By Connor Hart

Yext swung to a loss in its fiscal fourth quarter, dragged down by costs associated with a recent acquisition, and issued guidance that missed estimates.

Shares fall 5.4%, to $6.20, in after-hours trading.

The New York search-software company on Wednesday posted a net loss of $7.3 million, or 6 cents a share, for its three months ended Jan. 31, compared with net income of $1.7 million, or 1 cent a share, a year earlier.

Adjusted per-share earnings were 13 cents, in line with the expectations of analysts polled by FactSet.

Revenue increased 12% to $113.1 million, driven by the integration of Hearsay Systems, a social application for the financial services and insurance industries that Yext acquired last year. Analysts modeled sales of $112.8 million.

Total operating expenses jumped 22% to $95.9 million, which included costs associated with the completion of the company's acquisition of Hearsay.

Looking forward, Chief Executive Mike Walrath said the company is "well positioned to meet the complexities resulting from the evolving search landscape and the rise of" artificial intelligence.

For its fiscal first quarter, ending April 30, Yext guided for adjusted per-share earnings of 11 cents to 12 cents on revenue of $107.3 million to $107.8 million. Analysts polled by FactSet expect adjusted earnings of 12 cents a share on revenue of $109.4 million.

In its fiscal 2026, the company forecast adjusted per-share earnings of 50 cents to 53 cents, just missing analyst views for 54 cents. It expects adjusted Ebitda--or earnings before interest, taxes, depreciation and amortization--of $100 million to $103 million, the ceiling of which is in line with analyst projections.

Write to Connor Hart at connor.hart@wsj.com

(END) Dow Jones Newswires

March 05, 2025 16:57 ET (21:57 GMT)

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