In no huge surprise, Yext (NYSE:YEXT) reported results for the October quarter that weren't particularly impressive when focused on the top line. The company has replaced management and worked on improving the efficiency of its salesforce over driving revenue growth. My investment thesis is ultra-Bullish on the stock due to the massive valuation discount and the clear double bottom already at $4.\nPast Execution Problems\nFor years, Yext has offered a strong value proposition to customers, yet the prior management team was unable to drive sustainable growth. The covid lockdowns initially hurt retail clients using location-based services and the economic rebound was cut short due the pending recession from massive rate hikes.\nAs documented before, the company replaced most of the management team this year due to these execution issues. Yext continues to document how the Answers and AI search products solve problems for customers and increase the productivity of these customers.\nThe company has always collected digital data from clients and leveraged that information to provide a seamless digital experience for their customers. An increasingly digital world places Yext in the sweet spot of future demand.\nThe new management team delivered FQ3'23 revenues of $99.3 million for the 6th consecutive quarter with revenues between $98 million and $101 million. The guidance for FQ4 has revenues remaining in this range with a target at $101 million for the high end.\nAs with other tech companies, Yext faced a strong $12.4 million negative impact from foreign currency exchange rates. The company still saw ARR grow 1% YoY to $390 million. Without the currency impact, the ARR would've hit $402 million for 4% growth.\nOn top of this, Yext is seeing an improved deal pipeline per the CEO on the FQ3'22 earnings call. Even with the improved execution, Yext still only had a retention rate during the quarter in the mid-80% range.\nWhile the new management team hasn't turned around the business just yet (though the currency issue would alter this view), the company is now on a more solid financial footing. The CEO specially set a plan in motion to make the sales force more efficient before hiring additional sales reps leading to a more impressive financial picture going forward.\nYext reported FQ3'23 net income of $2.5 million versus a loss of $5.5 million last FQ3. The business is on a vastly better financial footing now allowing for the large share buyback this year.\nThe company has repurchased 12.4 million shares for a total cost of $69.1 million. On top of this, Yext had guided to a FQ4 EPS of $0.02 to $0.03 in another sign of the company producing more consistent profits.\nThe AI search company not generating revenue growth is disappointing, but the new management team improving sales productivity in this environment is impressive. Yext saw sales and marketing expenses as a percentage of revenues dip from 52% last FQ3 to only 44% in FQ3'23 while ARR grew on a constant currency basis. A small tech company could've produced 15% sales growth without producing this level of leverage.\nYext lists 123 million shares outstanding for FQ4 placing the market cap at $780 million after the rally to $6.30. The company has a cash balance of $162 million for an enterprise value of $620 million now.\nThe company has a revenue run rate in the $400 million run rate placing the EV\/S multiple at just 1.5x. When the new management team is able to return the business to growth, Yext has considerable upside potential. The company regularly grew the business in the 15% to 20% annual range pre-covid.\nThe stock definitely has substantial risk. The internet search market has strong competition and Yext is a relatively small player. If the company was to return to a scenario of large cash burn rates, the cash balance could disappear fast.\nThe key investor takeaway is that Yext fell too far this year as investors extrapolated too much on slow growth caused by a weak retail market. The stock was too cheap at the lows and remains so even at $6 with the improving profit picture and catalysts for growth ahead.\nIf you'd like to learn more about how to best position yourself in under valued stocks mispriced by the market during the 2022 sell off, consider joining Out Fox The Street.\nThe service offers model portfolios, daily updates, trade alerts and real-time chat. Sign up now for a risk-free, 2-week trial to start finding the next stock with the potential to generate excessive returns in the next few years without taking on the out sized risk of high flying stocks.\nThis article was written by\nStone Fox Capital Advisors, LLC is a registered investment advisor founded in 2010. Mark Holder graduated from the University of Tulsa with a double major in accounting & finance. Mark has his Series 65 and is also a CPA.\nStone Fox Capital launched the Out Fox The Street MarketPlace service in August 2020.\nInvest with Stone Fox Capital's model Net Payout Yields portfolio on Interactive Advisors as he makes real time trades. The site allows followers to duplicate the model portfolio in their own brokerage accounts. You can find the portfolio and more details here:\nNet Payout Yields model\nFollow Mark on twitter: @stonefoxcapital\nDisclosure: I\/we have a beneficial long position in the shares of YEXT either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.\nAdditional disclosure: The information contained herein is for informational purposes only. Nothing in this article should be taken as a solicitation to purchase or sell securities. Before buying or selling any stock, you should do your own research and reach your own conclusion or consult a financial advisor. Investing includes risks, including loss of principal.