NEW YORK - Yext, Inc. (NYSE:YEXT), a prominent digital presence platform, has launched Yext Social, an AI-powered social media management tool designed to assist multi-location brands in managing their local presence on a global scale. Announced today, Yext Social is built to enable brands to create personalized content and engage with customers at the local level, all from a unified platform.
The new tool is an expansion of Yext's current offerings, incorporating advanced AI to streamline content creation, engagement strategies, and provide actionable insights. This technology allows for the management of both corporate and local social media accounts, simplifying workflows and ensuring consistency across various channels.
Chris Brownlee, Vice President of Product Management at Yext, stated that social media is a vital point of contact for brands to establish trust and connect with customers on a personal level. Yext Social aims to facilitate these local connections and provide the necessary insights for strategy optimization.
Yext Social's key features include AI-driven content creation that accounts for local nuances and audience preferences, a unified platform experience, and advanced analytics for tracking engagement metrics. These capabilities are intended to help brands refine their strategies and maximize their return on investment.
Direct Clicks Inc. has already reported positive outcomes from using Yext Social, with Kiana To, a Social Media Specialist at the company, highlighting the AI tool's efficiency and alignment with the company's direction.
The launch of Yext Social follows the recent acquisition of Hearsay Systems by Yext, which included Hearsay Social, a social media management tool for the financial services industry. Yext Social broadens the product portfolio and strengthens Yext's position as a comprehensive digital presence platform.
The press release also contains forward-looking statements, cautioning that the anticipated features and benefits of Yext Social are subject to risks and uncertainties that could cause actual results to differ.
This news is based on a press release statement from Yext, Inc. For more information on Yext Social, interested parties are directed to the company's website.
In other recent news, Yext Inc . has seen a flurry of financial adjustments and strategic shifts. The company's second fiscal quarter of 2025 results showed modest quarter-over-quarter improvement in Direct Annual Recurring Revenue (ARR) by $1.3 million to $313.4 million. Yext's disciplined expense management led to a better-than-expected EBITDA of $9.8 million, surpassing DA Davidson's forecast of $8.3 million. Following these results, DA Davidson maintained a Neutral rating on Yext while raising the price target to $5.75 from $5.50.
In light of the recent closure of the Hearsay acquisition, Yext has revised its full-year revenue outlook, incorporating some caution due to ongoing macroeconomic challenges. Reflecting these updates, DA Davidson increased its revenue estimates for Yext for fiscal years 2025 and 2026. In contrast, Roth/MKM adjusted its financial outlook for Yext, reducing its price target from $8.00 to $7.50, while maintaining a Buy rating.
Meanwhile, Needham upgraded Yext shares from Hold to Buy, setting a new price target at $8.00. The upgrade follows Yext's second-quarter fiscal year 2025 performance and the acquisition of Hearsay. Yext's management projects an acceleration of ARR and expansion of EBITDA margins by the end of fiscal year 2025, thanks to the recent acquisition of Hearsay Systems. These are the latest developments in Yext's strategic transformation, which emphasizes flexibility and customer-centricity in its approach to growth.
InvestingPro Insights
As Yext, Inc. (NYSE:YEXT) launches its innovative Yext Social tool, the company's financial health and market performance provide additional context for investors. Yext holds a market capitalization of $825.09 million, demonstrating its substantial size within the digital presence industry. A notable InvestingPro Tip is that Yext currently holds more cash than debt on its balance sheet, offering a level of financial flexibility that could support further investment in technologies like Yext Social.
Investors may also find the company's gross profit margin particularly impressive, standing at 77.9% over the last twelve months as of Q1 2023. This suggests that Yext operates with high levels of operational efficiency, a positive sign for potential returns on investments into their new AI-powered tool. Additionally, the company has seen a significant return over the last week, month, and three months, with increases of 32.64%, 31.82%, and 26.59% respectively, indicating strong recent market performance.
While the company has not been profitable over the last twelve months, analysts predict that Yext will be profitable this year, according to an InvestingPro Tip. This forecasted turnaround in net income could be a pivotal moment for the company as it continues to innovate with offerings like Yext Social. Interested readers can find a total of 11 InvestingPro Tips for Yext, which offer deeper insights into the company's financials and performance, by visiting https://www.investing.com/pro/YEXT.
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