Yext, Inc. 10-K

Item 7A. Quantitative and Qualitative Disclosures About Market Risk Market risk represents the risk of loss that may affect our financial position due to adverse changes in financial market prices and rates. We are exposed to market risks related to foreign currency exchange rates, inflation and interest rates. Foreign Currency Risk Assets and liabilities of non-U.S. subsidiaries that operate in a local currency environment, where the local currency is the functional currency, are translated from foreign currencies into U.S. dollars using month-end rates of exchange for assets and liabilities, and average rates for the period derived from month-end spot rates for revenue, costs and expenses. We record translation gains and losses in accumulated other comprehensive (loss) income as a component of stockholders' equity. We reflect net foreign exchange transaction gains and losses resulting from the conversion of the transaction currency to functional currency as a component of foreign currency exchange losses in other expense, net. Based on the size of our international operations and the amount of our expenses denominated in foreign currencies, we would not expect a 10% change in the value of the U.S. dollar from rates on January 31, 2021 to have a material effect on our financial position or results of operations. These exposures may change over time as business practices evolve and economic conditions change, including market impacts associated with COVID-19. Inflation Risk We do not believe that inflation has had a material effect on our business, financial condition or results of operations, other than its impact on the general economy. Nonetheless, if our costs were to become subject to inflationary pressures, we may not be able to fully offset such higher costs through price increases. Our inability or failure to do so could harm our business, financial condition and results of operations. Interest Rate Risk As of January 31, 2021, we had cash and cash equivalents of $230.4 million. The primary objective of our investments is the preservation of capital to fulfill liquidity needs. We do not enter into investments for trading or speculative purposes. We do not believe our cash equivalents have significant risk of default or illiquidity. While we believe our cash equivalents do not contain excessive risk, we cannot assure you that in the future our investments will not be subject to adverse changes in market value. In addition, we maintain significant amounts of cash and cash equivalents at one or more financial institutions that are in excess of federally insured limits and are exposed to counterparty risk. We have not been exposed to, nor do we anticipate being exposed to, material risks due to changes in interest rates. A hypothetical 10% change in interest rates during any of the periods presented would not have had a material impact on our financial statements. 53 Item 8. Consolidated Financial Statements and Supplementary Data Index to Consolidated Financial Statements PAGE Reports of Independent Registered Public Accounting Firm 55 Consolidated Balance Sheets 58 Consolidated Statements of Operations and Comprehensive Loss 59 Consolidated Statements of Stockholders' Equity 60 Consolidated Statements of Cash Flows 61 Notes to Consolidated Financial Statements 62 54 REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Stockholders and the Board of Directors of Yext, Inc. Opinion on the Financial Statements We have audited the accompanying consolidated balance sheets of Yext, Inc. (the Company) as of January 31, 2021 and 2020, the related consolidated statements of operations and comprehensive loss, stockholders’ equity and cash flows for each of the three years in the period ended January 31, 2021, and the related notes (collectively referred to as the "consolidated financial statements"). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company at January 31, 2021 and 2020, and the results of its operations and its cash flows for each of the three years in the period ended January 31, 2021, in conformity with U.S. generally accepted accounting principles. We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company's internal control over financial reporting as of January 31, 2021, based on criteria established in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework), and our report dated March 16, 2021 expressed an adverse opinion thereon. Basis for Opinion These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion. Critical Audit Matters The critical audit matters communicated below are matters arising from the current period audit of the financial statements that were communicated or required to be communicated to the audit committee and that: (1) relate to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matters below, providing separate opinions on the critical audit matters or on the accounts or disclosures to which they relate. Completeness and Measurement of Costs Capitalized to Obtain Revenue Contracts Description of the Matter The Company capitalized $33.2 million of costs to obtain revenue contracts during the year ended January 31, 2021. As described in Note 2 to the consolidated financial statements, capitalized costs are inclusive of sales commissions and any associated payroll taxes or fringe benefit costs that are incremental to obtain the contract with the customer but expected to be recoverable. Auditing the costs capitalized to obtain contracts with the customers required complex auditor judgment and was especially challenging due to the material weakness identified by the Company and the impact it had on management’s evaluation of completeness and measurement of these costs. The Company has a high volume of sales commission plans with various underlying criteria and inputs used to calculate amounts capitalized to obtain contracts with the customers. The material weakness required an increased extent of audit effort to test the completeness and accuracy of inputs of the commission-eligible revenue contracts and measurement of incremental costs eligible for capitalization. 55 How We Addressed the Matter in Our Audit We performed audit procedures that included, among others, assessing whether those costs capitalized were eligible costs and met the criteria of incremental and recoverable. For example, we tested a sample of commissions transactions by reviewing and assessing the underlying commission plan and tested the measurement of capitalized costs by recalculating the amount earned based on sales and contract data. We validated that each commission earned and capitalized was an incremental cost to obtain a revenue contract. To respond to the material weakness, we performed incremental audit procedures, for instance, by increasing our sample size related to commission transactions. Our procedures also included reconciling the capitalized commission population to sales commissions paid throughout the year. We performed a retrospective review of commission payments made subsequent to the balance sheet date related to commissions earned in the current fiscal year to test the completeness of costs capitalized. Revenue Recognition Description of the Matter The Company recorded consolidated revenue and unearned revenue of $354.7 million and $192.0 million, respectively, for the year ended January 31, 2021. As described in Note 2 to the consolidated financial statements, the Company primarily earns revenue from subscriptions and associated support to the platform. The Company’s revenue contracts include contractual terms and conditions that can impact the amount allocated to each of its performance obligations and the timing of revenue recognition. Auditing the timing and measurement of the Company's revenue recognition was especially challenging due to the volume of executed contracts and the assessment of the unique terms. This involved assessing the contractual terms and conditions of both new and modified contracts to determine the contract period, identifying all performance obligations, and determine if the transaction price expected to be received was fixed or variable. How We Addressed the Matter in Our Audit We obtained an understanding, evaluated the design, and tested the operating effectiveness of the Company’s internal controls over the accounting for revenue. For example, we tested controls over the Company’s processes to evaluate contractual terms and conditions and determine the timing and amount of revenue to be recognized related to the performance obligations identified as services are transferred to the customer. This included testing relevant controls over the IT systems that are important to the initiation, processing and recording of revenue transactions. We performed audit procedures that included, among others, reading a sample of revenue contracts to evaluate the contractual terms and conditions, identify performance obligations, assess the fixed and variable components to determine the transaction price, and assess the measurement and timing of revenue recognized and unearned revenue recorded as of year-end. We tested the revenue recognized and unearned revenue as of year-end through analytical procedures, including the recalculation of balances on a disaggregated basis. Finally, we assessed the appropriateness of the related disclosures in the consolidated financial statements. /s/ Ernst & Young, LLP We have served as the Company’s auditors since 2014. New York, New York March 16, 2021 56 REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Stockholders and the Board of Directors of Yext, Inc. Opinion on Internal Control over Financial Reporting We have audited Yext, Inc.’s internal control over financial reporting as of January 31, 2021, based on criteria established in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework) (the COSO criteria). In our opinion, because of the effect of the material weakness described below on the achievement of the objectives of the control criteria, Yext, Inc. (the Company) has not maintained effective internal control over financial reporting as of January 31, 2021, based on the COSO criteria. A material weakness is a deficiency, or combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of the company’s annual or interim financial statements will not be prevented or detected on a timely basis. The following material weakness has been identified and included in management’s assessment. Management has identified a material weakness related to the Company’s processes to calculate, record and account for sales commissions. We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated balance sheets of Yext, Inc. as of January 31, 2021 and 2020, the related consolidated statements of operations and comprehensive loss, stockholders’ equity, and cash flows for each of the three years in the period ended January 31, 2021, and the related notes. This material weakness was considered in determining the nature, timing and extent of audit tests applied in our audit of the 2021 consolidated financial statements, and this report does not affect our report dated March 16, 2021 which expressed an unqualified opinion thereon. Basis for Opinion The Company’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting included in the accompanying Management’s Report on Internal Control over Financial Reporting. Our responsibility is to express an opinion on the Company’s internal control over financial reporting based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Definition and Limitations of Internal Control Over Financial Reporting A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements. Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. /s/ Ernst & Young, LLP New York, New York March 16, 2021 57 YEXT, INC. Consolidated Balance Sheets (In thousands, except share and per share data) January 31, 2021 January 31, 2020 Assets Current assets: Cash and cash equivalents $ 230,411 $ 256,076 Accounts receivable, net of allowances of $ 2,528 and $ 995 , respectively 97,455 80,583 Prepaid expenses and other current assets 17,993 12,730 Costs to obtain revenue contracts, current 30,325 28,423 Total current assets 376,184 377,812 Restricted cash — 12,100 Property and equipment, net 80,344 26,200 Operating lease right-of-use assets 104,844 111,973 Costs to obtain revenue contracts, non-current 22,692 26,051 Goodwill 4,842 4,534 Intangible assets, net 767 1,343 Other long term assets 6,316 3,607 Total assets $ 595,989 $ 563,620 Liabilities and stockholders’ equity Current liabilities: Accounts payable, accrued expenses and other current liabilities $ 54,186 $ 59,482 Unearned revenue, current 191,810 176,806 Operating lease liabilities, current 14,165 8,640 Total current liabilities 260,161 244,928 Operating lease liabilities, non-current 123,584 115,187 Other long term liabilities 5,009 2,293 Total liabilities 388,754 362,408 Commitments and contingencies (Note 13) Stockholders’ equity: Preferred stock, $ 0.001 par value per share; 50,000,000 shares authorized at January 31, 2021 and 2020; zero shares issued and outstanding at January 31, 2021 and 2020 — — Common stock, $ 0.001 par value per share; 500,000,000 shares authorized at January 31, 2021 and 2020, respectively; 130,494,513 and 122,335,709 shares issued at January 31, 2021 and 2020, respectively; 123,989,179 and 115,830,375 shares outstanding at January 31, 2021 and 2020, respectively 130 122 Additional paid-in capital 733,933 636,008 Accumulated other comprehensive income (loss) 2,422 ( 360 ) Accumulated deficit ( 517,345 ) ( 422,653 ) Treasury stock, at cost ( 11,905 ) ( 11,905 ) Total stockholders’ equity 207,235 201,212 Total liabilities and stockholders’ equity $ 595,989 $ 563,620 See the accompanying notes to the consolidated financial statements. 58 YEXT, INC. Consolidated Statements of Operations and Comprehensive Loss (In thousands, except share and per share data) Fiscal year ended January 31, 2021 2020 2019 Revenue $ 354,661 $ 298,829 $ 228,283 Cost of revenue 86,404 77,030 57,413 Gross profit 268,257 221,799 170,870 Operating expenses: Sales and marketing 228,417 218,076 158,845 Research and development 58,146 49,445 36,098 General and administrative 76,026 77,231 51,572 Total operating expenses 362,589 344,752 246,515 Loss from operations ( 94,332 ) ( 122,953 ) ( 75,645 ) Interest income 532 4,099 1,711 Interest expense ( 614 ) ( 308 ) ( 143 ) Other expense, net ( 181 ) ( 1,285 ) ( 538 ) Loss from operations before income taxes ( 94,595 ) ( 120,447 ) ( 74,615 ) (Provision for) benefit from income taxes ( 97 ) ( 1,097 ) ( 222 ) Net loss $ ( 94,692 ) $ ( 121,544 ) $ ( 74,837 ) Net loss per share attributable to common stockholders, basic and diluted $ ( 0.79 ) $ ( 1.09 ) $ ( 0.76 ) Weighted-average number of shares used in computing net loss per share attributable to common stockholders, basic and diluted 119,690,378 111,758,946 98,387,366 Other comprehensive income (loss): Foreign currency translation adjustment $ 2,782 $ 1,197 $ ( 75 ) Unrealized (loss) gain on marketable securities, net — ( 129 ) 280 Total comprehensive loss $ ( 91,910 ) $ ( 120,476 ) $ ( 74,632 ) See the accompanying notes to the consolidated financial statements. 59 YEXT, INC. Consolidated Statements of Stockholders' Equity (In thousands) Accumulated Common Stock Additional Paid-In Other Comprehensive Accumulated Treasury Total Stockholders’ Shares Amount Capital Income (Loss) Deficit Stock Equity Balance, January 31, 2018 93,977 $ 100 $ 328,344 $ ( 1,636 ) $ ( 233,450 ) $ ( 11,905 ) $ 81,453 Cumulative effect adjustment in connection with the adoption of ASU 2014-09 — — — 3 7,178 — 7,181 Exercise of stock options 5,901 5 18,857 — — — 18,862 Vested restricted stock units converted to common shares 1,585 3 ( 3 ) — — — — Issuance of restricted stock 16 — — — — — — Issuance of common stock under employee stock purchase plan 694 1 6,777 — — — 6,778 Stock-based compensation — — 44,907 — — — 44,907 Other comprehensive income — — — 205 — — 205 Net loss — — — — ( 74,837 ) — ( 74,837 ) Balance, January 31, 2019 102,173 109 398,882 ( 1,428 ) ( 301,109 ) ( 11,905 ) 84,549 Common stock offering, net of issuance costs of $ 530 7,000 7 146,463 — — — 146,470 Exercise of stock options 3,308 3 14,852 — — — 14,855 Vested restricted stock units converted to common shares 2,946 3 ( 3 ) — — — — Issuance of restricted stock 11 — — — — — — Issuance of common stock under employee stock purchase plan 392 — 6,627 — — — 6,627 Stock-based compensation — — 69,187 — — — 69,187 Other comprehensive income — — — 1,068 — — 1,068 Net loss — — — — ( 121,544 ) — ( 121,544 ) Balance, January 31, 2020 115,830 122 636,008 ( 360 ) ( 422,653 ) ( 11,905 ) 201,212 Exercise of stock options 3,064 3 16,513 — — — 16,516 Vested restricted stock units converted to common shares 4,358 4 ( 4 ) — — — — Issuance of restricted stock 38 — — — — — — Issuance of common stock under employee stock purchase plan 699 1 6,999 — — — 7,000 Stock-based compensation — — 74,417 — — — 74,417 Other comprehensive income — — — 2,782 — — 2,782 Net loss — — — — ( 94,692 ) — ( 94,692 ) Balance, January 31, 2021 123,989 $ 130 $ 733,933 $ 2,422 $ ( 517,345 ) $ ( 11,905 ) $ 207,235 See the accompanying notes to the consolidated financial statements. 60 YEXT, INC. Consolidated Statements of Cash Flows (In thousands) Fiscal year ended January 31, 2021 2020 2019 Operating activities: Net loss $ ( 94,692 ) $ ( 121,544 ) $ ( 74,837 ) Adjustments to reconcile net loss to net cash provided by (used in) operating activities: Depreciation and amortization expense 10,612 8,069 6,813 Bad debt expense 2,547 1,246 492 Stock-based compensation expense 72,294 67,770 44,233 Amortization of operating lease right-of-use assets 12,203 11,124 — Other, net ( 489 ) 120 ( 83 ) Changes in operating assets and liabilities: Accounts receivable ( 17,990 ) ( 26,981 ) ( 11,601 ) Prepaid expenses and other current assets ( 5,463 ) 268 ( 6,745 ) Costs to obtain revenue contracts 2,429 ( 18,344 ) ( 16,817 ) Other long term assets ( 1,630 ) ( 2,629 ) 2 Accounts payable, accrued expenses and other current liabilities ( 1,976 ) 8,267 17,626 Unearned revenue 12,702 42,345 47,004 Operating lease liabilities 8,937 ( 1,044 ) — Other long term liabilities 1,720 565 ( 847 ) Net cash provided by (used in) operating activities 1,204 ( 30,768 ) 5,240 Investing activities: Purchases of marketable securities — — ( 52,916 ) Maturities of marketable securities — 51,197 86,320 Capital expenditures ( 65,111 ) ( 11,889 ) ( 5,270 ) Net cash (used in) provided by investing activities ( 65,111 ) 39,308 28,134 Financing activities: Proceeds from common stock offering, net of underwriting discounts and commissions — 147,000 — Payments of common stock deferred offering costs — ( 530 ) — Proceeds from exercise of stock options 16,464 14,893 18,880 Payments of deferred financing costs ( 869 ) ( 260 ) ( 159 ) Proceeds, net from employee stock purchase plan withholdings 6,953 7,270 5,663 Net cash provided by financing activities 22,548 168,373 24,384 Effect of exchange rate changes on cash, cash equivalents and restricted cash 3,594 ( 492 ) ( 370 ) Net (decrease) increase in cash, cash equivalents and restricted cash ( 37,765 ) 176,421 57,388 Cash, cash equivalents and restricted cash at beginning of period 268,176 91,755 34,367 Cash, cash equivalents and restricted cash at end of period $ 230,411 $ 268,176 $ 91,755 Supplemental disclosure of cash flow data: Cash paid on interest $ 54 $ 41 $ 7 Cash paid on income taxes $ 1,413 $ 531 $ 19 Supplemental reconciliation of cash, cash equivalents and restricted cash reported within the consolidated balance sheets as of January 31, (in thousands) 2021 2020 2019 Cash and cash equivalents $ 230,411 $ 256,076 $ 91,755 Restricted cash — 12,100 — Total cash, cash equivalents and restricted cash $ 230,411 $ 268,176 $ 91,755 See the accompanying notes to the consolidated financial statements. 61 YEXT, INC. Notes to Consolidated Financial Statements 1. Organization and Description of Business Description of Business Yext, Inc. ("Yext" or the "Company") organizes a business's facts so it can provide official answers to consumer questions starting with the business's own website and then extending across search engines and voice assistants. The Yext platform lets businesses structure the facts about their brands in a database called the Knowledge Graph. The platform is built to leverage the structured data stored in the Knowledge Graph to deliver a modern search experience on a business's or organization's own website, as well as across approximately 200 service and application providers, which the Company refers to as its Knowledge Network and includes Amazon Alexa, Apple Maps, Bing, Cortana, Facebook, Google, Google Assistant, Google Maps, Siri and Yelp. The Yext platform powers all of the Company's key features, including Listings, Pages, and Answers, along with its other features and capabilities. Fiscal Year The Company's fiscal year ends on January 31 st . References to fiscal 2021, for example, are to the fiscal year ended January 31, 2021. 2. Summary of Significant Accounting Policies Basis of Presentation and Consolidation The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") and applicable rules and regulations of the Securities and Exchange Commission ("SEC") regarding financial reporting. The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. Certain prior period amounts have been reclassified to conform to the current period presentation. Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of those financial statements and the reported amounts of revenue and expense during the reporting period. These estimates include, but are not limited to, the standalone selling prices ("SSP") of performance obligations, the incremental borrowing rate associated with lease liabilities, the useful life of capitalized costs to obtain revenue contracts, income taxes, and the valuation and assumptions underlying stock-based compensation. Management bases its estimates on historical experience and on various other market-specific and relevant assumptions that it believes to be reasonable under the circumstances. Actual results could differ from those estimates and such differences could be material to the financial position and results of operations. Segment Information The Company is the provider of the Yext platform and operates as one operating segment. An operating segment is defined as a component of an enterprise for which separate financial information is evaluated regularly by the chief operating decision makers ("CODM"). The Company defines its CODM as its executive officers, and their role is to make decisions about allocating resources and assessing performance. The Company's business operates in one operating segment as all of the Company's offerings operate on the Yext platform and are deployed in an identical way, with its CODM evaluating the Company's financial information, resources and performance of these resources on a consolidated basis. Since the Company operates in one operating segment, all required financial segment information can be found in the consolidated financial statements. Revenue Recognition The Company derives its revenue primarily from its subscriptions and associated support to the Yext platform. The Company's subscriptions do not provide customers with the right to take possession of the software supporting the applications and, as a result, are accounted for as service contracts. The Company adopted on a modified retrospective basis ASU 2014-09 "Revenue from Contracts with Customers (Topic 606)" ("ASU 2014-09") in its fourth quarter of the fiscal year ended January 31, 2019, the effects of which were recognized effective February 1, 2018. The Company recognizes revenue upon transfer of control of services to its customers in an amount that reflects the consideration it expects to receive in exchange for those services. The recognition of revenue is determined through application of the following five-step model: • Identification of the contract(s) with customers; • Identification of the performance obligation(s) in the contract; • Determination of the transaction price; • Allocation of the transaction price to the performance obligation(s) in the contract; and • Recognition of revenue when or as the performance obligation(s) are satisfied 62 The Company identifies the performance obligations in a contract with a customer and determines whether they are distinct or distinct within the context of the contract. When there is more than one distinct performance obligation in a contract, the Company allocates the transaction price to the performance obligations on a relative standalone selling price basis. The Company estimates the amount of consideration expected to be received in exchange for transferring services if the consideration promised in a contract includes a variable amount. Revenue is generally recognized ratably over the contract term beginning on the commencement date of each contract, which is the date the Yext platform is made available to customers. Contracts are typically one year in length, but may be up to three years or longer in length. At the beginning of each subscription term the Company invoices its customers, typically in annual installments but also monthly, quarterly, and semi-annually. Amounts that have been invoiced for non-cancelable contracts are recorded in accounts receivable and in unearned revenue or revenue. The Company reports revenue net of sales tax and other taxes collected from customers to be remitted to government authorities. Costs Capitalized to Obtain Revenue Contracts The Company capitalizes costs of obtaining revenue contracts that are incremental and recoverable. Incremental costs primarily include sales commissions for new and renewal revenue contracts, certain related incentives, and associated payroll tax and fringe benefit costs. Capitalized amounts are recoverable through future revenue streams under all customer contracts. Costs capitalized to obtain new revenue contracts are amortized on a straight-line basis over three years , which reflects the average benefit period, and may be longer than the initial contract period. The Company determined the average benefit period having considered both qualitative and quantitative factors, including the estimated life of capitalized software development costs resulting from additional functionality to the Yext platform and estimated customer life, among other such factors. The Company amortizes costs capitalized for contract renewals over the renewal term, reflecting the average benefit period for such renewals, which is typically one year. Amortization of costs capitalized to obtain revenue contracts is included in sales and marketing expense in the accompanying consolidated statements of operations and comprehensive loss. The Company periodically evaluates whether there have been any changes in its business, market conditions, or other events which would indicate that its amortization period should be changed, or if there are potential indicators of impairment. During the fiscal years ended January 31, 2021 and 2020, the Company capitalized $ 33.2 million and $ 41.4 million of costs to obtain revenue contracts and amortized $ 34.6 million and $ 23.1 million to sales and marketing expense, respectively. Costs capitalized to obtain revenue contracts on the Company's consolidated balance sheet totaled $ 53.0 million and $ 54.5 million at January 31, 2021 and 2020, respectively. There were no impairments of costs capitalized to obtain revenue contracts for the fiscal years ended January 31, 2021, 2020 and 2019, respectively. Cost of Revenue Cost of revenue is generally expensed as incurred, including personnel-related costs, costs associated with the Company’s Knowledge Network application providers, and data center costs. Capitalized software development costs incurred in connection with additional functionality to the Yext platform are recognized in cost of revenue as depreciation expense in accordance with the “capitalized software development costs” section of this Note. Cost of revenue also includes operating and short-term lease expenses, software expense, and depreciation expense, each of which are allocated based on employee headcount. Stock-Based Compensation Stock-based compensation for all employee stock-based awards, including restricted stock units, restricted stock and options to purchase common stock, is measured at fair value on the date of grant and recognized over the service period. The fair value of restricted stock units and restricted stock are estimated on the date of grant based on the fair value of the Company’s common stock. The fair value of employee stock options is estimated on the date of grant using a Black-Scholes option-pricing model. Stock-based compensation expense is recognized over the requisite service periods of awards, which is typically one to four years for restricted stock units and restricted stock and four years for options. The estimated forfeiture rate applied is based on historical forfeiture rates. The estimated number of stock-based awards that will ultimately vest requires judgment, and to the extent actual results, or updated estimates, differ from the Company’s current estimates, such amounts will be recorded as a cumulative adjustment in the period actual results are realized or estimates are revised. Stock-based compensation expense associated with the Company's Employee Stock Purchase Plan ("ESPP") is measured at fair-value using a Black-Scholes option-pricing model at commencement of each offering period and recognized over that offering period. The Company prospectively adopted ASU 2018-07 on February 1, 2019. As a result, the Company measures stock-based compensation associated with stock-based awards issued to non-employees at the grant date, based on the estimated fair value of the award, and recognizes expense on a straight-line basis over the requisite service period. The Company does not apply a forfeiture rate assumption to value such awards, given the nature of the services provided. Prior to adoption, during the fiscal year ended January 31, 63 2019 stock-based compensation associated with stock-based awards issued to non-employees was re-measured each period until fully vested. Advertising and Other Promotional Costs Advertising and other promotional costs are expensed as incurred. Advertising expenses were $ 7.5 million, $ 6.9 million and $ 6.1 million for the fiscal years ended January 31, 2021, 2020 and 2019, respectively and are included within sales and marketing expense in the consolidated statement of operations and comprehensive loss. Research and Development Research and development costs are generally expensed as incurred, including personnel-related costs. Research and development costs also include operating and short-term lease expenses and software expense, each of which are allocated based on employee headcount. Research and development costs exclude capitalized software development costs. Capitalized Software Development Costs The Company capitalizes certain software development costs included as software in progress or computer software within property and equipment, net. These costs are incurred in connection with additional functionality to its platform, as well as internal-use projects during the application development stage and include elements of stock-based compensation. Computer software is recognized on a straight-line basis over an estimated useful life of 2 to 3 years. Capitalized software development costs incurred in connection with additional functionality to the platform are recognized as depreciation expense in cost of revenue within the consolidated statement of operations and comprehensive loss. Capitalized software development costs incurred in internal-use projects are recognized as depreciation expense and are allocated based on employee headcount. Capitalized software development costs, net were $ 7.2 million and $ 4.4 million as of January 31, 2021 and 2020, respectively, and primarily related to those costs incurred in connection with additional functionality to its platform. Depreciation expense associated with capitalized software development costs was $ 2.6 million, $ 2.7 million and $ 2.2 million during the fiscal years ended January 31, 2021, 2020 and 2019, respectively. Software costs that meet the cloud computing arrangements criteria are capitalized in accordance with ASC 350 “Intangibles—Goodwill and Other” and are recognized on a straight-line basis over the term of the arrangement, plus reasonably certain renewals. Capitalized costs included in prepaid expenses and other current assets were $ 2.5 million and $ 1.2 million as of January 31, 2021 and 2020, respectively, and $ 0.8 million and zero were amortized during the fiscal years ended January 31, 2021 and 2020, respectively. Software costs that do not meet the capitalization criteria, including costs incurred in the maintenance and minor upgrade and enhancement of software without additional functionality, are expensed as incurred. The Company evaluates the useful lives of these assets on an annual basis and tests for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. Income Taxes The Company accounts for income taxes in accordance with ASC Topic 740, “Income Taxes,” under which deferred income taxes are provided for temporary differences between the financial reporting and tax basis of the Company’s assets and liabilities. The Company classifies all deferred tax assets and liabilities as non-current on the consolidated balance sheet. The effect of a change in tax rates on deferred tax assets and liabilities is recognized within the (provision for) benefit from income taxes on the consolidated statement of operations and comprehensive loss in the period that includes the enactment date. The Company reduces deferred tax assets, if necessary, by a valuation allowance if it is more likely than not that the Company will not realize some or all of the deferred tax assets. In making such a determination, the Company considers all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax-planning strategies, and results of recent operations. See Note 11 "Income Taxes" to the Company's consolidated financial statements for additional information on the composition of these valuation allowances. The Company recognizes the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by taxing authorities, based on the technical merits of the position. The tax benefit recognized is measured as the largest amount of benefit which is greater than 50 percent likely to be realized upon settlement with the taxing authority. The Company recognizes interest and penalties related to uncertain tax positions within the (provision for) benefit from income taxes on the consolidated statement of operations and comprehensive loss. Net Loss Per Share Basic net loss per share is computed by dividing the net loss attributable to common stockholders by the weighted average number of common shares outstanding during the period. Unvested restricted stock and restricted stock units are excluded from the denominator of basic net loss per share. Diluted net loss per share is computed by dividing the net loss attributable to common stockholders by the weighted average number of common shares plus the common equivalent shares for the period, including any dilutive effect from such shares. See Note 14 "Net Loss Per Share Attributable to Common Stockholders" for further discussion. 64 Foreign Currency The functional currency of the Company’s non-U.S. subsidiaries is generally the local currency. The Company translates the financial statements of its non-U.S. subsidiaries to U.S. dollars using month-end exchange rates for assets and liabilities, and average exchange rates for revenue, costs and expenses. The Company records translation gains and losses in accumulated other comprehensive loss as a component of stockholders’ equity. Foreign currency transaction gains and losses are included within other expense, net in the consolidated statements of operations and comprehensive loss . Concentration of Credit Risk Certain financial instruments that could be exposed to a concentration of credit risk include cash and cash equivalents and accounts receivable. The Company deposits its cash with financial institutions, and such deposits, at times, may exceed federally insured limits. The Company has not experienced any losses on its deposits of cash and cash equivalents to date. Collateral is not required for accounts receivable. At January 31, 2021 and 2020, no single customer accounted for more than 10% of the Company's accounts receivable. No single customer accounted for more than 10% of the Company's revenue for the fiscal years ended January 31, 2021, 2020 and 2019, respectively. Cash and Cash Equivalents Cash consists of cash on deposit with banks that is stated at cost, which approximates fair value. The Company considers all highly liquid investments purchased with original maturities of less than three months from the date of purchase to be cash equivalents. . Accounts Receivable and Allowance for Doubtful Accounts Accounts receivable are carried at the original invoiced amount less an allowance for doubtful accounts based on the probability of future collection. The Company estimates its allowance for doubtful accounts based on historical loss patterns, the number of days that billings are past due, current market conditions, and reasonable and supportable forecasts of future economic conditions, in accordance with ASC 326 "Financial Instruments-Credit Losses." Accounts receivable are written off when deemed uncollectible and collection of the receivable is no longer being actively pursued. The following table summarizes the allowance for doubtful accounts activity: (in thousands) Fair Value Allowance for doubtful accounts as of January 31, 2019 $ 256 Additions 1,246 Deductions - write offs ( 507 ) Allowance for doubtful accounts as of January 31, 2020 995 Additions 2,547 Deductions - write offs ( 1,014 ) Allowance for doubtful accounts as of January 31, 2021 $ 2,528 Property and Equipment, Net Property and equipment are recorded at cost and depreciated or amortized on a straight-line basis over their estimated useful lives. Furniture and fixtures have an estimated useful life of five years . Office equipment has an estimated useful life of three years . Computer software, which includes capitalized software development costs, has an estimated useful life of two to three years . Leasehold improvements and assets held under operating leases are depreciated over the shorter of the term of the lease or their useful life. Upon retirement or sale of assets, the cost and related accumulated depreciation or amortization are removed from the consolidated balance sheet and the resulting gain or loss is reflected in the consolidated statement of operations and comprehensive loss. Repairs and maintenance costs are expensed as incurred. Leases Effective February 1, 2019, the Company adopted ASU 2016-02, "Leases (Topic ASC 842)" ("ASU 2016-02"), utilizing the modified retrospective adoption approach. The Company elected the package of practical expedients to not reassess prior conclusions related to lease identification, classification, and initial direct costs, and did not elect the hindsight practical expedient which would have permitted the use of hindsight in determining the lease term and assessing impairment. Under ASC 842, lease expense is recognized as a single lease cost on a straight-line basis over the lease term. The lease term consists of non-cancelable periods, and may include options to extend or terminate the lease term, when it is reasonably certain such options will be exercised. The Company enters into contracts in the normal course of business and assesses whether any such contracts contain a lease. The Company determines if an arrangement is a lease at inception if it conveys the right to control the identified asset for a period of time in exchange for consideration. The Company classifies leases as operating or financing in nature, and records the associated lease liability and right-of-use asset on its balance sheet. The lease liability represents the present value of future lease payments, net of lease incentives, discounted using an incremental borrowing rate, which is a management estimate based on the information available 65 at the commencement date of a lease arrangement. With respect to operating lease arrangements, the Company accounts for lease components, and non-lease components that are fixed, as a single lease component. Non-lease components that are variable are expensed as incurred as in the statement of operations and comprehensive loss. The Company recognizes costs associated with lease arrangements having an initial term of 12 months or less ("short-term leases") on a straight-line basis over the lease term; such short-term leases are not recorded on the balance sheet. Prior to adoption, during the fiscal year ended January 31, 2019, the Company accounted for leases under ASC 840, whereby rent expense associated with operating leases was recognized on a straight-line basis over the lease term. Goodwill and Intangible Assets Goodwill represents the excess of cost over the fair value of the net tangible and identifiable intangible assets acquired in a business combination. Goodwill is not amortized but is subject to periodic testing for impairment in accordance with ASC Topic 350, “Intangibles-Goodwill and Other.” The Company’s goodwill is evaluated at the entity level as it is determined there is one reporting unit. The Company performs its annual impairment test on November 1 st of each year, or more frequently if events occur or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount. The Company considers the following potential indicators of impairment: significant underperformance relative to historical or projected future operating results, significant changes in the Company’s use of acquired assets or the strategy of the Company’s overall business, significant negative industry or economic trends and a significant decline in the value of the Company’s enterprise value for a sustained period. The Company’s intangible assets with definite lives consist of customer relationships and domains, which are amortized on a straight-line basis over their estimated useful lives of 7 and 15 years, respectively. Long-lived assets, including intangible assets with finite lives, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable in accordance with ASC Topic 360, “Property, Plant, and Equipment.” The Company assesses the impairment of long-lived intangible assets whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. The Company has not recorded impairment charges on intangible assets for the periods presented in these consolidated financial statements. Deferred Financing Costs Financing costs incurred with securing a revolving line of credit are deferred and amortized to interest expense over the term of the agreement. Financing costs associated with revolving credit arrangements are deferred, regardless of whether a balance is outstanding. The Company includes deferred financing costs in prepaid and other current assets or other long term assets on the consolidated balance sheet. Legal and Other Contingencies From time to time, the Company may be a party to litigation and subject to claims incident to the ordinary course of business, including intellectual property claims, labor and employment claims, breach of contract claims and other asserted and unasserted claims. The Company investigates these claims as they arise and accrues estimates for resolution of legal and other contingencies when losses are probable and estimable. Recent Accounting Pronouncements New Accounting Standard To Be Adopted - ASU 2019-12 In December 2019, the FASB issued ASU 2019-12 "Simplifying the Accounting for Income Taxes", which simplifies the accounting for income taxes, eliminates certain exceptions within ASC Topic 740, "Income Taxes," and clarifies certain aspects of the current guidance to promote consistency among reporting entities. Most amendments within the standard are required to be applied on a prospective basis, while certain amendments must be applied on a retrospective or modified retrospective basis. The Company plans to adopt this standard on February 1, 2021 and does not expect the adoption to have a material impact on the Company's consolidated financial statements. 66 3. Revenue Disaggregation of Revenue The Company disaggregates its revenue from contracts with customers by geographic region, as it believes this best depicts how the nature, amount, timing, and uncertainty of its revenues and cash flows are affected by economic factors. Revenue by geographic region is determined based on the region of the Company's contracting entity, which may be different than the region of its customers. The following table presents the Company's revenue by geographic region: Fiscal year ended January 31, (in thousands) 2021 2020 2019 North America $ 284,792 $ 245,629 $ 197,285 International 69,869 53,200 30,998 Total revenue $ 354,661 $ 298,829 $ 228,283 North America revenue is predominantly attributable to the United States, but also includes Canada. International revenue is predominantly attributable to European countries, but also includes Japan. The Company's revenue attributable to the United States represented 80 %, 82 %, and 85 % of total revenue, and revenue attributable to Switzerland, which serves as one of the Company's contracting entities for Europe, represented 16 %, 14 %, and less than 10% of total revenue, respectively, for the fiscal years ended January 31, 2021, 2020 and 2019. No other individual country represented more than 10% of total revenue during the fiscal years ended January 31, 2021, 2020 and 2019. Significant Judgments Significant judgments and estimates may be required to determine the appropriate application of accounting related to revenue, including whether performance obligations are distinct and assessments regarding the transaction price. The Company has identified that it has two distinct performance obligations. The Company predominantly recognizes revenue through its performance obligation of a subscription and associated support to the Yext platform. The performance obligation is distinct because a customer's use of the Yext platform is fully functional upon access, does not require any additional development, modification or customization, and is often sold separately. In certain instances, the Company enters into a contract with a customer that includes a promise to provide certain technical or customized professional services, in addition to a promise to provide its subscription and associated support. The Company's professional services performance obligation is distinct as it does not significantly change or enhance the functionality of the Yext platform. In those instances when a contract includes more than one performance obligation, the Company must allocate the transaction price to the performance obligations on a relative standalone selling price basis. SSP represents the price at which a company would sell a promised product or service separately to a customer. The Company determines the SSP based on a series of complex factors. The Company's selling prices associated with its subscription and associated support are considered highly variable based on discounting practices, customer geography, customer size, and other such factors. In contrast, the Company's selling prices associated with its professional services are more observable, predictable and consistent. Accordingly, the Company uses the residual method, under which the total transaction price and observable SSP of the professional services performance obligation is used to arrive at the estimated SSP of the subscription and associated support performance obligation. The Company's revenue is predominantly related to its subscription and associated support to the Yext platform. Professional services revenue accounted for approximately 7 %, 5 % and 4 % of the Company's total revenue for the fiscal years ended January 31, 2021, 2020 and 2019, respectively. Contract Liabilities A contract liability is an obligation to transfer goods or services for which consideration has been received or is due to a customer. The Company's contract liabilities consist primarily of unearned revenue and, to a lesser extent, customer deposits. As of January 31, 2021 and 2020, unearned revenue, current was $ 191.8 million and $ 176.8 million, while unearned revenue, non-current, which is included within other long term liabilities on the Company's consolidated balance sheet was $ 0.2 million and $ 0.4 million, respectively. Unearned revenue represents amounts billed, or payments received, in advance of revenue recognition for which the Company has an unconditional obligation to transfer goods or services associated with a non-cancelable contract. Unearned revenue is subsequently recognized as revenue when transfer of control to a customer has occurred. The unearned revenue balance is influenced by several factors, including seasonality, the compounding effects of renewals, and invoice duration, timing and size. The portion of unearned revenue expected to be recognized during the succeeding twelve-month period is classified as unearned revenue, current, and the remaining portion is classified within other long term liabilities in the Company’s consolidated balance sheet. Substantially all of the $ 176.8 million of unearned revenue, current as of January 31, 2020 was subsequently recognized as revenue during the fiscal year ended January 31, 2021. 67 Customer deposits represent payments received in advance in instances where a revenue contract is cancelable in nature, and therefore the Company does not have an unconditional obligation to transfer control to a customer. As of January 31, 2021 and 2020, customer deposits of $ 0.2 million and $ 0.9 million were included in accounts payable, accrued expenses and other current liabilities on the Company's consolidated balance sheet, respectively. Remaining Performance Obligations The transaction price allocated to remaining performance obligations represents amounts under non-cancelable contracts expected to be recognized as revenue in future periods, and may be influenced by several factors, including seasonality, the timing of renewals, and contract terms. As of January 31, 2021, the Company had $ 351.8 million of remaining performance obligations, of which $ 332.8 million is expected to be recognized as revenue over the next twenty-four months, with the remaining balance expected to be recognized thereafter. As of January 31, 2020, the Company had $ 328.1 million of remaining performance obligations. 4. Fair Value of Financial Instruments Fair value is the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Subsequent changes in fair value of these financial assets and liabilities are recognized in earnings or other comprehensive (loss) income when they occur. When determining the fair value measurements for assets and liabilities which are required to be recorded at fair value, the Company considers the principal or most advantageous market in which the Company would transact and the market-based risk measurement or assumptions that market participants would use in pricing the assets or liabilities, such as inherent risk, transfer restrictions, and credit risk. The Company applies the following fair value hierarchy, which prioritizes the inputs used to measure fair value into three levels and bases the categorization within the hierarchy upon the lowest level of input that is available and significant to the fair value measurement: Level 1 inputs are based on quoted prices in active markets for identical assets or liabilities. Level 2 inputs are based on observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which all significant inputs are observable or can be derived principally from or corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 inputs are based on unobservable inputs to the valuation methodology that are significant to the measurement of fair value of assets or liabilities, and typically reflect management's estimates of assumptions that market participants would use in pricing the asset or liability. As of January 31, 2021 the Company had $ 138.8 million of money market funds included in cash and cash equivalents. As of January 31, 2020, the Company had $ 190.8 million of money market funds included in cash and cash equivalents and $ 12.1 million of money market funds included in restricted cash on the Company's consolidated balance sheet. These assets were valued using quoted market prices and accordingly were classified as Level 1. 5. Goodwill and Intangible Assets Goodwill As of January 31, 2021 and 2020, the Company had goodwill of $ 4.8 million and $ 4.5 million, respectively. The changes to goodwill during these periods were due to foreign currency translation adjustments. Goodwill is not amortized but is subject to periodic testing for impairment at the reporting unit level, which is at or one level below the operating segment level. The Company conducted its annual impairment test for goodwill as of November 1 st for each of the fiscal years ended January 31, 2021 and 2020. As a result of the annual tests and interim impairment assessments, the Company determined that goodwill was not impaired and that no events occurred or circumstances changed that would more likely than not reduce the fair value of the Company's reporting unit below its carrying amount. However, if certain events occur or circumstances change, it may be necessary to record impairment charges in the future. Intangible Assets As of January 31, 2021 and 2020, the Company had intangible assets, net of $ 0.8 million and $ 1.3 million, respectively. Intangible assets, net included customer relationships of $ 0.5 million and $ 1.1 million as well as domains of $ 0.2 million and $ 0.3 million, as of January 31, 2021 and 2020, respectively. Customer relationships had a weighted average remaining useful life of 0.9 years and domains had a weighted average remaining useful life of 10.0 years as of January 31, 2021. For the fiscal years ended January 31, 2021, 2020 and 2019, amortization expense related to intangible assets totaled $ 0.6 million for each period. As of January 31, 2021, the future amortization expense of intangible assets is expected to be $ 0.6 million for the fiscal year ending January 31, 2022 and less than $ 0.1 million per year through the fiscal year ending January 31, 2032. 68 Intangible assets with finite lives are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. The Company has no indefinite-lived intangible assets. The Company determined that no events occurred or circumstances changed during the fiscal years ended January 31, 2021 and 2020 that would indicate that its intangible assets with finite lives may not be recoverable. However, if certain events occur or circumstances change, it may be necessary to record impairment charges in the future. 6. Property and Equipment, Net Property and equipment are recorded at cost and depreciated or amortized on a straight-line basis over their estimated useful lives. Property and equipment, net consisted of the following: (in thousands) January 31, 2021 January 31, 2020 Computer software $ 10,719 $ 10,099 Office equipment 14,856 9,966 Furniture and fixtures 7,344 1,347 Leasehold improvements 57,799 15,170 Construction in progress 4,469 13,812 Software in progress 5,754 961 Total property and equipment, gross 100,941 51,355 Less: accumulated depreciation ( 20,597 ) ( 25,155 ) Total property and equipment, net $ 80,344 $ 26,200 Construction in progress consists primarily of leasehold improvements related to operating lease arrangements for office space primarily associated with the Company's new corporate headquarters in New York, NY. Software in progress consists of costs incurred in connection with additional functionality to the Yext platform. As of January 31, 2021 and 2020, the Company's property and equipment, net attributable to the United States was 88 % for each period. No other individual country represented more than 10% of the total property and equipment, net as of those periods. For the fiscal years ended January 31, 2021, 2020 and 2019, depreciation expense was $ 10.0 million, $ 7.5 million and $ 6.2 million, respectively. 7. Accounts Payable, Accrued Expenses and Other Current Liabilities Accounts payable, accrued expenses and other current liabilities consisted of the following: (in thousands) January 31, 2021 January 31, 2020 Accounts payable $ 12,974 $ 9,599 Accrued employee compensation 16,780 20,622 Accrued Knowledge Network application provider fees 3,671 5,561 Accrued professional services and associated costs 2,202 3,077 Accrued employee stock purchase plan withholdings liability 3,230 3,277 Other current liabilities 15,329 17,346 Total accounts payable, accrued expenses and other current liabilities $ 54,186 $ 59,482 (1) - As of January 31, 2021 and 2020, accounts payable includes capital expenditures of $ 1.5 million and $ 2.2 million, respectively. (2) - As of January 31, 2021 and 2020, other current liabilities include capital expenditures of $ 3.0 million and $ 7.0 million, respectively. 8. Stock-Based Compensation 2008 Equity Incentive Plan The Company's 2008 Equity Incentive Plan (the "2008 Plan"), as amended on March 10, 2016, allowed for the issuance of up to 25,912,531 shares of common stock. Awards granted under the 2008 Plan may be incentive stock options ("ISOs"), nonqualified stock options ("NQSOs"), restricted stock and restricted stock units. The 2008 Plan is administered by the Company's Board of Directors, which determines the terms of the options granted, the exercise price, the number of shares subject to option and the option vesting period. No ISO or NQSO is exercisable after 10 years from the date of grant, and option awards will typically vest over a four-year period. The 2008 Plan was terminated in connection with the adoption of the Company's 2016 Equity Incentive Plan (the "2016 Plan") in December 2016, and since the 2008 Plan termination the Company has not granted and will not grant any additional awards under the 69 2008 Plan. However, the 2008 Plan will continue to govern the terms and conditions of the outstanding awards previously granted thereunder. 2016 Equity Incentive Plan In December 2016, the Company's Board of Directors adopted, and its stockholders approved, the 2016 Plan. The number of shares reserved for issuance under the 2016 Plan will increase on the first day of each fiscal year during the term of the 2016 Plan by the lesser of: (i) 10,000,000 shares, (ii) 4 % of the outstanding shares of common stock as of the last day of the immediately preceding fiscal year; or (iii) such other amount as the Company's Board of Directors may determine. On February 1, 2020, the number of shares of common stock available for issuance under the 2016 Plan was automatically increased according to its terms by 4,633,215 shares. In addition, the shares reserved for issuance under the 2016 Plan also include shares returned to the 2008 Plan as the result of expiration or termination of options or other awards. As of January 31, 2021, the number of shares available for future award under the 2016 Plan is 1,500,883 . Stock Options The following table summarizes the activity related to the Company's stock options: Options Outstanding Outstanding Stock Options Weighted-Average Exercise Price Weighted-Average Remaining Contractual Life (in years) Aggregate Intrinsic Value (in thousands) Balance, January 31, 2020 12,371,254 $ 7.05 5.53 $ 98,028 Granted — $ — Exercised ( 3,064,420 ) $ 5.39 Forfeited or canceled ( 434,944 ) $ 6.87 Balance, January 31, 2021 8,871,890 $ 7.64 4.94 $ 81,906 Vested and expected to vest 8,769,607 $ 7.59 4.92 $ 81,339 Exercisable at January 31, 2021 8,326,979 $ 7.40 4.83 $ 78,863 Nonvested option activity is as follows: Options Weighted-Average Grant Date Fair Value Nonvested as of January 31, 2020 2,121,438 $ 4.83 Granted — $ — Vested ( 1,209,284 ) $ 4.59 Forfeited ( 367,243 ) $ 4.55 Balance as of January 31, 2021 544,911 $ 5.55 The aggregate intrinsic value of options vested and expected to vest and exercisable is calculated based on the difference between the exercise price and the fair value of the Company’s common stock as of January 31, 2021. The fair value of the common stock is the Company’s closing stock price as reported on the New York Stock Exchange. The aggregate intrinsic value of exercised options was $ 31.8 million, $ 48.0 million and $ 79.4 million for the fiscal years ended January 31, 2021, 2020 and 2019, respectively, and is calculated based on the difference between the exercise price and the fair value of the Company’s common stock as of the exercise date. Restricted Stock and Restricted Stock Units The following table summarizes the activity related to the Company's restricted stock and restricted stock units: Outstanding Weighted-Average Grant Date Fair Value Balance as of January 31, 2020 9,910,729 $ 17.44 Granted 5,570,519 $ 15.52 Vested and converted to shares ( 4,369,110 ) $ 16.59 Forfeited or canceled ( 1,566,786 ) $ 17.45 Balance as of January 31, 2021 9,545,352 $ 16.71 70 The estimated weighted-average grant date fair value of restricted stock and restricted stock units granted was $ 15.52 , $ 18.71 , and $ 18.21 per share for the fiscal years ended January 31, 2021, 2020, and 2019, respectively. The fair value of the common stock is the Company’s closing stock price as reported on the New York Stock Exchange. The total fair value of restricted stock and restricted stock units vested was $ 72.4 million, $ 54.7 million, and $ 30.4 million for the fiscal years ended January 31, 2021, 2020, and 2019, respectively. Employee Stock Purchase Plan In March 2017, the Company's Board of Directors adopted, and its stockholders approved, the 2017 Employee Stock Purchase Plan ("ESPP"), which became effective on the date it was adopted. The number of shares of the Company's common stock that will be available for sale to employees under the ESPP increases annually on the first day of each fiscal year, in an amount equal to the lesser of: (i) 2,500,000 shares; (ii) 1 % of the outstanding shares of the Company's common stock as of the last day of the immediately preceding fiscal year; or (iii) such other amount as the administrator may determine. On February 1, 2020, the number of shares of common stock available for issuance under the ESPP was automatically increased according to its terms by 1,158,304 shares. As of January 31, 2021, a total of 2,834,557 shares of the Company's common stock are available for sale to employees under the ESPP. In connection with the offering period which ended on March 16, 2020, 373,891 shares of common stock were purchased under the ESPP at a purchase price of $ 10.01 per share for total proceeds of $ 3.7 million. In connection with the offering period which ended on September 15, 2020, 324,141 shares of common stock were purchased under the ESPP at a purchase price of $ 10.01 per share for total proceeds of $ 3.2 million. A new offering period began on September 15, 2020 and will end on March 15, 2021. As of January 31, 2021, 315,718 shares are estimated to be purchased at the end of the offering period and $ 3.2 million has been withheld on behalf of employees for these future purchases under the ESPP and is included in accounts payable, accrued expenses and other current liabilities. The Black-Scholes option-pricing model assumptions used to calculate the fair value of shares, estimated at commencement to be purchased during an ESPP offering period were as follows: Fiscal year ended January 31, 2021 2020 2019 Expected life (years) 0.50 0.50 0.50 Expected volatility 51.44 % - 65.48 % 42.41 % - 60.86 % 34.41 % - 45.09 % Dividend yield 0.00 % 0.00 % 0.00 % Risk-free rate 0.12 % - 0.29 % 1.93 % - 2.52 % 1.95 % - 2.35 % The expected life assumptions were based on each offering period's respective purchase date. The Company estimated the expected volatility assumption based on the historical volatility of its stock price. The risk-free rate assumptions were based on the U.S. treasury yield curve in effect at commencement of the offering period. The dividend yield assumption was zero as the Company has not historically paid any dividends and does not expect to declare or pay any dividends in the foreseeable future. During the fiscal years ended January 31, 2021, 2020 and 2019, the Company recorded $ 2.8 million, $ 2.7 million and $ 2.1 million, respectively, of stock-based compensation expense associated with the ESPP. As of January 31, 2021, total unrecognized compensation cost related to ESPP was $ 0.4 million, net of estimated forfeitures, which will be amortized over a weighted-average remaining period of 0.12 years. A new offering period commences on the first trading day on or after March 15 th and September 15 th each year, or on such other date as the administrator will determine and will end on the first trading day, approximately six months later, on or after September 15 th and March 15 th , respectively. Participants may purchase the Company’s common stock through payroll deductions, up to a maximum of 15 % of their eligible compensation. Unless changed by the administrator, the purchase price for each share of common stock purchased under the ESPP will be 85 % of the lower of the fair market value per share on the first trading day of the applicable offering period or the fair market value per share on the last trading day of the applicable offering period. Stock-Based Compensation Expense Stock-based compensation represents the cost related to stock-based awards granted in lieu of monetary payment. The Company measures stock-based compensation associated with stock-based awards issued to employees at the grant date, based on the estimated fair value of the award, and recognizes expense on a straight-line basis net of estimated forfeitures over the requisite service period in the consolidated statements of operations and comprehensive loss. 71 The Company's stock-based compensation expense for the periods presented was as follows: Fiscal year ended January 31, (in thousands) 2021 2020 2019 Cost of revenue $ 5,724 $ 4,115 $ 2,915 Sales and marketing 32,581 31,421 22,519 Research and development 17,071 13,212 8,475 General and administrative 16,918 19,022 10,324 Total stock-based compensation expense $ 72,294 $ 67,770 $ 44,233 General and administrative stock-based compensation expense for the fiscal year ended January 31, 2020 included a $ 3.6 million one-time RSU cancellation-related expense. As of January 31, 2021, there was approximately $ 149.9 million of total unrecognized compensation cost related to unvested stock-based awards. This unrecognized compensation cost is expected to be recognized over an estimated remaining weighted-average vesting period of approximately 2.67 years. During the fiscal years ended January 31, 2021, 2020 and 2019, the Company capitalized $ 2.1 million, $ 1.4 million and $ 0.7 million, respectively, of stock-based compensation related to software development of additional functionality to the Yext platform. 9. Equity Preferred Stock Effective April 2017, the Company’s Board of Directors is authorized to issue up to 50,000,000 shares of preferred stock, $ 0.001 par value, in one or more series without stockholder approval. The Company's Board of Directors has the discretion to determine the rights, preferences, privileges and restrictions, including voting rights, dividend rights, conversion rights, redemption privileges and liquidation preferences, of each series of preferred stock. The issuance of preferred stock could have the effect of restricting dividends on the Company’s common stock, diluting the voting power of its common stock, impairing the liquidation rights of its common stock, or delaying or preventing changes in control or management of the Company. As of January 31, 2021 and 2020, no shares of preferred stock were issued or outstanding. Common Stock As of January 31, 2021 and 2020, the Company had authorized 500,000,000 shares of voting $ 0.001 par value common stock. Each holder of the Company's common stock is entitled to one vote for each share on all matters to be voted upon by the stockholders and there are no cumulative rights. Subject to any preferential rights of any outstanding preferred stock, holders of the Company's common stock are entitled to receive ratably the dividends, if any, as may be declared from time to time by the Company's Board of Directors out of legally available funds. If there is a liquidation, dissolution or winding up of the Company, holders of the Company's common stock would be entitled to share in the Company's assets remaining after the payment of liabilities and any preferential rights of any outstanding preferred stock. Holders of the Company's common stock have no preemptive or conversion rights or other subscription rights, and there are no redemption or sinking fund provisions applicable to the common stock. All outstanding shares of the Company's common stock will be fully paid and non-assessable. The rights, preferences and privileges of the holders of the Company's common stock are subject to, and may be adversely affected by, the rights of the holders of shares of any series of preferred stock which the Company may designate and issue in the future. Treasury Stock As of January 31, 2021 and 2020, the Company had 6,505,334 shares of treasury stock which are carried at its cost basis of $ 11.9 million on the Company's consolidated balance sheets. 10. Debt On March 11, 2020, the Company entered into a new credit agreement with Silicon Valley Bank (the “Credit Agreement”). No significant debt issuance costs were incurred in association with the Credit Agreement. In January 2021, the Company amended the Credit Agreement which modified the conditions pursuant to which subsidiaries are required to become guarantors. The Credit Agreement provides for a senior secured revolving loan facility of up to $ 50.0 million that matures three years after the effective date, with the right subject to certain conditions to add an incremental revolving loan facility of up to $ 50.0 million in the aggregate. The three year revolving loan facility provides for borrowings up to the amount of the facility with sub-limits of up to (i) $ 30.0 million to be available for the issuance of letters of credit and (ii) $ 10.0 million to be available for swingline loans. Under the Credit Agreement, loans bear interest, at the Company's option, at an annual rate based on LIBOR or a base rate. Loans based on LIBOR shall bear interest at a rate between LIBOR plus 2.50 % and LIBOR plus 3.00 %, depending on the Company's 72 average daily usage of the revolving loan facility. Loans based on the base rate shall bear interest at a rate between the base rate minus 0.50 % and the base rate plus 0.00 %, depending on the Company's average daily usage of the revolving loan facility. The obligations under the Credit Agreement are secured by a lien on substantially all of the tangible and intangible property of the Company and by a pledge of all of the equity interests of the Company's material direct and indirect domestic subsidiaries and 66 % of each class of capital stock of any material first-tier foreign subsidiaries, subject to limited exceptions. The Credit Agreement contains customary affirmative and negative covenants and restrictions, as well as financial covenants that require the Company to maintain the year-over-year growth rate of its ordinary course recurring revenue for a trailing four fiscal quarter period above specified rates when certain liquidity thresholds are not met and to maintain a consolidated quick ratio of at least 1.50 to 1.00 tested on a monthly basis. As of January 31, 2020, the Company had back-to-back standby letters of credit for $ 12.1 million, which were fully secured by a $ 12.1 million cash deposit and classified as restricted cash on the Company's consolidated balance sheet. In connection with the Credit Agreement, the $ 12.1 million cash deposit was released and is no longer classified as restricted cash on the Company's consolidated balance sheet as of January 31, 2021. As of January 31, 2021, the Company was in compliance with all debt covenants. As of such date, the $ 50.0 million revolving loan facility had $ 35.7 million available and $ 14.3 million in letters of credit allocated as security in connection with office space. 11. Income Taxes The domestic and international components of the Company's loss from operations before income taxes are as follows: Fiscal year ended January 31, (in thousands) 2021 2020 2019 Domestic $ ( 69,953 ) $ ( 63,390 ) $ ( 64,653 ) International ( 24,642 ) ( 57,057 ) ( 9,962 ) Loss from operations before income taxes $ ( 94,595 ) $ ( 120,447 ) $ ( 74,615 ) The Company's (provision for) benefit from income taxes is comprised of the following: Fiscal year ended January 31, (in thousands) 2021 2020 2019 Current: Federal $ 313 $ ( 19 ) $ ( 19 ) State ( 198 ) ( 120 ) ( 91 ) International ( 1,070 ) ( 1,051 ) ( 155 ) Total current ( 955 ) ( 1,190 ) ( 265 ) Deferred: Federal ( 28 ) — — State ( 31 ) — — International 917 93 43 Total deferred 858 93 43 Total (provision for) benefit from income taxes $ ( 97 ) $ ( 1,097 ) $ ( 222 ) The Company’s (provision for) benefit from income taxes is primarily attributable to profitable jurisdictions outside of the United States and U.S. state income taxes. In the fiscal year ended January 31, 2021, the Company released a portion of its valuation allowance against certain foreign deferred tax assets resulting in an income tax benefit of $ 0.7 million, and recorded a U.S. tax benefit of $ 0.2 million due the expiration of certain statutes of limitations of unrecognized tax benefits. 73 The Company reconciled its income taxes at the federal statutory income tax rate to the (provision for) benefit from income taxes included within its consolidated statements of operations and comprehensive loss. The reconciliation is as follows: Fiscal year ended January 31, (in thousands) 2021 2020 2019 U.S. federal tax (provision) benefit at statutory rate $ 19,865 $ 25,294 $ 15,669 State taxes, net of federal (provision) benefit 5,000 4,124 6,499 Foreign tax rate differential ( 2,130 ) 970 448 Non-deductible expenses ( 329 ) ( 903 ) ( 1,420 ) Change in valuation allowance ( 23,900 ) ( 24,377 ) ( 37,808 ) Rate change 131 ( 7,017 ) 7 Stock-based compensation expense ( 1,929 ) ( 2,064 ) ( 317 ) Net excess tax benefits from stock-based compensation 3,444 6,519 16,847 Return to provision adjustment 16 ( 2,323 ) ( 337 ) Global intangible low-taxes income ( 6,129 ) — — Intra-entity asset transfer 3,944 — — Other, net 1,920 ( 1,320 ) 190 Total (provision for) benefit from income taxes $ ( 97 ) $ ( 1,097 ) $ ( 222 ) Deferred Income Taxes Deferred income taxes reflect the net tax effects of (a) temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes, and (b) operating loss carryforwards. The components of the Company's deferred income taxes were as follows: As of January 31, (in thousands) 2021 2020 Deferred tax assets: Net operating loss carryforwards $ 111,583 $ 102,064 Stock-based compensation 7,884 9,285 Allowance for doubtful accounts 650 255 Operating lease liability 33,350 29,280 Accrued expenses 2,903 1,974 Unearned revenue 52 26 Property and equipment — 730 Intangible assets 11,570 — Other 216 208 Total deferred tax assets 168,208 143,822 Less: valuation allowance ( 129,178 ) ( 105,277 ) Deferred tax assets, net of valuation allowance 39,030 38,545 Deferred tax liabilities: Property and equipment ( 2,062 ) — Intangible assets — ( 1,479 ) Costs to obtain revenue contracts ( 9,904 ) ( 9,767 ) Operating lease right-of-use assets ( 25,082 ) ( 26,518 ) Other ( 1,028 ) ( 686 ) Total deferred tax liabilities ( 38,076 ) ( 38,450 ) Net deferred tax asset (liability) $ 954 $ 95 As of January 31, 2021, for federal income tax purposes, the Company had $ 406.1 million of gross U.S. federal NOL carryforwards, with pre-2018 NOL expiring starting in fiscal 2028 and others indefinitely carried forward. 74 As of January 31, 2021, for state income tax purposes, the Company had $ 18.5 million of post-apportioned, tax-effected NOL carryforwards, which expire in fiscal 2024 through fiscal 2040. As of January 31, 2021, the Company had $ 7.8 million of tax-effected foreign NOL carryforwards which expires starting in fiscal 2026. Utilization of the Company’s NOL carryforwards in the future will be dependent upon its ability to generate taxable income and could be limited due to ownership changes, as defined under the provisions of Section 382 of the Code and similar state provisions. Utilization of the Company’s foreign NOL carryforwards in the future will be dependent upon the local tax law and regulation. During the fiscal year ended January 31, 2021, the Company completed transfers of certain non-U.S. customer contracts and the related intangible assets from one of its local subsidiaries to the U.S. in order to better align the ownership of these rights with how the business operates. The transfer resulted in no incremental tax expense in the local jurisdiction, as there were sufficient NOL available to fully offset the tax gain. Additionally, the Company recognized deferred tax assets for the book and tax basis difference on the transferred assets in the U.S., which were fully offset against its valuation allowance. The Company regularly evaluates the realizability of its deferred tax assets and establishes a valuation allowance if it is more likely than not that some or all the deferred tax assets will not be realized. In making such a determination, the Company considers all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, loss carryback and tax-planning strategies. Generally, more weight is given to objectively verifiable evidence, such as the cumulative loss in recent years, as a significant piece of negative evidence to overcome. During the fiscal year ended January 31, 2021, the valuation allowance had a net increase of $ 23.9 million from approximately $ 105.3 million to $ 129.2 million, primarily due to the impact of the NOL carryforwards established in the current period and other increases in U.S. deferred tax assets. The increase in the valuation allowance was partially offset by the use of the NOL in the local jurisdiction due to the intra-entity asset transfer. The Company also released a portion of the valuation allowance in certain foreign jurisdictions, as these jurisdictions demonstrated a sustained profitability evidenced by three consecutive years of positive earnings as well as forecasted continuing profitability. During the fiscal year ended January 31, 2020, the valuation allowance increased $ 24.4 million from approximately $ 80.9 million to $ 105.3 million, primarily due to the impact of the NOL carryforwards established in the current period and other increases in U.S. deferred tax assets. The Company will continue to assess the realizability of the deferred tax assets in each applicable jurisdiction going forward. Other Considerations The Company has not recorded deferred income taxes and withholding taxes with respect to the undistributed earnings of its foreign subsidiaries as such earnings are determined to be reinvested indefinitely. Upon distribution of those earnings in the form of dividends or otherwise, the Company may be subject to income taxes and withholding taxes, the determination of which is not practical as it is dependent on the amount of tax losses or other tax attributes available at the time of repatriation. A reconciliation of the beginning and ending balance of total unrecognized tax benefits for the fiscal years ended January 31, 2021, 2020, and 2019 is as follows: Fiscal year ended January 31, (in thousands) 2021 2020 2019 Beginning of period $ 493 $ 233 $ 233 Tax positions taken in prior period: Gross increases — 262 — Gross decreases ( 13 ) ( 8 ) — Tax positions taken in current period Gross increases — 13 — Lapse of statute of limitations ( 233 ) — — Currency translation effect 20 ( 7 ) — End of period $ 267 $ 493 $ 233 The Company recognizes accrued interest and penalties related to unrecognized tax benefits in the (provision for) benefit from income taxes and recognized less than $ 0.1 million for interest and penalties in each of the fiscal years ended January 31, 2021, 2020, and 2019. As of January 31, 2021, 2020, and 2019 accrued unrecognized tax benefits were $ 0.3 million, $ 0.5 million, and $ 0.2 million, respectively, and if recognized would reduce the (provision for) benefit from income taxes, and the Company's effective tax rate. During the fiscal year ended January 31, 2021, the Company released $ 0.2 million unrecognized tax benefits due to a lapse in the statute of limitations. The Company does not expect any significant change in its unrecognized tax benefits during the next twelve months. The Company is subject to income tax examinations in the United States and various state and foreign jurisdictions. The Company’s most significant operations are in the United States and the earliest open tax year subject to potential examination in the United States is 2008. 75 12. Leases The Company's operating lease arrangements are principally for office space. As of January 31, 2021, the Company had $ 14.2 million of operating lease liabilities, current, $ 123.6 million of operating lease liabilities, non-current, $ 104.8 million of operating lease right-of-use assets, and no financing leases, on its consolidated balance sheet. The operating lease arrangements included in the measurement of lease liabilities do not include short-term leases as discussed in Note 2, "Summary of Significant Accounting Policies", and had a weighted-average remaining lease term of 9.5 years and a weighted-average discount rate of 5.7 %, as of January 31, 2021. During the fiscal year ended January 31, 2021, the Company paid $ 11.6 million for amounts included in the measurement of lease liabilities and obtained $ 7.2 million of operating lease right-of-use assets in exchange for lease obligations. In May 2020, the Company entered into a Surrender Agreement (the "Surrender Agreement") of its lease arrangement for its prior corporate headquarters in New York, NY. The previous lease arrangement was scheduled to expire in December 2020. Pursuant to the Surrender Agreement, the Company's lease obligations continued through August 31, 2020. During the fiscal years ended January 31, 2021 and 2020, the Company recognized $ 25.7 million and $ 21.2 million, of lease expense, respectively, which consisted of the following: Fiscal year ended January 31, (in thousands) 2021 2020 Operating lease expense $ 20,134 $ 16,820 Short-term lease expense 1,053 2,259 Variable lease expense 4,475 2,153 Total lease expense $ 25,662 $ 21,232 Operating lease expense is recognized on a straight-line basis over the term of the arrangement beginning on the lease commencement date for lease arrangements that have an initial term greater than twelve months and therefore are recorded on the balance sheet. For the fiscal year ended January 31, 2021, operating lease expense includes lease expense related to the Company's lease arrangement associated with its new corporate headquarters in New York, NY, which commenced in May 2019. Short-term lease expense is recognized on a straight-line basis over the lease term for lease arrangements that have an initial term of 12 months or less and therefore are not recorded on the balance sheet. Variable lease expense is recognized as incurred and consists of real estate taxes and utilities, among other office space related expenses. During the fiscal year ended January 31, 2019, rent expense was $ 7.3 million. The total remaining operating lease payments included in the measurement of lease liabilities on the Company's consolidated balance sheet as of January 31, 2021, was as follows (in thousands): Fiscal year ending January 31: Operating Lease Payments 2022 $ 19,087 2023 19,184 2024 18,915 2025 18,362 2026 18,986 2027 and thereafter 92,742 Total gross operating lease payments 187,276 Less: tenant allowances ( 4,484 ) Total net operating lease payments 182,792 Less: imputed interest ( 45,043 ) Total lease liabilities, reflecting the present value of net lease payments $ 137,749 13. Commitments and Contingencies Contractual Obligations The Company is obligated to make payments under certain non-cancelable contractual obligations in the normal course of business. The Company's contractual obligations primarily relate to its operating lease arrangements for office space. Its other contractual obligations include contracts with its Knowledge Network application providers, which generally have a term of one year, although some have a term of several years, and its software vendors, among others. These obligations represent minimum contractual payments, or the Company's best estimate for variable elements based on historical payments. The Company's contractual obligations have various expiry dates between fiscal years 2022 and 2035. 76 As of January 31, 2021, the Company's contractual obligations are as follows (in thousands): Fiscal year ending January 31: Operating Leases Other 2022 $ 19,490 $ 30,091 2023 19,189 10,332 2024 18,915 4,921 2025 18,362 1,885 2026 18,986 1,828 2027 and thereafter 92,743 1,877 Total $ 187,685 $ 50,934 Performance and Payment Bond The Company's operating lease arrangement associated with its new corporate headquarters in New York, NY requires performance and payment bonds to secure the completion of certain potential construction work, when a reasonable estimate of such work is available. In connection with these bonds, as of January 31, 2021, the Company paid $ 0.9 million in issuance costs which are recognized as operating expense over the estimated construction period in the Company's consolidated statement of operations. Legal Proceedings The Company is and may be involved in various legal proceedings arising in the normal course of business. Although the results of litigation and claims cannot be predicted with certainty, currently, in the opinion of the Company, the likelihood of any material adverse impact on the Company's results of operations, cash flows or the Company's financial position for any such litigation or claims is deemed to be remote. Regardless of the outcome, litigation can have an adverse impact on the Company because of defense costs, diversion of management resources and other factors. Warranties and Indemnifications The Yext platform is in some cases warranted to perform in a manner consistent with general industry standards that are reasonably applicable and materially in accordance with the Company's product specifications. The Company's arrangements generally include certain provisions for indemnifying customers against liabilities if its products or services infringe a third-party's intellectual property rights and/or if the Company breaches its contractual agreements with a customer or in instances of negligence, fraud or willful misconduct by the Company. To date, the Company has not incurred any material costs as a result of such obligations and has not accrued any liabilities related to such obligations in the accompanying consolidated financial statements. The Company has also agreed to indemnify certain of its directors and executive officers for costs associated with any fees, expenses, judgments, fines and settlement amounts incurred by any of these persons in any action or proceeding to which any of those persons is, or is threatened to be, made a party by reason of the person's service as a director or officer, including any action by the Company, arising out of that person's services as the Company's director or officer or that person's services provided to any other company or enterprise at the Company's request. The Company maintains director and officer insurance coverage that would generally enable the Company to recover a portion of future amounts paid. The Company may also be subject to indemnification obligations by law with respect to the actions of its employees under certain circumstances and in certain jurisdictions. 14. Net Loss Per Share Attributable to Common Stockholders The following table sets forth the computation of the basic and diluted net loss per share attributable to common stockholders: Fiscal year ended January 31, (in thousands, except share and per share data) 2021 2020 2019 Numerator: Net loss attributable to common stockholders $ ( 94,692 ) $ ( 121,544 ) $ ( 74,837 ) Denominator: Weighted-average common shares outstanding 119,690,378 111,758,946 98,387,366 Net loss per share attributable to common stockholders, basic and diluted $ ( 0.79 ) $ ( 1.09 ) $ ( 0.76 ) Basic net loss per share is computed by dividing the net loss attributable to common stockholders by the weighted average number of common shares outstanding during the period. Unvested restricted stock and restricted stock units are excluded from the denominator of basic net loss per share. Diluted net loss per share is computed by dividing the net loss attributable to common stockholders by the weighted average number of common shares plus common equivalent shares for the period, including any dilutive effect from such shares. 77 Since the Company was in a net loss position for all periods presented, net loss per share attributable to common stockholders was the same on a basic and diluted basis, as the inclusion of all potential common equivalent shares outstanding would have been anti-dilutive. Anti-dilutive common equivalent shares were as follows: As of January 31, 2021 2020 2019 Options to purchase common stock 8,871,890 12,371,254 15,977,235 Restricted stock and restricted stock units 9,545,352 9,910,729 7,703,705 Shares estimated to be purchased under ESPP 315,718 284,222 176,241 Total anti-dilutive common equivalent shares 18,732,960 22,566,205 23,857,181 15. Selected Quarterly Financial Data (Unaudited) Selected summarized quarterly financial information for the fiscal years ended January 31, 2021 and 2020 was as follows: Three months ended (in thousands, except per share data) Jan. 31, 2021 Oct. 31, 2020 Jul. 31, 2020 Apr. 30, 2020 Revenue $ 92,194 $ 89,061 $ 88,055 $ 85,351 Gross profit $ 70,597 $ 67,422 $ 66,071 $ 64,167 Loss from operations $ ( 19,143 ) $ ( 21,760 ) $ ( 24,240 ) $ ( 29,189 ) Net loss $ ( 18,311 ) $ ( 22,041 ) $ ( 25,116 ) $ ( 29,224 ) Net loss per share attributable to common stockholders, basic and diluted $ ( 0.15 ) $ ( 0.18 ) $ ( 0.21 ) $ ( 0.25 ) Three months ended (in thousands, except per share data) Jan. 31, 2020 Oct. 31, 2019 Jul. 31, 2019 Apr. 30, 2019 Revenue $ 81,378 $ 76,370 $ 72,373 $ 68,708 Gross profit $ 60,456 $ 56,004 $ 53,104 $ 52,235 Loss from operations $ ( 30,563 ) $ ( 42,833 ) $ ( 30,297 ) $ ( 19,260 ) Net loss $ ( 30,577 ) $ ( 42,717 ) $ ( 29,291 ) $ ( 18,959 ) Net loss per share attributable to common stockholders, basic and diluted $ ( 0.27 ) $ ( 0.38 ) $ ( 0.26 ) $ ( 0.18 ) 78 Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure None.