Why Yext (YEXT) Stock Fell 12% After Hours On Tuesday

Yext Inc. (NYSE:YEXT) shares are trading lower in after-hours trading on Tuesday following the company’s first-quarter fiscal 2027 earnings report.

YEXT shares fell 11.88% to $3.71 in after-hours trading after the company reported first-quarter revenue of $107.9 million, missing analyst estimates of $112.0 million, despite reporting earnings that beat expectations.

Yext is an enterprise agentic marketing platform that helps businesses manage their visibility and discovery across AI-powered and traditional search platforms using structured data and API-driven solutions.

First-Quarter Fiscal 2027 Results

The company reported first-quarter revenue of $107.9 million, missing analyst estimates of $112.0 million and down from $109.5 million in the prior-year period.

Non-GAAP earnings came in at $0.14 per share, beating analyst estimates of $0.12 per share. Yext has now exceeded EPS estimates for five consecutive quarters.

On a GAAP basis, net income totaled $2.6 million, or $0.02 per share, compared with net income of $770,000, or $0.01 per share, in the year-ago quarter.

Adjusted EBITDA increased to $26.9 million from $24.7 million a year earlier, while Adjusted EBITDA margin improved to 25% from 22.5%.

Annual Recurring Revenue (ARR), a key software industry metric, stood at $440.8 million.

Chief Executive Officer Michael Walrath said the company’s profitability, cash generation and improving trends among customers with ARR of at least $50,000 position Yext to invest in product development, pursue strategic acquisitions and continue shareholder returns.

Share Repurchase Program

During the quarter, Yext completed its previously announced tender offer, buying back approximately 24.3 million shares for $140 million.

The company also increased its existing open-market share repurchase authorization by $100 million, allowing it to buy back additional shares in the future as part of its capital return strategy.

Trading Analysis

Yext currently has a market capitalization of approximately $421.47 million, with a 52-week high of $9.20 and a 52-week low of $3.29.

The stock is down 38.27% over the past 12 months.

Price Action

According to market data, YEXT closed Tuesday’s regular trading session at $4.21, down 8.58%. Shares fell an additional 11.88% in after-hours trading to $3.71.

Benzinga Edge Stock Rankings indicate that YEXT shares currently maintain a positive short-term price trend, while medium and long-term price trends remain negative.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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