Thesis
Yext (YEXT) took a tumble after its Q2 report. The company reported solid revenue growth, but the stock sold off as much as 20% because investors were disappointed in Q3 revenue guidance that slightly undercut consensus guidance. Additionally, the company expects to lose at least $0.18/share non-GAAP vs. consensus expectations of a loss of $0.13 and cost management could remain an issue for the foreseeable future.
Though shares have recovered from their ~20% drop after Q2, the valuation at a P/S of 6 looks reasonable for an unprofitable Software-as-a-Service (SaaS) company growing