4 Must-Know Facts Before the Yext IPO Date

Yext IPO dateInvestors didn't have to wait long for the next big tech IPO after Snap Inc. (NYSE: SNAP). Yext, a digital knowledge company founded in 2006, just updated its SEC form with new important details that suggest the Yext IPO date could be set as early as April.

And before Wall Street hypes up Yext stock like it did with Snapchat, we want to make sure you're prepared. So I've compiled the four most important facts to know about the Yext IPO.

We are also going to share an opportunity today that could allow investors to net the same big gains from IPOs as wealthy investors and big banks.

More on that in just a bit.

First, here's how much Yext plans to price its IPO...

Facts to Know Before Yext IPO Date No. 4: Yext IPO Price and Yext Stock Symbol

According to Business Insider, Yext will price between $8 and $10 per share.

It plans to sell 10.5 million shares of common stock. That could help the company raise between $84 million and $105 million.

Yext will trade on the New York Stock Exchange (NYSE) under the symbol "YEXT." On the YEXT IPO date, the official stock symbol will appear as Yext (NYSE: YEXT).

Facts to Know Before Yext IPO Date No. 3: It Has an Impressive Client List

According to its website, Yext has an impressive list of clients, including:

  • Arby's
  • AutoNation
  • Ben & Jerry's
  • Denny's
  • Meineke
  • Pep Boys
  • Rue 21
  • Stanley Steemer

Yext helps chains like Arby's and Pep Boys manage their local listings on search engines.

For example, one Arby's chain may open earlier or close later than other chains. So when customers search for that information, Arby's has to make sure that it provides the correct opening time and closing time for each location.

Yext makes sure information is correct across different channels (search engines, mobile apps, social media) through its Yext Knowledge Engine.

But despite this impressive client list, Yext isn't profitable...

Facts to Know Before Yext IPO Date No. 2: Yext Loses Money

One of the most common IPO myths is that these companies are profitable because of their massive valuations.

The truth is, valuations are actually based on what early investors are willing to pay for a private company and how much equity they receive. For example, if an investor was willing to pay $200 million for a 10% stake in Yext, that would value Yext at $2 billion.

Yext is seeking a valuation between $854 million and $870 million. The tech company grew revenue from $60 million in 2015 to $89.7 million in 2016, which is an increase of 49.5%.

However, the company reported net losses of $17.3 million in 2015 and $26.5 million in 2016.

Of course, private companies in the tech field go public without being profitable.

The most recent example is Snapchat, which reported a net loss of $514.6 million in 2016. The IPO debut seemed successful, as retail investors were flooded with mainstream media headlines that SNAP stock was up over 40% on its March 2 debut.

But what the mainstream media failed to report was those weren't the returns of average investors.

The simple truth about the Yext IPO is retail investors won't get rich quick.

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