Company: YEXT
Filing Date: 2025-09-08
Form Type: 10-Q
Source: 0001614178-25-000119
Chunk: 333

Company: Yext, Inc.
Filing Date: 2025-09-08
Form: 10-Q
Item: Part I, Item 8
Chunk 333
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45,000 $45,000 Total liabilities$— $— $45,000 $45,000 (1)    As of July 31, 2025, contingent consideration includes $9.7 million classified as current and $14.0 million classified as non-current.The Company’s cash equivalents and marketable securities for the periods presented were valued using quoted market prices or alternative pricing sources and models utilizing observable market inputs and were classified as Level 1 or Level 2, accordingly.The Company measured its contingent consideration associated with the Hearsay acquisition, on a recurring basis using significant unobservable inputs, classified as Level 3. Contingent Consideration The Company records contingent consideration resulting from a business combination at its fair value on the acquisition date. The Company generally determines the fair value of contingent consideration using the Real Options Method that employs a Monte Carlo simulation model. Each reporting period thereafter, these obligations are revalued 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 July 31, 2025 are outlined below:Volatility13.5%Revenue beta0.28Expected timing of paymentFY 2026 - FY 2027Discount rate9.31% - 9.34% 

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A rollforward of the fair value of the contingent consideration liability for the six months ended July 31, 2025 is as follows:(in thousands)Balance as of January 31, 2025$45,000 Measurement period adjustment300 Change in fair value (1)(21,600)Balance as of July 31, 2025$23,700 (1)    Changes in fair value during the six months ended July 31, 202