Yext Reports 4% Revenue Growth to $421M, Net Loss Increases to $27.9M

Yext, Inc. reported a total revenue of $421.0 million for the fiscal year ending January 31, 2025, marking a 4% increase from $404.3 million in the previous fiscal year. This growth was primarily attributed to the acquisition of Hearsay Social, Inc., which contributed approximately $33.2 million in revenue since its acquisition on August 1, 2024. However, the overall revenue increase was tempered by the loss of a significant customer that did not renew its contract, which negatively impacted revenue by an estimated $3.2 million. The company also reported a net loss of $27.9 million for the fiscal year, a significant increase from a loss of $2.6 million in the prior year.

In terms of operational metrics, Yext's Annual Recurring Revenue (ARR) reached $442.7 million, up 13% from $392.2 million in the previous year. The company reported a dollar-based net retention rate of 93% for total customers, reflecting a slight improvement from 92% in the prior year. As of January 31, 2025, Yext had approximately 2,920 customers, a figure that includes both direct and third-party reseller customers. The company’s workforce was reduced by approximately 12% as part of a restructuring plan initiated in June 2024, aimed at reducing operating expenses and positioning the company for future profitability.

Yext's strategic developments included the acquisition of Hearsay, which is expected to enhance its digital presence management capabilities by integrating Hearsay's compliant engagement solutions. Additionally, the company completed the acquisition of KabanaSoft, LLC, doing business as Places Scout, for $20.3 million in cash on February 7, 2025. This acquisition is anticipated to bolster Yext's competitive intelligence and AI-powered insights offerings. The company continues to focus on expanding its Publisher Network, which includes over 200 service and application providers, to enhance its platform's reach and effectiveness.

The company’s financial performance was also impacted by rising costs, with total operating expenses increasing to $357.0 million from $323.1 million in the previous year. This increase was driven by higher general and administrative expenses, which rose by 46% due to costs associated with the Hearsay acquisition and increased stock-based compensation. Despite these challenges, Yext maintains a positive outlook, emphasizing its commitment to investing in product development and international expansion to drive future growth.

Looking ahead, Yext's management expressed cautious optimism, noting that while macroeconomic conditions could pose challenges, the company is focused on executing its business strategy and leveraging its acquisitions to enhance its service offerings. The company believes that its existing cash and cash equivalents of $123.1 million will be sufficient to meet its operational needs for at least the next 12 months, although it may seek additional capital to support future growth initiatives.