Company: YEXT
Filing Date: 2025-09-08
Form Type: 10-Q
Source: 0001614178-25-000119
Chunk: 8

Company: Yext, Inc.
Filing Date: 2025-09-08
Form: 10-Q
Item: Part I, Item 2
Chunk 8
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 the three months ended July 31, 2025, included a positive impact from foreign currency exchange rates of approximately $1.2 million, using a constant currency basis. We calculate constant currency by translating our current period results for entities reporting in currencies other than U.S. Dollars (“USD”) into USD at the average monthly exchange rates in effect during the comparative period, as opposed to the average monthly exchange rates in effect during the current period. 

The following table summarizes our revenue by sales channel for the periods presented:

Three months ended July 31,Variance20252024DollarsPercent(in thousands)Direct Customers$94,518 $79,261 $15,257 19 %Third-Party Reseller Customers18,576 18,626 (50)— %Total Revenue$113,094 $97,887 $15,207 16 %

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