Company: YEXT
Filing Date: 2025-12-08
Form Type: 10-Q
Source: 0001628280-25-055819
Chunk: 8

Company: Yext, Inc.
Filing Date: 2025-12-08
Form: 10-Q
Item: Part I, Item 2
Chunk 8
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 reporting in currencies other than U.S. Dollars (“USD”) into USD at the average monthly exchange rates in effect during the comparative period, as opposed to the average monthly exchange rates in effect during the current period. 

The following table summarizes our revenue by sales channel for the periods presented:

Three months ended October 31,Variance20252024DollarsPercent(in thousands)Direct Customers$93,282 $95,486 $(2,204)(2)%Third-Party Reseller Customers18,716 18,503 213 1 %Total Revenue$111,998 $113,989 $(1,991)(2)%

Revenue attributable to direct customers was $93.3 million for the three months ended October 31, 2025, compared to $95.5 million for the three months ended October 31, 2024, a decrease of $2.2 million, or 2%. The decrease was driven primarily by customer attrition. Revenue attributable to third-party reseller customers was $18.7 million for the three months ended October 31, 2025 compared to $18.5 million for the three months ended October 31, 2024, remaining relatively consistent.

Cost of Revenue and Gross Margin

Cost of revenue was $29.2 million for the three months ended October 31, 2025, compared to $26.2 million for the three months ended October 31, 2024, an increase of $3.0 million or 11%. The increase was primarily driven by a $0.9 million increase in personnel-related costs reflecting higher headcount. In addition, data centers costs increased $0.7 million, and asset impairment charges of $1.1 million were recognized during the three months ended October 31, 2025 in connection with subleasing a floor of our corporate headquarters.

Gross margin was 73.9% for the three months ended October 31, 2025, compared to 77.0% for the three months ended October 31, 2024 as reflected in the discussion above. 

Operating ExpensesThree months ended October 31,Variance(in thousands)20252024DollarsPercent Sales and marketing$34,037 $43,667 $(9,630)(22)% Research and development$22,614 $21,070 $1,544 7 % General and administrative$18,364 $33,373 $(15,009