Brand management software company Yext Inc (NYSE:YXT) surpassed revenue expectations and upped its full-year guidance in its third-quarter results, but a lingering net loss sank its shares.
The company reported a net loss of $0.12 per share, the same loss as the previous year’s third quarter and in-line with analysts' expectations.
Revenue jumped 33% to $58.74 million compared with revenue of $44.33 million a year ago, surpassing consensus estimates of $58.35 million.
Shares of Yext dipped about 9% to $16.60 in Friday pre-market trading.
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The company ended the quarter with $107 million in cash on hand.
For the fourth quarter, Yext expects revenue of between $62 million to $63 million.
The company upped the low-end of its full-year revenue guidance of $227 million to $228 million compared with its prior guidance of $226 million to $228 million.
Net loss totaled $24.8 million, a 45% increase compared with the $17.1 million net loss in the previous third quarter.
The company points to increased operating expenses, specifically the sales and marketing associated with acquiring new customers, as the reason behind the loss.
“We believe leading brands are recognizing the highly attractive returns our revolutionary platform can deliver through higher revenue, improved process efficiencies, and better visibility in intelligent services,” said CEO Howard Lerman in the company’s press release.
The company operates a cloud-based platform for business management, geared toward healthcare, retail and financial services industry in North America and Europe.
Yext has snagged some high-profile customers, including Denny’s Corp (NASDAQ:DENN), Arby’s, T-Mobile US Inc (NASDAQ:TMUS) and Stanley Steemer.
Contact Lenore Fedow at lenore@proactiveinvestors.com
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