Company: YEXT
Filing Date: 2025-12-08
Form Type: 10-Q
Source: 0001628280-25-055819
Chunk: 282

Company: Yext, Inc.
Filing Date: 2025-12-08
Form: 10-Q
Item: Part I, Item 1
Chunk 282
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 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 October 31, 2025 are outlined below:Volatility13.6%Revenue beta0.28Expected timing of paymentFY 2026 - FY 2027Discount rate7.65% - 7.93% 

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A rollforward of the fair value of the contingent consideration liability for the nine months ended October 31, 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, 202547,100 Change in fair value (1)(23,400)Balance as of July 31, 202523,700 Change in fair value (1)(4,300)Balance as of October 31, 2025$19,400 (1)    Changes in fair value during both the three months ended July 31, 2025 and October 31, 2025, were primarily driven by a decline in the estimated achievement of the defined milestones.

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.On February 7, 2025, the Company completed its acquisition of Places Scout and during the three months ended April 30, 2025, the Company recorded additional measurement period adjustments upon finalizing the accounting for its acquisition of Hearsay, which resulted 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