YEXT - Yext: Rebound Finally In Sight

2024-03-17 06:18:50 ET

Summary

• Yext is expected to return to solid ARR growth approaching 10% after a period of decline.
• The AI search company faces an initial ARR dip to start FY25, apparently scaring off investors.
• The stock remains a call option on management's ability to return the business to growth with Yext trading at only 1x EV/S targets.

After a few tough years, Yext ( YEXT ) finally appears back in growth mode. The AI search business has already become highly profitable, as the company spent some time stripping out costs and improving sales efficiency. My investment thesis remains ultra Bullish on the AI search company trading at multi-year lows despite hinting at returning the business to growth this fiscal year....

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