NEW YORK, June 20, 2022 (GLOBE NEWSWIRE) -- Gainey McKenna & Egleston announces that a class action lawsuit has been filed against Yext, Inc. (“Yext” or the “Company”) (NYSE: YEXT) in the United States District Court for the Southern District of New York on behalf of investors who purchased Yext stock between March 4, 2021 and March 8, 2022, inclusive (the “Class Period”).
The Complaint alleges Defendants made false and/or misleading statements and/or failed to disclose that: (1) the Company’s revenue and earnings were significantly deteriorating because of, inter alia, poor sales execution and performance, as well as COVID-19 related disruptions; (2) accordingly, the Company was unlikely to meet consensus estimates for its full year (“FY”) fiscal 2022 financial results and fiscal 2023 outlook; and (3) as a result, the Company’s public statements were materially false and misleading at all relevant times.
On March 8, 2022, the Company issued a press release announcing its fourth quarter (“Q4”) and FY fiscal 2022 results. Among other items, the Company 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. The Company further disclosed the departure of its CEO and CFO.
That same day, on a conference call to discuss the Company’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 the Company 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 the Company 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[.]”
Following these disclosures, the Company’s stock price fell $0.55 per share, or 9.29%, to close at $5.37 per share on March 9, 2022.
Investors who purchased or otherwise acquired shares of Yext should contact the Firm prior to the August 16, 2022 lead plaintiff motion deadline. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. If you wish to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at tjmckenna@gme-law.com or gegleston@gme-law.com.
Please visit our website at http://www.gme-law.com for more information about the firm.
