Shares of Yext (NYSE:YEXT) experienced a significant drop of over 20% intra-day today. This decline came after the company reported third-quarter revenues that fell short of market expectations and subsequently lowered its full-year revenue forecast.
In their report released after Tuesday’s market close, Yext announced third-quarter earnings of $0.09 per share, which was $0.02 higher than the analyst estimate of $0.07. However, their revenue for the quarter was $101.2 million, below the consensus estimate of $102.16 million.
Yext acknowledged the current challenging macroeconomic environment and emphasized its commitment to driving innovation across its product range to enhance customer engagement.
Looking to the fourth quarter, Yext expects earnings to be in the range of $0.07 to $0.08 per share, compared to the consensus estimate of $0.07. The projected revenue is set between $100 million and $100.5 million, which is lower than the consensus estimate of $102.16 million.
For the full year, Yext has raised its EPS guidance to a range of $0.31 to $0.32 per share, up from the previous range of $0.28 to $0.29. This revised forecast surpasses the consensus estimate of $0.28.
However, the company reduced its annual revenue guidance to between $403.2 million and $403.7 million. This is a downward revision from the prior forecast of $404 million to $407 million and falls below the Street estimate of $406.38 million.