Company: YEXT
Filing Date: 2025-04-28
Form Type: ARS
Source: 0001614178-25-000048
Chunk: 144

Company: Yext, Inc.
Filing Date: 2025-04-28
Form: ARS
Chunk 144
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 year ended January 31, 2024, the valuation allowance increased $13.9 million from approximately $155.6 million to $169.5 million, primarily due to increases in U.S. deferred tax assets resulting from 90

capitalization and amortization of research and development expenses, and generation of U.S. research and development tax credits, then netted with the impact of NOLs utilized in the current period. The Company will continue to assess the realizability of the deferred tax assets in each applicable jurisdiction going forward. Other Considerations The Company generally does not provide deferred income taxes for the undistributed earnings of its foreign subsidiaries where the Company intends to reinvest such earnings indefinitely. During the current year, the Company changed its assertion with respect to certain subsidiaries' undistributed earnings; however, the Company does not expect any incremental U.S. income taxes or local withholding taxes. For the remaining subsidiaries that are permanently reinvested as of January 31, 2025, the Company's undistributed foreign earnings and unrecorded deferred income taxes are not material. A reconciliation of the beginning and ending balance of total unrecognized tax benefits for the fiscal years ended January 31, 2025, 2024, and 2023 is as follows: Fiscal year ended January 31, (in thousands) 2025 2024 2023 Beginning of period $ 4,920 $ — $ 288 Tax positions taken in prior period Gross increases 942 4,404 — Gross decreases — — (272) Tax positions taken in current period Gross increases 669 516 — Currency translation effect — — (16) End of period $ 6,531 $ 4,920 $ — During the fiscal year ended January 31, 2024, the Company completed an analysis of its historical U.S. research and development tax credits and recorded a corresponding increase in the uncertain tax position. The Company recognizes accrued interest and penalties related to unrecognized tax benefits within benefit from (provision for) income taxes. The Company did not recognize interest and penalties in fiscal years ended January 31, 2025 and 2024, and recognized insignificant amounts in fiscal 2023. As of January 31, 2025 and 2024, none of the accrued unrecognized tax benefits, if recognized, would increase the benefit from or reduce the (provision for) income taxes, respectively, or the Company's effective tax rate. The Company does not expect any unrecognized tax benefits to be recognized within the next 12