Company: YEXT
Filing Date: 2025-09-08
Form Type: 10-Q
Source: 0001614178-25-000119
Chunk: 375

Company: Yext, Inc.
Filing Date: 2025-09-08
Form: 10-Q
Item: Part I, Item 8
Chunk 375
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 could subject us to litigation.

Risks Related to Strategic Considerations

44

The announcement and pendency of the non-binding offer to acquire Yext may adversely affect our business, financial condition and results of operations.

There is no assurance that Michael Walrath’s expression of interest will result in other bids or a definitive transaction. Uncertainty about the effect of the proposal or alternatives on our employees, customers, and other parties may have an adverse effect on our business, financial condition and results of operation regardless of whether the proposed acquisition is completed. These risks to our business include the following:

•the impairment of our ability to attract, retain, and motivate our employees, including key personnel; 

•the diversion of significant management time and resources;

•difficulties maintaining relationships with customers, suppliers and other business partners;

•delays or deferments of certain business decisions by our customers, suppliers and other business partners;

•the inability to pursue alternative business opportunities or make appropriate changes to our business;

•litigation relating to any proposed acquisition or process and the costs related thereto; and

•the incurrence of significant costs, expenses, and fees for professional services and other transaction costs in connection with any proposed acquisition or the process to evaluate such. 

Risks Related to Our Business and Industry

Our revenue growth has slowed and even contracted in recent periods.

We experienced declines in our revenue growth in recent years, including revenue growth rates of 3% from the fiscal year ended January 31, 2022 to the fiscal year ended January 31, 2023, 1% from the fiscal year ended January 31, 2023 to the fiscal year ended January 31, 2024, and 4% from the fiscal year ended January 31, 2024 to the fiscal year ended January 31, 2025. While total revenue increased by 15% from the six months ended July 31, 2024 to the six months ended July 31, 2025, this increase was inorganic due to our acquisition of Hearsay, and without this acquisition, our revenue would have otherwise slightly declined year-over-year in the same period. While our historical revenue growth rates are not indicative of future growth, we may not achieve revenue growth in future periods, or our growth rates may slow further or contract in future periods, despite any increase in revenue as a result of acquisitions. We may also not be successful integrating acquisitions, which could lead to further erosion of revenue growth if we cannot retain the customers