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Stock Analysis & ValuationYext, Inc. (0M2Q.L)

Professional Stock Screener
Previous Close
£7.25
Sector Valuation Confidence Level
Low
Valuation methodValue, £Upside, %
Artificial intelligence (AI)16.50128
Intrinsic value (DCF)2.60-64
Graham-Dodd Methodn/a
Graham Formulan/a

Strategic Investment Analysis

Company Overview

Yext, Inc. is a leading provider of cloud-based digital knowledge management solutions, headquartered in New York, USA. The company's flagship Yext platform enables businesses to organize, manage, and distribute accurate business information across approximately 200 digital services, including search engines, maps, apps, and social networks. Serving industries such as healthcare, retail, and financial services, Yext helps enterprises control their digital presence by centralizing critical data like store locations, professional profiles, FAQs, and consumer reviews. Operating in North America and internationally, Yext addresses the growing need for accurate, real-time business information in an increasingly digital-first economy. As a SaaS company in the competitive Software - Services sector, Yext differentiates itself through its extensive knowledge network and AI-powered search capabilities, helping businesses improve customer experience and operational efficiency.

Investment Summary

Yext presents a mixed investment profile with both growth potential and significant risks. The company operates in the expanding digital knowledge management market, with a unique platform that addresses a clear enterprise need for accurate digital presence management. With $420.96 million in revenue and positive operating cash flow of $50.21 million, Yext demonstrates some financial stability. However, the company remains unprofitable with a net loss of $27.95 million and carries moderate debt of $95.41 million against $123.13 million in cash. The beta of 1.067 suggests stock volatility slightly above the market average. Investors should weigh Yext's position in the growing digital experience market against intense competition from larger tech players and the challenges of achieving sustained profitability in the SaaS space.

Competitive Analysis

Yext competes in the digital knowledge management and local search optimization market with a specialized platform that connects business data to multiple digital services. The company's primary competitive advantage lies in its extensive knowledge network that integrates with approximately 200 third-party services, providing comprehensive coverage that few competitors can match. Yext's AI-powered search technology and structured data approach differentiate it from generic content management systems. However, the company faces significant competition from larger enterprise software providers that offer broader digital experience platforms. Yext's focus on mid-market and enterprise customers in specific verticals like healthcare and retail provides some insulation from competitors targeting different segments. The company's challenge lies in expanding its value proposition beyond basic business information management to become a more integral part of customers' digital experience stacks. While Yext has first-mover advantage in structured business data distribution, it must continue innovating to maintain its position against well-funded competitors expanding into adjacent markets.

Major Competitors

  • Alphabet Inc. (Google) (GOOGL): Google dominates local search through Google My Business and Maps, offering free basic listings that compete with Yext's paid services. While Google lacks Yext's multi-platform distribution, its market dominance in search and ability to offer free services presents a significant challenge. Google's strength lies in its massive user base and search market share, but it doesn't offer the same level of centralized control across multiple platforms that Yext provides.
  • Birkenstock Holding plc (BIRK): Note: This appears to be an incorrect competitor entry. No relevant competitive information available for Birkenstock in relation to Yext's business.
  • Oracle Corporation (ORCL): Oracle offers competing customer experience and content management solutions through its CX Cloud suite. While not a direct competitor in local search management, Oracle's broader enterprise software portfolio competes for the same IT budgets. Oracle's strength lies in its enterprise customer base and integrated suite, but it lacks Yext's specialized focus on distributed business information management.
  • Adobe Inc. (ADBE): Adobe's Experience Cloud competes in the broader digital experience management space. While Adobe focuses more on content creation and delivery, its solutions overlap with Yext in managing digital presence. Adobe's strength is its comprehensive creative and marketing tools, but it doesn't specialize in the structured business data distribution that Yext offers.
  • SAP SE (SAP): SAP's customer experience and CRM solutions compete indirectly with Yext's offerings. SAP's strength lies in its enterprise resource planning integration and global customer base, but it lacks Yext's specialized focus on distributed business information management across third-party platforms.
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