Revenue

12 Months Ended

Jan. 31, 2020

Revenue from Contract with Customer [Abstract]

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)	2020		2019		2018
North America	$	245,629	$	197,285	$	155,966
International	53,200		30,998		14,235
Total revenue	$	298,829	$	228,283	$	170,201

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 82%, 85%, and 89% of total revenue, and revenue attributable to Switzerland, which serves as one of the Company's contracting entities for Europe, represented 14%, less than 10%, and less than 10% of total revenue, respectively, for the fiscal years ended January 31, 2020, 2019, and 2018. No other countries represented more than 10% percent of total revenue during the fiscal years ended January 31, 2020, 2019, and 2018.

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 5% and 4% of the Company's total revenue for the fiscal years ended January 31, 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, 2020 and 2019, unearned revenue, current was $176.8 million and $135.5 million and unearned revenue, non-current was $0.4 million and $0.1 million, respectively, and were included within Other long term liabilities on the Company's consolidated balance sheet. 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.

Revenue recognized of $135.2 million during the fiscal year ended January 31, 2020 was included in unearned revenue at the beginning of the period.

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, 2020 and 2019, customer deposits of $0.9 million and $1.1 million were included in Accounts payable, accrued expenses and other current liabilities on the Company's consolidated balance sheet, respectively.

Prior to the adoption of ASU 2014-09, during the fiscal year ended January 31, 2018, the Company categorized unearned revenue and customer deposits within Deferred revenue. Deferred revenue consisted of billings or payments received in advance of revenue recognition from contracts, irrespective of whether cancelable or non-cancelable in nature.

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, 2020, the Company had $328.1 million of remaining performance obligations, of which $309.7 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, 2019, the Company had $262.0 million of remaining performance obligations.