YEXT, Inc. (YEXT) shares have been hit hard after virtually all of the latest quarterly earnings reports. I believe that investors focus on the wrong elements of the financial information provided and as a result ignore the readily available information that not only puts the past, seemingly poor, numbers into context, but also reveals the prospects for excellent future numbers.
The Concerns
Here is what I believe are the main concerns by investors:
- Shrinking gross margin in 3q19 (all references to quarters relate to current fiscal year quarters, reflecting YEXT’s fiscal year starts