Yext Inc.'s stock suffered a sharp drop of 10.45% in after-hours trading on Monday, despite the company reporting better-than-expected revenue for its third quarter of fiscal 2025. The sell-off was triggered by the company's lackluster revenue outlook for the full year, which fell short of market expectations.
For the third quarter, Yext reported adjusted earnings per share of $0.12, which met analysts' consensus estimates. The company's revenue of $114 million also beat analysts' expectations of $113.208 million, representing a 12.69% increase from the same period last year.
However, Yext's guidance for the full fiscal year revenue in the range of $67 million to $67.5 million disappointed investors, as it fell below market forecasts. This muted revenue outlook overshadowed the company's otherwise solid third-quarter performance, leading to a significant decline in its stock price in the after-hours trading session.
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