The law firm of Kirby McInerney LLP announces that a class action lawsuit has been filed in the U.S. District Court for the Southern District of New York on behalf of those who acquired Yext, Inc. (“Yext”) (NYSE: YEXT) securities from March 4, 2021 through March 8, 2022, both dates inclusive (the “Class Period”). Investors have until August 16, 2022 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
Yext organizes a business’ facts to provide answers to consumer questions online.
On March 8, 2022, Yext issued a press release announcing its fourth quarter (“Q4”) and FY fiscal 2022 results. Among other items, Yext 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. On this news, Yext’s stock price declined by $0.55 per share, or approximately 9.29%, from $5.92 per share to close at $5.37 per share on March 9, 2022.
The lawsuit alleges throughout the Class Period, Defendants made false and/or misleading statements and/or failed to disclose that: (i) Yext’s revenue and earnings were significantly deteriorating because of, inter alia, poor sales execution and performance, as well as COVID-19 related disruptions; (ii) accordingly, Yext was unlikely to meet consensus estimates for its full year (“FY”) fiscal 2022 financial results and fiscal 2023 outlook; and (iii) as a result, the Company’s public statements were materially false and misleading at all relevant times.