Company: YEXT
Filing Date: 2025-03-13
Form Type: 10-K
Source: 0001614178-25-000030
Chunk: 93

Company: Yext, Inc.
Filing Date: 2025-03-13
Form: 10-K
Item: Item 7
Chunk 93
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76,588 (2,127)(3)%Total Annual Recurring Revenue$442,662 $392,182 $50,480 13 %

(1) ARR as of January 31, 2025 is inclusive of Hearsay's results. 

Change in ARR Methodology

From time to time, we may refine our methodology of calculating our key performance metrics to better reflect our business. For example, beginning in the fourth quarter of fiscal year 2025, we refined our ARR methodology to include usage to align with management’s internal assessment of customers. Prior to that quarter, we had excluded what we previously referred to as overage.  While this change may introduce additional volatility, we believe it provides a more comprehensive view of ARR that better aligns with the way we evaluate and manage our business. The amounts presented in the immediately preceding table have been restated to reflect our ARR presented on this current definition for periods previously disclosed that did not include overage.

To accompany the transition to this new presentation, the following table presents our ARR for the periods presented as calculated using our prior definition of ARR, which excluded usage:

January 31,Variance(in thousands)20252024DollarsPercentDirect Customers(1)$368,201 $315,594 $52,607 17 %Third-Party Reseller Customers67,459 71,784 (4,325)(6)%Total Annual Recurring Revenue$435,660 $387,378 $48,282 12 %

(1) ARR as of January 31, 2025 is inclusive of Hearsay's results.

Dollar-Based Net Retention Rate 

We believe that our ability to retain our customers and expand the ARR they generate for us over time is an important component of our growth strategy and reflects the long term value of our customer relationships. We assess our performance in this area using a metric we refer to as our dollar-based net retention rate, which compares the ARR from a set of subscription customers across comparable periods.  

This metric is calculated first by determining the ARR generated 12 months prior to the end of the current period for a cohort of customers who had active contracts at that time. We then calculate ARR from the same cohort of customers at the end of the current period, which includes customer expansion, contraction and churn. The current period ARR is then divided by the prior period ARR to arrive at our dollar-based net retention rate. Any ARR obtained through merger and acquisition transactions does not affect the