00016762381-312023Q2False1414141414P1Y00016762382022-02-012022-07-310001676238us-gaap:CommonClassAMember2022-09-07xbrli:shares0001676238us-gaap:CommonClassBMember2022-09-0700016762382022-07-31iso4217:USD00016762382022-01-310001676238us-gaap:CommonClassAMember2022-07-31iso4217:USDxbrli:shares0001676238us-gaap:CommonClassAMember2022-01-310001676238us-gaap:CommonClassBMember2022-01-310001676238us-gaap:CommonClassBMember2022-07-3100016762382022-05-012022-07-3100016762382021-05-012021-07-3100016762382021-02-012021-07-3100016762382022-04-300001676238us-gaap:CommonStockMemberbrze:CommonClassAAndBMember2022-04-300001676238us-gaap:AdditionalPaidInCapitalMember2022-04-300001676238us-gaap:RetainedEarningsMember2022-04-300001676238us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-04-300001676238us-gaap:CommonStockMemberbrze:CommonClassAAndBMember2022-05-012022-07-310001676238us-gaap:AdditionalPaidInCapitalMember2022-05-012022-07-310001676238us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-05-012022-07-310001676238us-gaap:RetainedEarningsMember2022-05-012022-07-310001676238us-gaap:CommonStockMemberbrze:CommonClassAAndBMember2022-07-310001676238us-gaap:AdditionalPaidInCapitalMember2022-07-310001676238us-gaap:RetainedEarningsMember2022-07-310001676238us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-07-3100016762382021-04-300001676238us-gaap:CommonStockMember2021-04-300001676238us-gaap:AdditionalPaidInCapitalMember2021-04-300001676238us-gaap:RetainedEarningsMember2021-04-300001676238us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-04-300001676238us-gaap:CommonStockMember2021-05-012021-07-310001676238us-gaap:AdditionalPaidInCapitalMember2021-05-012021-07-310001676238us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-05-012021-07-310001676238us-gaap:RetainedEarningsMember2021-05-012021-07-3100016762382021-07-310001676238us-gaap:CommonStockMember2021-07-310001676238us-gaap:AdditionalPaidInCapitalMember2021-07-310001676238us-gaap:RetainedEarningsMember2021-07-310001676238us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-07-310001676238us-gaap:CommonStockMemberbrze:CommonClassAAndBMember2022-01-310001676238us-gaap:AdditionalPaidInCapitalMember2022-01-310001676238us-gaap:RetainedEarningsMember2022-01-310001676238us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-01-310001676238us-gaap:CommonStockMemberbrze:CommonClassAAndBMember2022-02-012022-07-310001676238us-gaap:AdditionalPaidInCapitalMember2022-02-012022-07-310001676238us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-02-012022-07-310001676238us-gaap:RetainedEarningsMember2022-02-012022-07-3100016762382021-01-310001676238us-gaap:CommonStockMember2021-01-310001676238us-gaap:AdditionalPaidInCapitalMember2021-01-310001676238us-gaap:RetainedEarningsMember2021-01-310001676238us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-01-310001676238us-gaap:CommonStockMember2021-02-012021-07-310001676238us-gaap:AdditionalPaidInCapitalMember2021-02-012021-07-310001676238us-gaap:CommonStockMemberbrze:CommonClassAAndBMember2021-02-012021-07-310001676238us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-02-012021-07-310001676238us-gaap:RetainedEarningsMember2021-02-012021-07-31xbrli:pure00016762382022-02-010001676238brze:SubscriptionRevenueMember2022-05-012022-07-310001676238brze:SubscriptionRevenueMember2021-05-012021-07-310001676238brze:SubscriptionRevenueMember2022-02-012022-07-310001676238brze:SubscriptionRevenueMember2021-02-012021-07-310001676238brze:ProfessionalServicesRevenueMember2022-05-012022-07-310001676238brze:ProfessionalServicesRevenueMember2021-05-012021-07-310001676238brze:ProfessionalServicesRevenueMember2022-02-012022-07-310001676238brze:ProfessionalServicesRevenueMember2021-02-012021-07-310001676238country:US2022-05-012022-07-310001676238country:US2021-05-012021-07-310001676238country:US2022-02-012022-07-310001676238country:US2021-02-012021-07-310001676238us-gaap:NonUsMember2022-05-012022-07-310001676238us-gaap:NonUsMember2021-05-012021-07-310001676238us-gaap:NonUsMember2022-02-012022-07-310001676238us-gaap:NonUsMember2021-02-012021-07-3100016762382021-08-012021-07-3100016762382022-08-012021-07-3100016762382021-10-3100016762382021-11-012021-10-3100016762382022-11-012021-10-3100016762382022-02-012022-01-3100016762382023-02-012022-01-3100016762382022-05-012022-04-3000016762382023-05-012022-04-3000016762382022-08-012022-07-3100016762382023-08-012022-07-3100016762382021-08-012021-10-3100016762382022-08-012021-10-3100016762382021-11-012022-01-3100016762382022-11-012022-01-3100016762382022-05-012022-07-3100016762382023-05-012022-07-3100016762382023-08-012021-07-310001676238brze:BrazeKKMember2020-09-012021-09-300001676238brze:BrazeKKMember2020-09-012020-09-300001676238brze:BrazeKKMember2021-09-012021-09-300001676238us-gaap:MoneyMarketFundsMemberus-gaap:FairValueInputsLevel1Member2022-07-310001676238us-gaap:MoneyMarketFundsMemberus-gaap:FairValueInputsLevel2Member2022-07-310001676238us-gaap:MoneyMarketFundsMemberus-gaap:FairValueInputsLevel3Member2022-07-310001676238us-gaap:MoneyMarketFundsMember2022-07-310001676238us-gaap:FairValueInputsLevel1Member2022-07-310001676238us-gaap:FairValueInputsLevel2Member2022-07-310001676238us-gaap:FairValueInputsLevel3Member2022-07-310001676238us-gaap:FairValueInputsLevel1Memberus-gaap:USGovernmentDebtSecuritiesMember2022-07-310001676238us-gaap:FairValueInputsLevel2Memberus-gaap:USGovernmentDebtSecuritiesMember2022-07-310001676238us-gaap:FairValueInputsLevel3Memberus-gaap:USGovernmentDebtSecuritiesMember2022-07-310001676238us-gaap:USGovernmentDebtSecuritiesMember2022-07-310001676238us-gaap:ForeignGovernmentDebtSecuritiesMemberus-gaap:FairValueInputsLevel1Member2022-07-310001676238us-gaap:FairValueInputsLevel2Memberus-gaap:ForeignGovernmentDebtSecuritiesMember2022-07-310001676238us-gaap:ForeignGovernmentDebtSecuritiesMemberus-gaap:FairValueInputsLevel3Member2022-07-310001676238us-gaap:ForeignGovernmentDebtSecuritiesMember2022-07-310001676238us-gaap:CorporateDebtSecuritiesMemberus-gaap:FairValueInputsLevel1Member2022-07-310001676238us-gaap:CorporateDebtSecuritiesMemberus-gaap:FairValueInputsLevel2Member2022-07-310001676238us-gaap:CorporateDebtSecuritiesMemberus-gaap:FairValueInputsLevel3Member2022-07-310001676238us-gaap:CorporateDebtSecuritiesMember2022-07-310001676238us-gaap:AssetBackedSecuritiesMemberus-gaap:FairValueInputsLevel1Member2022-07-310001676238us-gaap:AssetBackedSecuritiesMemberus-gaap:FairValueInputsLevel2Member2022-07-310001676238us-gaap:AssetBackedSecuritiesMemberus-gaap:FairValueInputsLevel3Member2022-07-310001676238us-gaap:AssetBackedSecuritiesMember2022-07-310001676238us-gaap:MoneyMarketFundsMemberus-gaap:FairValueInputsLevel1Member2022-01-310001676238us-gaap:MoneyMarketFundsMemberus-gaap:FairValueInputsLevel2Member2022-01-310001676238us-gaap:MoneyMarketFundsMemberus-gaap:FairValueInputsLevel3Member2022-01-310001676238us-gaap:MoneyMarketFundsMember2022-01-310001676238us-gaap:FairValueInputsLevel1Member2022-01-310001676238us-gaap:FairValueInputsLevel2Member2022-01-310001676238us-gaap:FairValueInputsLevel3Member2022-01-310001676238us-gaap:FairValueInputsLevel1Memberus-gaap:USGovernmentDebtSecuritiesMember2022-01-310001676238us-gaap:FairValueInputsLevel2Memberus-gaap:USGovernmentDebtSecuritiesMember2022-01-310001676238us-gaap:FairValueInputsLevel3Memberus-gaap:USGovernmentDebtSecuritiesMember2022-01-310001676238us-gaap:USGovernmentDebtSecuritiesMember2022-01-310001676238us-gaap:ForeignGovernmentDebtSecuritiesMemberus-gaap:FairValueInputsLevel1Member2022-01-310001676238us-gaap:FairValueInputsLevel2Memberus-gaap:ForeignGovernmentDebtSecuritiesMember2022-01-310001676238us-gaap:ForeignGovernmentDebtSecuritiesMemberus-gaap:FairValueInputsLevel3Member2022-01-310001676238us-gaap:ForeignGovernmentDebtSecuritiesMember2022-01-310001676238us-gaap:CommercialPaperNotIncludedWithCashAndCashEquivalentsMemberus-gaap:FairValueInputsLevel1Member2022-01-310001676238us-gaap:FairValueInputsLevel2Memberus-gaap:CommercialPaperNotIncludedWithCashAndCashEquivalentsMember2022-01-310001676238us-gaap:CommercialPaperNotIncludedWithCashAndCashEquivalentsMemberus-gaap:FairValueInputsLevel3Member2022-01-310001676238us-gaap:CommercialPaperNotIncludedWithCashAndCashEquivalentsMember2022-01-310001676238us-gaap:CorporateDebtSecuritiesMemberus-gaap:FairValueInputsLevel1Member2022-01-310001676238us-gaap:CorporateDebtSecuritiesMemberus-gaap:FairValueInputsLevel2Member2022-01-310001676238us-gaap:CorporateDebtSecuritiesMemberus-gaap:FairValueInputsLevel3Member2022-01-310001676238us-gaap:CorporateDebtSecuritiesMember2022-01-310001676238us-gaap:AssetBackedSecuritiesMemberus-gaap:FairValueInputsLevel1Member2022-01-310001676238us-gaap:AssetBackedSecuritiesMemberus-gaap:FairValueInputsLevel2Member2022-01-310001676238us-gaap:AssetBackedSecuritiesMemberus-gaap:FairValueInputsLevel3Member2022-01-310001676238us-gaap:AssetBackedSecuritiesMember2022-01-31brze:security0001676238us-gaap:SoftwareDevelopmentMember2022-07-310001676238us-gaap:SoftwareDevelopmentMember2022-01-310001676238brze:ComputerEquipmentOfficeEquipmentAndSoftwareMember2022-07-310001676238brze:ComputerEquipmentOfficeEquipmentAndSoftwareMember2022-01-310001676238us-gaap:LeaseholdImprovementsMember2022-07-310001676238us-gaap:LeaseholdImprovementsMember2022-01-310001676238us-gaap:FurnitureAndFixturesMember2022-07-310001676238us-gaap:FurnitureAndFixturesMember2022-01-310001676238us-gaap:CostOfSalesMember2022-05-012022-07-310001676238us-gaap:CostOfSalesMember2021-05-012021-07-310001676238us-gaap:CostOfSalesMember2022-02-012022-07-310001676238us-gaap:CostOfSalesMember2021-02-012021-07-31brze:classbrze:vote0001676238us-gaap:CommonClassAMember2022-02-012022-07-310001676238brze:A2021EquityIncentivePlanMember2021-11-300001676238brze:A2021EquityIncentivePlanMember2021-11-012021-11-300001676238brze:A2021EquityIncentivePlanMember2022-02-012022-02-010001676238brze:A2021EquityIncentivePlanMember2022-02-012022-07-310001676238us-gaap:EmployeeStockOptionMember2021-05-012021-07-310001676238us-gaap:EmployeeStockOptionMember2021-02-012021-07-310001676238srt:MinimumMemberus-gaap:EmployeeStockOptionMember2021-05-012021-07-310001676238us-gaap:EmployeeStockOptionMembersrt:MaximumMember2021-05-012021-07-310001676238srt:MinimumMemberus-gaap:EmployeeStockOptionMember2021-02-012021-07-310001676238us-gaap:EmployeeStockOptionMembersrt:MaximumMember2021-02-012021-07-310001676238us-gaap:EmployeeStockOptionMember2021-07-310001676238us-gaap:RestrictedStockUnitsRSUMember2022-01-310001676238us-gaap:RestrictedStockUnitsRSUMember2022-02-012022-07-310001676238us-gaap:RestrictedStockUnitsRSUMember2022-07-310001676238srt:MinimumMemberus-gaap:RestrictedStockUnitsRSUMember2022-02-012022-07-310001676238brze:EmployeeStockPurchasePlanMemberus-gaap:EmployeeStockMember2021-11-300001676238brze:EmployeeStockPurchasePlanMember2021-11-012021-11-300001676238brze:EmployeeStockPurchasePlanMember2021-11-300001676238brze:EmployeeStockPurchasePlanMember2022-02-012022-02-010001676238brze:EmployeeStockPurchasePlanMember2022-02-012022-07-310001676238brze:EmployeeStockPurchasePlanMemberus-gaap:EmployeeStockMember2022-05-012022-07-310001676238brze:EmployeeStockPurchasePlanMemberus-gaap:EmployeeStockMember2022-07-310001676238us-gaap:SellingAndMarketingExpenseMember2022-05-012022-07-310001676238us-gaap:SellingAndMarketingExpenseMember2021-05-012021-07-310001676238us-gaap:SellingAndMarketingExpenseMember2022-02-012022-07-310001676238us-gaap:SellingAndMarketingExpenseMember2021-02-012021-07-310001676238us-gaap:ResearchAndDevelopmentExpenseMember2022-05-012022-07-310001676238us-gaap:ResearchAndDevelopmentExpenseMember2021-05-012021-07-310001676238us-gaap:ResearchAndDevelopmentExpenseMember2022-02-012022-07-310001676238us-gaap:ResearchAndDevelopmentExpenseMember2021-02-012021-07-310001676238us-gaap:GeneralAndAdministrativeExpenseMember2022-05-012022-07-310001676238us-gaap:GeneralAndAdministrativeExpenseMember2021-05-012021-07-310001676238us-gaap:GeneralAndAdministrativeExpenseMember2022-02-012022-07-310001676238us-gaap:GeneralAndAdministrativeExpenseMember2021-02-012021-07-310001676238us-gaap:EmployeeStockOptionMember2022-07-310001676238us-gaap:EmployeeStockOptionMember2022-02-012022-07-310001676238brze:A2021SecondaryTransactionSharesSoldByEmployeesMemberus-gaap:CommonStockMember2021-03-012021-03-310001676238srt:MinimumMember2022-07-310001676238srt:MaximumMember2022-07-310001676238us-gaap:EmployeeStockOptionMember2022-05-012022-07-310001676238us-gaap:EmployeeStockOptionMember2021-05-012021-07-310001676238us-gaap:EmployeeStockOptionMember2022-02-012022-07-310001676238us-gaap:EmployeeStockOptionMember2021-02-012021-07-310001676238us-gaap:RestrictedStockMember2022-05-012022-07-310001676238us-gaap:RestrictedStockMember2021-05-012021-07-310001676238us-gaap:RestrictedStockMember2022-02-012022-07-310001676238us-gaap:RestrictedStockMember2021-02-012021-07-310001676238brze:ShareBasedPaymentArrangementEmployeeStockPurchasePlanMember2022-05-012022-07-310001676238brze:ShareBasedPaymentArrangementEmployeeStockPurchasePlanMember2021-05-012021-07-310001676238brze:ShareBasedPaymentArrangementEmployeeStockPurchasePlanMember2022-02-012022-07-310001676238brze:ShareBasedPaymentArrangementEmployeeStockPurchasePlanMember2021-02-012021-07-310001676238us-gaap:WarrantMember2022-05-012022-07-310001676238us-gaap:WarrantMember2021-05-012021-07-310001676238us-gaap:WarrantMember2022-02-012022-07-310001676238us-gaap:WarrantMember2021-02-012021-07-310001676238us-gaap:ConvertiblePreferredStockMember2022-05-012022-07-310001676238us-gaap:ConvertiblePreferredStockMember2021-05-012021-07-310001676238us-gaap:ConvertiblePreferredStockMember2022-02-012022-07-310001676238us-gaap:ConvertiblePreferredStockMember2021-02-012021-07-310001676238us-gaap:SubsequentEventMemberus-gaap:RestrictedStockUnitsRSUMember2022-08-012022-08-310001676238us-gaap:SubsequentEventMemberus-gaap:RestrictedStockUnitsRSUMember2022-08-31
Table of Contents
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
______________________________________________________________
FORM 10-Q
______________________________________________________________
(Mark One)
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended July 31, 2022
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from     to     
Commission File Number: 001-41065
______________________________________________________________
Braze, Inc.
(Exact name of Registrant as specified in its charter)
______________________________________________________________
Delaware45-2505271
(State or other jurisdiction of
incorporation or organization)
(I.R.S. Employer
Identification Number)
330 West 34th Street, Floor 18
New YorkNew York 10001
(Address of principal executive offices, including zip code) 
(609964-0585
(Registrant’s telephone number, including area code)
______________________________________________________________
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Class A Common Stock, par value $0.0001 per shareBRZEThe Nasdaq Stock Market LLC
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  x    No  o 
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes  x   No  o 
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company.  See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule12b-2 of the Exchange Act.
Large accelerated filerAccelerated filer
Non-accelerated filerSmaller reporting company
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. 
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes      No  ☒
At September 7, 2022, there were 52,403,506 shares of the registrant’s Class A and 42,632,593 shares of the registrant’s Class B common stock, each with a par value of $0.0001 per share, outstanding.


Table of Contents
Braze, Inc.
Quarterly Report on Form 10-Q
For the Quarterly Period Ended July 31, 2022
TABLE OF CONTENTS
Page No.
2

Table of Contents
SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS

This Quarterly Report on Form 10-Q contains forward-looking statements about us and our industry that involve substantial risks and uncertainties. All statements other than statements of historical facts contained in this Quarterly Report on Form 10-Q, including statements regarding our future results of operations or financial condition, business strategy and plans and objectives of management for future operations, are forward-looking statements. In some cases, you can identify forward-looking statements because they contain words such as “anticipate,” “believe,” “contemplate,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “should,” “target,” “will” or “would” or the negative of these words or other similar terms or expressions. These forward-looking statements include, but are not limited to, statements concerning the following:

the anticipated effects of unstable market and economic conditions that may have serious adverse consequences on our business, financial condition and share price;
our expectations regarding our revenue and the timing of revenue recognition under our customer contracts, expenses and other operating results;
our ability to acquire new customers and successfully retain existing customers;
our ability to increase usage of our platform and upsell and cross-sell additional products;
our ability to achieve or sustain our profitability;
future investments in our business, our anticipated capital expenditures and our estimates regarding our capital requirements;
the costs and success of our marketing efforts, and our ability to promote our brand;
our reliance on key personnel and our ability to identify, recruit and retain skilled personnel;
our growth strategies for our platform and our ability to effectively manage our growth, including any international expansion;
the estimated addressable market opportunity for our platform;
our ability to protect and enforce our intellectual property rights and any costs associated therewith;
the anticipated impact of domestic and global socioeconomic events on our business, including the effects of (1) the ongoing COVID-19 pandemic, including the emergence of new variant strains of COVID-19, (2) international conflicts that may impact international trade and global economic performance, such as the ongoing conflict between Russia and Ukraine, and (3) macroeconomic trends that impact us and our customers;
our ability to compete effectively with existing competitors and new market entrants; and
the size and growth rates of the markets in which we compete.

You should not rely on forward-looking statements as predictions of future events. We have based the forward-looking statements contained in this Quarterly Report on Form 10-Q primarily on our current expectations and projections about future events and trends that we believe may affect our business, financial condition and operating results. The outcome of the events described in these forward-looking statements is subject to risks, uncertainties and other factors described in the section titled “Risk Factors” and elsewhere in this Quarterly Report on Form 10-Q. Moreover, we operate in a very competitive and rapidly changing environment. New risks and uncertainties emerge from time to time, and it is not possible for us to predict all risks and uncertainties that could have an impact on the forward-looking statements contained in this report. The results, events and circumstances reflected in the forward-looking statements may not be achieved or occur, and actual results, events or circumstances could differ materially from those described in the forward-looking statements.

In addition, statements that “we believe” and similar statements reflect our beliefs and opinions on the relevant subject. These statements are based on information available to us as of the date of this Quarterly Report on Form 10-Q and are inherently uncertain. While we believe that information provides a reasonable basis for these statements, that information may be limited or incomplete. Our statements should not be read to indicate that we have conducted an exhaustive inquiry into, or review of, all relevant information.

3

Table of Contents
The forward-looking statements made in this Quarterly Report on Form 10-Q relate only to events as of the date on which the statements are made. We undertake no obligation to update any forward-looking statements made in this Quarterly Report on Form 10-Q to reflect events or circumstances after the date of this Quarterly Report on Form 10-Q or to reflect new information or the occurrence of unanticipated events, except as required by law. We may not actually achieve the plans, intentions or expectations disclosed in our forward-looking statements, and you should not place undue reliance on our forward-looking statements. Our forward-looking statements do not reflect the potential impact of any future acquisitions, mergers, dispositions, joint ventures or investments.

Unless the context otherwise indicates, references in this Quarterly Report on Form 10-Q to the terms “Braze,” “the Company,” “we,” “our” and “us” refer to Braze, Inc. and its subsidiaries.

“Braze,” “Braze Currents” and other trade names and trademarks of ours appearing in this Quarterly Report on Form 10-Q are our property. This Quarterly Report on Form 10-Q contains trade names and trademarks of other companies, which are the property of their respective owners. We do not intend our use or display of other companies’ trade names or trademarks to imply an endorsement or sponsorship of us by such companies, or any relationship with any of these companies.

We may announce material business and financial information to our investors using our investor relations website (www.investors.braze.com). We therefore encourage investors and others interested in Braze to review the information that we make available on our website, in addition to following our filings with the Securities and Exchange Commission, or the SEC, webcasts, press releases and conference calls.
4

Table of Contents
Part 1 – Financial Information
Item 1.    Financial Statements
BRAZE, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(in thousands, except share and per share amounts)
July 31,
2022
January 31,
2022
ASSETS
CURRENT ASSETS:
Cash and cash equivalents$80,881 $478,937 
Accounts receivable, net of allowance of $829 and $743 at July 31, 2022 and January 31, 2022, respectively
47,973 64,504 
Marketable securities425,754 35,156 
Prepaid expenses and other current assets26,296 29,588 
Total current assets580,904 608,185 
Restricted cash, noncurrent4,036 4,036 
Property and equipment, net16,276 7,393 
Operating lease right-of-use assets    51,276  
Deferred contract costs45,272 41,689 
Other assets4,329 4,959 
TOTAL ASSETS$702,093 $666,262 
LIABILITIES, REDEEMABLE NON-CONTROLLING INTEREST, AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable$2,889 $2,083 
Accrued expenses and other current liabilities34,981 31,623 
Deferred revenue135,794 126,260 
Operating lease liabilities, current10,642  
Total current liabilities184,306 159,966 
Operating lease liabilities, noncurrent44,391  
Other long-term liabilities501 1,478 
TOTAL LIABILITIES229,198 161,444 
COMMITMENTS AND CONTINGENCIES (Note 13)
Redeemable non-controlling interest (Note 4)2,344 3,235 
STOCKHOLDERS’ EQUITY
Class A common stock, $0.0001 par value; 2,000,000,000 shares authorized as of July 31, 2022 and January 31, 2022; 52,069,633 and 18,549,183 shares issued and outstanding as of July 31, 2022 and January 31, 2022, respectively
5 1 
Class B common stock, $0.0001 par value; 110,000,000 shares authorized as of July 31, 2022 and January 31, 2022; 42,647,593 and 74,418,847 shares issued and outstanding as of July 31, 2022 and January 31, 2022, respectively
4 8 
Additional paid-in capital761,412 717,175 
Accumulated other comprehensive loss(3,754)(640)
Accumulated deficit(287,116)(214,961)
TOTAL STOCKHOLDERS’ EQUITY470,551 501,583 
TOTAL LIABILITIES, REDEEMABLE NON-CONTROLLING INTEREST AND STOCKHOLDERS’ EQUITY$702,093 $666,262 
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
5

Table of Contents
BRAZE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(in thousands, except per share amounts)
Three Months Ended
July 31,
Six Months Ended
July 31,
2022202120222021
Revenue$86,131 $55,756 $163,626 $103,633 
Cost of revenue27,352 18,755 53,258 34,562 
Gross profit58,779 37,001 110,368 69,071 
Operating expenses:
Sales and marketing50,007 27,492 96,051 51,843 
Research and development23,336 11,595 44,956 23,392 
General and administrative20,543 10,064 44,117 19,011 
Total operating expenses93,886 49,151 185,124 94,246 
Loss from operations(35,107)(12,150)(74,756)(25,175)
Other income (expense), net1,729 (297)1,759 (265)
Loss before provision for income taxes(33,378)(12,447)(72,997)(25,440)
Provision for income taxes35 166 49 326 
Net loss(33,413)(12,613)(73,046)(25,766)
Net loss attributable to redeemable non-controlling interest(527)(385)(891)(704)
Net loss attributable to Braze, Inc.$(32,886)$(12,228)$(72,155)$(25,062)
Net loss per share attributable to Braze, Inc. common stockholders, basic and diluted$(0.35)$(0.60)$(0.77)$(1.25)
Weighted-average shares used to compute net loss per share attributable to Braze, Inc. common stockholders, basic and diluted94,103 20,329 93,668 20,004 
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
6

Table of Contents
BRAZE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (UNAUDITED)
(in thousands)
Three Months Ended
July 31,
Six Months Ended
July 31,
2022202120222021
Net loss$(33,413)$(12,613)$(73,046)$(25,766)
Other comprehensive loss:
Change in foreign currency translation adjustments(193)105 (755)(25)
Unrealized gains (losses) on marketable securities(1,164)5 (2,359)(35)
Other comprehensive income (loss), net(1,357)110 (3,114)(60)
Comprehensive loss, net(34,770)(12,503)(76,160)(25,826)
Less: comprehensive loss, net, attributable to redeemable non-controlling interest(527)(385)(891)(704)
Comprehensive loss attributable to Braze, Inc.$(34,243)$(12,118)$(75,269)$(25,122)
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
7

Table of Contents
BRAZE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CONVERTIBLE PREFERRED STOCK, REDEEMABLE NON-CONTROLLING INTEREST AND STOCKHOLDERS’ EQUITY (DEFICIT) (UNAUDITED)
(in thousands)
Redeemable Non-controlling InterestClass A and Class B Common StockAdditional
Paid-in
Capital
Accumulated
Deficit
Accumulated
Other
Comprehensive
Income (Loss)
Total Stockholders' Equity
SharesAmount
Balance at April 30, 2022
$2,871 93,807 $9 $741,291 $(254,230)$(2,397)$484,673 
Issuance of common stock for options exercised— 750 — 2,781 — — 2,781 
Vesting of early exercised options— — — 28 — — 28 
Vesting of restricted stock units— 160 — — — — — 
Stock-based compensation— — — 17,312 — — 17,312 
Other comprehensive loss— — — — — (1,357)(1,357)
Net loss attributable to redeemable non-controlling interests(527)— — — — — — 
Net loss attributable to Braze, Inc.— — — — (32,886)— (32,886)
Balance at July 31, 2022
$2,344 94,717 $9 $761,412 $(287,116)$(3,754)$470,551 


Convertible Preferred StockRedeemable Non-controlling InterestCommon StockAdditional
Paid-in
Capital
Accumulated
Deficit
Accumulated
Other
Comprehensive
Income (Loss)
Total Stockholders' Deficit
SharesAmountSharesAmount
Balance at April 30, 2021
62,831 $174,229 $1,914 20,412 $ $39,291 $(151,076)$(212)$(111,997)
Issuance of common stock for options exercised— — — 247 — 869 — — 869 
Vesting of early exercised options— — — — — 133 — — 133 
Vesting of restricted stock units— — — — — (3)— — (3)
Repurchase of unvested shares related to early exercised options— — — (2)— — — — — 
Stock-based compensation— — — — — 5,657 — — 5,657 
Other comprehensive income— — — — — — — 110 110 
Net loss attributable to redeemable non-controlling interests— — (385)— — — — — — 
Net loss attributable to Braze, Inc.— — — — — — (12,228)— (12,228)
Balance at July 31, 2021
62,831 $174,229 $1,529 20,657 $ $45,947 $(163,304)$(102)$(117,459)


The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.



8

Table of Contents
BRAZE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CONVERTIBLE PREFERRED STOCK, REDEEMABLE NON-CONTROLLING INTEREST AND STOCKHOLDERS’ EQUITY (DEFICIT) (UNAUDITED) (cont.)
(in thousands)
Redeemable Non-controlling InterestClass A and Class B Common StockAdditional
Paid-in
Capital
Accumulated
Deficit
Accumulated
Other
Comprehensive
Income (Loss)
Total Stockholders' Equity
SharesAmount
Balance at January 31, 2022
$3,235 92,968 $9 $717,175 $(214,961)$(640)$501,583 
Issuance of common stock for options exercised— 1,416 — 5,411 — — 5,411 
Vesting of early exercised options— — — 82 — — 82 
Vesting of restricted stock units— 238 — — — — — 
Repurchase of unvested shares related to early exercised options— (1)— — — — — 
Stock-based compensation— — — 34,484 — — 34,484 
Other comprehensive loss— — — — — (3,114)(3,114)
Net loss attributable to redeemable non-controlling interests(891)— — — — — — 
Charitable donation of stock— 96 — 4,260 — — 4,260 
Net loss attributable to Braze, Inc.— — — — (72,155)— (72,155)
Balance at July 31, 2022
$2,344 94,717 $9 $761,412 $(287,116)$(3,754)$470,551 


Convertible Preferred StockRedeemable Non-controlling InterestCommon StockAdditional
Paid-in
Capital
Accumulated
Deficit
Accumulated
Other
Comprehensive
Income (Loss)
Total Stockholders' Deficit
SharesAmountSharesAmount
Balance at January 31, 2021
62,831 $174,229 $2,233 19,498 $ $29,777 $(138,242)$(42)$(108,507)
Issuance of common stock for options exercised— — — 1,161 — 3,301 — — 3,301 
Vesting of early exercised options— — — — — 248 — — 248 
Repurchase of unvested shares related to early exercised options— — — (2)— (3)— — (3)
Stock-based compensation— — — — — 12,624 — — 12,624 
Other comprehensive loss— — — — — — — (60)(60)
Net loss attributable to redeemable non-controlling interests— — (704)— — — — — — 
Net loss attributable to Braze, Inc.— — — — — — (25,062)— (25,062)
Balance at July 31, 2021
62,831 $174,229 $1,529 20,657 $ $45,947 $(163,304)$(102)$(117,459)


The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
9

Table of Contents
BRAZE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
(in thousands)
Six Months Ended
July 31,
20222021
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss (including amounts attributable to redeemable non-controlling interests)$(73,046)$(25,766)
Adjustments to reconcile net loss to net cash used in operating activities:
Stock-based compensation34,253 12,606 
Amortization of deferred contract costs10,984 7,990 
Depreciation and amortization1,900 1,373 
Provision for credit losses(155)(174)
Value of common stock donated to charity4,260  
Amortization of discount/premium on marketable securities215 254 
Non-cash foreign exchange loss 295 320 
Other(36)2 
Changes in operating assets and liabilities:
Accounts receivable16,622 (178)
Prepaid expenses and other current assets3,110 (2,124)
Deferred contract costs(14,661)(12,222)
ROU assets and liabilities2,617  
Other assets521 (2,095)
Accounts payable582 1,071 
Accrued expenses and other current liabilities4,419 (5,812)
Deferred revenue9,703 16,428 
Other long-term liabilities17 (87)
Net cash provided by/(used in) operating activities1,600 (8,414)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment(9,844)(755)
Capitalized internal-use software costs(783)(1,172)
Purchases of marketable securities(543,880)(28,496)
Maturities of marketable securities150,708 49,308 
Net cash (used in)/provided by investing activities(403,799)18,885 
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from exercise of common stock options5,411 3,247 
Payment of deferred offering costs (660)
Repurchase of shares related to early exercised options (3)
Net cash provided by financing activities5,411 2,584 
Effect of foreign currency exchange rate changes on cash, cash equivalents, and restricted cash(1,268)(172)
Net change in cash, cash equivalents, and restricted cash(398,056)12,883 
Cash, cash equivalents, and restricted cash, beginning of period482,973 33,018 
Cash, cash equivalents, and restricted cash, end of period$84,917 $45,901 
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
10

Table of Contents
BRAZE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
SUPPLEMENTAL CASH FLOWS DISCLOSURE
(in thousands)
Six Months Ended
July 31,
20222021
SUPPLEMENTAL CASH FLOW DISCLOSURE:
Cash paid for income taxes, net of refunds$317 $31 
NON-CASH INVESTING AND FINANCING ACTIVITIES:
Stock-based compensation capitalized to internal-use software$379 $18 
Net change in capitalized internal-use software development costs in accrued expenses$21 $41 
Unrealized net loss on marketable investment securities$(2,359)$(35)
Net change to property and equipment (included in accounts payable / accrued liabilities)$232 $34 
Vesting of early exercised options$82 $248 
Asset retirement obligation$380 $ 
Common stock option receivables$ $52 
Deferred offering costs included in accounts payable and accrued expenses and other current liabilities$ $1,022 
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
11

Table of Contents
BRAZE, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
1. Company Overview
Description of Business

Braze, Inc., together with its subsidiaries (collectively, the “Company”, “we”, “us”, “our” or “Braze”), is a cloud-based customer engagement platform that delivers customer-centric experiences across push notifications, email, in-product messaging, SMS and MMS messages, and more. Customers use the Braze platform to facilitate real-time experiences between brands and customers in a more authentic and human way.

We began operations in 2011 and are incorporated in the state of Delaware. Our headquarters are located in New York, New York. We also lease additional office space in Austin, Berlin, Chicago, London, San Francisco, Singapore, and Tokyo.

Emerging Growth Company Status

Based on the market value of the Company’s common equity held by non-affiliates as of July 29, 2022 (the last business day of the Company’s most recently completed second fiscal quarter), the Company will cease to qualify as an emerging growth company (as described in Section 107(b) of the Jumpstart Our Business Startups Act of 2012) as of the end of the fiscal year ended January 31, 2023. As a result, the Company will no longer be able to take advantage of certain exemptions from various reporting requirements that are applicable to other public companies that are not emerging growth companies including, but not limited to, not being required to comply with the auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act of 2002, reduced disclosure obligations regarding executive compensation in its periodic reports and proxy statements and exemptions from the requirements of holding a nonbinding advisory vote on executive compensation and stockholder approval of any golden parachute payments not previously approved. In addition, the Company will no longer be able to use the extended transition period for complying with new or revised accounting standards available to emerging growth companies and will be required to adopt new or revised accounting standards as of the effective dates for public companies.

2. Summary of Significant Accounting Policies

Basis of Presentation

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”). The accompanying unaudited condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, and variable interest entities (“VIE”) for which we are the primary beneficiary. Intercompany balances and transactions have been eliminated in consolidation.

Reclassifications

Certain reclassifications and immaterial changes have been made to prior-period financial statements to conform to the current-period presentation.
Use of Estimates

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expense during the reported period. We evaluate estimates based on historical and anticipated results, trends, and various other assumptions. Significant items subject to such estimates and assumptions include but are not limited to the standalone selling price for separate performance obligations in our revenue arrangements, expected period of benefit for deferred contract costs, the valuation of common stock and stock-based compensation, the incremental borrowing rate for operating leases, the allocation of overhead costs between cost of revenue and operating expenses, the estimated useful lives of intangible and depreciable assets, the valuation of deferred tax assets and liabilities and other tax estimates including our ability to utilize net operating losses.

Management evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors, including the current economic environment, and makes adjustments as facts and circumstances dictate. As future events and their effects, including the uncertainty surrounding rapidly changing market and economic conditions, cannot be determined with precision, actual results could differ from those estimates and many of our estimates and assumptions have required increased judgement and carry a higher degree of variability and volatility.
12

Table of Contents
Significant Accounting Policies

Our significant accounting policies are detailed in “Note 2. Summary of Significant Accounting Policies" of the audited annual consolidated financial statements for the fiscal year ended January 31, 2022, included in the Company’s Annual Report on Form 10-K, as filed with the SEC on March 31, 2022 (the “Annual Report”) and in the Notes to our unaudited condensed consolidated financial statements included in our Quarterly Reports on Form 10-Q filed thereafter. There have been no material changes to our significant accounting policies with the exception of the below:
Concentration of Credit Risk

Financial instruments that potentially subject us to concentration of credit risk consist primarily of cash and cash equivalents, restricted cash, marketable securities and accounts receivable. Restricted cash consists of letters of credit related to our leased properties. For cash, cash equivalents, restricted cash, and marketable securities, we are exposed to credit risk in the event of default by the financial institutions to the extent of the amounts recorded on the consolidated balance sheets in excess of federal insurance limits.

Significant customers are those which represent 10% or more of our total revenue for the period, or accounts receivable at the balance sheets dates. For the three and six months ended July 31, 2022 and July 31, 2021, no customer accounted for 10% or more of our total revenue.

For accounts receivable, we are exposed to credit risk in the event of nonpayment by customers to the extent of the amounts recorded on the consolidated balance sheets. No customers accounted for 10% or more of our total accounts receivable balance as of July 31, 2022 and January 31, 2022, respectively.

Stock-based Compensation (Employee Stock Purchase Plan)

We recognize stock-based expense related to shares issued pursuant to our Employee Stock Purchase Plan (the “ESPP”) on a straight-line basis over the offering period. The ESPP allows eligible employees to purchase shares of the Company's Class A common stock at a 15% percent discount on the lower of the fair market value of our Class A common stock (the fair market value as defined by the immediately preceding five-day volume weighted average price quoted in the market) on either (i) the first trading day of the offering period or (ii) the last trading day of the offering period, as defined in the ESPP. We estimate the fair value of shares to be issued under the ESPP using the Black-Scholes option-pricing model with the following assumptions:

Fair Value of Common Stock

The fair market value of the Company’s Class A common stock on the first day of each offering period.

Grant Price

85% of the fair market value of the Company’s Class A common stock based on the average stock price for the five days immediately preceding the first day of the offering period.

Expected Term

The expected term is based on the end date of each purchase period for the offering period.

Expected Volatility

The expected volatility is based on the historical volatility of the Company’s Class A common stock.

Risk-Free Interest Rate

The risk-free interest rate is based on the constant maturity yields of U.S. Treasury notes with remaining maturities similar to the expected term.

Expected Dividend Rate

We have never paid any dividends, do not plan to pay dividends in the foreseeable future, and, therefore, use an expected dividend rate of zero in the valuation model.

13

Table of Contents
Recently Adopted Accounting Pronouncements

In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-02, Leases (Topic 842), (“ASC 842”) and issued certain transitional guidance and subsequent amendments between January 2018 and February 2020 within ASU No. 2017-13, ASU No. 2018-01, ASU No. 2018-10, ASU No. 2018-11, ASU No. 2018-20, ASU No. 2019-01, ASU No. 2019-10, ASU No. 2020-02, and ASU No. 2020-05 (collectively, “Topic 842”). The guidance in Topic 842 supersedes the leasing guidance in Topic 840, Leases. Under the new guidance, lessees are required to recognize lease assets and lease liabilities on the balance sheet for all leases with terms longer than twelve months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the consolidated statements of operations. Per ASU No. 2020-05, Revenue from Contracts with Customers (Topic 606) and Leases (Topic 842): Effective Dates for Certain Entities, issued June 2020, Topic 842, as amended, is effective for fiscal years beginning after December 15, 2021, and interim periods within fiscal years beginning after December 15, 2022. Topic 842 is effective for our fiscal year ending January 31, 2022 and interim periods beginning February 1, 2023 with early adoption permitted. While we have generally elected to take advantage of the extended transition period available to emerging growth companies for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Securities Exchange Act of 1934, as amended, we decided to early adopt Topic 842. We adopted this standard under the modified-retrospective approach, using the practical expedients allowing us to not reassess (i) whether any expired or existing contracts are or contain leases, (ii) the lease classification for any expired leases, and (iii) indirect costs for any existing leases. Additionally, any lease arrangements with a term of 12 months or less will be recognized on the consolidated statement of operations on a straight-line basis over the lease term and any non-lease components shall not be separated from the lease components, but instead accounted for as a single lease component. Upon adoption of ASC 842, we recognized a right-of-use asset of $59.6 million and a lease liability of $61.3 million at February 1, 2022 on our consolidated balance sheets. Prior period amounts were not restated and are reported in accordance with ASC 840. Refer to Note 14. Leases, for further information.

In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments — Credit Losses (Topic 326): Measurement on Credit Losses on Financial Instruments, and issued subsequent amendments to the initial guidance and transitional guidance between November 2018 and February 2020 within ASU No. 2018-19, ASU No. 2019-04, ASU No. 2019-05, ASU No. 2019-10, ASU No. 2019-11 and ASU No. 2020-02 (collectively, “Topic 326”). Topic 326 introduces new guidance for credit losses on instruments within its scope. The new guidance introduces an approach based on expected losses to estimate credit losses on certain types of financial instruments, including trade and other receivables, held-to-maturity debt securities, loans and net investments in leases. The new guidance also modifies the impairment model for available-for-sale debt securities and requires entities to determine whether all or a portion of the unrealized loss on an available-for-sale debt security is a credit loss. Further, the new guidance indicates that entities may not use the length of time a security has been in an unrealized loss position as a factor in concluding whether a credit loss exists. Per ASU No. 2019-10, Financial Instruments—Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842), Topic 326, as amended, is effective for (1) public business entities that meet the definition of an SEC filer, excluding entities eligible to be smaller reporting companies as defined by the SEC, for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years, and (2) all other entities for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. Topic 326 is effective for our fiscal year beginning February 1, 2023 and early adoption is permitted. While we have generally elected to take advantage of the extended transition period available to emerging growth companies for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Securities Exchange Act of 1934, as amended, we decided to early adopt Topic 326. We determined that the adoption of this ASU did not have a material impact on our consolidated financial statements. As such, we adopted this ASU prospectively on February 1, 2022.

In December 2019, the FASB issued ASU No. 2019-12, Simplifying the Accounting for Income Taxes (Topic 740) (“Topic 740”), which removes certain exceptions to the general principles in Topic 740. The amendments also improve consistent application of and simplify U.S. GAAP for other areas of Topic 740 by clarifying and amending existing guidance. For public companies, the guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. For all other entities, the amendments are effective for fiscal years beginning after December 15, 2021, and interim periods within fiscal years beginning after December 15, 2022. Early adoption of the amendments is permitted, including adoption in any interim period for (1) public business entities for periods for which financial statements have not yet been issued and (2) all other entities for periods for which financial statements have not yet been made available for issuance. We adopted ASU 2019-12 on February 1, 2022 and determined that the adoption of this ASU had no material impact on our consolidated financial statements.

In October 2020, FASB issued ASU No. 2020-10, Codification Improvements (“ASU 2020-10”). The amendments in this guidance affect a wide variety of topics in the ASC by either clarifying the codification or correcting unintended application of guidance. The changes are not expected to have a significant effect on current accounting practice or create a significant administrative cost to most entities. For public companies, the guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. For all other entities, the amendments are effective for fiscal years beginning after December 15, 2021, and interim periods within fiscal years beginning after December 15, 2022. Early adoption of the amendments is permitted, including adoption in any interim period for (1) public business entities for periods for which
14

Table of Contents
financial statements have not yet been issued and (2) all other entities for periods for which financial statements have not yet been made available for issuance. We adopted ASU 2020-10 prospectively on February 1, 2022 and determined that this ASU does not have a material impact on our consolidated financial statements.

3. Revenue from Contracts with Customers

Disaggregated Revenue Streams

The following disaggregation depicts the nature, amount, timing and uncertainty of cash flows related to the primary types of revenue from contracts with customers.

The following table presents total revenue by type (in thousands):

Three Months Ended
July 31,
Six Months Ended
July 31,
2022202120222021
Subscription$81,727 $51,727 $154,563 $96,435 
Professional services and other4,404 4,029 9,063 7,198 
Total$86,131 $55,756 $163,626 $103,633 

The following table presents total revenue by geography (in thousands):

Three Months Ended
July 31,
Six Months Ended
July 31,
2022202120222021
United States$49,875 $33,592 $95,227 $62,457 
International36,256 22,164 68,399 41,176 
Total$86,131 $55,756 $163,626 $103,633 

Revenue by geography is determined based on the location of our users. Other than the United States, no other individual country accounted for 10% or more of total revenue for any of the periods presented.

Accounts Receivable

Unbilled accounts receivable included in trade accounts receivable, net, which generally arise from our contractual right to bill our customers in advance of services on the contract effective date, were $1.4 million and $2.2 million as of July 31, 2022 and January 31, 2022, respectively.

Contract Balances

Contract Assets

Contract assets as of July 31, 2022 and January 31, 2022 were $0.5 million and $0.8 million, respectively. The change in contract assets for all periods presented primarily reflects revenue recognized in excess of billings partially offset by contract assets earned during the period.

Deferred Revenue

The change in deferred revenue for all periods presented primarily reflects cash payments received during the period for which the performance obligation was not satisfied prior to the end of the period, partially offset by revenues recognized during the period. Revenue recognized during the three and six months ended July 31, 2022 from amounts included in deferred revenue at January 31, 2022, was $37.7 million and $97.2 million, respectively. Revenue recognized during the three and six months ended July 31, 2021 from amounts included in deferred revenue at January 31, 2021, was $35.9 million and $58.3 million, respectively.
15

Table of Contents

Credit Losses

The following table presents a reconciliation of the allowance for credit losses on accounts receivable (in thousands):

Allowance for Credit Losses
Balance at January 31, 2022
$743 
Reserve:
Credit losses(155)
Deferred revenue436 
Write-offs(245)
Recoveries50 
Balance at July 31, 2022
$829 

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, the timing of service delivery and contract terms. Unbilled portions of the remaining performance obligations are subject to future economic risks including bankruptcies, regulatory changes and other market factors.

The following table presents remaining performance obligations as of the dates indicated below (in millions):

TotalLess than 1 Year1-5 Years
July 31, 2021$268.2 $180.5 $87.7 
October 31, 2021304.0 199.1 104.9 
January 31, 2022373.6 237.8 135.8 
April 30, 2022390.9 255.1 135.8 
July 31, 2022410.5 274.2 136.3 
4. Variable Interest Entity and Redeemable Non-Controlling Interest

On September 14, 2020, we, along with Japan Cloud Computing Co., Ltd., and M30 LLC, (the “Investors”), entered into an agreement, whereby each Investor agreed to purchase shares of common stock of Braze KK (“Braze KK Shares”) for a total purchase price of $10.0 million in two tranches of $5.0 million per tranche in September 2020 and September 2021, to engage in the investment, organization, management and operation of Braze KK focused on the distribution of our products in Japan. The purpose of this arrangement was to further expand our business in the Japanese market.

In March 2022, we consented to the issuance of stock options to purchase Braze KK Shares by certain employees of Braze KK. These options will vest in full in March 2027 and, other than the options held by one officer of Braze KK, cannot be exercised by the holders thereof prior to the exercise of the call or put options described in more detail below. The Company considers the stock options to be a substantive class of equity, classified as a liability within Other long-term liabilities on the consolidated balance sheets. As of July 31, 2022, the liability balance was $0.1 million. The issuance of stock options does not impact our majority stake in Braze KK, as none of the vesting criteria of the options were met as of the balance sheet date. The issuance of stock options did not result in a reconsideration event and therefore Braze KK still met the criteria of a VIE as Braze KK did not have sufficient equity at risk to finance their activities. As a result, we continue to operate Braze KK as a subsidiary, exposing us to business and foreign exchange risk. We consolidate Braze KK and present the results within our consolidated balance sheets, consolidated statements of operations, and consolidated statements of cash flows.

The common stock held by the Investors is callable by us or puttable by the Investors upon certain contingent events. Should the call or put option be exercised, the redemption value would be determined based on a prescribed formula derived from the discrete revenues of Braze KK and the Company and may be settled, at our discretion, with our stock or cash. The non-controlling interest in Braze KK is classified in mezzanine equity as redeemable non-controlling interest as a result of the put right available to the Investors in the future, an event that is not solely in our control. The non-controlling interest is not accreted to redemption value because it is currently not probable that the non-controlling interest will become redeemable.

16

Table of Contents
The following table summarizes the activity in the redeemable non-controlling interests for the periods indicated below (in thousands):

Balance as of January 31, 2022
$3,235
Net loss attributable to redeemable non-controlling interest(891)
Balance as of July 31, 2022
$2,344
5. Fair Value Measurements

The following table sets forth our financial instruments that were measured at fair value on a recurring basis at the periods indicated below, by level within the fair value hierarchy (in thousands):
July 31, 2022
Level 1Level 2Level 3Total
Cash equivalents
Money market funds$474 $ $ $474 
474   474 
Marketable securities
U.S. government bonds$323,577 $ $ $323,577 
Foreign government bonds 3,015  3,015 
Corporate debt securities 97,763  97,763 
Asset-backed securities 1,399  1,399 
Total marketable securities323,577 102,177  425,754 
Total$324,051 $102,177 $ $426,228 
January 31, 2022
Level 1Level 2Level 3Total
Cash equivalents
Money market funds$439,627 $ $ $439,627 
439,627   439,627 
Marketable securities
U.S. government bonds$4,006 $ $ $4,006 
Foreign government bonds 3,203  3,203 
Commercial paper 18,993  18,993 
Corporate debt securities 3,020  3,020 
Asset-backed securities 5,934  5,934 
Total marketable securities4,006 31,150  35,156 
Total$443,633 $31,150 $ $474,783 

Our money market funds and U.S. government bonds are classified as Level 1 within the fair value hierarchy, because they are valued using quoted prices in active markets as of July 31, 2022 and January 31, 2022. Financial instruments classified as Level 2 within our fair value hierarchy are valued on the basis of prices from an orderly transaction between market participants provided by reputable dealers or pricing services. Prices of these securities are obtained through independent, third-party pricing services and include market quotations that may include both observable and unobservable inputs. In determining the value of a particular investment, pricing services may use certain information with respect to transactions in such investments, quotations from dealers, pricing matrices and market transactions in comparable investments and various relationships between investments. There were no transfers of financial instruments among Level 1, Level 2 and Level 3 during the periods presented.
17

Table of Contents
6. Marketable Securities

Marketable securities consist of the following for the periods presented (in thousands):
July 31, 2022
Cost or Amortized CostGross Unrealized GainsGross Unrealized LossesTotal Estimated Fair Value
U.S. government securities$325,272 $53 $(1,748)$323,577 
Foreign bonds3,041  (26)3,015 
Corporate debt securities98,424 11 (672)97,763 
Asset-backed securities1,403  (4)1,399 
Total$428,140 $64 $(2,450)$425,754 
January 31, 2022
Cost or Amortized CostGross Unrealized GainsGross Unrealized LossesTotal Estimated Fair Value
U.S. government securities$4,021 $ $(15)$4,006 
Foreign bonds3,203   3,203 
Commercial paper18,993   18,993 
Corporate debt securities3,025  (5)3,020 
Asset-backed securities5,941  (7)5,934 
Total$35,183 $ $(27)$35,156 

Accrued interest receivables related to our available-for-sale securities of $2.4 million as of July 31, 2022 and $0.1 million as of January 31, 2022 were included within Prepaid expenses and other assets on our consolidated balance sheets.

The Company’s short-term investments consist of available-for-sale debt securities and term deposits. The term deposits are at cost, which approximates fair value.

The weighted-average remaining maturity of the Company’s investment portfolio was less than one year as of the periods presented. No individual security incurred continuous unrealized losses for greater than 12 months.

The Company purchases investment grade marketable debt securities which are rated by nationally recognized statistical credit rating organizations in accordance with its investment policy. This policy is designed to minimize the Company's exposure to credit losses. As of July 31, 2022, the credit-quality of the Company’s marketable available-for-sale debt securities had remained stable. The unrealized losses recognized on marketable available-for-sale debt securities as of July 31, 2022 was primarily related to the continued market volatility associated with market expectations of an aggressive pace of interest rate increases by the Federal Reserve. The contractual terms of these investments do not permit the issuer to settle the securities at a price less than the amortized cost basis of the investments and it is not expected that the investments would be settled at a price less than their amortized cost basis. The Company does not intend to sell the investments and it is not more likely than not that the Company will be required to sell the investments before recovery of their amortized cost basis. The Company is not aware of any specific event or circumstance that would require the Company to change its assessment of credit losses for any marketable available-for-sale debt security as of July 31, 2022. These estimates may change, as new events occur and additional information is obtained, and will be recognized on the consolidated financial statements as soon as they become known. No credit losses were recognized as of July 31, 2022 for the Company’s marketable and non-marketable debt securities.

The contractual maturities of the investments classified as available-for-sale marketable securities are as follows (in thousands):
July 31, 2022
Amortized CostEstimated Fair Value
Due within 1 year$211,056 $210,108 
Due in 1 year through 5 years217,084 215,646 
Total$428,140 $425,754 
18

Table of Contents
January 31, 2022
Amortized CostEstimated Fair Value
Due within 1 year$33,671 $33,646 
Due in 1 year through 5 years1,512 1,510 
Total$35,183 $35,156 
Investment Income

Investment income consists of interest income and accretion income/amortization expense on our cash, cash equivalents and marketable securities. Investment income is included within Other income (expense), net on the consolidated statement of operations. The components of investment income were as follows (in thousands):