share. The company expects revenue to be in the range of $79 million to $81 million for the fiscal fourth quarter.

Yext expects full-year earnings to be in the range of a loss of 51 cents per share to a loss of 49 cents per share, and revenue is expected to be in the range of $296.5 million to $298.5 million.

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