Yext, Inc 8-K/A, filed Oct 17, 2024

Yext, Inc. (YEXT)

8-K/A 2024-10-17 For: 2024-08-01

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Added on April 09, 2026

About this 8-K/A

Yext, Inc filed this 8-K/A on October 17, 2024, reporting on events of August 1, 2024.

Items reported

Item 9.01: Financial statements and exhibits

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Exhibit Number						Description

23.1						Consent of Grant Thornton LLP, independent registered public accounting firm of Hearsay Social, Inc.
99.1						Audited financial statements of Hea rsay Social, Inc . as of and for the year ended December 31, 2023 .
99.2						Unaudited financial statements of Hearsay Social, Inc. as of and for the three months ended March 31, 2024 .
99.3						Unaudited pro forma condensed combined financial statements of Yext, Inc. as of April 30, 2024 for the three months ended April 30,2024 and for the year ended January 31, 2024 .
104						Cover Page Interactive Data File (embedded within the Inline XBRL document)


									YEXT, INC.

						By:			/s/ Darryl Bond
									Darryl Bond Chief Financial Officer (Principal Financial Officer)


REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS			3
Consolidated Financial Statements			5
Consolidated Balance Sheet			5
Consolidated Statements of Operations and Comprehensive Loss			6
Consolidated Statements of Convertible Preferred Stock and Stockholders’ Deficit			7
Consolidated Statements of Cash Flows			8
Notes to Consolidated Financial Statements			9


	December 31, 2023
Assets
Current assets:
Cash and cash equivalents	$	12,162
Accounts receivable, net of allowance of $94 as of December 31, 2023	18,741
Prepaid expenses and other current assets	2,310
Deferred commissions	978
Total current assets	34,191

Property and equipment, net	4,160
Operating lease right-of-use assets	103
Restricted cash	493
Deferred commissions, noncurrent	1,727
Other assets	199
Total assets	$	40,873
Liabilities, convertible preferred stock, and stockholders’ deficit
Current liabilities:
Accounts payable	$	78
Accrued liabilities	10,975

Deferred revenue, current	37,132
Operating lease liabilities, current	511
Total current liabilities	48,696
Other non-current liabilities	110
Deferred revenue, net of current portion	726
Operating lease liabilities, net of current portion	8
Total liabilities	49,540
Convertible preferred stock
Series A convertible preferred stock, par value $0.0001 – 23,500 shares authorized; 23,488 shares issued and outstanding at December 31, 2023 (liquidation preference $3,000)	$	2,950
Series B convertible preferred stock, par value $0.0001 – 16,240 shares authorized; 16,129 shares issued and outstanding at December 31, 2023 (liquidation preference $18,000)	17,900
Series C convertible preferred stock, par value $0.0001 – 18,620 shares authorized; 18,610 shares issued and outstanding at December 31, 2023 (liquidation preference $29,999)	29,960
Series CRM convertible preferred stock, par value $0.0001 – 11,334 shares authorized; 11,334 shares issued and outstanding at December 31, 2023 (liquidation preference $9,999)	9,933
Total convertible preferred stock liabilities	60,743
Stockholders’ deficit:
Common stock, par value $0.0001; 153,979 authorized shares, 39,490 shares issued and outstanding at December 31, 2023	1
Additional paid-in capital	19,566
Accumulated deficit	(88,977)
Total stockholders’ deficit	(69,410)
Total liabilities, convertible preferred stock, and stockholders’ deficit	$	40,873


	December 31, 2023
Revenue	$	60,471
Cost of revenue	15,537
Gross profit	44,934
Operating expenses:
Product development	23,828
Sales and marketing	20,021
General and administrative	10,969
Total operating expenses	54,818
Operating loss	(9,884)
Other income (expense), net	84
Loss before provision for income taxes	(9,800)
Provision for income taxes	390
Net loss	(10,190)
Total comprehensive loss	$	(10,190)




	Convertible Preferred Stock			Common Stock			Additional Paid-In		Accumulated		Total Stockholders’
	Shares	Amount		Shares	Amount		Capital		Deficit		Deficit
Balance, December 31, 2022	69,561	$	60,743	38,933	$	1	$	17,854	$	(78,960)	$	(61,105)
Exercise of stock options	—	—		557	—		260		—		260
Stock-based compensation	—	—		—	—		1,452		—		1,452
Cumulative effect adoption of ASC 326	—	—		—	—		—		173		173
Net loss	—	—		—	—		—		(10,190)		(10,190)
Balance, December 31, 2023	69,561	$	60,743	39,490	$	1	$	19,566	$	(88,977)	$	(69,410)


	Fiscal year ending December 31,
	2023
Operating activities:
Net loss	$	(10,190)
Adjustments to reconcile net loss to net cash used in operating activities:
Amortization of debt issuance costs	1
Amortization of deferred commissions	933
Depreciation and amortization	876
Stock-based compensation	1,452

Bad debt expense	(5)


Changes in operating assets and liabilities:
Accounts receivable	891
Prepaid assets, other current assets and other assets	160
Deferred commissions	(1,806)
Accounts payable	60
Accrued liabilities and other liabilities	665
Lease obligations	(1,369)
Deferred revenue	329
Net cash used in operating activities	(8,003)
Investing activities:
Capitalized internally developed software	(1,974)
Purchases of property and equipment	(362)
Net cash used in investing activities	(2,336)
Financing activities:
Proceeds from exercise of stock options and stock warrants	260
Repayment of debt	(2,500)
Net cash used in financing activities	(2,240)
Net decrease in cash, cash equivalents and restricted cash	(12,579)

Cash, cash equivalents and restricted cash:
Beginning of year	$	25,234
End of year	$	12,655
Cash, cash equivalents and restricted cash at end of year:
Cash and cash equivalents	$	12,162
Restricted cash	493
Total cash, cash equivalents, and restricted cash at end of year	$	12,655

Supplemental disclosures of cash flow information:
Cash paid for:
Income taxes	$	517
Interest	42


	December 31, 2023
(in thousands)	Level 1		Level 2		Level 3		Total Estimated Fair Value

Cash equivalents - Money market funds	$	5,400	$	—	$	—	$	5,400
Liabilities - common stock warrant liability	—		—		110		110
Total	$	5,400	$	—	$	110	$	5,510


			2023
Expected term (years)			2.0 - 4.4
Risk-free interest rate			4.1% - 4.4%
Expected volatility			75.36%
Expected dividend yield			—
EPS expected annual growth rate			22.4%
Discount rate			29.0%
Weighted average fair value of warrants			$0.90


	Year ended December 31, 2023
Balance at beginning of the period	$	272
Provisions for credit losses, net of recoveries	(5)
Write offs	—
Cumulative effect adoption of ASC 326	(173)
Balance at end of the period	$	94


Property and equipment, net (in thousands):	December 31, 2023
Furniture	$	482
Computer hardware	1,049
Leasehold improvements	1,695
Internally developed software cost	9,481
Software	23
Total property and equipment, gross	12,730
Less: accumulated depreciation and amortization	(9,219)
Total depreciable property and equipment	3,511
Construction in progress - internally developed software	649
Total	$	4,160


Accrued and other current liabilities (in thousands):	December 31, 2023
Accrued salaries and taxes	$	367
Accrued royalty	10
Accrued commissions	1,102
Accrued bonuses	2,355
Accrued sales taxes payable	6,244
Other accrued expenses	897
Total accrued and other current liabilities	$	10,975


Years ending December 31,
2024	$	515
2025	8
Total future minimum lease payments	523
Less: imputed interest	(4)
Present value of lease liabilities	$	519


Shares Preferred Stock	Authorized	Shares Issued and Outstanding	Original Issuance Value (Less Issuance Costs)		Liquidation Value
Series A preferred stock	23,500	23,488	$	2,950	$	3,000
Series B preferred stock	16,240	16,129	17,900		18,000
Series C preferred stock	18,620	18,610	29,960		29,999
Series CRM preferred stock	11,334	11,334	9,933		9,999


	Shares	Weighted-Average Exercise Price		Weighted-Average Remaining Contractual Term
Balance, December 31, 2022	31,139	$	0.47	5.9
Granted	4,327	0.50
Exercised	(557)	0.47
Forfeited	(1,543)	0.48
Canceled	(3,420)	0.43
Balance, December 31, 2023	29,946	$	0.48	5.7
Unvested as of December 31, 2023	8,343	$	0.49
Exercisable at December 31, 2023	21,603	$	0.48


	Yext, Inc. (Historical)		Hearsay, Social, Inc. (Historical)		Transaction Adjustments (Note 5)			Pro Forma Combined
Revenue	$	95,990	$	15,251	$	—		$	111,241
Cost of revenue	21,546		3,877		1,208		i	26,631
Gross profit	74,444		11,374		(1,208)			84,610
Operating expenses:
Sales and marketing	43,254		4,542		2,443		i	50,239
Research and development	17,059		5,384		87		i	22,530
General and administrative	19,557		2,647		(112)		i	22,092
Total operating expenses	79,870		12,573		2,418			94,861
Loss from operations	(5,426)		(1,199)		(3,626)			(10,251)
Interest income	2,360		—		177		ii	2,537
Interest expense	(392)		—		—		ii	(392)
Other (expense) income, net	(138)		69		(137)		ii	(206)
Loss from operations before income taxes	(3,596)		(1,130)		(3,586)			(8,312)
Benefit from (provision for) income taxes	(221)		(61)		1,117		iii	835
Net loss	$	(3,817)	$	(1,191)	$	(2,469)		$	(7,477)

Net loss per share attributable to common stockholders, basic and diluted	$	(0.03)						$	(0.06)

Weighted-average number of shares used in computing net loss per share attributable to common stockholders, basic and diluted	125,387,162				1,020,474		iv	126,407,636


	Yext, Inc. (Historical)		Hearsay, Social, Inc. (Historical)		Transaction Adjustments (Note 5)			Pro Forma Combined
Revenue	$	404,322	$	60,471	$	—		$	464,793
Cost of revenue	87,468		15,537		5,898		i	108,903
Gross profit	316,854		44,934		(5,898)			355,890
Operating expenses:
Sales and marketing	178,830		20,021		18,666		i	217,517
Research and development	72,040		23,828		5,200		i	101,068
General and administrative	72,185		10,969		12,492		i	95,646
Total operating expenses	323,055		54,818		36,358			414,231
Loss from operations	(6,201)		(9,884)		(42,256)			(58,341)
Interest income	7,094		—		427		ii	7,521
Interest expense	(470)		—		(43)		ii	(513)
Other (expense) income, net	(761)		84		(384)		ii	(1,061)
Loss from operations before income taxes	(338)		(9,800)		(42,256)			(52,394)
Benefit from (provision for) income taxes	(2,292)		(390)		9,330		iii	6,648
Net loss	$	(2,630)	$	(10,190)	$	(32,926)		$	(45,746)

Net loss per share attributable to common stockholders, basic and diluted	$	(0.02)						$	(0.37)
Weighted-average number of shares used in computing net loss per share attributable to common stockholders, basic and diluted	124,056,949				1,004,150		iv	125,061,099


Cash consideration and liabilities incurred	$	134,841
Earnout consideration	45,200
Rollover equity - exchange of stock awards	7,825
Total preliminary purchase consideration	$	187,866


Intangible Assets	Approximate Fair Value		Estimated Useful Life
			(in years)
Customer relationships	$	117,200	12.0
Technology	17,300		3.0
Trademark	900		3.0
Total	$	135,400


(in thousands)	December 31, 2023
Current:
Federal	$	—
State	267
Foreign	123
Total current	390
Deferred:
Federal	—
State	—
Foreign	—
Total deferred	—
Total provision for income taxes	$	390



Balance as of December 31, 2022	$	8
Gross increases/decreases related to current period tax positions	—
Gross increases/decreases related to prior period tax positions	—
Balance as of December 31, 2023	$	8


Interim Financial Statements			1
Condensed Consolidated Balance Sheet			1
Condensed Consolidated Statements of Operations and Comprehensive Loss			2
Condensed Consolidated Statements of Convertible Preferred Stock and Stockholders’ Deficit			3
Condensed Consolidated Statements of Cash Flows			4
Notes to Condensed Consolidated Financial Statements			5


	As of March 31, 2024
Assets
Current assets:
Cash and cash equivalents	$	19,014
Accounts receivable, net of allowances	4,915
Prepaid expenses and other current assets	2,760
Deferred commissions	918
Total current assets	27,607
Property and equipment, net	4,317

Operating lease right-of-use assets	80
Deferred commissions, noncurrent	1,593
Other long term assets	223
Total assets	$	33,820
Liabilities, convertible preferred stock, and stockholders’ deficit
Current liabilities:
Accounts payable, accrued expenses and other current liabilities	$	9,650

Deferred revenue, current	28,817
Lease liability, current	496
Line of credit	3,000
Total current liabilities	41,963
Other non-current liability	110
Deferred revenue, net of current portion	1,266

Total liabilities	43,339
Convertible preferred stock
Series A convertible preferred stock, par value $0.0001 – 23,500 shares authorized; 23,488 shares issued and outstanding at March 31, 2024 (liquidation preference $3,000)	2,950
Series B convertible preferred stock, par value $0.0001 – 16,240 shares authorized; 16,129 shares issued and outstanding at March 31, 2024 (liquidation preference $18,000)	17,900
Series C convertible preferred stock, par value $0.0001 – 18,620 shares authorized; 18,610 shares issued and outstanding at March 31, 2024 (liquidation preference $29,999)	29,960
Series CRM convertible preferred stock, par value $0.0001 – 11,334 shares authorized; 11,334 shares issued and outstanding at March 31, 2024 (liquidation preference $9,999)	9,933
Total convertible preferred stock liabilities	60,743
Stockholders’ deficit:
Common stock, $0.0001 par value per share;	1
Additional paid-in capital	19,905
Accumulated deficit	(90,168)
Total stockholders’ deficit	(70,262)
Total liabilities, convertible preferred stock, and stockholders’ deficit	$	33,820


	Three months ended March 31, 2024
Revenue	$	15,251
Cost of revenue	3,877
Gross profit	11,374
Operating expenses:
Product development	5,384
Sales and marketing	4,542
General and administrative	2,647
Total operating expenses	12,573
Operating loss	(1,199)
Other income (expense), net	69
Loss before provision for income taxes	(1,130)
Provision for income taxes	61
Net loss	$	(1,191)
Comprehensive loss	$	(1,191)



							Additional				Total
	Convertible Preferred Stock			Common Stock			Paid-In		Accumulated		Stockholders’
	Shares	Amount		Shares	Amount		Capital		Deficit		Deficit
Balance, December 31, 2023	69,561	$	60,743	39,490	$	1	$	19,566	$	(88,977)	$	(69,410)
Exercise of stock options	—	—		16	—		8		—		8
Stock-based compensation	—	—		—	—		331		—		331

Net loss	—	—		—	—		—		(1,191)		(1,191)
Balance, March 31, 2024	69,561	$	60,743	39,506	$	1	$	19,905	$	(90,168)	$	(70,262)


	March 31, 2024
(in thousands)	Level 1		Level 2		Level 3		Total

Cash equivalents - Money market funds	$	7,768	$	—	$	—	$	7,768
Other non-current liabilities - common stock warrant liability	—		—		110		110
Total	$	7,768	$	—	$	110	$	7,878


	Yext, Inc. (Historical)		Hearsay Social, Inc. (Historical)		Transaction Adjustments (Note 4)			Pro Forma Combined
Assets
Current assets:
Cash and cash equivalents	$	246,114	$	19,014	$	(125,765)	a	$	139,363
Accounts receivable, net	53,552		4,915		704		b	59,171
Prepaid expenses and other current assets	15,462		2,760		22,871		c	41,093
Costs to obtain revenue contracts, current	24,446		918		(918)		d	24,446
Total current assets	339,574		27,607		(103,108)			264,073

Property and equipment, net	46,203		4,317		(3,919)		e	46,601
Operating lease right-of-use assets	73,896		80		334		f	74,310
Costs to obtain revenue contracts, non-current	14,534		1,593		(1,593)		d	14,534
Goodwill	4,450		—		78,502		g	82,952
Intangible assets, net	162		—		135,400		g	135,562
Other long term assets	2,911		223		(131)		h	3,003
Total assets	$	481,730	$	33,820	$	105,485		$	621,035
Liabilities, convertible preferred stock and stockholders’ equity/(deficit)
Current liabilities:
Accounts payable, accrued expenses and other current liabilities	$	33,080	$	9,650	$	26,656	i	$	69,386
Unearned revenue, current	185,220		28,817		7,306		j	221,343
Short term debt	—		3,000		(3,000)		h	—
Operating lease liabilities, current	17,215		496		(422)		f	17,289
Total current liabilities	235,515		41,963		30,540			308,018
Operating lease liabilities, non-current	86,305		—		340		f	86,645
Unearned revenue, non-current	—		1,266		(1,266)		j	—
Other long term liabilities	4,236		110		60,805		k	65,151
Total liabilities	326,056		43,339		90,419			459,814
Convertible preferred stock	—		60,743		(60,743)		l	—
Stockholders’ equity/(deficit):
Preferred stock	—		—		—			—
Common stock	149		1		—		l	150
Additional paid-in capital	955,363		19,905		(12,255)		l	963,013
Accumulated other comprehensive loss	(4,608)		—		—			(4,608)
Accumulated deficit	(682,989)		(90,168)		88,064		l	(685,093)
Treasury stock, at cost	(112,241)		—		—			(112,241)
Total stockholders’ equity/(deficit)	155,674		(70,262)		75,809			161,221
Total liabilities, convertible preferred stock and stockholders’ equity/(deficit)	$	481,730	$	33,820	$	105,485		$	621,035


Assets	August 1, 2024
Cash and cash equivalents	$	26,365
Accounts receivable, net	5,619
Prepaid expenses and other current assets	8,406
Property and equipment	397
Operating lease right-of-use assets	414
Goodwill	78,502
Intangible assets	135,400
Other long term assets	94
Total assets acquired	$	255,197
Liabilities
Accounts payable, accrued expenses and other current liabilities	$	15,078
Unearned revenue, current	36,123
Operating lease liabilities, current	74
Operating lease liabilities, non-current	340
Other long term liabilities	15,716
Total liabilities assumed	67,331
Net assets acquired	$	187,866


Cash and cash equivalents (1)(6)	$	(133,116)
Prepaid expenses and other current assets (2)	17,225
Accounts payable, accrued expenses and other current liabilities (3)	(19,124)
Other long term liabilities (4)	(45,200)
Common stock (5)	(1)
Additional paid-in-capital (5)	(7,650)
Total preliminary consideration transferred	$	(187,866)


Purchase considerations	$	(133,116)
Adjustment to Fair value as of Closing Date - Note 3	7,351
Total Transaction Adjustments	$	(125,765)


Restricted cash - Note 4(a)	$	17,225
Adjustment to Fair value as of Closing Date - Note 3	(204)
Indemnification asset(1)	5,850
Total Transaction Adjustments	$	22,871


	Operating Lease Right-of-Use Assets		Operating Lease Liabilities, Current		Operating Lease Liabilities, Non- Current
Fair value as of Closing Date – Note 3	$	414	$	74	$	340
Elimination of short term leases	(80)		(496)		—
Total Transaction Adjustments	$	334	$	(422)	$	340


Yext transaction costs (1)	$	2,104
Adjustment to Fair value of Closing Date - Note 3	5,428
Liabilities incurred - Note 4(a)	19,124
Total Transaction Adjustments	$	26,656


Earnout consideration - Note 4(a)	$	45,200
Common stock warrant liability(1)	(110)
Unearned revenue, non-current - Note 4(j)	1,583

Deferred tax liabilities(2)	12,632
Assumed liability(2)	1,500
Total Transaction Adjustments	$	60,805


As of April 30, 2024	Consideration Transferred (Note 4(a))		Yext Transaction Costs (Note 4(i))		Elimination of Historical Hearsay Equity (1)		Total Transaction Adjustments

Convertible preferred stock	$	—	$	—	$	(60,743)	$	(60,743)
Stockholders' equity/(deficit):							—
Common stock	1		—		(1)		—
Additional paid-in capital	7,650		—		(19,905)		(12,255)
Accumulated deficit	—		(2,104)		90,168		88,064
Total	$	7,651	$	(2,104)	$	9,519	$	15,066


For the Three Months Ended April 30, 2024	Reclassifications (a)		Capitalized Software and other (b)		Transaction costs (c)		Commission expense (d)		Stock-based Compensation (e)		Other Compensation Expense (f)		Intangible Asset Amortization (g)		Total Transaction Adjustments
Cost of revenue	$	119	$	(368)	$	—	$	—	$	15	$	—	$	1,442	$	1,208
Operating expenses:
Sales and marketing	50		—		—		(276)		152		—		2,517		2,443
Research and development	(25)		2		—		—		110		—		—		87
General and administrative	(144)		—		—		—		32		—		—		(112)
Total	$	—	$	(366)	$	—	$	(276)	$	309	$	—	$	3,959	$	3,626


For the Year Ended January 31, 2024	Reclassifications (a)		Capitalized Software and other (b)		Transaction costs (c)		Commission expense (d)		Stock-based Compensation (e)		Other Compensation Expense (f)		Intangible Asset Amortization (g)		Total Transaction Adjustments
Cost of revenue	$	476	$	(815)	$	—	$	—	$	79	$	391	$	5,767	$	5,898
Operating expenses:
Sales and marketing	201		—		—		(1,196)		1,284		8,310		10,067		18,666
Research and development	(102)		101		—		—		676		4,525		—		5,200
General and administrative	(575)		(9)		2,104		—		221		10,751		—		12,492
Total	$	—	$	(723)	$	2,104	$	(1,196)	$	2,260	$	23,977	$	15,834	$	42,256


For the Three Months Ended April 30, 2024	Reclassification		Elimination		Total Transaction Adjustments
Interest income	$	177	$	—	$	177
Interest expense	(40)		40		—
Other (expense) income, net	(137)		—		(137)
Total	$	—	$	40	$	40


For the Year Ended January 31, 2024	Reclassification		Elimination		Total Transaction Adjustments
Interest income	$	427	$	—	$	427
Interest expense	(43)		—		(43)
Other (expense) income, net	(384)		—		(384)
Total	$	—	$	—	$	—