Company: YEXT
Filing Date: 2025-06-09
Form Type: 10-Q
Source: 0001614178-25-000077
Chunk: 241

Company: Yext, Inc.
Filing Date: 2025-06-09
Form: 10-Q
Item: Part I, Item 8
Chunk 241
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ued and changes in their fair values are recorded within general and administrative expenses within the condensed consolidated statements of operations and comprehensive income (loss). Changes in the fair value of the contingent consideration can result from changes in assumed discount periods and rates, and from changes pertaining to the estimated or actual achievement of the defined milestones. Significant judgment is employed in determining the appropriateness of these assumptions as of the acquisition date and for each subsequent period. Accordingly, future business and economic conditions, as well as changes in any of the assumptions described above, can materially impact the fair value and corresponding changes in fair value of the contingent consideration the Company records in any given period.  In connection with the Hearsay acquisition, the estimated fair value of the contingent consideration incorporates projected ARR values inclusive of revenue synergies and growth rates, as well as other key inputs. The key inputs as of April 30, 2025 are outlined below:Volatility13.1%Revenue beta0.29Expected timing of paymentFY 2026 - FY 2027Discount rate6.51% - 6.86%A rollforward of the fair value of the contingent consideration liability for the three months ended April 30, 2025 is as follows:(in thousands)Balance as of January 31, 2025$45,000 Measurement period adjustment300 Change in fair value1,800 Balance as of April 30, 2025$47,100 

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7. Goodwill and Intangible Assets

GoodwillGoodwill is not amortized but is subject to periodic testing for impairment at the reporting unit level, which is at or one level below the operating segment level. The Company operates as one operating segment, which represents its one reporting unit. The test for impairment is conducted annually each November 1st, or more frequently if events occur or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount.During the three months ended April 30, 2025, the Company completed its acquisition of Places Scout and recorded additional measurement period adjustments related to the Hearsay acquisition, resulting in the following changes in the carrying amount of goodwill. See Note 4 "Business Combinations" for additional information.The following table presents a reconciliation of the beginning and ending balances of goodwill:(in thousands)Balance as of January 31, 2025$96,782 Goodwill acquired - Places Scout13,801 Measurement period adjustments related to Hearsay acquisition(189)Effect of