Yext, Inc. (NYSE:YEXT): Are Analysts Optimistic?
We feel now is a pretty good time to analyse Yext, Inc.'s (NYSE:YEXT) business as it appears the company may be on the cusp of a considerable accomplishment. Yext, Inc. organizes business facts to provide answers to consumer questions in North America and internationally. The US$721m market-cap company posted a loss in its most recent financial year of US$66m and a latest trailing-twelve-month loss of US$12m shrinking the gap between loss and breakeven. The most pressing concern for investors is Yext's path to profitability – when will it breakeven? In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.
View our latest analysis for Yext
According to the 5 industry analysts covering Yext, the consensus is that breakeven is near. They expect the company to post a final loss in 2025, before turning a profit of US$7.6m in 2026. Therefore, the company is expected to breakeven roughly 2 years from now. In order to meet this breakeven date, we calculated the rate at which the company must grow year-on-year. It turns out an average annual growth rate of 58% is expected, which signals high confidence from analysts. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.
Given this is a high-level overview, we won’t go into details of Yext's upcoming projects, but, take into account that generally a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.
Before we wrap up, there’s one aspect worth mentioning. Yext currently has no debt on its balance sheet, which is rare for a loss-making growth company, which usually has a high level of debt relative to its equity. The company currently operates purely off its shareholder funding and has no debt obligation, reducing concerns around repayments and making it a less risky investment.
Next Steps:
This article is not intended to be a comprehensive analysis on Yext, so if you are interested in understanding the company at a deeper level, take a look at Yext's company page on Simply Wall St. We've also compiled a list of essential aspects you should further research:
Valuation: What is Yext worth today? Has the future growth potential already been factored into the price? The intrinsic value infographic in our free research report helps visualize whether Yext is currently mispriced by the market.
Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Yext’s board and the CEO’s background.
Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
