Yext Reports 14% Revenue Growth to $109.5 Million, Achieves Net Income of $770,000

Yext, Inc. reported a revenue of $109.5 million for the three months ended April 30, 2025, marking a 14% increase from $96.0 million in the same period last year. This growth was primarily attributed to the acquisition of Hearsay, which contributed significantly to the revenue figures. The company achieved a net income of $770,000, a notable recovery from a net loss of $3.8 million in the prior year. The gross profit for the quarter was $82.4 million, resulting in a gross margin of 75.2%, slightly down from 77.6% in the previous year, reflecting increased costs associated with the Hearsay acquisition.

Operating expenses totaled $81.3 million, up from $79.9 million a year earlier, driven by higher research and development costs, which rose by 28% to $21.9 million. Sales and marketing expenses decreased by 16% to $36.2 million, reflecting a strategic reduction in personnel-related costs. The company reported a significant increase in stock-based compensation, which amounted to $12.7 million, up from $12.1 million in the previous year. The overall operating income was $1.1 million, a turnaround from an operating loss of $5.4 million in the same quarter last year.

Yext's customer base showed positive trends, with annual recurring revenue (ARR) for direct customers reaching $371.9 million, a 19% increase from the previous year. The company also reported a dollar-based net retention rate of 95% for direct customers, up from 91% a year ago, indicating improved customer retention and expansion. The company’s international revenue remained stable at $20.6 million, contributing to 19% of total revenue, with North America accounting for the majority at 81%.

Strategically, Yext completed the acquisition of Places Scout for $20.3 million in cash on February 7, 2025, enhancing its competitive intelligence and AI capabilities. The company also entered into a new credit agreement with BlackRock on May 15, 2025, providing up to $200 million in term loan facilities, which will be used to repay existing debt and support future growth initiatives. Looking ahead, Yext remains focused on integrating its acquisitions and expanding its product offerings while navigating macroeconomic challenges that may impact customer spending and technology investments.