Yext reported strong revenue growth, but losses widened, and subdued revenue growth guidance heading into Q4 resulted in shares getting crushed.
The company is investing in growth, notably in sales.
The company believes it doubled its addressable market from $10 billion to $20 billion by introducing its Yext Answers solution.
At a forward price/sales ratio of 5, Yext is one of the cheaper unprofitable SaaS plays in the market, but it has increasing losses due to labor costs.
I initiated a small position after the Q3 selloff.
Yext (YEXT) reported another quarter of strong revenue growth, but losses continue to widen and the company has issued tempered revenue growth guidance heading into Q4.
That said, the market potential for