NEW YORK - Yext, Inc. (NYSE: NYSE:YEXT), a prominent digital presence platform for brands with multiple locations, has announced the election of Mark Davis to its board of directors. The appointment was made at the company's 2024 Annual Meeting of Stockholders and is effective immediately. Davis, who also joins the audit committee, brings a wealth of experience from his nearly 40 years in the fields of auditing, accounting, and finance, most notably as an Audit & Assurance partner at Deloitte & Touche LLP.
During his tenure at Deloitte, Davis has played a critical role in advising a wide range of companies, including Fortune 500 and privately held firms, through IPOs and on matters of corporate governance and acquisition strategy. His leadership has been instrumental in the growth of Deloitte's Emerging Growth Company business and the establishment of Deloitte Private, enhancing the firm's leadership in the market.
Michael Walrath, CEO and Chair of the Board for Yext, expressed confidence in Davis's ability to contribute to the company's mission, stating that his extensive experience will be beneficial in delivering value to customers and shareholders. Davis himself expressed enthusiasm for his new role, affirming his commitment to Yext's vision and growth.
Yext, known for its AI and machine learning technology, provides a central platform for brands to manage their digital presence across various channels, including SEO, websites, social media, and reputation management. The company's solutions are designed to ensure consistent, accurate, and engaging customer experiences.
In other recent news, Yext Inc . has reported a mix of successes and challenges in its earnings. The company's earnings for the first quarter missed market expectations slightly, leading B.Riley to reduce its price target on the company from $8.00 to $7.00, while maintaining a neutral stance. Despite this, Yext has reported a significant increase in EBITDA, largely due to staff reductions and improved operational efficiency. The company is on track to reach a $100 million EBITDA run rate and more than $90 million in free cash flow by the end of fiscal year 2025.
In recent developments, Yext acquired Hearsay Systems for $125 million, a move aimed at enhancing its standing in the financial services sector. The acquisition is expected to contribute to Yext's high single-digit ARR growth by the first half of 2025.
Roth/MKM has maintained its 'Buy' rating on Yext, acknowledging the company's ability to surpass EBITDA expectations amidst revenue challenges. The firm remains optimistic about Yext's future performance, particularly for investors looking for software-as-a-service investment opportunities.
InvestingPro Insights
As Yext, Inc. (NYSE: YEXT) welcomes Mark Davis to its board of directors, investors and stakeholders may find additional context in the company's financial health and market performance through InvestingPro data and insights. Yext's aggressive share buyback strategy, as highlighted in one of the InvestingPro Tips, underscores management's confidence in the company's value. This is further complemented by the fact that Yext holds more cash than debt on its balance sheet, presenting a sound financial position that could support future growth initiatives.
The company's impressive gross profit margins, which stand at 78.13% for the last twelve months as of Q1 2023, reflect its ability to manage costs effectively while generating revenue. However, it's worth noting that Yext has not been profitable over the last twelve months, with a P/E ratio of -110.36, indicating investor expectations of future earnings growth. This sentiment is echoed by analysts' projections that the company will turn profitable this year, an outlook that may be bolstered by Davis's expertise in corporate governance and financial strategy.
Investors looking to delve deeper into Yext's performance and future prospects can find an array of additional InvestingPro Tips, including insights on earnings revisions, return over the last week, and valuation multiples. For those interested in a comprehensive analysis, InvestingPro offers more tips that can be accessed through their platform. Use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.
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