Company: YEXT
Filing Date: 2025-12-08
Form Type: 10-Q
Source: 0001628280-25-055819
Chunk: 11

Company: Yext, Inc.
Filing Date: 2025-12-08
Form: 10-Q
Item: Part I, Item 2
Chunk 11
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2025, compared to $252.2 million for the nine months ended October 31, 2024, an increase of $27.1 million, or 11%. The increase was entirely driven by the inclusion of Hearsay’s revenue as a result of the acquisition which was completed on August 1, 2024. Revenue attributable to third-party reseller customers was $55.3 million for the nine months ended October 31, 2025, compared to $55.7 million for the nine months ended October 31, 2024, remaining relatively consistent. 

Cost of Revenue and Gross Margin

Cost of revenue was $84.4 million for the nine months ended October 31, 2025, compared to $70.1 million for the nine months ended October 31, 2024, an increase of $14.3 million or 20%. The increase was primarily driven by a $5.1 million increase in amortization expense related to acquired intangible assets largely related to the acquisition of Hearsay, as well as $1.2 million related to royalties and integration fees. In addition, personnel-related costs increased $2.4 million reflecting higher headcount, data center 

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costs increased $2.0 million, and asset impairment charges of $1.1 million were recognized during the nine months ended October 31, 2025, in connection with subleasing a floor of our corporate headquarters.

Gross margin was 74.8% for the nine months ended October 31, 2025, compared to 77.2% for the nine months ended October 31, 2024 as reflected in the discussion above.

Operating ExpensesNine months ended October 31,Variance(in thousands)20252024DollarsPercent Sales and marketing$102,314 $128,878 $(26,564)(21)% Research and development$67,863 $56,709 $11,154 20 % General and administrative$41,457 $75,553 $(34,096)(45)%

Sales and marketing expense was $102.3 million for the nine months ended October 31, 2025, compared to $128.9 million for the nine months ended October 31, 2024, a decrease of $26.6 million or 21%. The decrease was primarily driven by employee-related costs, as personnel-related costs decreased $16.6 million and stock-based compensation expense decreased $