Yext, Inc. (YEXT) Failed to Disclose the Truth About the Impact of COVID-19 and Other Factors on its Revenue and Earnings
A shareholder filed a class action on behalf of all persons and entities that purchased or otherwise acquired Yext, Inc. (NYSE: YEXT) securities between March 4, 2021 and March 8, 2022, for violations of the Securities Exchange Act of 1934. Yext organizes a business’s facts to provide answers to consumer questions online.
According to the complaint, as COVID-19 resurged throughout 2021, Yext consistently assured investors that pandemic-related impacts on the Company’s business were limited as the Company adapted to lockdowns and improved efficiencies in its sales and other operations. In reality, defendants failed to disclose that Yext’s revenue and earnings were significantly deteriorating because of, inter alia, poor sales execution and performance, as well as COVID-19 related disruptions, and therefore was unlikely to meet consensus estimates for its full year (“FY”) fiscal 2022 financial results and fiscal 2023 outlook.
Specifically, on March 8, 2022, Yext issued a press release announcing disappointing fourth quarter (“Q4”) and FY fiscal 2022 results as well as the departure of its CEO and CFO. On a conference call discussing these results, the Company’s incoming CEO disclosed that “we saw a really significant disruption in our business” such as “in Q4, 50% — over 50% of our in-person events were canceled because of the Omicron surges[,]” while opining that Yext could “[a]bsolutely” improve its “sales motion so that it’s more efficient during disruptions like that[.]” Following this news, Yext’s stock price fell $0.55 per share, or 9.29%, to close at $5.37 per share on March 9, 2022.
Next Steps: If you acquired your shares of Yext, Inc. between March 4, 2021 and March 8, 2022, you have until August 16, 2022, to ask the court to appoint you lead plaintiff for the class. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. You do not have to participate in the case to be eligible for a recovery.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.
