Company: YEXT
Filing Date: 2025-09-08
Form Type: 10-Q
Source: 0001614178-25-000119
Chunk: 356

Company: Yext, Inc.
Filing Date: 2025-09-08
Form: 10-Q
Item: Part I, Item 8
Chunk 356
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Revenue attributable to direct customers was $94.5 million for the three months ended July 31, 2025, compared to $79.3 million for the three months ended July 31, 2024, an increase of $15.3 million, or 19%. 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 $18.6 million for both the three months ended July 31, 2025 and July 31, 2024, remaining relatively consistent.

Cost of Revenue and Gross Margin

Cost of revenue was $28.1 million for the three months ended July 31, 2025, compared to $22.3 million for the three months ended July 31, 2024, an increase of $5.8 million or 26%. The increase was primarily driven by a $2.3 million increase in amortization expense from acquired intangible assets largely related to the acquisition of Hearsay, as well as a $0.5 million increase in royalties and integration fees. In addition, personnel-related costs increased $0.6 million and data centers costs increased $0.9 million.

Gross margin was 75.2% for the three months ended July 31, 2025, compared to 77.2% for the three months ended July 31, 2024 as reflected in the discussion above. 

Operating ExpensesThree months ended July 31,Variance(in thousands)20252024DollarsPercent Sales and marketing$32,069 $41,957 $(9,888)(24)% Research and development$23,352 $18,580 $4,772 26 % General and administrative$(61)$22,623 $(22,684)(100)%

Sales and marketing expense was $32.1 million for the three months ended July 31, 2025, compared to $42.0 million for the three months ended July 31, 2024, a decrease of $9.9 million or 24%. The decrease was primarily driven by employee-related costs as personnel-related costs decreased $5.8 million and stock-based compensation expense decreased $2.5 million, reflecting lower headcount. In addition, advertising costs decreased $1.3 million, and conferences and events decreased $1.0 million. These decreases were offset