Shares of cloud-based software company Yext (NYSE:YEXT), which helps companies improve search data, fell sharply on Friday. At the tech stock‘s worst point during the trading day, shares were down more than 15%. But as of 12:30 p.m. EDT today, the stock was down 9.7%.
The stock’s decline follows Yext’s fiscal second-quarter earnings report, which included better-than-expected revenue and adjusted earnings per share. Guidance, however, was underwhelming compared to analyst expectations.
Yext announced revenue of $98.1 million, up 11% year over year. The adjusted loss per share for the period was $0.06. Analysts on average were expecting revenue of $95 million and an adjusted loss per share of $0.07.
Guidance, however, wasn’t as impressive. The company said it expects fiscal third-quarter revenue to be between $97.5 million and $98.5 million. The midpoint of this range would notably represent a slight sequential decline, though this guidance was ahead of a consensus analyst forecast for $97.2 million.
But management’s guidance for a fiscal third-quarter adjusted loss per share between $0.06 and $0.08 was worse than the narrower consensus analyst estimate for $0.05.
For the full year, management guided for revenue to be between $386 million and $388 million (slightly ahead of a consensus analyst forecast of about $385 million) and an adjusted loss per share between $0.20 and $0.24 (worse than the $0.18 expected by analysts).
Despite the company’s underwhelming guidance, management remains optimistic, noting that its fiscal second-quarter momentum benefited from both new customers and upsells. Looking ahead, CEO Howard Lerman said in the company’s earnings release that Yext “continues to be a critical partner for businesses by driving operational efficiencies, especially within marketing and support.” He added that the company’s “AI-powered search platform helps create a seamless online experience at every stop in the customer journey.”
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