Walrath submitted a proposal to acquire all outstanding shares of the company not already owned by him, and Yext’s board of directors formed a special subcommittee of independent directors to evaluate the proposal, the company said in a Monday (Aug. 18) press release.
Walrath said he remains committed to the company, its employees and its stockholders and that he will work constructively with other qualified bidders, according to the release.
“Yext has achieved remarkable progress, and I believe now is the right time to explore a transaction that can deliver compelling value to stockholders,” Walrath said in the release. “While I am prepared to lead such a transaction at $9.00 per share, I am equally committed to ensuring that our stockholders have the opportunity to realize the best possible outcome, whether that be through my proposal or a superior alternative.”
The company said in the release that it plans to announce its results for the quarter ended July 31 in September and that it expects those results to be within or better than the guidance ranges it provided in a June 3 letter to stockholders.
In that shareholder letter, Yext said for the quarter ended July 31, it expects revenue to be in the range of $111 million to $111.5 million, its adjusted EBITDA to be in the range of $24.5 million to $25 million, and its non-GAAP net income per share to be in the range of 12 cents to 13 cents.
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During the quarter ended April 30, the company saw revenue of $109.5 million, adjusted EBITDA of $24.7 million, and non-GAAP earnings per share of 13 cents, according to the shareholder letter.
In a June 3 earnings release, Walrath said: “Our first quarter results demonstrate solid execution and growing interest in our expanding platform. We exceeded guidance on both revenue and profitability, delivered record adjusted EBITDA, and saw encouraging early adoption of new offerings.”
It was reported in June 2024 that Yext was considering a sale after attracting takeover interest.
