Summary
Yext's first quarter fiscal 2025 revenue was $95.99 million, down $3.46 million or 3.5% from the prior-year quarter. Gross profit was $74.44 million, down $3.66 million or 4.7%, and gross margin was 77.6%, down 1.0 percentage point. The operating loss was $5.43 million, down $4.19 million or 340.4%, and operating margin was negative 5.7%, down 4.4 percentage points. Net loss was $3.82 million, down $3.40 million from the prior-year quarter, and diluted EPS was negative $0.03, down $0.03 and swung to a loss.
Cash flow from operations was $38.31 million, up $11.56 million or 43.2%. Capital expenditures were $0.65 million, down $0.30 million or 31.5%. Deferred revenue, current portion, was $185.22 million, down $11.83 million or 6.0%. Remaining performance obligations were $431.60 million, up $3.70 million or 0.9%.
Non-GAAP results showed Adjusted EBITDA of $9.6 million, compared with $14.4 million in the prior-year quarter. Non-GAAP net income was $6.4 million, compared with $10.6 million. Non-GAAP EPS was $0.05. Non-GAAP gross profit was $75.1 million, a decrease of 5%, and non-GAAP gross margin was 78.3%, compared with 79.2%. Non-GAAP operating expenses were $68.5 million, or 71% of revenue, compared with $69.0 million, or 69% of revenue. Annual recurring revenue was $382.6 million as of April 30, 2024, a decrease of 4% from $398.3 million as of April 30, 2023. Direct customer ARR was $312.1 million, down 4%, and third-party reseller ARR was $70.5 million, down 2%. Total dollar-based net retention rate was 91%, with direct customers at 91% and third-party reseller customers at 94%. Customer count was over 2,990 as of April 30, 2024.
Guidance for the second quarter of fiscal 2025 puts Adjusted EBITDA at $8.0 million to $8.5 million and non-GAAP EPS at $0.02 to $0.03. Full year fiscal 2025 guidance calls for Adjusted EBITDA of $65.0 million to $67.0 million and non-GAAP EPS of $0.35 to $0.36. The company also introduced revenue guidance for both periods. Both Adjusted EBITDA ranges include severance costs tied to the restructuring actions, and management said it expects Adjusted EBITDA margins to climb to the mid-20s in the second half of the year. The restructuring plan affects approximately 12% of full-time employees, with about $5 million of costs expected in the second quarter and about $1 million of severance costs incurred in the first quarter.
Yext entered a definitive agreement to acquire Hearsay Systems for $125 million, and the deal is expected to close in the second half of fiscal year 2025. Hearsay serves 260,000 advisors and agents and brings compliant engagement solutions across social media, websites, texting and voice messaging. The acquisition is expected to expand Yext's market opportunity and carry Hearsay's capabilities into industries beyond financial services. Management pointed to a difficult selling environment, with headwinds in deal cycles, budget pressures and scrutiny, and deals pushed out of the first quarter into the second quarter or the second half of the year. Retention could face pressure this year. A large customer churn in the fourth quarter of fiscal 2024 still weighed on results, cutting ARR by $10.8 million and affecting three months of first quarter revenue. Foreign currency rates had a negative impact on ARR of about $1.8 million on a constant currency basis. Customer wins included a U.S. discount variety store with over 15,000 stores, a food services operator with more than 5,000 locations, and four major U.S. healthcare providers. Generative Review Response reached over 500 unique accounts.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q1 FY2025 | Q4 FY2024 | QoQ | Q1 FY2024 | YoY |
|---|---|---|---|---|---|
| Revenue | $96.0M | $101.1M | -5.1% | $99.5M | -3.5% |
| Gross profit | $74.4M | $79.4M | -6.3% | $78.1M | -4.7% |
| Gross margin | 77.5% | 78.6% | -1.0 pp | 78.5% | -1.0 pp |
| Research & development | $17.1M | $18.1M | -5.8% | $16.8M | +1.8% |
| Sales & marketing | $43.3M | $41.9M | +3.3% | $44.0M | -1.7% |
| General & administrative | $19.6M | $18.4M | +6.2% | $18.6M | +5.2% |
| Total operating expenses | $79.9M | $78.4M | +1.9% | $79.3M | +0.7% |
| Operating income (loss) | -$5.4M | $1.0M | -620.2% | -$1.2M | -340.4% |
| Operating margin | -5.7% | 1.0% | -6.7 pp | -1.2% | -4.4 pp |
| Net income (loss) | -$3.8M | $1.7M | -326.3% | -$412.0K | -826.5% |
| Net margin | -4.0% | 1.7% | -5.7 pp | -0.4% | -3.6 pp |
| Diluted EPS | -$0.03 | $0.01 | -$0.04 | $0.00 | -$0.03 |
| Net retention rate | 91.0% | 92.0% | -1.0 pp | 97.0% | -6.0 pp |
Risks
Revenue was $96.0 million for the quarter ended April 30, 2024, down 3.5% from the prior-year quarter. The filing attributes the decline primarily to the attrition of a large customer that occurred during the three months ended January 31, 2024, and says the cost-cutting plan could further limit organic growth.
The top five customers accounted for approximately 8% of revenue in fiscal 2024. Yext experienced attrition of one of these top-five customers during the three months ended January 31, 2024, and ARR as of April 30, 2024 includes a decrease of $10.8 million related to that attrition, which is expected to primarily affect fiscal 2025 quarterly results.
Net loss was $3.8 million for the quarter ended April 30, 2024, compared with $0.4 million in the prior-year quarter, and operating loss widened to $5.4 million from $1.2 million. Accumulated deficit was $683.0 million as of April 30, 2024.
On June 4, 2024, Yext committed to a restructuring plan reducing workforce by approximately 12% compared with headcount as of January 31, 2024, with estimated charges of approximately $5 million and substantial completion expected in the second quarter of fiscal 2025. Prior reductions and leadership changes may disrupt execution and culture.
Yext agreed to acquire Hearsay Social for $125 million in cash, plus a $20 million key-employee bonus pool and up to $75 million in contingent earnout consideration tied to annual recurring revenue targets. The filing cites limited acquisition experience and integration risks, including diversion of management attention and failure to realize expected benefits.
Total dollar-based net retention rate was 91% at April 30, 2024, down from 96% at April 30, 2023, and direct customer net retention was 91%, down from 97%. The decline reflects customer contraction and churn, including the large customer attrition.
Yext is incorporating generative AI into some products, and the filing notes compliance and reputational risks. The EU AI Act, if enacted as drafted, could categorize its AI systems as high or limited risk, imposing additional obligations and potential fines of the greater of EUR 35 million or 7% of worldwide annual turnover for certain violations.
MD&A states that foreign currency fluctuations and rising inflation have had and may continue to have an adverse impact. Customers may reduce, suspend or delay technology spending, renegotiate contracts for concessions such as extended billing and payment terms, shorten contract durations, or elect not to renew subscriptions.
Third-party reseller customers are a significant revenue source and are not controlled by Yext. Reseller ARR was $70.5 million at April 30, 2024, down 2% from $72.2 million at April 30, 2023, and the filing warns resellers may not renew, purchase fewer licenses, or renegotiate on less favorable terms.
Yext sells to enterprises with complex operating environments, resulting in long and unpredictable sales cycles that may lengthen under uncertain macroeconomic conditions. Customer decisions may require senior management approval, reducing the likelihood of completing a sale and increasing period-to-period variability.
The credit facility contains restrictive covenants and requires maintenance of a consolidated quick ratio of at least 1.50 to 1.00 and recurring revenue growth above specified rates when liquidity thresholds are not met. As of April 30, 2024, Yext was in compliance and had $36.6 million available under the $50.0 million revolving loan facility.
SaaS KPIs
All quarters →Customer Count
Remaining Performance Obligations (RPO)
Adjusted EBITDA
Non-GAAP Gross Margin
Non-GAAP Operating Margin
ARR
Dollar-Based Net Retention Rate (Total Customers)
Adjusted EBITDA Margin
Dollar-Based Net Retention Rate (Direct Customers)
Dollar-Based Net Retention Rate (Third-Party Reseller Customers)
Annual Recurring Revenue - Direct Customers
Annual Recurring Revenue - Third-Party Reseller Customers
Summary, forecast, risks and KPIs are extracted from Yext, Inc.'s SEC filings for Q1 FY2025 (10-Q / 10-K and the 8-K earnings release); GAAP figures in the summary are checked against the reported XBRL data. They can contain errors; the filings are authoritative. Processed Oct 6, 2026.