Company: YEXT
Filing Date: 2025-12-08
Form Type: 10-Q
Source: 0001628280-25-055819
Chunk: 350

Company: Yext, Inc.
Filing Date: 2025-12-08
Form: 10-Q
Item: Part I, Item 8
Chunk 350
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921,660 16,420,250 

The earnout arrangement and incentive pool entered into in connection with the acquisition of Hearsay represent liability-classified arrangements that may be settled in cash or shares at the Company's election. Diluted net income per share includes the effect of the potential share settlement associated with these arrangements when such effects are dilutive. See Note 4 "Business Combinations" for additional information related to the earnout and incentive pool. 

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15. Segment Information 

The Company operates as one operating segment for which the CODM uses consolidated net income (loss) to measure segment profit or loss. This measure of segment profit or loss is used by the CODM to allocate resources and assess performance. See Note 2 "Summary of Significant Accounting Policies" for more information about the Company's segment policy. The following table is a summary of the significant expenses and consolidated net income (loss) provided to the CODM: Three months ended October 31,Nine months ended October 31,(in thousands)2025202420252024Revenue$111,998 $113,989 $334,575 $307,866 Less: Cost of revenue (1) 25,121 23,429 73,372 65,882 Sales and marketing (1)29,012 35,684 90,578 114,989 Research and development (1) 18,142 17,432 55,364 47,681 General and administrative (1)15,131 17,172 45,088 45,467 Other segment (income) expenses (2)18,456 33,071 36,516 54,520 Consolidated net income (loss)$6,136 $(12,799)$33,657 $(20,673)(1)     Excludes stock-based compensation expense, amortization of acquired intangibles and acquisition-related costs inclusive of transaction and related costs, subsequent fair value movements in contingent consideration, compensation arrangements, asset impairments, and strategic transaction costs related to Michael Walrath's non-binding proposal to acquire all outstanding shares of the Company. The significant expense categories align with the information that is regularly provided to the CODM.

(2)     Other segment expenses include stock-based compensation expense, amortization of acquired intangibles and acquisition-related costs inclusive of transaction and related costs, subsequent fair value movements in contingent consideration, compensation arrangements, asset impairments,