Yext Stock Pops 10% After Better-Than-Expected First Quarter

What happened

Shares of Yext, Inc. (NYSE: YEXT), a New York-based software developer that helps businesses control their information on sites and apps, gained 10% on Friday after the company announced better-than-expected fiscal first-quarter 2019 results.

So what

Revenue jumped an impressive 38% year over year to $51.1 million, with gross margin moving 100 basis points higher to 74.9%. Excluding stock option expenses, Yext reported an adjusted loss of $0.11 per share, an improvement from the prior year's adjusted loss of $0.13 per share and $0.01 better than analysts' estimates calling for an adjusted loss of $0.12 per share.

"We are pleased with our results this quarter, highlighted by our 38% revenue growth over the first quarter of last year -- driven, in part, by the more than 60 new enterprise logos we won this quarter -- as well as the positive operating cash flow we generated during the quarter," said Howard Lerman, co-founder and CEO of Yext, in a press release.

Now what

It was a strong quarter and management was confident enough in Yext's momentum to bump up its full-year revenue guidance by a million on both the low and high end, up to $225 million to $227 million. If the company can continue to grow its top line, rope in new customers, and maintain or improve its gross margin, this won't be the last solid quarter it announces in fiscal 2019.

10 stocks we like better than Yext, Inc.When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has quadrupled the market.*

David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and Yext, Inc. wasn't one of them! That's right -- they think these 10 stocks are even better buys.

Click here to learn about these picks!

*Stock Advisor returns as of May 8, 2018

Daniel Miller has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.