A lawsuit was filed on behalf of investors in Yext, Inc. (NYSE:YEXT) shares over alleged securities laws violations.
San Diego, CA -- (SBWIRE) -- 07/06/2022 -- An investor, who purchased shares of Yext, Inc. (NYSE: YEXT), filed a lawsuit over alleged violations of Federal Securities Laws by Yext, Inc.
Investors who purchased shares of Yext, Inc. (NYSE: YEXT) have certain options and for certain investors are short and strict deadlines running. Deadline: August 16, 2022. NYSE: YEXT investors should contact the Shareholders Foundation at firstname.lastname@example.org or call +1(858) 779 - 1554.
New York, NY based Yext, Inc. provides a knowledge engine platform that lets businesses manage their digital knowledge in the cloud and synchronize it to its knowledge network in North America and internationally.
Yext, Inc. operates Yext platform, a cloud-based platform that allows its customers to, among other things, provide answers to consumer questions, control facts about their businesses and the content of their landing pages, and manage their consumer reviews. Yext's website describes its service as "a modern, AI-powered Answers Platform that understands natural language so that when people ask questions about a business online they get direct answers—not links."
On August 29, 2019, Yext, Inc. announced that it would launch Yext Answers ("Answers") with the mission of "Perfect Answers Everywhere." The Company also provided fiscal 2020 guidance, including expected revenue of $299 million to $301 million. On October 29, 2019, Yext launched Answers.
On December 5, 2019, after the market closed, Yext reported its third quarter 2020 financial results and reduced its fiscal 2020 guidance, expecting revenue between $296.5 million and $298.5 million. The Company indicated that the launch of Answers during the third quarter "did delay our cycles."
As COVID-19 resurged throughout 2021, Yext, Inc. consistently assured investors that pandemic-related impacts on the Company's business were limited as the Company adapted to lockdowns and improved efficiencies in its sales and other operations.
On March 8, 2022, Yext, Inc. announced its fourth quarter ("Q4") and FY fiscal 2022 results. Among other items, Yext, Inc. reported Q4 fiscal 2022 revenue of $100.9 million, falling short of consensus estimates by $140,000; first quarter ("Q1") fiscal 2023 revenue outlook of $96.3 million to $97.3 million, versus consensus estimates of $103.79 million; Q1 fiscal 2023 non-GAAP net loss per share outlook of $0.08 to $0.07, versus consensus estimates of $0.05; FY fiscal 2023 revenue outlook of $403.3 million to $407.3 million, versus consensus estimates of $444.71 million; and FY fiscal 2023 non-GAAP net loss per share outlook of $0.19 to $0.17, versus consensus estimates of $0.09.
Yext, Inc. further disclosed the departure of its CEO and CFO.
That same day, on a conference call to discuss Yext's Q4 and FY fiscal 2022 results, the Company's incoming CEO, Michael Walrath ("Walrath"), addressed the Company's disappointing financial results, revealing, inter alia, that "we have seen fragmentation in our interactions with customers and our ability to deliver premium service and support" and that, "[i]n hindsight, it is clear we were too focused on building sales capacity and not focused enough on other functions that drive productivity, particularly sales enablement, training, client success and services." Walrath also disclosed that "we saw a really significant disruption in our business" such as "in Q4, 50% -- over 50% of our in-person events were canceled because of the Omicron surges[,]" while opining that Yext could "[a]bsolutely" improve its "sales motion so that it's more efficient during disruptions like that[.]"
Following that call, a Truist Securities analyst lowered the firm's rating on Yext, Inc. to hold from buy and slashed its price target to $6 from $17, noting, among other things, that key performing indicators showed an "unexpected slowdown" in Q4, guidance for fiscal 2023 shows no near-term turn around, and that "planned changes under new management (in go-to-market strategy, sales organization) carry execution risks and the timing for a meaningful and sustainable revival in growth is unclear[.]"
Shares of Yext, Inc. (NYSE: YEXT) declined from $16.64 per share on March 16, 2021, to as low as $4.26 per share on March 9, 2022.
The plaintiff claims that between March 4, 2021 and March 8, 2022, the Defendants made false and/or misleading statements and/or failed to disclose that: (i) Yext's revenue and earnings were significantly deteriorating because of, inter alia, poor sales execution and performance, as well as COVID-19 related disruptions; (ii) accordingly, Yext was unlikely to meet consensus estimates for its full year ("FY") fiscal 2022 financial results and fiscal 2023 outlook; and (iii) as a result, the Company's public statements were materially false and misleading at all relevant times.
Those who purchased shares of Yext, Inc. (NYSE: YEXT) have certain options and should contact the Shareholders Foundation.
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The Shareholders Foundation, Inc. is a professional portfolio monitoring and settlement claim filing service, , which does research related to shareholder issues and informs investors of securities class actions, settlements, judgments, and other legal related news to the stock/financial market. Shareholders Foundation, Inc. is in contact with a large number of shareholders and offers help, support, and assistance for every shareholder. The Shareholders Foundation, Inc. is not a law firm. Referenced cases, investigation, and/or settlements are not filed/reached and/or related to Shareholders Foundation. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.