BRAZE, INC., 10-K filed on 3/31/2022
Annual Report
v3.22.1
Cover - USD ($)
$ in Millions
12 Months Ended
Jan. 31, 2022
Mar. 25, 2022
Document Information [Line Items]    
Document Type 10-K  
Document Annual Report true  
Document Period End Date Jan. 31, 2022  
Current Fiscal Year End Date --01-31  
Document Transition Report false  
Entity File Number 001-41065  
Entity Registrant Name Braze, Inc.  
Entity Incorporation, State or Country Code DE  
Entity Tax Identification Number 45-2505271  
Entity Address, Address Line One 330 West 34th Street  
Entity Address, Address Line Two Floor 18  
Entity Address, City or Town New York  
Entity Address, State or Province NY  
Entity Address, Postal Zip Code 10001  
City Area Code (609)  
Local Phone Number 964-0585  
Title of 12(b) Security Class A Common Stock, par value $0.0001 per share  
Trading Symbol BRZE  
Security Exchange Name NASDAQ  
Entity Well-known Seasoned Issuer No  
Entity Voluntary Filers No  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Non-accelerated Filer  
Entity Small Business false  
Entity Emerging Growth Company true  
Entity Ex Transition Period false  
Entity Shell Company false  
Entity Public Float $ 2,700  
Documents Incorporated by Reference Portions of the registrant’s Proxy Statement for its 2022 Annual Meeting of Stockholders are incorporated by reference into Part III of this Annual Report on Form 10-K to the extent stated herein. Such Proxy Statement will be filed with the Securities and Exchange Commission within 120 days of the registrant’s fiscal year ended January 31, 2022.  
Entity Central Index Key 0001676238  
Amendment Flag false  
Document Fiscal Period Focus FY  
Document Fiscal Year Focus 2022  
Class A common stock    
Document Information [Line Items]    
Entity Common Stock, Shares Outstanding   26,327,254
Class B common stock    
Document Information [Line Items]    
Entity Common Stock, Shares Outstanding   66,905,307
v3.22.1
Audit Information
12 Months Ended
Jan. 31, 2022
Audit Information [Abstract]  
Auditor Firm ID 42
Auditor Name Ernst & Young LLP
Auditor Location New York, NY
v3.22.1
Consolidated Balance Sheets - USD ($)
$ in Thousands
Jan. 31, 2022
Jan. 31, 2021
CURRENT ASSETS:    
Cash and cash equivalents $ 478,937 $ 28,509
Restricted cash, current 0 472
Accounts receivable, net of allowance for doubtful accounts of $743 and $934 at January 31, 2022 and January 31, 2021, respectively 64,504 34,771
Marketable securities 35,156 58,004
Prepaid expenses and other current assets 29,588 12,202
Total current assets 608,185 133,958
Restricted cash, noncurrent 4,036 4,037
Property and equipment, net 7,393 5,486
Deferred contract costs 41,689 27,433
Other assets 4,959 480
TOTAL ASSETS 666,262 171,394
CURRENT LIABILITIES:    
Accounts payable 2,083 439
Accrued expenses and other current liabilities 31,623 25,904
Deferred revenue 126,260 74,789
Total current liabilities 159,966 101,132
Deferred tax liabilities 0 80
Other long-term liabilities 1,478 2,227
TOTAL LIABILITIES 161,444 103,439
COMMITMENTS AND CONTINGENCIES (Note 13)
Convertible preferred stock, $0.0001 par value; no shares and 65,318,250 shares authorized as of January 31, 2022 and January 31, 2021, respectively; no shares and 62,830,697 shares issued and outstanding, January 31, 2022 and January 31, 2021, respectively 0 174,229
Redeemable non-controlling interest (Note 4) 3,235 2,233
STOCKHOLDERS’ DEFICIT    
Preferred stock 0 0
Additional paid-in capital 717,175 29,777
Accumulated other comprehensive loss (640) (42)
Accumulated deficit (214,961) (138,242)
TOTAL STOCKHOLDERS’ EQUITY (DEFICIT) 501,583 (108,507)
TOTAL LIABILITIES, CONVERTIBLE PREFERRED STOCK, REDEEMABLE NON-CONTROLLING INTEREST AND STOCKHOLDERS’ EQUITY (DEFICIT) 666,262 171,394
Original common stock    
STOCKHOLDERS’ DEFICIT    
Common stock $ 0 $ 0
Common stock, par value (in dollars per share) $ 0.0001 $ 0.0001
Common stock, issued (in shares) 0 19,498,295
Common stock, outstanding (in shares) 0 19,498,295
Common stock, authorized (in shares) 0 98,500,000
Class A common stock    
STOCKHOLDERS’ DEFICIT    
Common stock $ 8 $ 0
Common stock, par value (in dollars per share) $ 0.0001 $ 0.0001
Common stock, issued (in shares) 18,549,183 0
Common stock, outstanding (in shares) 18,549,183 0
Common stock, authorized (in shares) 2,000,000,000 0
Class B common stock    
STOCKHOLDERS’ DEFICIT    
Common stock $ 1 $ 0
Common stock, par value (in dollars per share) $ 0.0001 $ 0.0001
Common stock, issued (in shares) 74,418,847 0
Common stock, outstanding (in shares) 74,418,847 0
Common stock, authorized (in shares) 110,000,000 0
v3.22.1
Consolidated Balance Sheets (Parenthetical) - USD ($)
$ in Thousands
Jan. 31, 2022
Jan. 31, 2021
Allowance for doubtful accounts $ 743 $ 934
Convertible preferred stock, par value (in dollars per share) $ 0.0001 $ 0.0001
Convertible preferred stock, authorized (in shares) 0 65,318,250
Convertible preferred stock, issued (in shares) 0 62,830,697
Convertible preferred stock, outstanding (in shares) 0 62,830,697
Preferred stock, par value (in dollars per share) $ 0.0001 $ 0.0001
Preferred stock, authorized (in shares) 10,000,000 0
Preferred stock, issued (in shares) 0 0
Preferred stock, outstanding (in shares) 0 0
Original common stock    
Common stock, par value (in dollars per share) $ 0.0001 $ 0.0001
Common stock, authorized (in shares) 0 98,500,000
Common stock, issued (in shares) 0 19,498,295
Common stock, outstanding (in shares) 0 19,498,295
Class A common stock    
Common stock, par value (in dollars per share) $ 0.0001 $ 0.0001
Common stock, authorized (in shares) 2,000,000,000 0
Common stock, issued (in shares) 18,549,183 0
Common stock, outstanding (in shares) 18,549,183 0
Class B common stock    
Common stock, par value (in dollars per share) $ 0.0001 $ 0.0001
Common stock, authorized (in shares) 110,000,000 0
Common stock, issued (in shares) 74,418,847 0
Common stock, outstanding (in shares) 74,418,847 0
v3.22.1
Consolidated Statements of Operations - USD ($)
shares in Thousands, $ in Thousands
12 Months Ended
Jan. 31, 2022
Jan. 31, 2021
Jan. 31, 2020
Income Statement [Abstract]      
Revenue $ 238,035 $ 150,191 $ 96,364
Cost of revenue 78,511 54,511 35,686
Gross Profit 159,524 95,680 60,678
Operating expenses:      
Sales and marketing 127,137 70,661 57,348
Research and development 59,034 29,212 20,339
General and administrative 51,564 27,959 16,524
Total operating expenses 237,735 127,832 94,211
Loss from operations (78,211) (32,152) (33,533)
Other income (expense):      
Investment income 137 840 2,127
Other (expense) income, net (258) (120) 48
Loss before provision for income taxes (78,332) (31,432) (31,358)
(Benefit from) provision for income taxes (165) 537 452
Net loss (78,167) (31,969) (31,810)
Net loss attributable to redeemable non-controlling interest (1,448) (217) 0
Net loss attributable to Braze, Inc. $ (76,719) $ (31,752) $ (31,810)
Earnings Per Share      
Net loss per share attributable to Braze, Inc. common stockholders, basic (in dollars per share) $ (2.20) $ (1.77) $ (1.96)
Net loss per share attributable to Braze, Inc. common stockholders, diluted (in dollars per share) $ (2.20) $ (1.77) $ (1.96)
Weighted-Average Shares Outstanding      
Weighted-average shares used to compute net loss per share attributable to Braze, Inc. common stockholders, basic (in shares) 34,897 17,972 16,189
Weighted-average shares used to compute net loss per share attributable to Braze, Inc. common stockholders, diluted (in shares) 34,897 17,972 16,189
v3.22.1
Consolidated Statements of Comprehensive Loss - USD ($)
$ in Thousands
12 Months Ended
Jan. 31, 2022
Jan. 31, 2021
Jan. 31, 2020
Statement of Comprehensive Income [Abstract]      
Net loss $ (78,167) $ (31,969) $ (31,810)
Other comprehensive loss:      
Change in foreign currency translation adjustments (534) (26) (85)
Unrealized gains (losses) on marketable securities (64) (50) 87
Other comprehensive gain (loss), net (598) (76) 2
Comprehensive loss, net (78,765) (32,045) (31,808)
Less: comprehensive loss, net, attributable to redeemable non-controlling interest (1,448) (217) 0
Comprehensive loss attributable to Braze, Inc. $ (77,317) $ (31,828) $ (31,808)
v3.22.1
Consolidated Statements of Convertible Preferred Stock, Redeemable Noncontrolling Interest and Stockholders' Equity (Deficit) - USD ($)
$ in Thousands
Total
Common Class A and B
Cumulative Effect, Period of Adoption, Adjustment
Common Stock
Common Class A and B
Common Stock
Original common stock
Additional Paid-in Capital
Accumulated Deficit
Accumulated Deficit
Cumulative Effect, Period of Adoption, Adjustment
Accumulated other Comprehensive Income (Loss)
Beginning balance at Jan. 31, 2019 $ 174,229                
Beginning balance, convertible preferred stock (in shares) at Jan. 31, 2019 62,831,000                
Ending balance, convertible preferred stock (in shares) at Jan. 31, 2020 62,831,000                
Ending balance at Jan. 31, 2020 $ 174,229                
Beginning balance at Jan. 31, 2019 0                
Noncontrolling Interest [Roll Forward]                  
Net loss attributable to redeemable non-controlling interest 0                
Ending balance at Jan. 31, 2020 0                
Beginning balance (in shares) at Jan. 31, 2019       0 14,966,000        
Beginning balance at Jan. 31, 2019 (78,886)   $ 10,003 $ 0 $ 0 $ 5,765 $ (84,683) $ 10,003 $ 32
Increase (Decrease) in Stockholders' Equity [Roll Forward]                  
Issuance of common stock for options exercised (in shares)         2,233,000        
Issuance of common stock for options exercised 1,117         1,117      
Vesting of early exercised options 260         260      
Repurchase of shares related to early exercised options (in shares)         (19,000)        
Repurchase of shares related to early exercised options (8)         (8)      
Stock-based compensation 12,446         12,446      
Other comprehensive income (loss) 2               2
Net loss attributable to Braze, Inc. (31,810)           (31,810)    
Ending balance at Jan. 31, 2020 $ (86,876)     $ 0 $ 0 19,580 (106,490)   34
Ending balance (in shares) at Jan. 31, 2020       0 17,180,000        
Ending balance, convertible preferred stock (in shares) at Jan. 31, 2021 62,830,697                
Ending balance at Jan. 31, 2021 $ 174,229                
Noncontrolling Interest [Roll Forward]                  
Investment from redeemable non-controlling interest 2,450                
Net loss attributable to redeemable non-controlling interest (217)                
Ending balance at Jan. 31, 2021 $ 2,233                
Increase (Decrease) in Stockholders' Equity [Roll Forward]                  
Issuance of common stock for options exercised (in shares) 2,334,263       2,334,000        
Issuance of common stock for options exercised $ 2,482         2,482      
Vesting of early exercised options 263         263      
Repurchase of shares related to early exercised options (in shares)         (5,000)        
Repurchase of shares related to early exercised options (10)         (10)      
Repurchase of common shares (in shares)         (11,000)        
Repurchase of common shares (204)         (204)      
Stock-based compensation 7,666         7,666      
Other comprehensive income (loss) (76)               (76)
Net loss attributable to Braze, Inc. (31,752)           (31,752)    
Ending balance at Jan. 31, 2021 $ (108,507)     $ 0 $ 0 29,777 (138,242)   (42)
Ending balance (in shares) at Jan. 31, 2021       0 19,498,000        
Increase (Decrease) in Temporary Equity [Roll Forward]                  
Conversion of convertible preferred stock to common stock (in shares) (62,831,000)                
Conversion of convertible preferred stock to common stock $ (174,229)                
Ending balance, convertible preferred stock (in shares) at Jan. 31, 2022 0                
Ending balance at Jan. 31, 2022 $ 0                
Noncontrolling Interest [Roll Forward]                  
Investment from redeemable non-controlling interest 2,450                
Net loss attributable to redeemable non-controlling interest (1,448)                
Ending balance at Jan. 31, 2022 $ 3,235                
Increase (Decrease) in Stockholders' Equity [Roll Forward]                  
Issuance of common stock for options exercised (in shares) 2,855,522     2,856,000          
Issuance of common stock for options exercised $ 8,166     $ 2   8,164      
Issuance of common stock for warrants exercised (in shares) 216,354 216,000              
Vesting of early exercised options $ 524         524      
Vesting of restricted stock units (in shares)       70,000          
Repurchase of shares related to early exercised options (in shares)       (3,000)          
Stock-based compensation 47,567         47,567      
Other comprehensive income (loss) (598)               (598)
Initial public offering, net of issuance costs (in shares)       7,500,000          
Initial public offering, net of issuance costs 456,921     $ 1   456,920      
Reclassification of common stock to class A and class B common stock (in shares)       19,498,000 (19,498,000)        
Conversion of convertible preferred stock into common stock (in shares)       62,831,000          
Conversion of convertible preferred stock to common stock 174,229     $ 6   174,223      
Net loss attributable to Braze, Inc. (76,719)           (76,719)    
Ending balance at Jan. 31, 2022 $ 501,583     $ 9 $ 0 $ 717,175 $ (214,961)   $ (640)
Ending balance (in shares) at Jan. 31, 2022       92,968,000 0        
v3.22.1
Consolidated Statements of Cash Flows - USD ($)
$ in Thousands
12 Months Ended
Jan. 31, 2022
Jan. 31, 2021
Jan. 31, 2020
CASH FLOWS FROM OPERATING ACTIVITIES:      
Net loss (including amounts attributable to redeemable non-controlling interests) $ (78,167) $ (31,969) $ (31,810)
Adjustments to reconcile net loss to net cash used in operating activities:      
Stock-based compensation 47,180 7,540 12,408
Amortization of deferred contract costs 17,710 10,617 5,783
Depreciation and amortization 2,773 1,589 645
Provision for bad debt 88 853 580
Amortization of discount/premium on marketable securities 369 345 (456)
Non-cash foreign exchange loss (gain) 387 222 212
Deferred income taxes (80) 60 57
Changes in operating assets and liabilities:      
Accounts receivable (29,821) (12,354) (12,589)
Prepaid expenses and other current assets (17,537) (833) (2,950)
Deferred contract costs (31,967) (19,969) (14,649)
Other assets (4,723) 643 25
Accounts payable 1,649 (776) (2,551)
Accrued expenses and other current liabilities 6,026 13,797 8,222
Deferred revenue 51,471 23,378 28,507
Other long-term liabilities (756) 777 1,201
Net cash used in operating activities (35,398) (6,080) (7,365)
CASH FLOWS FROM INVESTING ACTIVITIES:      
Purchases of property and equipment (2,310) (2,466) (1,724)
Capitalized internal-use software costs (2,065) (1,886) (830)
Purchases of marketable securities (36,894) (59,418) (123,130)
Maturities of marketable securities 59,309 86,242 38,450
Net cash provided by (used in) investing activities 18,040 22,472 (87,234)
CASH FLOWS FROM FINANCING ACTIVITIES:      
Proceeds from issuance of common stock upon initial public offering, net of underwriting discounts 462,260 0 0
Investment from redeemable non-controlling interest 2,450 2,450 0
Proceeds from exercise of common stock options 8,362 2,813 1,265
Payment of deferred offering costs (5,157) (183) 0
Repurchase of common shares 0 (204) 0
Repurchase of shares related to early exercised options (5) (10) (8)
Net cash provided by financing activities 467,910 4,866 1,257
Effect of foreign currency exchange rate changes on cash, cash equivalents, and restricted cash (597) 158 15
Net change in cash, cash equivalents, and restricted cash 449,955 21,416 (93,327)
Cash, cash equivalents, and restricted cash, beginning of period 33,018 11,602 104,929
Cash, cash equivalents, and restricted cash, end of period 482,973 33,018 11,602
SUPPLEMENTAL CASH FLOW DISCLOSURE:      
Cash paid for income taxes, net of refunds 299 472 176
NON-CASH INVESTING AND FINANCING ACTIVITIES:      
Stock-based compensation capitalized to internal-use software 387 126 38
Net change in capitalized internal-use software development costs in accrued expenses (58) 62 17
Unrealized net loss on marketable investment securities (64) (50) 87
Net change to property and equipment (included in accounts payable) (23) (15) 57
Vesting of early exercised options 524 263 260
Common stock option receivables 22 0 0
Conversion of convertible preferred stock to common stock 174,229 0 0
Deferred offering costs reclassed to Stockholders’ Equity (Deficit) $ 183 $ 0 $ 0
v3.22.1
Company Overview
12 Months Ended
Jan. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Company Overview 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.

Initial Public Offering

On November 19, 2021, the Company completed an initial public offering (“IPO”) of its Class A common stock. As part of the IPO, the Company issued and sold 7,500,000 shares of its Class A common stock at a public offering price of $65.00 per share, including 800,000 shares pursuant to the underwriters’ overallotment option to purchase additional shares of its Class A common stock. The Company received net proceeds of approximately $456.8 million from the IPO, after deducting the underwriting discounts, commissions, and related offering expenses. In addition, the selling stockholders, named in the Company’s final prospectus that forms a part of the Registration Statement on Form S-1 (File No. 333-260428) for the IPO filed with the Securities and Exchange Commission (“SEC”) pursuant to Rule 424(b)(4) on November 18, 2021 (the “Final Prospectus”), sold an additional 1,300,000 shares of Class A common stock, for which the Company did not receive any proceeds. In connection with the IPO, all then outstanding shares of convertible preferred stock automatically converted into an aggregate of 62,830,697 shares of Class B common stock.

Emerging Growth Company Status

We are an emerging growth company, as defined in the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”), and, for so long as we continue to be an emerging growth company, we may 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 our periodic reports and proxy statements and exemptions from the requirements of holding a nonbinding advisory vote on executive compensation and shareholder approval of any golden parachute payments not previously approved. In addition, pursuant to Section 107 of the JOBS Act, as an emerging growth company, we have elected to take advantage of the extended transition period for complying with new or revised accounting standards until those standards would otherwise apply to private companies. If we cease to be an emerging growth company, we will no longer be able to take advantage of these exemptions or the extended transition period for complying with new or revised accounting standards.

Impact of COVID-19

Beginning in January 2020, the outbreak of the novel Coronavirus Disease 2019 (“COVID-19”) pandemic caused general business disruption worldwide. COVID-19 is considered to be highly contagious and poses a serious public health threat. Although certain restrictions are being lifted, state mandated lockdowns have adversely impacted many companies in the past, as many public health regulations transformed or even halted daily operations, and similar adverse effects may re-occur if any state mandated lockdowns are reinstated in the future. We have not experienced a materially negative impact from COVID-19 and continue to monitor the global situation and the potential impact on our financial condition, liquidity, operations, suppliers, industry, and workforce. Given the continued evolution of the COVID-19 outbreak, including the emergence of new variant strains of COVID-19, and the global responses to curb its spread, we are not able to estimate the ongoing effects on our results of operations, financial condition, or liquidity.
v3.22.1
Summary of Significant Accounting Policies
12 Months Ended
Jan. 31, 2022
Accounting Policies [Abstract]  
Summary of Significant Accounting Policies Summary of Significant Accounting Policies
Basis of Presentation

The accompanying consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”). The accompanying 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.

Deferred Offering Costs

Deferred offering costs consisting primarily of accounting, legal, and other fees related to the IPO, were capitalized and recorded in other assets on the consolidated balance sheets. Upon completion of the IPO, $5.3 million of deferred offering costs were reclassified to stockholders’ equity and recorded against the proceeds from the IPO.

Basic and Diluted Net Loss attributable to Braze, Inc. Common Stockholders per Share

Basic and diluted net loss attributable to Braze, Inc. common stockholders per share is presented in conformity with the two class method required for participating securities. Under the two-class method, net loss is attributed to common stockholders and participating securities based on their participation rights. Prior to our IPO, we considered all series of our convertible preferred stock to be participating securities. Under the two-class method, the net loss attributable to Braze, Inc. common stockholders is not allocated to the convertible preferred stock as the holders of our convertible preferred stock do not have a contractual obligation to share in our losses.

Basic loss attributable to Braze, Inc. per common stockholder’s share is computed by dividing the net loss by the weighted-average number of shares of Braze, Inc. common stock outstanding during the period. Diluted loss per share is computed by dividing the net loss attributable to Braze, Inc. by the weighted-average number of shares of Braze, Inc. common stock together with the number of additional shares of Braze Inc. common stock that would have been outstanding if all potentially dilutive shares of Braze Inc. common stock had been issued. Since we were in a loss position for the periods presented, basic net loss per share attributable to Braze, Inc. common stockholders is the same as diluted net loss per share attributable to Braze, Inc. common stockholders since the effects of potentially dilutive securities are antidilutive.
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 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 from the outbreak of COVID-19, 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.

Segment Reporting

Operating segments are defined as components of an entity for which discrete financial information is available that is regularly reviewed by the Chief Operating Decision Maker (“CODM”) in deciding how to allocate resources to an individual segment and in assessing performance. Our Chief Executive Officer (“CEO”) is the CODM. The CODM reviews financial information presented on a consolidated basis for purposes of making operating decisions, allocating resources, and evaluating financial performance. As such, we have one operating segment, which is the business of cloud-based customer engagement platform subscriptions.

Fair Value of Financial Instruments
Fair value is defined as 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. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. The guidance describes a fair value hierarchy based on three levels of inputs, of which the first two are considered observable and the last unobservable, that may be used to measure fair value.

Level 1 – Inputs are unadjusted quoted prices in active markets for identical assets or liabilities at the measurement date

Level 2 – Inputs are observable, unadjusted quoted prices in active markets for similar assets or liabilities; unadjusted quoted prices for identical or similar assets or liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the related assets or liabilities

Level 3 – Unobservable inputs that are supported by little or no market data for the related assets or liabilities

The categorization of a financial instrument within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Our financial instruments include cash equivalents, marketable securities, accounts receivable, accounts payable, and other current assets and liabilities. At January 31, 2022 and 2021, the carrying amounts of accounts receivable, accounts payable and other current assets and liabilities approximated fair values because of their short-term nature.

Foreign Currency

The functional currency of our foreign subsidiaries is the local currency. Transactions denominated in currencies other than the functional currency are remeasured to the functional currency at the exchange rate on the transaction date. Monetary assets and liabilities denominated in currencies other than the functional currency are remeasured at period-end using the period-end exchange rate. Gains and losses resulting from remeasurement are recorded in other income, net, on the consolidated statements of operations. All assets and liabilities of foreign subsidiaries are translated at the current exchange rate as of the end of the period, retained earnings and other equity items are translated at historical rates, and revenue and expenses are translated at average exchange rates in effect during the period. The gain or loss resulting from the process of translating foreign currency financial statements into U.S. dollars is reflected as foreign currency cumulative translation adjustments reported on the consolidated statements of comprehensive loss.

Transaction gains and losses that arise from exchange rate fluctuations on transactions denominated in a currency other than the functional currency are included in other income (loss), net in the accompanying consolidated statements of operations when realized.

Cash and cash equivalents represent cash and highly liquid investments with original contractual maturities of three months or less at the date of purchase. Cash and cash equivalents consist of deposit accounts, interest-bearing money market accounts and overnight short-term repurchase agreements that are stated at fair value.

As of January 31, 2022 and 2021, approximately $4.0 million and $4.5 million, respectively, of deposits were restricted due to multiple letters of credit related to our leased and subleased properties. These deposits were classified as current and noncurrent based on the related underlying lease term.

The following table provides a reconciliation of the cash, cash equivalents and restricted cash as of January 31, 2022 and 2021 (in thousands):
January 31,
2022
2021
Cash and cash equivalents$478,937 $28,509 
Restricted cash— 472 
Restricted cash, noncurrent4,036 4,037 
Total cash, cash equivalents and restricted cash$482,973 $33,018 

Accounts Receivable, Net
Accounts receivable are recorded at amounts billed and unbilled to customers, net of an allowance for doubtful accounts. Trade accounts receivable are recorded at invoiced amounts and do not bear interest. On a periodic basis, management evaluates its accounts receivable and determines whether to provide an allowance or if any accounts should be written off based on historical write-offs, collections, and current credit conditions. A receivable is considered past due if we have not received payment based on agreed-upon terms. We generally do not require any security or collateral to support our receivables. Unbilled amounts 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 $2.2 million and $3.6 million as of January 31, 2022 and 2021, respectively.

Concentration of Credit Risk

Financial instruments that potentially subject us to concentrations 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 accompanying 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 sheet dates. For fiscal years ended January 31, 2022 or 2021, no customer accounted for 10% or more of 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 accompanying consolidated balance sheets. Our accounts receivable are derived from revenue contracts with customers. We maintain reserves for potential credit losses on customer accounts when deemed necessary. As of January 31, 2022, no customer accounted for 10% or more of our total accounts receivable balance, and as of January 31, 2021, one customer accounted for 11% of our total accounts receivable balance.

Marketable Securities

We classify our investments in marketable securities within current assets on the consolidated balance sheets as the investments are available for use, if needed, in current operations. Securities are classified as available-for-sale and are carried at fair value, with the change in unrealized gains and losses, net of tax, reported as a separate component on the consolidated statements of comprehensive loss, until realized.

Fair value is determined based on quoted market rates when observable or utilizing data points that are observable, such as quoted prices, interest rates and yield curves. Declines in fair value judged to be other-than-temporary on securities available for sale are included as a reduction to investment income. To determine whether a decline in value is other-than-temporary, we evaluate, among other factors: the duration and extent to which the fair value has been less than the carrying value and our intent and ability to retain the investment for a period of time sufficient to allow for any anticipated recovery in fair value. No impairment losses related to marketable securities have been recognized in any of the periods presented. For the purposes of computing realized and unrealized gains and losses, the cost of securities sold is based on the specific-identification method. Interest on securities classified as available for sale is included as a component of investment income. Subsequent gains or losses realized upon redemption or sale of these securities in excess or below their adjusted cost basis are also recorded as investment income.

Property and Equipment, Net

Property and equipment are stated at cost less accumulated depreciation and amortization. Depreciation is computed using the straight-line method over the estimated useful life of the related asset. Leasehold improvements are amortized using the straight-line method over the shorter of the lease term or estimated useful life of the asset. Costs of maintenance and repairs that do not improve or extend the lives of the respective assets are expensed as incurred. Upon asset retirement or sale, the cost and related accumulated depreciation and amortization are removed from the consolidated balance sheet, and the resulting gain or loss is reflected in general and administrative expenses in the consolidated statements of operations. The estimated useful lives for significant property and equipment categories are as follows:
Computer equipment and software
3 years
Furniture and fixtures
7 years
Leasehold improvementsShorter of lease term or estimated useful life of assets

Impairment of Long-Lived Assets

Long-lived assets, subject to depreciation and amortization, such as property and equipment, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying value of these assets or asset groups may not be recoverable or that the useful life is shorter than originally estimated. Recoverability of these assets or asset groups is measured by comparison of the carrying amount of each asset or asset group to the future undiscounted cash flows the asset or asset group is expected to generate over their remaining lives. If the asset or asset group is considered to be impaired, the amount of any impairment is measured as the difference between the carrying value and the fair value of the impaired asset or asset group. If the useful life is shorter than originally estimated, we amortize the remaining carrying value over the new shorter useful life. There were no material impairment losses of long-lived assets recognized for the fiscal years ended January 31, 2022 and 2021.

Capitalized Internal-use Software Costs

We capitalize certain costs incurred to develop new or additional customer-facing software functionality, on the consolidated balance sheets as a component of property and equipment, net. We capitalize qualifying personnel costs, including stock-based compensation, and consulting costs incurred during the application development stage so long as the project is authorized, it is probable the project will be completed, and the software will be used to perform the function intended. Costs incurred during the preliminary project and post-implementation stages are expensed as incurred and included in research and development expenses on the consolidated statements of operations. These capitalized costs are amortized over the software’s expected useful life, which is generally three years, within cost of revenue on the consolidated statements of operations.

Comprehensive Loss

Our comprehensive loss is currently comprised of unrealized gains or losses on available-for-sale securities and foreign currency translation adjustments.

Variable Interest Entity

A VIE is an entity that either has insufficient equity to permit the entity to finance its activities without additional subordinated financial support or has equity investors who lack the characteristics of a controlling financial interest. The primary beneficiary of a VIE is the party with both the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance and the obligation to absorb the losses or the right to receive benefits that could potentially be significant to the VIE.

To assess whether we have the power to direct the activities of a VIE that most significantly impact its economic performance, we consider all the facts and circumstances including our role in establishing the VIE and our ongoing rights and responsibilities. This assessment includes identifying the activities that most significantly impact the VIE’s economic performance and identifying which party, if any, has power over those activities. In general, the party that makes the most significant decisions affecting the VIE is determined to have the power to direct the activities of the VIE. To assess whether we have the obligation to absorb the losses or the right to receive benefits that could potentially be significant to the VIE, we consider all of our economic interests, including debt and equity interests, servicing rights and fee arrangements, and any other variable interests in the VIE. If we determine that we are the party with the power to make the most significant decisions affecting the VIE, and we have an obligation to absorb the losses or the right to receive benefits that could potentially be
significant to the VIE, then we consolidate the VIE.

We perform ongoing reassessments of whether we are the primary beneficiary of a VIE. The reassessment process considers whether we have acquired or divested the power to direct the most significant activities of the VIE through changes in governing documents or other circumstances. We also reconsider whether entities previously determined not to be VIEs have become VIEs, based on new events, and therefore could be subject to the VIE consolidation framework.
Redeemable Non-controlling Interest

Redeemable non-controlling interests represent the portion of net income (loss), net, and comprehensive income (loss), net, that is not allocable to us, in situations where we consolidate an equity interest or as the primary beneficiary of a VIE for which there are other owners. The amount of non-controlling interest is comprised of the greater of the amount of such interests at the date of the original acquisition of an equity interest in an investment, plus the other shareholders’ share of changes in equity since the date of the investment or estimated redemption value. The resulting changes in the estimated redemption amount (increases or decreases) are recorded with corresponding adjustments against retained earnings or, in the absence of retained earnings, additional paid-in-capital. The redeemable non-controlling interest is classified outside of permanent equity as mezzanine equity on the consolidated balance sheets as the redemption option is outside of our control.

Revenue Recognition

Effective February 1, 2019, we adopted Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers (Topic 606) (“Topic 606”), and applied the guidance on a modified retrospective basis. We applied the standard to all contracts as of February 1, 2019, to aggregate the effect of all contract modifications that occurred prior to the adoption date. The cumulative impact of applying the new guidance was that $10.0 million was recorded as an adjustment to accumulated deficit as of February 1, 2019. We derive our revenue primarily from subscriptions to our platform, including associated support, and professional services. Our 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. Professional services primarily consist of fees for distinct services rendered in training and assisting customers to configure and optimize the use of the platform. Revenue is recognized when control of the promised goods or services is transferred to clients in an amount that reflects the consideration we expect to be entitled to in exchange for those goods or services. We apply the following five-step model to recognize revenue from contracts with clients:

Identification of the contract or contracts with a customer;
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, a performance obligation is satisfied.

We identify the performance obligations in a contract or multiple contracts with a customer and determine whether they are distinct or distinct within the context of the contract. When there is more than one distinct performance obligation in a contract, we allocate the transaction price to the performance obligations on a relative standalone selling price basis based on standalone selling prices (“SSP”). We have identified two performance obligations within our contracts with our customers: (i) subscription and (ii) professional services and other.

All contracts generally contain fixed consideration payable upfront by the customer. Some of our multi-year arrangements may contain fixed fees with escalating pricing structures each year. The nature of our subscription performance obligation remains unchanged each period of the arrangement and therefore may create a contract asset reflecting the difference between the amount of revenue recognized compared to the amount billed.

Some of our contracts with customers contain terms, such as service level guarantees, product usage and overage fees, that, along with various potential claims, including breach of warranty, may result in variable consideration. Variable consideration exists when the amount which we expect to receive in a contract is affected by the occurrence or non-occurrence of future events. We develop estimates of variable consideration on the basis of historical information, current trends, and any other specific knowledge about future periods.

Variable consideration is included in the transaction price only to the extent that it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur. Typically, our contracts do not provide customers with any right of return or refund; however, we may make exceptions on a case-by-case basis when it makes commercial sense. Variable consideration, including as a result of service level guarantees, product usage and overage fees or other potential claims such as breach of warranty, was not material during the fiscal years ended January 31, 2022 and 2021. We allocate the variable consideration related to the product usages and overages to the distinct month during which the related services were performed as those fees relate specifically to providing usage of the platform in the period and represents the consideration we are entitled
to for the access to the platform. As a result, the usage and overage fees are included in the transaction price and recognized as revenue in the period in which the fee was generated.

To the extent that we grant customers an option to acquire additional products or services, we account for the option as a distinct performance obligation in the contract only if the option provides a material right to the customer that the customer would not receive without entering into the contract. If a material right exists in a contract, revenue allocated to the option is deferred and recognized as revenue only when those future products or services are transferred or when the option expires. Contracts do not typically contain material rights and when they do, the material right has not been significant to our consolidated financial statements.

Once the transaction price is determined, the total transaction price is allocated to each performance obligation in a manner depicting the amount of consideration to which we expect to be entitled in exchange for transferring the products or services to the customer. This allocation is based on the SSP of the products or services included in the arrangement.

Judgment is required to determine the SSP for each performance obligation. We determine SSP based on observable prices for those related goods or services when sold separately, if available. When such observable prices are not available, we determine SSP based on overarching pricing objectives and strategies, taking into consideration market conditions and other factors, including transaction size, product-specific factors, historical sales of the deliverables and costs to deliver the services and applicable margins.

Subscription Services

Subscription revenue is recognized ratably over the contract term beginning on the commencement date of each contract, which is the date the platform is made available to customers. We have determined that subscriptions to our platform represent a stand-ready obligation to perform over the subscription term. These performance obligations are satisfied over time as the customer simultaneously receives and consumes the benefits. Contracts are typically 1 year in length, but may be up to 5 years.

At the beginning of each subscription term we invoice our customers, typically in annual installments but also quarterly and semi-annually. Amounts that have been invoiced for non-cancelable contracts are recorded in accounts receivable and in deferred revenue or revenue. We report revenue net of sales tax and other taxes collected from customers to be remitted to government authorities.

Professional Services and Other

Professional services and other revenue primarily consist of onboarding services and are typically recognized as services are performed since our customers simultaneously receive the benefits of these services as they are performed, which is generally over a period of up to six months from provisioning access to the platform. We invoice our customers for professional services at the outset of the contract. Amounts that have been invoiced for non-cancelable contracts are recorded in accounts receivable and in deferred revenue or revenue. We report revenue net of sales tax and other taxes collected from customers to be remitted to government authorities.

Contract Balances

Contract Assets

A contract asset is the right to consideration for transferred goods or services when the amount is conditioned on something other than the passage of time. These balances are included in prepaid and other current assets on our consolidated balance sheets.

Deferred Revenue

We record deferred revenue when we have an unconditional right to payments in advance of satisfying the performance obligations on our contracts. The balance consists primarily of annual plan subscription services and professional services not yet provided as of the balance sheet date. Deferred revenue that will be recognized during the succeeding twelve-month period is recorded as a current liability in our consolidated balance sheets. The deferred revenue balance does not represent the total contract value of annual or multi-year, non-cancelable agreements.
Deferred Contract Costs

We capitalize costs of obtaining revenue contracts that are incremental and recoverable. Incremental costs primarily include sales commissions and bonuses for new and renewal revenue contracts and associated payroll tax and fringe benefit costs and are recorded within deferred contract costs on the consolidated balance sheets. Capitalized amounts are recoverable through future revenue streams under all customer contracts.

Contract costs are amortized on a straight-line basis up to 4 years, which reflects the expected period of benefit of the performance obligation and may be longer than the initial contract period. We determined the estimated benefit period having considered both qualitative and quantitative factors, including the length of the subscription terms in our customer contracts and the anticipated life of our technology, among other such factors. Deferred contract costs related to renewals are amortized over the renewal term which is generally one year to three years. Amortization of contract costs are classified within operating expenses based on the function of the underlying employee receiving the benefit in the accompanying consolidated statements of operations.

Deferred contract costs are periodically analyzed for impairment. As of January 31, 2022 and 2021, we have not identified any potential indicators of impairment.

Cost of Revenue

Cost of revenue consists of expenses related to providing platform access to customers and onboarding services. These costs include payments to third-party cloud infrastructure providers for hosting software solutions and costs associated with application service providers utilized to deliver the platform, allocated personnel-related costs, including salaries, cash-based performance compensation, benefits and stock-based compensation, overhead cost allocations related to facilities and shared IT-related expenses, including depreciation expense and amortization of internal use software.

Operating Expenses

Operating expenses consist of sales and marketing, research and development, and general and administrative expenses. Personnel costs are the most significant component of operating expenses and consist of salaries, cash performance-based compensation, employee benefits and stock-based compensation. Operating expenses also include overhead cost allocations.

Sales and Marketing

Sales and marketing expenses consist primarily of personnel costs for sales and marketing organization, costs related to sponsorships, events and advertising, agency costs, travel-related expenses, and allocated overhead costs. Costs associated with our advertising and sales promotions are expensed as incurred. During the fiscal years ended January 31, 2022, 2021, and 2020, we recognized $12.2 million, $8.1 million, and $8.9 million, respectively, in advertising costs, which included brand and sponsorship costs.

Research and Development

Research and development expenses consist primarily of personnel costs for engineering, service, design, and information technology teams. Additionally, research and development expenses include allocated overhead costs and contractor fees. Research and development costs are expensed as incurred. Capitalized internal-use software development costs are excluded from research and development expenses as they are capitalized as a component of property and equipment, net and amortized to cost of revenue over the software’s expected useful life, which is generally three years.

General and Administrative

General and administrative expenses consist primarily of personnel costs for finance, legal, human resources and other administrative functions, as well as outside professional services. In addition, general and administrative expense includes non-personnel costs, such as legal, accounting and other professional fees, software costs, certain tax, license and insurance-related expenses and allocated overhead costs.

Stock-Based Compensation
We measure and record the expense related to stock-based payment awards based on the fair value of those awards as determined on the date of grant. We recognize stock-based compensation expense over the requisite service period of the individual grant, generally equal to the vesting period, and use the straight-line method to recognize stock-based compensation. We use the Black-Scholes-Merton (“Black-Scholes”) option pricing model to determine the fair value of stock
based awards.

We estimate expected forfeitures of stock-based awards at the grant date and recognize compensation cost only for those awards expected to vest. We estimate our forfeitures rate based on an analysis of our actual historical forfeitures materializing in the previous fiscal years, and revise the estimates, if necessary, in subsequent periods if actual forfeitures differ from those estimates. We routinely evaluate the appropriateness of the forfeiture rate based on actual forfeiture experience, analysis of employee turnover and expectations of future option exercise behavior.


We calculate the fair value of options granted by using the Black-Scholes option-pricing model with the following assumptions:

Expected Volatility

We estimate volatility for option grants by evaluating the average historical volatility of a peer group of companies for the period immediately preceding the option grant for a term that is approximately equal to the options’ expected term since we do not have a trading history of our common stock.

Expected Term

The expected term of our stock options represents the period that the stock-based awards are expected to be outstanding. We have elected to use the simplified method to compute the expected term, which we believe is representative of future behavior. Our stock plans provide a contractual term of 10 years before the option is forfeited.

Risk-Free Interest Rate

The risk-free interest rate is based on the implied yield currently available on U.S. Treasury zero-coupon issues with an equivalent term of the expected life of the option on the grant date.

Dividend Yield

We have not declared or paid dividends to date and do not anticipate declaring dividends in the foreseeable future. As such, the dividend yield has been estimated to be zero.

Fair Value of Common Stock

Prior to our IPO, the fair value of the common stock underlying the stock option awards was determined by the board of directors (“the Board”). Given the absence of a public trading market, the Board considered numerous objective and subjective factors to determine the fair value of our common stock at each meeting at which awards were approved. These factors included, but were not limited to, (i) contemporaneous third party valuations of our common stock; (ii) the rights, preferences, and privileges of our convertible preferred stock relative to our common stock; (iii) the lack of marketability of our common stock; (iv) stage and development of our business; (v) general economic conditions; and (vi) the likelihood of achieving a liquidity event, such as an IPO or sale of the Company, given prevailing market conditions. To evaluate the fair value of the underlying shares for grants between two independent valuations and after the last independent valuation, a linear interpolation framework was used to evaluate the fair value of the underlying shares.

Subsequent to our IPO, the fair value of each share of underlying common stock is based on the closing price of our Class A common stock as reported on the Nasdaq Stock Market on the date of grant.

Investment Income

Investment income consists primarily of income earned on our investments, cash and cash equivalents and restricted cash.

Other Income (Expense), Net
Other income (expense), net, is primarily comprised of realized and unrealized foreign currency gains and losses.

Leases

We categorize leases at their inception as either operating or capital. In the ordinary course of business, we enter into non-cancelable operating leases, principally for office space. We recognize lease costs on a straight-line basis and treat lease incentives as a reduction of rent expense over the term of the agreement. The difference between cash payments and rent expense is recorded as a deferred rent liability in accrued expenses and other current liabilities and other long-term liabilities on the consolidated balance sheets.

Income Taxes

We account for income taxes using the asset and liability method. We recognize deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the consolidated financial statements or tax returns. Deferred tax assets and liabilities are determined based on the difference between the financial statement and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date.

In evaluating our ability to recover our deferred income tax assets, we consider all available positive and negative evidence, using a more likely than not standard. The evaluation considers our recent historical operating results, ongoing tax planning, and forecasts of future taxable income on a jurisdiction-by-jurisdiction basis. In the event we determine that we would be able to realize our deferred tax assets in the future in excess of their net recorded amount, we would make an adjustment to the valuation allowance that would reduce the provision for income taxes. Conversely, in the event that all or part of the net deferred tax assets are determined not to be realizable in the future, we would charge an adjustment to the valuation allowance to earnings in the period when such determination is made. As of January 31, 2022, we recorded a full valuation allowance on our net deferred tax assets, which consist of net operating loss carryforwards and other basis differences, as we have concluded that it is more likely than not that our deferred tax assets will not be realized.

We recognize tax expense associated with Global Intangible Low-Taxed Income as it is incurred as part of the current income taxes to be paid or refunded for the current period.

We recognize the tax benefits on any uncertain tax positions taken or expected to be taken in the consolidated financial statements when it is more likely than not the position will be realized upon ultimate settlement with tax authorities, assuming full knowledge of the position and relevant facts. The tax benefits recognized in the consolidated financial statements from such a position are measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement.

Recently Adopted Accounting Pronouncements

In August 2018, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2018-15, Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract (“ASU 2018-15”). This ASU is designed to reduce complexity for accounting for costs of implementing a cloud computing service arrangement. This standard aligns the accounting for implementation costs of hosting arrangements, regardless of whether they convey a license to the hosted software. The standard will be effective for the first interim period within annual reporting periods beginning after December 15, 2020, and early adoption is permitted. We adopted ASU 2018-15 prospectively on February 1, 2021, and the adoption of this update did not have a material impact on our consolidated financial statements.

In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement (“ASU 2018-13”). ASU 2018-13 adds, modifies, and removes several disclosure requirements relative to the three levels of inputs used to measure fair value in accordance with ASC 820, Fair Value Measurement. ASU 2018-13 is effective for fiscal years beginning after December 15, 2019. We adopted ASU 2018-13 on February 1, 2020, and the adoption of this update did not have a material impact on our consolidated financial statements.

In November 2019, the FASB issued ASU 2019-08, Codification Improvements — Share-Based Consideration Payable to a Customer (“ASU 2019-08”). ASU 2019-08 clarifies the accounting for share-based payments issued as consideration
payable to a customer in accordance with ASC 606. Under ASU 2019-08, entities apply the guidance in ASC 718 to measure and classify share-based payments issued to a customer that are not in exchange for a distinct good or service (i.e., share-based sales incentives). Accordingly, entities use a fair-value-based measure to calculate such incentives on the grant date, which is the date on which the grantor (the entity) and the grantee (the customer) reach a mutual understanding of the key terms and conditions of the share-based consideration. The result is reflected as a reduction of revenue in accordance with the guidance in ASC 606 on consideration payable to a customer. After initial recognition, the measurement and classification of the share-based sales incentives continue to be subject to ASC 718 unless (1) the award is subsequently modified when vested and (2) the grantee is no longer a customer. The guidance is effective for public and private companies’ fiscal years beginning after December 15, 2019, and interim periods within fiscal years beginning after December 15, 2020. We adopted ASU 2019-08 as of February 1, 2020. The amendments in ASU 2019-08 did not have a material impact on our consolidated financial statements.

In November 2019, the FASB issued ASU 2019-08, Codification Improvements — Share-Based Consideration Payable to a Customer (“ASU 2019-08”). ASU 2019-08 clarifies the accounting for share-based payments issued as consideration payable to a customer in accordance with ASC 606. Under ASU 2019-08, entities apply the guidance in ASC 718 to measure and classify share-based payments issued to a customer that are not in exchange for a distinct good or service (i.e., share-based sales incentives). Accordingly, entities use a fair-value-based measure to calculate such incentives on the grant date, which is the date on which the grantor (the entity) and the grantee (the customer) reach a mutual understanding of the key terms and conditions of the share-based consideration. The result is reflected as a reduction of revenue in accordance with the guidance in ASC 606 on consideration payable to a customer. After initial recognition, the measurement and classification of the share-based sales incentives continue to be subject to ASC 718 unless (1) the award is subsequently modified when vested and (2) the grantee is no longer a customer. The guidance is effective for public and private companies’ fiscal years beginning after December 15, 2019, and interim periods within fiscal years beginning after December 15, 2020. We adopted ASU 2019-08 as of February 1, 2020. The amendments in ASU 2019-08 did not have a material impact on our consolidated financial statements.
Recently Issued Accounting Pronouncements Not Yet Adopted

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. Early adoption is permitted. We expect to early adopt Topic 326 beginning February 1, 2022. We are currently evaluating the impact of the new guidance on our consolidated financial statements and do not expect the adoption to have a material impact on our consolidated financial statements.

In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 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 beginning February 1, 2022. We plan to adopt 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 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. We do not expect the adoption of this amended guidance to have a significant impact on our consolidated statements of operations, but will result in a right-of-use asset and lease liability estimated between $55.0 million to $65.0 million on our consolidated balance sheets.

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 expect to adopt ASU 2019-12 beginning February 1, 2022 as the Company has elected to use the extended transition period under the JOBS Act. We are currently evaluating the impact of the new guidance and do not expect the adoption to have a 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 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 expect to adopt ASU 2020-10 beginning February 1, 2022, and do not expect the adoption to have a material impact on our consolidated financial statements.
v3.22.1
Revenue from Contracts with Customers
12 Months Ended
Jan. 31, 2022
Revenue from Contract with Customer [Abstract]  
Revenue from Contracts with Customers 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):

Fiscal Year Ended January 31,
202220212020
Subscription$221,664 $141,068 $89,774 
Professional Services and Other16,371 9,123 6,590 
Total$238,035 $150,191 $96,364 
The following table presents total revenue by geography (in thousands):

Fiscal Year Ended January 31,
202220212020
United States$142,640 $90,523 $58,832 
International95,395 59,668 37,532 
Total$238,035 $150,191 $96,364 

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.

Contract Balances

Contract Assets

Contract assets as of January 31, 2022 and January 31, 2021 were $0.8 million and $0.4 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 fiscal year ended January 31, 2022, 2021, 2020 from amounts included in deferred revenue at the beginning of each respective period was $74.6 million, $51.2 million, and $22.8 million, 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, 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
January 31, 2021$234.2 $150.0 $84.2 
April 30, 2021249.6 163.7 85.9 
July 31, 2021268.2 180.5 87.7 
October 31, 2021304.0 199.1 104.9 
January 31, 2022373.6 237.8 135.8 

These amounts only include contracts subject to a guaranteed fixed amount or the guaranteed minimum under variable contracts. Unrecognized revenue under contracts disclosed above do not include (i) contracts with an original expected term of one year or less and (ii) agreements for which the right to invoice corresponds with the value provided to the customer.
v3.22.1
Variable Interest Entity and Redeemable Non-Controlling Interest
12 Months Ended
Jan. 31, 2022
Noncontrolling Interest [Abstract]  
Variable Interest Entity and Redeemable Non-Controlling Interest Variable Interest Entity and Redeemable Non-Controlling InterestOn September 14, 2020, we, along with Japan Cloud Computing Co., Ltd. (“JCC”), and M30 LLC (“M30”), (the “Investors”), entered into an agreement (the “Share Purchase 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, 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. The Investors contributed their first tranche of the purchase price on September 14, 2020.
On September 23, 2020, the Investors executed a shareholders’ agreement (the “Shareholders Agreement”) in connection with the closing of the first tranche. The Shareholders’ Agreement, along with the Articles of Incorporation, outlines the Investors’ rights, including certain protective provisions of JCC and M30, (together referred to the “Non-controlling Interest Holders”). All of the common stock held by the Investors is callable by us or puttable by the Non-controlling Interest Holders upon certain contingent events but no later than the eighth anniversary of the Share Purchase Agreement. The price of the put and call option is based on our fair value as of the date of sale. 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.

We determined that Braze KK was a VIE and we are the primary beneficiary, because Braze KK was dependent on us for ongoing financial support and we have both the power to direct the significant activities that impact the economic performance of Braze KK and the obligation to absorb losses and the right to receive expected benefits that could be significant to Braze KK.

In September 2021, following the first anniversary of the execution of the Share Purchase Agreement and pursuant to the terms and conditions of the Shareholders Agreement, the Investors purchased Braze KK Shares in the second tranche for a total purchase price of $5.0 million. The investment did not change the ownership interest between the Investors. The investment resulted in a reconsideration event and we determined that 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, condensed consolidated statements of operations, and condensed consolidated statements of cash flows.

As of January 31, 2022 and January 31, 2021, 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 Non-controlling Interest Holders 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.

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

Balance as of January 31, 2020
$
Investment from redeemable non-controlling interest2,450
Net loss attributable to redeemable non-controlling interest(217)
Balance as of January 31, 2021
$2,233
Investment from redeemable non-controlling interest2,450
Net loss attributable to redeemable non-controlling interest(1,448)
Balance as of January 31, 2022
$3,235
The total combined VIE assets, which represent the maximum exposure to loss, and liabilities were as follows (in thousands):
January 31,
20222021
Assets:
Cash and cash equivalents$6,705 $4,582 
Accounts receivable, net of allowance for doubtful accounts143 — 
Prepaid expenses and other current assets196 58 
Total current assets7,044 4,640 
Property and equipment, net38 12 
Deferred contract costs609 — 
Other assets32 23 
Total assets$7,723 $4,675 
Liabilities:
Accounts payable$106 $19 
Accrued expenses and other current liabilities829 35 
Deferred revenue725 — 
Total liabilities$1,660 $54 
v3.22.1
Prepaid Expenses and Other Current Assets
12 Months Ended
Jan. 31, 2022
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]  
Prepaid Expenses and Other Current Assets Prepaid Expenses and Other Current Assets
Prepaid expenses and other current assets consist of the following (in thousands):
January 31,
20222021
Prepaid software subscriptions$19,396 $8,426 
Prepaid advertising1,132 1,008 
Prepaid insurance4,372 187 
Other4,688 2,581 
Total prepaid expenses and other current assets$29,588 $12,202 
v3.22.1
Fair Value Measurements
12 Months Ended
Jan. 31, 2022
Fair Value Disclosures [Abstract]  
Fair Value Measurements 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):
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 securities$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 
January 31, 2021
Level 1Level 2Level 3Total
Cash equivalents
Money market funds$12,584 $— $— $12,584 
12,584 — — 12,584 
Marketable securities
U.S. government bonds$10,533 $— $— $10,533 
Commercial paper— 17,582 — 17,582 
Corporate debt securities— 20,075 — 20,075 
Asset-backed securities— 9,814 — 9,814 
Total marketable securities10,533 47,471 — 58,004 
Total$23,117 $47,471 $— $70,588 

Our money market funds are classified as Level 1 within the fair value hierarchy, because they are valued using quoted prices in active markets as of January 31, 2022 and January 31, 2021. 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.
v3.22.1
Marketable Securities
12 Months Ended
Jan. 31, 2022
Investments, Debt and Equity Securities [Abstract]  
Marketable Securities Marketable Securities
Marketable securities consist of the following for the periods presented (in thousands):

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 

January 31, 2021
Cost or Amortized CostGross Unrealized GainsGross Unrealized LossesTotal Estimated Fair Value
U.S. government bonds$10,546 $$(14)$10,533 
Commercial paper17,582 — — 17,582 
Corporate debt securities20,089 25 (39)20,075 
Asset-backed securities9,837 (25)9,814 
Total$58,054 $28 $(78)$58,004 

There were no material reclassifications of gains or losses from accumulated other comprehensive loss on the consolidated balance sheets to other income, net, on the consolidated statements of operations.

As of January 31, 2022 and January 31, 2021, we did not consider any of our marketable debt securities to be other-than-temporarily impaired and we did not purchase or hold a material amount of non-marketable debt securities.

As of January 31, 2022 and January 31, 2021, there were no debt securities in a continuous unrealized loss position for greater than 12 months for the periods presented. We believe that the losses incurred on the ten investment positions in an unrealized loss position as of January 31, 2022 were temporary because we had no intention of selling the investment and we had the ability to retain the investment for a period of time sufficient to allow for recovery of its amortized cost basis.

The contractual maturities of the investments classified as marketable securities are as follows (in thousands):

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 

January 31, 2021
Amortized CostEstimated Fair Value
Due within 1 year$55,811 $55,761 
Due in 1 year through 5 years2,243 2,243 
Total$58,054 $58,004 

Investment Income

Investment income consists of interest income and accretion income/amortization expense on our cash, cash equivalents and marketable securities. The components of investment income were as follows (in thousands):
Fiscal Year Ended January 31,
202220212020
Interest income$506 $1,185 $1,671 
Amortization of discount/premium, net(369)(345)456 
Investment income$137 $840 $2,127 
v3.22.1
Property and Equipment, Net
12 Months Ended
Jan. 31, 2022
Property, Plant and Equipment [Abstract]  
Property and Equipment, Net Property and Equipment, Net
Property and equipment, net, consist of the following (in thousands):
January 31,
20222021
Capitalized internal-use software$5,353 $2,958 
Computer equipment and software3,833 2,077 
Leasehold improvements2,470 1,977 
Furniture and fixtures966 1,114 
Total property and equipment12,622 8,126 
Less: accumulated depreciation and amortization(5,229)(2,640)
Total property and equipment, net$7,393 $5,486 

The total depreciation expense and amortization expense for property and equipment was $2.8 million, $1.6 million and $0.6 million, during the fiscal years ended January 31, 2022, 2021 and 2020, respectively.

We capitalized internal-use software of $2.4 million, $2.1 million and $0.9 million during the fiscal years ended January 31, 2022, 2021, and 2020 respectively. Amortization for capitalized internal-use software costs recognized within cost of revenue on the consolidated statements of operations was $1.2 million, $0.5 million and $0.1 million for the fiscal years ended January 31, 2022, 2021, and 2020, respectively.
v3.22.1
Accrued Expenses and Other Current Liabilities
12 Months Ended
Jan. 31, 2022
Payables and Accruals [Abstract]  
Accrued Expenses and Other Current Liabilities Accrued Expenses and Other Current Liabilities
Accrued expenses and other current liabilities consists of the following (in thousands):
January 31,
20222021
Accrued compensation costs$14,075 $8,117 
Accrued software subscriptions3,217 5,672 
Accrued commissions5,961 4,761 
Accrued professional service fees2,218 2,864 
Other6,152 4,490 
Total accrued expenses and other current liabilities$31,623 $25,904 
v3.22.1
Employee Benefit Plans
12 Months Ended
Jan. 31, 2022
Retirement Benefits [Abstract]  
Employee Benefit Plans Employee Benefit PlansWe sponsor a 401(k) defined contribution plan covering all eligible U.S. employees. Contributions to the 401(k) plan are discretionary. Matching contributions under the plan were $2.4 million, $1.5 million, and $1.0 million for the fiscal years ended January 31, 2022, 2021, and 2020 respectively.
v3.22.1
Stockholders' Equity (Deficit)
12 Months Ended
Jan. 31, 2022
Equity [Abstract]  
Stockholders' Equity (Deficit) Stockholders’ Equity (Deficit)
Class A and Class B Common Stock

The Company has two classes of common stock, Class A and Class B. The rights of the holders of Class A common stock and Class B common stock are identical, except with respect to voting, conversion and transfer rights. Each share of Class A common stock will be entitled to one vote. Each share of Class B common stock is entitled to ten votes and may be converted at the option of the holder into one share of Class A common stock. In addition, all shares of Class B common stock will automatically convert into shares of Class A common stock in certain circumstances, including on the earlier of (i) the last
trading day of the fiscal quarter during which the number of shares of Class B common stock then outstanding represents less than 10% of the aggregate number of shares of Class A common stock and Class B common stock then outstanding, or (ii) the last trading day of the fiscal quarter immediately following the fifth anniversary of the IPO. All shares of the Company’s capital stock outstanding immediately prior to the IPO, including all shares held by its executive officers, directors and their respective affiliates, and all shares issuable upon the conversion of its then outstanding convertible preferred stock, were reclassified into shares of Class B common stock immediately prior to the completion of the IPO.

Convertible Preferred Stock Conversion

According to the terms of our amended and restated certificate of incorporation in effect immediately prior to our IPO, all outstanding shares of convertible preferred stock would automatically be converted into shares of common stock upon either a (i) the closing of the sale of shares of common stock to the public (x) at a price at least equal to the original issue price of the Series E convertible preferred stock and (y) resulting in at least $50.0 million of gross proceeds to Braze, or (ii) the occurrence of an event specified by vote or written consent of the holders of (i) at least a majority of the outstanding shares of convertible preferred stock voting as a single class on an as-converted basis, (ii) at least a majority of the outstanding shares of Series C convertible preferred stock, voting separately on an as-converted basis, (iii) at least a majority of the outstanding shares of Series D convertible preferred stock, voting separately on an as-converted basis, and (iv) at least a majority of the outstanding shares of Series E convertible preferred stock, voting separately on an as-converted basis. In connection with the completion of the IPO on November 19, 2021, all shares of convertible preferred stock then outstanding were automatically converted into 62.8 million shares of Class B common stock.

Warrants

All outstanding common stock warrants were net exercised pursuant to their terms for an aggregate of 216,354 shares of Class B common stock in connection with the IPO.
v3.22.1
Employee Stock Plans
12 Months Ended
Jan. 31, 2022
Share-based Payment Arrangement [Abstract]  
Employee Stock Plans Employee Stock Plans
Amended and Restated 2011 Equity Incentive Plan

The Amended and Restated 2011 Equity Incentive Plan (the “2011 Plan”) provided for the award of stock options and restricted stock units (“RSUs”) to employees, officers, directors, advisors and other service providers of Braze. The terms of each award and the exercise price are determined by the Board. Following effectiveness of the 2021 Equity Incentive Plan in connection with the IPO, no further awards were made under the 2011 Plan.

2021 Equity Incentive Plan

In November 2021, the Board and our stockholders approved the 2021 Equity Incentive Plan (the “2021 Plan”), which became effective on the date of the underwriting agreement related to the IPO. No grants were made under the 2021 Plan prior to its effectiveness. No further grants will be made under the 2011 Equity Incentive Plan. We have reserved 25,660,249 shares of our Class A common stock to be issued under the 2021 Plan. In addition, the number of shares of our Class A common stock reserved for issuance under the 2021 Plan will automatically increase on February 1 of each year for a period of ten years, beginning on February 1, 2022 and continuing through February 1, 2031, in an amount equal to (1) 5% of the total number of shares of our common stock (both Class A and Class B) outstanding on the preceding January 31, or (2) a lesser number of shares determined by the Board no later than the February 1 increase.
Stock Options

A summary of stock option activity for the periods presented, is as follows:
Options Outstanding
Number of OptionsWeighted Average Exercise PriceAverage Remaining Contractual Life (Years)Aggregate Intrinsic Value
(in thousands)
Balance as of January 31, 2020
10,456,625$2.398.23$30,253
Granted3,464,6555.65
Exercised(2,334,263)1.20
Forfeited(377,318)4.28
Expired(23,299)2.95
Balance as of January 31, 2021
11,186,400$3.587.99$351,321
Granted3,120,51635.02
Exercised(2,855,522)2.94
Forfeited(415,690)5.48
Balance as of January 31, 2022
11,035,704$12.567.69$413,384
Vested and expected to vest as of January 31, 202210,230,240$11.607.61$393,072
Exercisable - January 31, 2022
4,741,556$3.256.64$221,763
Fiscal Year Ended January 31,
202220212020
Weighted-average grant date fair value per share of options granted during each respective period$24.53$7.41$2.24
Aggregate intrinsic value of options exercised during each respective period (in thousands)$121.9$78.9$10.3

We estimate the fair value of stock options using the Black-Scholes option-pricing model on the date of grant. The assumptions used in the Black-Scholes option-pricing model were as follows:

Fiscal Year Ended January 31,
202220212020
Dividend yield (in percentage)—%—%—%
Expected volatility (in percentage)
61.8 - 66.1%
55.7 - 62.5%
55.1 - 57.3%
Expected term (in years)
5.9 - 6.7
5.5 - 6.1
5.6 - 6.1
Risk-free interest rate (in percentage)
1.0 - 1.2%
0.3 - 1.5%
1.4 - 2.6%
Fair value of common stock$65.00
$5.28 - $28.35
$3.46 - $5.14

Early Exercise of Stock Options

Prior to July 2019, stock options granted contained a provision whereby the holders of the stock options were able to exercise the options prior to vesting. We recorded a share repurchase liability related to stock options with four-year vesting schedules that were exercised early. The liability is included within accrued expenses and other current liabilities on the consolidated balance sheets. Upon termination of service of an employee, we have the right to repurchase any non-vested but issued common shares at the original purchase price. Such an exercise is not substantive for accounting purposes. The liability is being amortized into additional paid-in capital over the course of the vesting schedule.

During the fiscal years ended January 31, 2022, 2021, and 2020, $0.5 million, $0.3 million, and $0.3 million was recorded to additional paid in capital related to the vesting of early exercised awards, respectively. During the fiscal years ended January 31, 2022, 2021, and 2020, 88,099, 287,963, and 129,225 options were early exercised for cash in an amount of $0.2 million, $0.4 million, and $0.2 million, respectively. As of January 31, 2022 and 2021, $0.2 million and $0.5 million is recorded as a liability on the consolidated balance sheets in account payables and other accrued expenses, respectively.
A summary for activities for early exercised options is as follows:
Unvested Options
Balance as of January 31, 2020
195,989
Exercises287,963
Vested(210,764)
Repurchased(4,524)
Balance as of January 31, 2021
268,664
Exercises88,099
Vested(296,400)
Repurchased(3,251)
Balance as of January 31, 2022
57,112
Restricted Stock Units

Prior to the IPO, all granted restricted stock units (“RSUs”) contained both a service-based vesting condition and a performance-based vesting condition. The service-based vesting condition is satisfied over either a four year or three year period. Some RSUs vest on a quarterly basis and other RSUs have a one year cliff vesting period with quarterly vesting thereafter.

The performance-based vesting condition in relation to the then outstanding RSUs was deemed satisfied as a result of the closing of the IPO in November 2021. As such, the Company recorded stock-based compensation vesting of RSUs in connection with the IPO using the accelerated attribution method during the fourth quarter of the fiscal year ended January 31, 2022. Upon completion of the IPO, the Company recognized compensation expense of $16.1 million related to RSUs granted to employees and directors that were subject to performance-based vesting conditions that were satisfied upon completion of the IPO.

The following table summarized unvested RSU award activity and related information:

SharesWeighted-Average Grant Date Fair Value
Balance as of January 31, 2021
Granted1,512,709$52.20
Vested(70,121)$46.71
Forfeited(87,523)$45.08
Balance as of January 31, 2022
1,355,065

Stock-based Compensation Expense

The following table summarizes stock-based compensation expense, which was included in the consolidated statements of operations as follows (in thousands):

Fiscal Year Ended January 31,
202220212020
Cost of revenue$2,185 $650 $276 
Sales and marketing16,281 2,892 6,365 
Research and development15,613 2,102 3,705 
General and administrative13,101 1,896 2,062 
Stock-based compensation, net of amounts capitalized$47,180 $7,540 $12,408 
Capitalized stock-based compensation expense387 126 38 
Total stock-based compensation expense$47,567 $7,666 $12,446 
As of January 31, 2022, total compensation cost not yet recognized related to unvested equity awards and the weighted-average remaining period over which these costs are expected to be realized were as follows:

Stock OptionsRSUs
Unrecognized compensation costs (in thousands)$65,615$40,400
Weighted-average remaining recognition period (Years)3.381.78

Secondary Transaction

In March 2021, certain existing investors entered into an arms-length transaction to purchase 292,486 shares of our common stock from certain of our current employees (the “2021 Secondary Transaction”). The purchase price paid was in excess of the fair value of the common stock on the purchase date. In connection with the 2021 Secondary Transaction, we recognized $3.0 million of stock-based compensation expense which represented the amounts paid above fair value of common stock. The expense is included in the same financial statement line items as the employees’ other compensation. No secondary transactions involving employees occurred during the fiscal year ended January 31, 2021.

During the fiscal year ended January 31, 2020, we facilitated a transaction whereby a related-party investor purchased 893,500 shares of our common stock from our current and former employees (the “2020 Secondary Transaction”). The purchase price paid was in excess of the fair value of the common stock on the purchase date. In connection with the 2020 Secondary Transaction, we recognized $8.7 million stock-based compensation expense which represented the amounts paid above fair value of common stock and the charge associated with employees selling shares which were held for less than six months. The expense is included in the same category of operating expense as the employees’ other compensation.

Employee Stock Purchase Plan

In November 2021, the Board and our stockholders approved the 2021 Employee Stock Purchase Plan (the “ESPP”), which became effective on the date of the underwriting agreement related to the IPO. Following completion of the IPO, the ESPP authorized the issuance of 1,825,000 shares of our Class A common stock under purchase rights granted to our employees or to employees of any of our designated affiliates. The number of shares of our Class A common stock reserved for issuance will automatically increase on February 1 of each year for a period of ten years, beginning on February 1, 2022 and continuing through February 1, 2031, by the lesser of (i) 1% of the total number of shares of our common stock (both Class A and Class B) outstanding on the preceding January 31; and (ii) 2,737,000 shares, except before the date of any such increase, the Board may determine that such increase will be less than the amount set forth in clauses (i) and (ii).
v3.22.1
Commitments and Contingencies
12 Months Ended
Jan. 31, 2022
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies Commitments and Contingencies
Leases

We have noncancellable operating leases for office space that expire at various dates through 2031. Rental expense for operating leases for the fiscal years ended January 31, 2022, 2021, and 2020 was $10.2 million, $8.8 million, and $5.9 million respectively.

This rental expense includes sublease income of $0.4 million, $1.1 million, and $0.9 million, respectively, for the fiscal years ended January 31, 2022, 2021, and 2020. Our operating leases generally provide for annual rent increases and may include rent holidays, typically at the outset of a lease agreement.

The following represents the Company’s future minimum payments under non-cancelable operating leases as of January 31, 2022 for each of the next five years and thereafter (in thousands):

Fiscal Years Ended January 31,
Net Rent
2023$9,900 
202411,557 
202511,112 
20268,804 
Thereafter34,697 
Total future lease payments$76,070 
The contractual commitment amounts in the table above are associated with agreements that are enforceable and legally binding. Obligations under contracts that we can cancel without a significant penalty are not included in the table above.

Indirect Taxes

We are subject to indirect taxation in some, but not all, of the various U.S. states and foreign jurisdictions in which we conduct business. Therefore, we have an obligation to charge, collect and remit Value Added Tax (“VAT”) or Goods and Services Tax (“GST”) in connection with certain of our foreign sales transactions and sales and use tax in connection with eligible sales to subscribers in certain U.S. states. On June 21, 2018, the U.S. Supreme Court issued an opinion in South Dakota v. Wayfair. The State of South Dakota alleged that U.S. constitutional law should be revised to permit South Dakota to require remote sellers to collect and remit sales tax in South Dakota in accordance with South Dakota’s sales tax statute. Under the U.S. Supreme Court’s ruling, the longstanding Quill Corp v. North Dakota sales tax case was overruled, and states may now require remote sellers to collect sales tax under certain circumstances. We began collecting sales tax in relevant jurisdictions for the fiscal year ended January 31, 2019. As a result of this ruling and given the scope of our operations, taxing authorities continue to provide regulations that increase the complexity and risks to comply with such laws and could result in substantial liabilities, prospectively as well as retrospectively. Based on the information available, we continue to evaluate and assess the jurisdictions in which indirect tax nexus exists and believe that the indirect tax liabilities are adequate and reasonable. Due to the complexity and uncertainty around the application of these rules by taxing authorities, results may vary materially from expectations, and we have recognized liabilities for contingencies related to state sales and use tax, VAT, and GST deemed probable and estimable totaling $1.3 million and $0.6 million as of January 31, 2022 and 2021, respectively, which is included in other current liabilities on the consolidated balance sheets. As of fiscal year ended January 31, 2022, we have entered into several voluntary disclosure agreements with jurisdictions where we identified a potential exposure due to not filing prior returns.

Legal Contingencies

From time to time, in the ordinary course of business, we are or may be involved in various legal or regulatory proceedings, claims or purported class actions related to alleged infringement of third-party patents and other intellectual property rights, commercial, labor and employment, wage and hour and other claims. We have been, and may in the future be, put on notice or sued by third parties for alleged infringement of their proprietary rights, including patent infringement. We accrue a liability when we believe that it is both probable that a liability has been incurred and the amount of loss can be reasonably estimated. We believe we have recorded adequate provisions for any such matters and, as of January 31, 2022, we believe that no material loss will be incurred in excess of the amounts recognized in our financial statements.
v3.22.1
Income Taxes
12 Months Ended
Jan. 31, 2022
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
The components of the (benefit from) provision for income taxes are as follows (in thousands):

Fiscal Year Ended January 31,
202220212020
Current:
Federal$— $— $— 
State and local15 $26 $26 
Foreign(100)451 369 
Total current$(85)$477 $395 
Deferred:
Federal$— $— $— 
State and local— — — 
Foreign(80)60 57 
Total deferred(80)60 57 
(Benefit from) provision for income taxes$(165)$537 $452 

The components of loss before income taxes are as follows (in thousands):
Fiscal Year Ended January 31,
202220212020
United States$(76,030)$(33,352)$(32,880)
Foreign(2,302)1,920 1,522 
Loss before provision for income taxes$(78,332)$(31,432)$(31,358)

A reconciliation of the (benefit from) provision for income taxes to the amounts computed by applying the statutory federal income tax rate to earnings before income taxes is shown as follows:
Fiscal Year Ended January 31,
202220212020
Statutory income tax expense21.0 %21.0 %21.0 %
Foreign tax rate differential0.8 %0.2 %0.3 %
State taxes2.8 %5.3 %2.4 %
Permanent items(3.0)%(2.0)%(2.3)%
Change in valuation allowance(29.3)%(27.0)%(6.3)%
Section 382 NOL— %— %(9.0)%
Stock-based compensation5.8 %(1.4)%(7.5)%
Tax credits2.1 %2.2 %— %
Effective tax rate0.2 %(1.7)%(1.4)%

Deferred Income Taxes

The tax effects of cumulative temporary differences that give rise to significant deferred tax assets and deferred tax liabilities are presented below (in thousands). The valuation allowance relates to deferred tax assets for which it is more likely than not that the tax benefit will not be realized.
Fiscal Year Ended January 31,
20222021
Deferred tax assets:
Net operating losses$46,886 $30,743 
Bad debt reserve186 237 
Other reserves1,016 1,105 
Stock-based compensation8,402 106 
Property, equipment, and software272 185 
Accrued taxes113 37 
Accrued bonus1,552 902 
R&D credit3,541 1,927 
Deferred payroll taxes250 594 
Other410 432 
Deferred tax assets62,628 36,268 
Less: valuation allowance(52,209)(29,297)
Deferred tax asset, net of valuation allowance$10,419 $6,971 
Deferred tax liabilities:
Capitalized costs$(10,286)$(6,952)
Property, equipment and software(133)(99)
Deferred tax liabilities(10,419)(7,051)
Net deferred tax assets/(liabilities)$— $(80)

As of January 31, 2022, we had NOL carryforwards for federal and state income tax purposes of approximately $179.4 million and $119.1 million, respectively. Under current law, U.S. federal NOLs incurred in tax years beginning after December 31, 2017 may be carried forward indefinitely, but the deductibility of federal NOLs is limited to 80% of taxable income in tax years beginning after December 31, 2020. Accordingly, $140.0 million of our NOLs may be carried forward indefinitely for federal tax purposes and $39.4 million, if not utilized, will expire at various times between 2035 and 2037. The
state NOLs if not utilized, will expire at various times between 2026 and 2042. We also had foreign NOL carryforwards as of January 31, 2022 of $7.6 million, the majority of which may be carried forward indefinitely. As of January 31, 2021, we had NOL carryforwards for federal and state income tax purposes of approximately $118.3 million and $79.7 million, respectively.

At January 31, 2022, the Company had tax credit carryforwards of $3.5 million related to credits for research activities. The credit carryforwards will expire between 2037 and 2042.

IRC Sections 382 and 383 place a limitation on the amount of taxable income that can be offset by carryforward tax attributes, such as net operating losses or tax credits, after a change in control. Generally, after a change in control, a loss corporation cannot deduct carryforward tax attributes in excess of the limitation prescribed by Sections 382 and 383. Therefore, certain of our carryforward tax attributes may be subject to an annual limitation regarding their utilization against taxable income in future periods. As a result of issuances of different classes of preferred stock to investors in 2013, 2014 and 2017, we triggered “ownership shifts” as defined in Internal Revenue Code Section 382 and related provisions. These ownership shifts resulted in a reduction of NOLs in the fiscal year ended January 31, 2020 of $13.8 million and credits of $0.7 million. Our utilization of our NOLs and credits is limited by these ownership shifts but those limitations do not have a significant impact to the financial statements since there is no utilization of the NOLs and credits and a full valuation allowance exists against the net operating losses and credits. Subsequent ownership changes may subject us to additional annual limitations of its net operating losses. Such annual limitation could result in the expiration of the NOLs and credits. As of January 31, 2022, there were no additional limitations to the net operating losses or credits.

We determine our valuation allowance on deferred tax assets by considering both positive and negative evidence to ascertain whether it is more likely than not that deferred tax assets will be realized. Realization of deferred tax assets is dependent upon the generation of future taxable income, if any, the timing, and amount of which are uncertain. Due to our history of losses, we believe that it is not more likely than not that all the deferred tax assets can be realized as of January 31, 2022. Accordingly, we have recorded a full valuation allowance against our deferred tax assets. The valuation allowance increased by $22.9 million, and $8.5 million, during the fiscal years ended January 31, 2022, and 2021, respectively.

The Company has not provided for U.S. federal income and foreign withholding taxes on undistributed earnings from non-U.S. operations as of January 31, 2022 because the Company intends to reinvest such earnings indefinitely outside of the United States. The amount of any unrecognized deferred tax liability related to these earnings would not be material.

A reconciliation of the beginning and ending amount of unrecognized tax benefits, including penalties but excluding interest, is as follows (in thousands):

Fiscal Year Ended January 31,
202220212020
Balance at February 1$902 $647 $— 
Additions for tax positions of prior years— 902 647 
Reductions for tax positions of prior years(255)(647)— 
Balance at January 31$647 $902 $647 

The Company recognizes interest and, if applicable, penalties related to unrecognized tax benefits in the income tax provision. As of January 31, 2022, 2021 and 2020, there were no interest and penalties recorded.

As of January 31, 2022, 2021 and 2020, accrued unrecognized tax benefits were $0.6 million, $0.9 million, and $0.6 million, respectively, and if recognized would reduce the provision for income taxes, and our effective tax rate. We expect the majority of the unrecognized tax benefits to be released during the next twelve months.

We are subject to income tax examinations in the United States and various state and foreign jurisdictions. Our most significant operations are in the United States and the earliest open tax year subject to potential examination is the period ended January 31, 2019. However, amounts reported as NOLs from these prior tax periods also remain subject to review by most tax authorities.
v3.22.1
Net Loss per Share Attributable to Braze, Inc. Common Shareholders
12 Months Ended
Jan. 31, 2022
Earnings Per Share [Abstract]  
Net Loss per Share Attributable to Braze, Inc. Common Shareholders Net Loss per Share Attributable to Braze, Inc. Common Shareholders
The following table sets forth the computation of basic and diluted net loss per share attributable to Braze, Inc. common shareholders during the periods presented (in thousands, except per share amounts):
Fiscal Year Ended January 31,
202220212020
Numerator:
Net loss attributable to Braze, Inc.$(76,719)$(31,752)$(31,810)
Denominator:
Weighted-average shares of Braze, Inc. common stock outstanding35,078 18,205 16,446 
Less: weighted-average unvested shares of Braze, Inc. subject to repurchase(181)(233)(257)
Weighted-average shares used to calculate net loss per share attributable to Braze, Inc. common stockholders, basic and diluted34,897 17,972 16,189 
Net loss per share attributable to Braze, Inc. common stockholders, basic and diluted$(2.20)$(1.77)$(1.96)
The following outstanding shares of potentially dilutive securities have been excluded from diluted net loss per share attributable to Braze, Inc. common shareholders for the periods presented, because their inclusion would be anti-dilutive (in thousands):
Fiscal Year Ended January 31,
202220212020
Convertible preferred stock on an as-converted basis— 62,831 62,831 
Options to purchase common stock11,036 11,186 10,456 
Restricted stock units1,355 — — 
Warrants to purchase common stock— 218 218 
Total12,391 74,235 73,505 
v3.22.1
Related Party Transactions
12 Months Ended
Jan. 31, 2022
Related Party Transactions [Abstract]  
Related Party Transactions Related Party TransactionsIn May 2021, the Chief Financial Officer of Datadog, Inc., one of our vendors, joined our board of directors. We have purchased services from Datadog, Inc. in the aggregate amount of approximately $0.7 million during the fiscal year ended fiscal year ended January 31, 2021 and $1.2 million during the fiscal year ended January 31, 2022.
v3.22.1
Subsequent Events
12 Months Ended
Jan. 31, 2022
Subsequent Events [Abstract]  
Subsequent Events Subsequent Events
In March 2022, the Company granted a total of 1.6 million Class A common stock RSUs to employees pursuant to the 2021 Plan. The fair value of the RSU grants was determined based upon the market closing price of the Company’s common stock on the date of grant. The RSUs vest over the requisite service period, subject to the continued service of the individual. The Company expects to recognize aggregate stock-based compensation expense of $60.4 million related to the RSUs over a weighted-average requisite service period of approximately 3.5 years.

In March 2022, we entered into a memorandum of understanding with Tides Foundation to establish a donor advised fund in support of our philanthropic goals and our commitment to the Pledge 1% movement.
v3.22.1
Summary of Significant Accounting Policies (Policies)
12 Months Ended
Jan. 31, 2022
Accounting Policies [Abstract]  
Basis of Presentation
Basis of Presentation

The accompanying consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”). The accompanying 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
Reclassifications

Certain reclassifications and immaterial changes have been made to prior-period financial statements to conform to the current-period presentation.
Deferred Offering Costs Deferred Offering CostsDeferred offering costs consisting primarily of accounting, legal, and other fees related to the IPO, were capitalized and recorded in other assets on the consolidated balance sheets. Upon completion of the IPO, $5.3 million of deferred offering costs were reclassified to stockholders’ equity and recorded against the proceeds from the IPO.
Basic and Diluted Net Loss attributable to Braze, Inc. Common Stockholders per Share
Basic and Diluted Net Loss attributable to Braze, Inc. Common Stockholders per Share

Basic and diluted net loss attributable to Braze, Inc. common stockholders per share is presented in conformity with the two class method required for participating securities. Under the two-class method, net loss is attributed to common stockholders and participating securities based on their participation rights. Prior to our IPO, we considered all series of our convertible preferred stock to be participating securities. Under the two-class method, the net loss attributable to Braze, Inc. common stockholders is not allocated to the convertible preferred stock as the holders of our convertible preferred stock do not have a contractual obligation to share in our losses.

Basic loss attributable to Braze, Inc. per common stockholder’s share is computed by dividing the net loss by the weighted-average number of shares of Braze, Inc. common stock outstanding during the period. Diluted loss per share is computed by dividing the net loss attributable to Braze, Inc. by the weighted-average number of shares of Braze, Inc. common stock together with the number of additional shares of Braze Inc. common stock that would have been outstanding if all potentially dilutive shares of Braze Inc. common stock had been issued. Since we were in a loss position for the periods presented, basic net loss per share attributable to Braze, Inc. common stockholders is the same as diluted net loss per share attributable to Braze, Inc. common stockholders since the effects of potentially dilutive securities are antidilutive.
Use of Estimates
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 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 from the outbreak of COVID-19, 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.
Segment Reporting
Segment Reporting

Operating segments are defined as components of an entity for which discrete financial information is available that is regularly reviewed by the Chief Operating Decision Maker (“CODM”) in deciding how to allocate resources to an individual segment and in assessing performance. Our Chief Executive Officer (“CEO”) is the CODM. The CODM reviews financial information presented on a consolidated basis for purposes of making operating decisions, allocating resources, and evaluating financial performance. As such, we have one operating segment, which is the business of cloud-based customer engagement platform subscriptions.
Fair Value of Financial Instruments Fair Value of Financial Instruments
Fair value is defined as 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. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. The guidance describes a fair value hierarchy based on three levels of inputs, of which the first two are considered observable and the last unobservable, that may be used to measure fair value.

Level 1 – Inputs are unadjusted quoted prices in active markets for identical assets or liabilities at the measurement date

Level 2 – Inputs are observable, unadjusted quoted prices in active markets for similar assets or liabilities; unadjusted quoted prices for identical or similar assets or liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the related assets or liabilities

Level 3 – Unobservable inputs that are supported by little or no market data for the related assets or liabilities

The categorization of a financial instrument within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Our financial instruments include cash equivalents, marketable securities, accounts receivable, accounts payable, and other current assets and liabilities. At January 31, 2022 and 2021, the carrying amounts of accounts receivable, accounts payable and other current assets and liabilities approximated fair values because of their short-term nature.
Foreign Currency
Foreign Currency

The functional currency of our foreign subsidiaries is the local currency. Transactions denominated in currencies other than the functional currency are remeasured to the functional currency at the exchange rate on the transaction date. Monetary assets and liabilities denominated in currencies other than the functional currency are remeasured at period-end using the period-end exchange rate. Gains and losses resulting from remeasurement are recorded in other income, net, on the consolidated statements of operations. All assets and liabilities of foreign subsidiaries are translated at the current exchange rate as of the end of the period, retained earnings and other equity items are translated at historical rates, and revenue and expenses are translated at average exchange rates in effect during the period. The gain or loss resulting from the process of translating foreign currency financial statements into U.S. dollars is reflected as foreign currency cumulative translation adjustments reported on the consolidated statements of comprehensive loss.
Transaction gains and losses that arise from exchange rate fluctuations on transactions denominated in a currency other than the functional currency are included in other income (loss), net in the accompanying consolidated statements of operations when realized.
Cash, Cash Equivalents and Restricted Cash Cash and cash equivalents represent cash and highly liquid investments with original contractual maturities of three months or less at the date of purchase. Cash and cash equivalents consist of deposit accounts, interest-bearing money market accounts and overnight short-term repurchase agreements that are stated at fair value.
Accounts Receivable, Net Accounts Receivable, NetAccounts receivable are recorded at amounts billed and unbilled to customers, net of an allowance for doubtful accounts. Trade accounts receivable are recorded at invoiced amounts and do not bear interest. On a periodic basis, management evaluates its accounts receivable and determines whether to provide an allowance or if any accounts should be written off based on historical write-offs, collections, and current credit conditions. A receivable is considered past due if we have not received payment based on agreed-upon terms. We generally do not require any security or collateral to support our receivables. Unbilled amounts 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 $2.2 million and $3.6 million as of January 31, 2022 and 2021, respectively.
Concentration of Credit Risk
Concentration of Credit Risk

Financial instruments that potentially subject us to concentrations 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 accompanying consolidated balance sheets in excess of federal insurance limits.
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 accompanying consolidated balance sheets. Our accounts receivable are derived from revenue contracts with customers. We maintain reserves for potential credit losses on customer accounts when deemed necessary.
Marketable Securities
Marketable Securities

We classify our investments in marketable securities within current assets on the consolidated balance sheets as the investments are available for use, if needed, in current operations. Securities are classified as available-for-sale and are carried at fair value, with the change in unrealized gains and losses, net of tax, reported as a separate component on the consolidated statements of comprehensive loss, until realized.

Fair value is determined based on quoted market rates when observable or utilizing data points that are observable, such as quoted prices, interest rates and yield curves. Declines in fair value judged to be other-than-temporary on securities available for sale are included as a reduction to investment income. To determine whether a decline in value is other-than-temporary, we evaluate, among other factors: the duration and extent to which the fair value has been less than the carrying value and our intent and ability to retain the investment for a period of time sufficient to allow for any anticipated recovery in fair value. No impairment losses related to marketable securities have been recognized in any of the periods presented. For the purposes of computing realized and unrealized gains and losses, the cost of securities sold is based on the specific-identification method. Interest on securities classified as available for sale is included as a component of investment income. Subsequent gains or losses realized upon redemption or sale of these securities in excess or below their adjusted cost basis are also recorded as investment income.
Property and Equipment, Net Property and Equipment, NetProperty and equipment are stated at cost less accumulated depreciation and amortization. Depreciation is computed using the straight-line method over the estimated useful life of the related asset. Leasehold improvements are amortized using the straight-line method over the shorter of the lease term or estimated useful life of the asset. Costs of maintenance and repairs that do not improve or extend the lives of the respective assets are expensed as incurred. Upon asset retirement or sale, the cost and related accumulated depreciation and amortization are removed from the consolidated balance sheet, and the resulting gain or loss is reflected in general and administrative expenses in the consolidated statements of operations.
Impairment of Long-Lived Assets Impairment of Long-Lived AssetsLong-lived assets, subject to depreciation and amortization, such as property and equipment, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying value of these assets or asset groups may not be recoverable or that the useful life is shorter than originally estimated. Recoverability of these assets or asset groups is measured by comparison of the carrying amount of each asset or asset group to the future undiscounted cash flows the asset or asset group is expected to generate over their remaining lives. If the asset or asset group is considered to be impaired, the amount of any impairment is measured as the difference between the carrying value and the fair value of the impaired asset or asset group. If the useful life is shorter than originally estimated, we amortize the remaining carrying value over the new shorter useful life.
Capitalized Internal-use Software Costs
Capitalized Internal-use Software Costs

We capitalize certain costs incurred to develop new or additional customer-facing software functionality, on the consolidated balance sheets as a component of property and equipment, net. We capitalize qualifying personnel costs, including stock-based compensation, and consulting costs incurred during the application development stage so long as the project is authorized, it is probable the project will be completed, and the software will be used to perform the function intended. Costs incurred during the preliminary project and post-implementation stages are expensed as incurred and included in research and development expenses on the consolidated statements of operations. These capitalized costs are amortized over the software’s expected useful life, which is generally three years, within cost of revenue on the consolidated statements of operations.
Comprehensive Loss
Comprehensive Loss

Our comprehensive loss is currently comprised of unrealized gains or losses on available-for-sale securities and foreign currency translation adjustments.
Variable Interest Entity
Variable Interest Entity

A VIE is an entity that either has insufficient equity to permit the entity to finance its activities without additional subordinated financial support or has equity investors who lack the characteristics of a controlling financial interest. The primary beneficiary of a VIE is the party with both the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance and the obligation to absorb the losses or the right to receive benefits that could potentially be significant to the VIE.

To assess whether we have the power to direct the activities of a VIE that most significantly impact its economic performance, we consider all the facts and circumstances including our role in establishing the VIE and our ongoing rights and responsibilities. This assessment includes identifying the activities that most significantly impact the VIE’s economic performance and identifying which party, if any, has power over those activities. In general, the party that makes the most significant decisions affecting the VIE is determined to have the power to direct the activities of the VIE. To assess whether we have the obligation to absorb the losses or the right to receive benefits that could potentially be significant to the VIE, we consider all of our economic interests, including debt and equity interests, servicing rights and fee arrangements, and any other variable interests in the VIE. If we determine that we are the party with the power to make the most significant decisions affecting the VIE, and we have an obligation to absorb the losses or the right to receive benefits that could potentially be
significant to the VIE, then we consolidate the VIE.

We perform ongoing reassessments of whether we are the primary beneficiary of a VIE. The reassessment process considers whether we have acquired or divested the power to direct the most significant activities of the VIE through changes in governing documents or other circumstances. We also reconsider whether entities previously determined not to be VIEs have become VIEs, based on new events, and therefore could be subject to the VIE consolidation framework.
Redeemable Noncontrolling Interest
Redeemable Non-controlling Interest

Redeemable non-controlling interests represent the portion of net income (loss), net, and comprehensive income (loss), net, that is not allocable to us, in situations where we consolidate an equity interest or as the primary beneficiary of a VIE for which there are other owners. The amount of non-controlling interest is comprised of the greater of the amount of such interests at the date of the original acquisition of an equity interest in an investment, plus the other shareholders’ share of changes in equity since the date of the investment or estimated redemption value. The resulting changes in the estimated redemption amount (increases or decreases) are recorded with corresponding adjustments against retained earnings or, in the absence of retained earnings, additional paid-in-capital. The redeemable non-controlling interest is classified outside of permanent equity as mezzanine equity on the consolidated balance sheets as the redemption option is outside of our control.
Revenue Recognition
Revenue Recognition

Effective February 1, 2019, we adopted Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers (Topic 606) (“Topic 606”), and applied the guidance on a modified retrospective basis. We applied the standard to all contracts as of February 1, 2019, to aggregate the effect of all contract modifications that occurred prior to the adoption date. The cumulative impact of applying the new guidance was that $10.0 million was recorded as an adjustment to accumulated deficit as of February 1, 2019. We derive our revenue primarily from subscriptions to our platform, including associated support, and professional services. Our 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. Professional services primarily consist of fees for distinct services rendered in training and assisting customers to configure and optimize the use of the platform. Revenue is recognized when control of the promised goods or services is transferred to clients in an amount that reflects the consideration we expect to be entitled to in exchange for those goods or services. We apply the following five-step model to recognize revenue from contracts with clients:

Identification of the contract or contracts with a customer;
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, a performance obligation is satisfied.

We identify the performance obligations in a contract or multiple contracts with a customer and determine whether they are distinct or distinct within the context of the contract. When there is more than one distinct performance obligation in a contract, we allocate the transaction price to the performance obligations on a relative standalone selling price basis based on standalone selling prices (“SSP”). We have identified two performance obligations within our contracts with our customers: (i) subscription and (ii) professional services and other.

All contracts generally contain fixed consideration payable upfront by the customer. Some of our multi-year arrangements may contain fixed fees with escalating pricing structures each year. The nature of our subscription performance obligation remains unchanged each period of the arrangement and therefore may create a contract asset reflecting the difference between the amount of revenue recognized compared to the amount billed.

Some of our contracts with customers contain terms, such as service level guarantees, product usage and overage fees, that, along with various potential claims, including breach of warranty, may result in variable consideration. Variable consideration exists when the amount which we expect to receive in a contract is affected by the occurrence or non-occurrence of future events. We develop estimates of variable consideration on the basis of historical information, current trends, and any other specific knowledge about future periods.

Variable consideration is included in the transaction price only to the extent that it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur. Typically, our contracts do not provide customers with any right of return or refund; however, we may make exceptions on a case-by-case basis when it makes commercial sense. Variable consideration, including as a result of service level guarantees, product usage and overage fees or other potential claims such as breach of warranty, was not material during the fiscal years ended January 31, 2022 and 2021. We allocate the variable consideration related to the product usages and overages to the distinct month during which the related services were performed as those fees relate specifically to providing usage of the platform in the period and represents the consideration we are entitled
to for the access to the platform. As a result, the usage and overage fees are included in the transaction price and recognized as revenue in the period in which the fee was generated.

To the extent that we grant customers an option to acquire additional products or services, we account for the option as a distinct performance obligation in the contract only if the option provides a material right to the customer that the customer would not receive without entering into the contract. If a material right exists in a contract, revenue allocated to the option is deferred and recognized as revenue only when those future products or services are transferred or when the option expires. Contracts do not typically contain material rights and when they do, the material right has not been significant to our consolidated financial statements.

Once the transaction price is determined, the total transaction price is allocated to each performance obligation in a manner depicting the amount of consideration to which we expect to be entitled in exchange for transferring the products or services to the customer. This allocation is based on the SSP of the products or services included in the arrangement.

Judgment is required to determine the SSP for each performance obligation. We determine SSP based on observable prices for those related goods or services when sold separately, if available. When such observable prices are not available, we determine SSP based on overarching pricing objectives and strategies, taking into consideration market conditions and other factors, including transaction size, product-specific factors, historical sales of the deliverables and costs to deliver the services and applicable margins.

Subscription Services

Subscription revenue is recognized ratably over the contract term beginning on the commencement date of each contract, which is the date the platform is made available to customers. We have determined that subscriptions to our platform represent a stand-ready obligation to perform over the subscription term. These performance obligations are satisfied over time as the customer simultaneously receives and consumes the benefits. Contracts are typically 1 year in length, but may be up to 5 years.

At the beginning of each subscription term we invoice our customers, typically in annual installments but also quarterly and semi-annually. Amounts that have been invoiced for non-cancelable contracts are recorded in accounts receivable and in deferred revenue or revenue. We report revenue net of sales tax and other taxes collected from customers to be remitted to government authorities.

Professional Services and Other

Professional services and other revenue primarily consist of onboarding services and are typically recognized as services are performed since our customers simultaneously receive the benefits of these services as they are performed, which is generally over a period of up to six months from provisioning access to the platform. We invoice our customers for professional services at the outset of the contract. Amounts that have been invoiced for non-cancelable contracts are recorded in accounts receivable and in deferred revenue or revenue. We report revenue net of sales tax and other taxes collected from customers to be remitted to government authorities.

Contract Balances

Contract Assets

A contract asset is the right to consideration for transferred goods or services when the amount is conditioned on something other than the passage of time. These balances are included in prepaid and other current assets on our consolidated balance sheets.

Deferred Revenue

We record deferred revenue when we have an unconditional right to payments in advance of satisfying the performance obligations on our contracts. The balance consists primarily of annual plan subscription services and professional services not yet provided as of the balance sheet date. Deferred revenue that will be recognized during the succeeding twelve-month period is recorded as a current liability in our consolidated balance sheets. The deferred revenue balance does not represent the total contract value of annual or multi-year, non-cancelable agreements.
Deferred Contract Costs

We capitalize costs of obtaining revenue contracts that are incremental and recoverable. Incremental costs primarily include sales commissions and bonuses for new and renewal revenue contracts and associated payroll tax and fringe benefit costs and are recorded within deferred contract costs on the consolidated balance sheets. Capitalized amounts are recoverable through future revenue streams under all customer contracts.

Contract costs are amortized on a straight-line basis up to 4 years, which reflects the expected period of benefit of the performance obligation and may be longer than the initial contract period. We determined the estimated benefit period having considered both qualitative and quantitative factors, including the length of the subscription terms in our customer contracts and the anticipated life of our technology, among other such factors. Deferred contract costs related to renewals are amortized over the renewal term which is generally one year to three years. Amortization of contract costs are classified within operating expenses based on the function of the underlying employee receiving the benefit in the accompanying consolidated statements of operations.

Deferred contract costs are periodically analyzed for impairment. As of January 31, 2022 and 2021, we have not identified any potential indicators of impairment.
Cost of Revenue
Cost of Revenue

Cost of revenue consists of expenses related to providing platform access to customers and onboarding services. These costs include payments to third-party cloud infrastructure providers for hosting software solutions and costs associated with application service providers utilized to deliver the platform, allocated personnel-related costs, including salaries, cash-based performance compensation, benefits and stock-based compensation, overhead cost allocations related to facilities and shared IT-related expenses, including depreciation expense and amortization of internal use software.
Sales, Marketing, General and Administrative
Sales and Marketing

Sales and marketing expenses consist primarily of personnel costs for sales and marketing organization, costs related to sponsorships, events and advertising, agency costs, travel-related expenses, and allocated overhead costs. Costs associated with our advertising and sales promotions are expensed as incurred. During the fiscal years ended January 31, 2022, 2021, and 2020, we recognized $12.2 million, $8.1 million, and $8.9 million, respectively, in advertising costs, which included brand and sponsorship costs.
General and Administrative

General and administrative expenses consist primarily of personnel costs for finance, legal, human resources and other administrative functions, as well as outside professional services. In addition, general and administrative expense includes non-personnel costs, such as legal, accounting and other professional fees, software costs, certain tax, license and insurance-related expenses and allocated overhead costs.
Research and Development
Research and Development

Research and development expenses consist primarily of personnel costs for engineering, service, design, and information technology teams. Additionally, research and development expenses include allocated overhead costs and contractor fees. Research and development costs are expensed as incurred. Capitalized internal-use software development costs are excluded from research and development expenses as they are capitalized as a component of property and equipment, net and amortized to cost of revenue over the software’s expected useful life, which is generally three years.
Stock-Based Compensation Stock-Based Compensation
We measure and record the expense related to stock-based payment awards based on the fair value of those awards as determined on the date of grant. We recognize stock-based compensation expense over the requisite service period of the individual grant, generally equal to the vesting period, and use the straight-line method to recognize stock-based compensation. We use the Black-Scholes-Merton (“Black-Scholes”) option pricing model to determine the fair value of stock
based awards.

We estimate expected forfeitures of stock-based awards at the grant date and recognize compensation cost only for those awards expected to vest. We estimate our forfeitures rate based on an analysis of our actual historical forfeitures materializing in the previous fiscal years, and revise the estimates, if necessary, in subsequent periods if actual forfeitures differ from those estimates. We routinely evaluate the appropriateness of the forfeiture rate based on actual forfeiture experience, analysis of employee turnover and expectations of future option exercise behavior.


We calculate the fair value of options granted by using the Black-Scholes option-pricing model with the following assumptions:

Expected Volatility

We estimate volatility for option grants by evaluating the average historical volatility of a peer group of companies for the period immediately preceding the option grant for a term that is approximately equal to the options’ expected term since we do not have a trading history of our common stock.

Expected Term

The expected term of our stock options represents the period that the stock-based awards are expected to be outstanding. We have elected to use the simplified method to compute the expected term, which we believe is representative of future behavior. Our stock plans provide a contractual term of 10 years before the option is forfeited.

Risk-Free Interest Rate

The risk-free interest rate is based on the implied yield currently available on U.S. Treasury zero-coupon issues with an equivalent term of the expected life of the option on the grant date.

Dividend Yield

We have not declared or paid dividends to date and do not anticipate declaring dividends in the foreseeable future. As such, the dividend yield has been estimated to be zero.

Fair Value of Common Stock

Prior to our IPO, the fair value of the common stock underlying the stock option awards was determined by the board of directors (“the Board”). Given the absence of a public trading market, the Board considered numerous objective and subjective factors to determine the fair value of our common stock at each meeting at which awards were approved. These factors included, but were not limited to, (i) contemporaneous third party valuations of our common stock; (ii) the rights, preferences, and privileges of our convertible preferred stock relative to our common stock; (iii) the lack of marketability of our common stock; (iv) stage and development of our business; (v) general economic conditions; and (vi) the likelihood of achieving a liquidity event, such as an IPO or sale of the Company, given prevailing market conditions. To evaluate the fair value of the underlying shares for grants between two independent valuations and after the last independent valuation, a linear interpolation framework was used to evaluate the fair value of the underlying shares.
Subsequent to our IPO, the fair value of each share of underlying common stock is based on the closing price of our Class A common stock as reported on the Nasdaq Stock Market on the date of grant.
Investment Income
Investment Income

Investment income consists primarily of income earned on our investments, cash and cash equivalents and restricted cash.
Other Income (Expense), Net Other Income (Expense), NetOther income (expense), net, is primarily comprised of realized and unrealized foreign currency gains and losses.
Leases
Leases

We categorize leases at their inception as either operating or capital. In the ordinary course of business, we enter into non-cancelable operating leases, principally for office space. We recognize lease costs on a straight-line basis and treat lease incentives as a reduction of rent expense over the term of the agreement. The difference between cash payments and rent expense is recorded as a deferred rent liability in accrued expenses and other current liabilities and other long-term liabilities on the consolidated balance sheets.
Income Taxes
Income Taxes

We account for income taxes using the asset and liability method. We recognize deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the consolidated financial statements or tax returns. Deferred tax assets and liabilities are determined based on the difference between the financial statement and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date.

In evaluating our ability to recover our deferred income tax assets, we consider all available positive and negative evidence, using a more likely than not standard. The evaluation considers our recent historical operating results, ongoing tax planning, and forecasts of future taxable income on a jurisdiction-by-jurisdiction basis. In the event we determine that we would be able to realize our deferred tax assets in the future in excess of their net recorded amount, we would make an adjustment to the valuation allowance that would reduce the provision for income taxes. Conversely, in the event that all or part of the net deferred tax assets are determined not to be realizable in the future, we would charge an adjustment to the valuation allowance to earnings in the period when such determination is made. As of January 31, 2022, we recorded a full valuation allowance on our net deferred tax assets, which consist of net operating loss carryforwards and other basis differences, as we have concluded that it is more likely than not that our deferred tax assets will not be realized.

We recognize tax expense associated with Global Intangible Low-Taxed Income as it is incurred as part of the current income taxes to be paid or refunded for the current period.
We recognize the tax benefits on any uncertain tax positions taken or expected to be taken in the consolidated financial statements when it is more likely than not the position will be realized upon ultimate settlement with tax authorities, assuming full knowledge of the position and relevant facts. The tax benefits recognized in the consolidated financial statements from such a position are measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement.
Recently Adopted and Issued Accounting Pronouncements
Recently Adopted Accounting Pronouncements

In August 2018, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2018-15, Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract (“ASU 2018-15”). This ASU is designed to reduce complexity for accounting for costs of implementing a cloud computing service arrangement. This standard aligns the accounting for implementation costs of hosting arrangements, regardless of whether they convey a license to the hosted software. The standard will be effective for the first interim period within annual reporting periods beginning after December 15, 2020, and early adoption is permitted. We adopted ASU 2018-15 prospectively on February 1, 2021, and the adoption of this update did not have a material impact on our consolidated financial statements.

In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement (“ASU 2018-13”). ASU 2018-13 adds, modifies, and removes several disclosure requirements relative to the three levels of inputs used to measure fair value in accordance with ASC 820, Fair Value Measurement. ASU 2018-13 is effective for fiscal years beginning after December 15, 2019. We adopted ASU 2018-13 on February 1, 2020, and the adoption of this update did not have a material impact on our consolidated financial statements.

In November 2019, the FASB issued ASU 2019-08, Codification Improvements — Share-Based Consideration Payable to a Customer (“ASU 2019-08”). ASU 2019-08 clarifies the accounting for share-based payments issued as consideration
payable to a customer in accordance with ASC 606. Under ASU 2019-08, entities apply the guidance in ASC 718 to measure and classify share-based payments issued to a customer that are not in exchange for a distinct good or service (i.e., share-based sales incentives). Accordingly, entities use a fair-value-based measure to calculate such incentives on the grant date, which is the date on which the grantor (the entity) and the grantee (the customer) reach a mutual understanding of the key terms and conditions of the share-based consideration. The result is reflected as a reduction of revenue in accordance with the guidance in ASC 606 on consideration payable to a customer. After initial recognition, the measurement and classification of the share-based sales incentives continue to be subject to ASC 718 unless (1) the award is subsequently modified when vested and (2) the grantee is no longer a customer. The guidance is effective for public and private companies’ fiscal years beginning after December 15, 2019, and interim periods within fiscal years beginning after December 15, 2020. We adopted ASU 2019-08 as of February 1, 2020. The amendments in ASU 2019-08 did not have a material impact on our consolidated financial statements.

In November 2019, the FASB issued ASU 2019-08, Codification Improvements — Share-Based Consideration Payable to a Customer (“ASU 2019-08”). ASU 2019-08 clarifies the accounting for share-based payments issued as consideration payable to a customer in accordance with ASC 606. Under ASU 2019-08, entities apply the guidance in ASC 718 to measure and classify share-based payments issued to a customer that are not in exchange for a distinct good or service (i.e., share-based sales incentives). Accordingly, entities use a fair-value-based measure to calculate such incentives on the grant date, which is the date on which the grantor (the entity) and the grantee (the customer) reach a mutual understanding of the key terms and conditions of the share-based consideration. The result is reflected as a reduction of revenue in accordance with the guidance in ASC 606 on consideration payable to a customer. After initial recognition, the measurement and classification of the share-based sales incentives continue to be subject to ASC 718 unless (1) the award is subsequently modified when vested and (2) the grantee is no longer a customer. The guidance is effective for public and private companies’ fiscal years beginning after December 15, 2019, and interim periods within fiscal years beginning after December 15, 2020. We adopted ASU 2019-08 as of February 1, 2020. The amendments in ASU 2019-08 did not have a material impact on our consolidated financial statements.
Recently Issued Accounting Pronouncements Not Yet Adopted

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. Early adoption is permitted. We expect to early adopt Topic 326 beginning February 1, 2022. We are currently evaluating the impact of the new guidance on our consolidated financial statements and do not expect the adoption to have a material impact on our consolidated financial statements.

In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 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 beginning February 1, 2022. We plan to adopt 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 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. We do not expect the adoption of this amended guidance to have a significant impact on our consolidated statements of operations, but will result in a right-of-use asset and lease liability estimated between $55.0 million to $65.0 million on our consolidated balance sheets.

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 expect to adopt ASU 2019-12 beginning February 1, 2022 as the Company has elected to use the extended transition period under the JOBS Act. We are currently evaluating the impact of the new guidance and do not expect the adoption to have a 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 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 expect to adopt ASU 2020-10 beginning February 1, 2022, and do not expect the adoption to have a material impact on our consolidated financial statements.
v3.22.1
Summary of Significant Accounting Policies (Tables)
12 Months Ended
Jan. 31, 2022
Accounting Policies [Abstract]  
Schedule of Cash and Cash Equivalents
The following table provides a reconciliation of the cash, cash equivalents and restricted cash as of January 31, 2022 and 2021 (in thousands):
January 31,
2022
2021
Cash and cash equivalents$478,937 $28,509 
Restricted cash— 472 
Restricted cash, noncurrent4,036 4,037 
Total cash, cash equivalents and restricted cash$482,973 $33,018 
Property and equipment, net The estimated useful lives for significant property and equipment categories are as follows:
Computer equipment and software
3 years
Furniture and fixtures
7 years
Leasehold improvementsShorter of lease term or estimated useful life of assets
Property and equipment, net, consist of the following (in thousands):
January 31,
20222021
Capitalized internal-use software$5,353 $2,958 
Computer equipment and software3,833 2,077 
Leasehold improvements2,470 1,977 
Furniture and fixtures966 1,114 
Total property and equipment12,622 8,126 
Less: accumulated depreciation and amortization(5,229)(2,640)
Total property and equipment, net$7,393 $5,486 
v3.22.1
Revenue from Contracts with Customers (Tables)
12 Months Ended
Jan. 31, 2022
Revenue from Contract with Customer [Abstract]  
Disaggregation of Revenue
The following table presents total revenue by type (in thousands):

Fiscal Year Ended January 31,
202220212020
Subscription$221,664 $141,068 $89,774 
Professional Services and Other16,371 9,123 6,590 
Total$238,035 $150,191 $96,364 
Total Revenue by Geography
The following table presents total revenue by geography (in thousands):

Fiscal Year Ended January 31,
202220212020
United States$142,640 $90,523 $58,832 
International95,395 59,668 37,532 
Total$238,035 $150,191 $96,364 
Remaining Performance Obligations
The following table presents remaining performance obligations as of the dates indicated below (in millions):

TotalLess than 1 Year1-5 Years
January 31, 2021$234.2 $150.0 $84.2 
April 30, 2021249.6 163.7 85.9 
July 31, 2021268.2 180.5 87.7 
October 31, 2021304.0 199.1 104.9 
January 31, 2022373.6 237.8 135.8 
v3.22.1
Variable Interest Entity and Redeemable Non-Controlling Interest (Tables)
12 Months Ended
Jan. 31, 2022
Noncontrolling Interest [Abstract]  
Redeemable Noncontrolling Interest
The following table summarizes the activity in the redeemable non-controlling interests for the periods indicated below (in thousands):

Balance as of January 31, 2020
$
Investment from redeemable non-controlling interest2,450
Net loss attributable to redeemable non-controlling interest(217)
Balance as of January 31, 2021
$2,233
Investment from redeemable non-controlling interest2,450
Net loss attributable to redeemable non-controlling interest(1,448)
Balance as of January 31, 2022
$3,235
Schedule of Variable Interest Entity Assets and Liabilities
The total combined VIE assets, which represent the maximum exposure to loss, and liabilities were as follows (in thousands):
January 31,
20222021
Assets:
Cash and cash equivalents$6,705 $4,582 
Accounts receivable, net of allowance for doubtful accounts143 — 
Prepaid expenses and other current assets196 58 
Total current assets7,044 4,640 
Property and equipment, net38 12 
Deferred contract costs609 — 
Other assets32 23 
Total assets$7,723 $4,675 
Liabilities:
Accounts payable$106 $19 
Accrued expenses and other current liabilities829 35 
Deferred revenue725 — 
Total liabilities$1,660 $54 
v3.22.1
Prepaid Expenses and Other Current Assets (Tables)
12 Months Ended
Jan. 31, 2022
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]  
Schedule of Prepaid Expenses and Other Current Assets
Prepaid expenses and other current assets consist of the following (in thousands):
January 31,
20222021
Prepaid software subscriptions$19,396 $8,426 
Prepaid advertising1,132 1,008 
Prepaid insurance4,372 187 
Other4,688 2,581 
Total prepaid expenses and other current assets$29,588 $12,202 
v3.22.1
Fair Value Measurements (Tables)
12 Months Ended
Jan. 31, 2022
Fair Value Disclosures [Abstract]  
Fair Value of Financial Instruments Measured at Fair Value on a Recurring Basis
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):
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 securities$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 
January 31, 2021
Level 1Level 2Level 3Total
Cash equivalents
Money market funds$12,584 $— $— $12,584 
12,584 — — 12,584 
Marketable securities
U.S. government bonds$10,533 $— $— $10,533 
Commercial paper— 17,582 — 17,582 
Corporate debt securities— 20,075 — 20,075 
Asset-backed securities— 9,814 — 9,814 
Total marketable securities10,533 47,471 — 58,004 
Total$23,117 $47,471 $— $70,588 
v3.22.1
Marketable Securities (Tables)
12 Months Ended
Jan. 31, 2022
Investments, Debt and Equity Securities [Abstract]  
Components of Marketable Securities
Marketable securities consist of the following for the periods presented (in thousands):

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 

January 31, 2021
Cost or Amortized CostGross Unrealized GainsGross Unrealized LossesTotal Estimated Fair Value
U.S. government bonds$10,546 $$(14)$10,533 
Commercial paper17,582 — — 17,582 
Corporate debt securities20,089 25 (39)20,075 
Asset-backed securities9,837 (25)9,814 
Total$58,054 $28 $(78)$58,004 
Marketable Securities by Contractual Maturity
The contractual maturities of the investments classified as marketable securities are as follows (in thousands):

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 

January 31, 2021
Amortized CostEstimated Fair Value
Due within 1 year$55,811 $55,761 
Due in 1 year through 5 years2,243 2,243 
Total$58,054 $58,004 
Investment Income Investment income consists of interest income and accretion income/amortization expense on our cash, cash equivalents and marketable securities. The components of investment income were as follows (in thousands):
Fiscal Year Ended January 31,
202220212020
Interest income$506 $1,185 $1,671 
Amortization of discount/premium, net(369)(345)456 
Investment income$137 $840 $2,127 
v3.22.1
Property and Equipment, Net (Tables)
12 Months Ended
Jan. 31, 2022
Property, Plant and Equipment [Abstract]  
Property and equipment, net The estimated useful lives for significant property and equipment categories are as follows:
Computer equipment and software
3 years
Furniture and fixtures
7 years
Leasehold improvementsShorter of lease term or estimated useful life of assets
Property and equipment, net, consist of the following (in thousands):
January 31,
20222021
Capitalized internal-use software$5,353 $2,958 
Computer equipment and software3,833 2,077 
Leasehold improvements2,470 1,977 
Furniture and fixtures966 1,114 
Total property and equipment12,622 8,126 
Less: accumulated depreciation and amortization(5,229)(2,640)
Total property and equipment, net$7,393 $5,486 
v3.22.1
Accrued Expenses and Other Current Liabilites (Tables)
12 Months Ended
Jan. 31, 2022
Payables and Accruals [Abstract]  
Schedule of Accrued Expenses and Other Current Liabilities
Accrued expenses and other current liabilities consists of the following (in thousands):
January 31,
20222021
Accrued compensation costs$14,075 $8,117 
Accrued software subscriptions3,217 5,672 
Accrued commissions5,961 4,761 
Accrued professional service fees2,218 2,864 
Other6,152 4,490 
Total accrued expenses and other current liabilities$31,623 $25,904 
v3.22.1
Employee Stock Plans (Tables)
12 Months Ended
Jan. 31, 2022
Share-based Payment Arrangement [Abstract]  
Schedule of Stock Option Activity
A summary of stock option activity for the periods presented, is as follows:
Options Outstanding
Number of OptionsWeighted Average Exercise PriceAverage Remaining Contractual Life (Years)Aggregate Intrinsic Value
(in thousands)
Balance as of January 31, 2020
10,456,625$2.398.23$30,253
Granted3,464,6555.65
Exercised(2,334,263)1.20
Forfeited(377,318)4.28
Expired(23,299)2.95
Balance as of January 31, 2021
11,186,400$3.587.99$351,321
Granted3,120,51635.02
Exercised(2,855,522)2.94
Forfeited(415,690)5.48
Balance as of January 31, 2022
11,035,704$12.567.69$413,384
Vested and expected to vest as of January 31, 202210,230,240$11.607.61$393,072
Exercisable - January 31, 2022
4,741,556$3.256.64$221,763
Fiscal Year Ended January 31,
202220212020
Weighted-average grant date fair value per share of options granted during each respective period$24.53$7.41$2.24
Aggregate intrinsic value of options exercised during each respective period (in thousands)$121.9$78.9$10.3
Schedule of Stock Option Valuation Assumptions
We estimate the fair value of stock options using the Black-Scholes option-pricing model on the date of grant. The assumptions used in the Black-Scholes option-pricing model were as follows:

Fiscal Year Ended January 31,
202220212020
Dividend yield (in percentage)—%—%—%
Expected volatility (in percentage)
61.8 - 66.1%
55.7 - 62.5%
55.1 - 57.3%
Expected term (in years)
5.9 - 6.7
5.5 - 6.1
5.6 - 6.1
Risk-free interest rate (in percentage)
1.0 - 1.2%
0.3 - 1.5%
1.4 - 2.6%
Fair value of common stock$65.00
$5.28 - $28.35
$3.46 - $5.14
Summary of Activity for Early Exercised Options
A summary for activities for early exercised options is as follows:
Unvested Options
Balance as of January 31, 2020
195,989
Exercises287,963
Vested(210,764)
Repurchased(4,524)
Balance as of January 31, 2021
268,664
Exercises88,099
Vested(296,400)
Repurchased(3,251)
Balance as of January 31, 2022
57,112
Schedule of Summarized Unvested RSU Award Activity
The following table summarized unvested RSU award activity and related information:

SharesWeighted-Average Grant Date Fair Value
Balance as of January 31, 2021
Granted1,512,709$52.20
Vested(70,121)$46.71
Forfeited(87,523)$45.08
Balance as of January 31, 2022
1,355,065
Schedule of Stock-Based Compensation Expense
The following table summarizes stock-based compensation expense, which was included in the consolidated statements of operations as follows (in thousands):

Fiscal Year Ended January 31,
202220212020
Cost of revenue$2,185 $650 $276 
Sales and marketing16,281 2,892 6,365 
Research and development15,613 2,102 3,705 
General and administrative13,101 1,896 2,062 
Stock-based compensation, net of amounts capitalized$47,180 $7,540 $12,408 
Capitalized stock-based compensation expense387 126 38 
Total stock-based compensation expense$47,567 $7,666 $12,446 
Schedule of Employee Service Share Based Compensation Unrecognized Compensation Costs
As of January 31, 2022, total compensation cost not yet recognized related to unvested equity awards and the weighted-average remaining period over which these costs are expected to be realized were as follows:

Stock OptionsRSUs
Unrecognized compensation costs (in thousands)$65,615$40,400
Weighted-average remaining recognition period (Years)3.381.78
v3.22.1
Commitments and Contingencies (Tables)
12 Months Ended
Jan. 31, 2022
Commitments and Contingencies Disclosure [Abstract]  
Schedule of Future Lease Liability Obligations
The following represents the Company’s future minimum payments under non-cancelable operating leases as of January 31, 2022 for each of the next five years and thereafter (in thousands):

Fiscal Years Ended January 31,
Net Rent
2023$9,900 
202411,557 
202511,112 
20268,804 
Thereafter34,697 
Total future lease payments$76,070 
v3.22.1
Income Taxes (Tables)
12 Months Ended
Jan. 31, 2022
Income Tax Disclosure [Abstract]  
Schedule of Components of Income Tax Expense (Benefit)
The components of the (benefit from) provision for income taxes are as follows (in thousands):

Fiscal Year Ended January 31,
202220212020
Current:
Federal$— $— $— 
State and local15 $26 $26 
Foreign(100)451 369 
Total current$(85)$477 $395 
Deferred:
Federal$— $— $— 
State and local— — — 
Foreign(80)60 57 
Total deferred(80)60 57 
(Benefit from) provision for income taxes$(165)$537 $452 
Schedule of Income before Income Tax, Domestic and Foreign The components of loss before income taxes are as follows (in thousands):
Fiscal Year Ended January 31,
202220212020
United States$(76,030)$(33,352)$(32,880)
Foreign(2,302)1,920 1,522 
Loss before provision for income taxes$(78,332)$(31,432)$(31,358)
Schedule of Effective Income Tax Rate Reconciliation
A reconciliation of the (benefit from) provision for income taxes to the amounts computed by applying the statutory federal income tax rate to earnings before income taxes is shown as follows:
Fiscal Year Ended January 31,
202220212020
Statutory income tax expense21.0 %21.0 %21.0 %
Foreign tax rate differential0.8 %0.2 %0.3 %
State taxes2.8 %5.3 %2.4 %
Permanent items(3.0)%(2.0)%(2.3)%
Change in valuation allowance(29.3)%(27.0)%(6.3)%
Section 382 NOL— %— %(9.0)%
Stock-based compensation5.8 %(1.4)%(7.5)%
Tax credits2.1 %2.2 %— %
Effective tax rate0.2 %(1.7)%(1.4)%
Schedule of Deferred Tax Assets and Liabilities
The tax effects of cumulative temporary differences that give rise to significant deferred tax assets and deferred tax liabilities are presented below (in thousands). The valuation allowance relates to deferred tax assets for which it is more likely than not that the tax benefit will not be realized.
Fiscal Year Ended January 31,
20222021
Deferred tax assets:
Net operating losses$46,886 $30,743 
Bad debt reserve186 237 
Other reserves1,016 1,105 
Stock-based compensation8,402 106 
Property, equipment, and software272 185 
Accrued taxes113 37 
Accrued bonus1,552 902 
R&D credit3,541 1,927 
Deferred payroll taxes250 594 
Other410 432 
Deferred tax assets62,628 36,268 
Less: valuation allowance(52,209)(29,297)
Deferred tax asset, net of valuation allowance$10,419 $6,971 
Deferred tax liabilities:
Capitalized costs$(10,286)$(6,952)
Property, equipment and software(133)(99)
Deferred tax liabilities(10,419)(7,051)
Net deferred tax assets/(liabilities)$— $(80)
Schedule of Unrecognized Tax Benefits Roll Forward
A reconciliation of the beginning and ending amount of unrecognized tax benefits, including penalties but excluding interest, is as follows (in thousands):

Fiscal Year Ended January 31,
202220212020
Balance at February 1$902 $647 $— 
Additions for tax positions of prior years— 902 647 
Reductions for tax positions of prior years(255)(647)— 
Balance at January 31$647 $902 $647 
v3.22.1
Net Loss per Share Attributable to Braze, Inc. Common Shareholders (Tables)
12 Months Ended
Jan. 31, 2022
Earnings Per Share [Abstract]  
Schedule of Net Loss Per Share
The following table sets forth the computation of basic and diluted net loss per share attributable to Braze, Inc. common shareholders during the periods presented (in thousands, except per share amounts):
Fiscal Year Ended January 31,
202220212020
Numerator:
Net loss attributable to Braze, Inc.$(76,719)$(31,752)$(31,810)
Denominator:
Weighted-average shares of Braze, Inc. common stock outstanding35,078 18,205 16,446 
Less: weighted-average unvested shares of Braze, Inc. subject to repurchase(181)(233)(257)
Weighted-average shares used to calculate net loss per share attributable to Braze, Inc. common stockholders, basic and diluted34,897 17,972 16,189 
Net loss per share attributable to Braze, Inc. common stockholders, basic and diluted$(2.20)$(1.77)$(1.96)
Schedule of Potentially Diluted Securities
The following outstanding shares of potentially dilutive securities have been excluded from diluted net loss per share attributable to Braze, Inc. common shareholders for the periods presented, because their inclusion would be anti-dilutive (in thousands):
Fiscal Year Ended January 31,
202220212020
Convertible preferred stock on an as-converted basis— 62,831 62,831 
Options to purchase common stock11,036 11,186 10,456 
Restricted stock units1,355 — — 
Warrants to purchase common stock— 218 218 
Total12,391 74,235 73,505 
v3.22.1
Company Overview - Narrative (Details) - USD ($)
$ / shares in Units, $ in Thousands
12 Months Ended
Nov. 19, 2021
Nov. 18, 2021
Jan. 31, 2022
Jan. 31, 2021
Jan. 31, 2020
Securities Financing Transaction [Line Items]          
Proceeds from issuance of common stock upon initial public offering, net of underwriting discounts     $ 462,260 $ 0 $ 0
Class B common stock          
Securities Financing Transaction [Line Items]          
Conversion of stock (in shares)   62,830,697      
IPO          
Securities Financing Transaction [Line Items]          
Shares sold (in shares) 7,500,000        
Sale of stock, price per share (in dollars per share) $ 65.00        
Proceeds from issuance of common stock upon initial public offering, net of underwriting discounts $ 456,800        
Exercise by Underwriters' Option to Purchase          
Securities Financing Transaction [Line Items]          
Shares sold (in shares) 800,000        
Shares Sold From Existing Stockholders | Class A common stock          
Securities Financing Transaction [Line Items]          
Shares sold (in shares)   1,300,000      
v3.22.1
Summary of Significant Accounting Policies - Narrative (Details)
$ in Thousands
12 Months Ended
Jan. 31, 2022
USD ($)
segment
Jan. 31, 2021
USD ($)
Jan. 31, 2020
USD ($)
Feb. 01, 2022
USD ($)
Nov. 19, 2021
USD ($)
Feb. 01, 2019
USD ($)
Jan. 31, 2019
USD ($)
Disaggregation of Revenue [Line Items]              
Deferred offering costs         $ 5,300    
Number of operating segments (in segments) | segment 1            
Restricted cash $ 4,000 $ 4,500          
Unbilled receivables 2,200 3,600          
Stockholders' equity $ 501,583 (108,507) $ (86,876)       $ (78,886)
Amortization period, contract cost 4 years            
Asset impairment charges $ 0 0          
Advertising costs $ 12,200 $ 8,100 $ 8,900        
Software              
Disaggregation of Revenue [Line Items]              
Estimated useful life 3 years            
Options to purchase common stock              
Disaggregation of Revenue [Line Items]              
Expected term (in years) 10 years            
Minimum              
Disaggregation of Revenue [Line Items]              
Contract term 1 year            
Expected term (in years) 5 years 10 months 24 days 5 years 6 months 5 years 7 months 6 days        
Minimum | Renewal              
Disaggregation of Revenue [Line Items]              
Amortization period, contract cost 1 year            
Maximum              
Disaggregation of Revenue [Line Items]              
Contract term 5 years            
Expected term (in years) 6 years 8 months 12 days 6 years 1 month 6 days 6 years 1 month 6 days        
Maximum | Renewal              
Disaggregation of Revenue [Line Items]              
Amortization period, contract cost 3 years            
Accumulated Deficit              
Disaggregation of Revenue [Line Items]              
Stockholders' equity $ (214,961) $ (138,242) $ (106,490)       (84,683)
Cumulative Effect, Period of Adoption, Adjustment              
Disaggregation of Revenue [Line Items]              
Stockholders' equity             10,003
Cumulative Effect, Period of Adoption, Adjustment | Minimum | Subsequent event | Pro Forma              
Disaggregation of Revenue [Line Items]              
Operating lease, right of us asset       $ 55,000      
Operating lease liability       55,000      
Cumulative Effect, Period of Adoption, Adjustment | Maximum | Subsequent event | Pro Forma              
Disaggregation of Revenue [Line Items]              
Operating lease, right of us asset       65,000      
Operating lease liability       $ 65,000      
Cumulative Effect, Period of Adoption, Adjustment | Accumulated Deficit              
Disaggregation of Revenue [Line Items]              
Stockholders' equity           $ 10,000 $ 10,003
Credit Concentration Risk | Accounts Receivable | One customer              
Disaggregation of Revenue [Line Items]              
Concentration risk   11.00%          
v3.22.1
Summary of Significant Accounting Policies - Cash and Cash Equivalents (Details) - USD ($)
$ in Thousands
Jan. 31, 2022
Jan. 31, 2021
Jan. 31, 2020
Jan. 31, 2019
Accounting Policies [Abstract]        
Cash and cash equivalents $ 478,937 $ 28,509    
Restricted cash, current 0 472    
Restricted cash, noncurrent 4,036 4,037    
Total cash, cash equivalents and restricted cash $ 482,973 $ 33,018 $ 11,602 $ 104,929
v3.22.1
Summary Of Significant Accounting Policies - Estimated Useful Lives of Significant Property and Equipment Categories (Details)
12 Months Ended
Jan. 31, 2022
Computer equipment and software  
Property, Plant and Equipment [Line Items]  
Estimated useful life 3 years
Furniture and fixtures  
Property, Plant and Equipment [Line Items]  
Estimated useful life 7 years
v3.22.1
Revenue from Contracts with Customers - Disaggregation of Revenue by Type (Details) - USD ($)
$ in Thousands
12 Months Ended
Jan. 31, 2022
Jan. 31, 2021
Jan. 31, 2020
Disaggregation of Revenue [Line Items]      
Revenue $ 238,035 $ 150,191 $ 96,364
Subscription      
Disaggregation of Revenue [Line Items]      
Revenue 221,664 141,068 89,774
Professional Services and Other      
Disaggregation of Revenue [Line Items]      
Revenue $ 16,371 $ 9,123 $ 6,590
v3.22.1
Revenue from Contracts with Customers - Disaggregation of Revenue by Geography (Details) - USD ($)
$ in Thousands
12 Months Ended
Jan. 31, 2022
Jan. 31, 2021
Jan. 31, 2020
Disaggregation of Revenue [Line Items]      
Revenue $ 238,035 $ 150,191 $ 96,364
United States      
Disaggregation of Revenue [Line Items]      
Revenue 142,640 90,523 58,832
Foreign      
Disaggregation of Revenue [Line Items]      
Revenue $ 95,395 $ 59,668 $ 37,532
v3.22.1
Revenue from Contracts with Customers - Narrative (Details) - USD ($)
$ in Millions
12 Months Ended
Jan. 31, 2022
Jan. 31, 2021
Jan. 31, 2020
Revenue from Contract with Customer [Abstract]      
Contract asset $ 0.8 $ 0.4  
Revenue recognized from previously recorded contract liabilities $ 74.6 $ 51.2 $ 22.8
v3.22.1
Revenue from Contracts with Customers - Remaining Performance Obligations (Details) - USD ($)
$ in Millions
Jan. 31, 2022
Oct. 31, 2021
Jul. 31, 2021
Apr. 30, 2021
Jan. 31, 2021
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]          
Revenue, remaining performance obligation, amount $ 373.6 $ 304.0 $ 268.2 $ 249.6 $ 234.2
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-02-01          
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]          
Revenue, remaining performance obligation, amount         $ 150.0
Revenue, remaining performance obligation, period         1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-05-01          
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]          
Revenue, remaining performance obligation, amount       $ 163.7  
Revenue, remaining performance obligation, period       1 year  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-08-01          
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]          
Revenue, remaining performance obligation, amount     $ 180.5    
Revenue, remaining performance obligation, period     1 year    
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-11-01          
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]          
Revenue, remaining performance obligation, amount   $ 199.1      
Revenue, remaining performance obligation, period   1 year      
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-02-01          
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]          
Revenue, remaining performance obligation, amount $ 237.8       $ 84.2
Revenue, remaining performance obligation, period 1 year       4 years
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-05-01          
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]          
Revenue, remaining performance obligation, amount       $ 85.9  
Revenue, remaining performance obligation, period       4 years  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-08-01          
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]          
Revenue, remaining performance obligation, amount     $ 87.7    
Revenue, remaining performance obligation, period     4 years    
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-11-01          
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]          
Revenue, remaining performance obligation, amount   $ 104.9      
Revenue, remaining performance obligation, period   4 years      
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-02-01          
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]          
Revenue, remaining performance obligation, amount $ 135.8        
Revenue, remaining performance obligation, period 4 years        
v3.22.1
Variable Interest Entity and Redeemable Non-Controlling Interest - Narrative (Details) - USD ($)
$ in Millions
1 Months Ended 13 Months Ended
Sep. 14, 2020
Sep. 30, 2021
Sep. 30, 2021
Braze KK      
Noncontrolling Interest [Line Items]      
Consideration received $ 5.0 $ 5.0 $ 10.0
v3.22.1
Variable Interest Entity and Redeemable Non-Controlling Interest - Redeemable Noncontrolling Interest (Details) - USD ($)
$ in Thousands
12 Months Ended
Jan. 31, 2022
Jan. 31, 2021
Jan. 31, 2020
Noncontrolling Interest [Roll Forward]      
Beginning balance $ 2,233 $ 0 $ 0
Investment from redeemable non-controlling interest 2,450 2,450  
Net loss attributable to redeemable non-controlling interest (1,448) (217) 0
Ending balance $ 3,235 $ 2,233 $ 0
v3.22.1
Variable Interest Entity and Redeemable Non-Controlling Interest - Variable Interest Entity Assets and Liabilities (Details) - USD ($)
$ in Thousands
Jan. 31, 2022
Jan. 31, 2021
Assets:    
Cash and cash equivalents $ 478,937 $ 28,509
Accounts receivable, net of allowance for doubtful accounts 64,504 34,771
Prepaid expenses and other current assets 29,588 12,202
Total current assets 608,185 133,958
Property and equipment, net 7,393 5,486
Deferred contract costs 41,689 27,433
Other assets 4,959 480
TOTAL ASSETS 666,262 171,394
Liabilities:    
Accounts payable 2,083 439
Accrued expenses and other current liabilities 31,623 25,904
Deferred revenue 126,260 74,789
TOTAL LIABILITIES 161,444 103,439
Variable Interest Entity, Primary Beneficiary | Braze KK    
Assets:    
Cash and cash equivalents 6,705 4,582
Accounts receivable, net of allowance for doubtful accounts 143 0
Prepaid expenses and other current assets 196 58
Total current assets 7,044 4,640
Property and equipment, net 38 12
Deferred contract costs 609 0
Other assets 32 23
TOTAL ASSETS 7,723 4,675
Liabilities:    
Accounts payable 106 19
Accrued expenses and other current liabilities 829 35
Deferred revenue 725 0
TOTAL LIABILITIES $ 1,660 $ 54
v3.22.1
Prepaid Expenses and Other Current Assets - Summary (Details) - USD ($)
$ in Thousands
Jan. 31, 2022
Jan. 31, 2021
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]    
Prepaid software subscriptions $ 19,396 $ 8,426
Prepaid advertising 1,132 1,008
Prepaid insurance 4,372 187
Other 4,688 2,581
Total prepaid expenses and other current assets $ 29,588 $ 12,202
v3.22.1
Fair Value Measurements - Fair Value of Financial Instruments Measured at Fair Value on a Recurring Basis (Details) - USD ($)
$ in Thousands
Jan. 31, 2022
Jan. 31, 2021
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash equivalents $ 439,627 $ 12,584
Marketable securities 35,156 58,004
Total 474,783 70,588
U.S. government bonds    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities 4,006 10,533
Foreign bonds    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities 3,203  
Commercial paper    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities 18,993 17,582
Corporate debt securities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities 3,020 20,075
Asset-backed securities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities 5,934 9,814
Money market funds    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash equivalents 439,627 12,584
Level 1    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash equivalents 439,627 12,584
Marketable securities 4,006 10,533
Total 443,633 23,117
Level 1 | U.S. government bonds    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities 4,006 10,533
Level 1 | Foreign bonds    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities 0  
Level 1 | Commercial paper    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities 0 0
Level 1 | Corporate debt securities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities 0 0
Level 1 | Asset-backed securities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities 0 0
Level 1 | Money market funds    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash equivalents 439,627 12,584
Level 2    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash equivalents 0 0
Marketable securities 31,150 47,471
Total 31,150 47,471
Level 2 | U.S. government bonds    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities 0 0
Level 2 | Foreign bonds    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities 3,203  
Level 2 | Commercial paper    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities 18,993 17,582
Level 2 | Corporate debt securities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities 3,020 20,075
Level 2 | Asset-backed securities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities 5,934 9,814
Level 2 | Money market funds    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash equivalents 0 0
Level 3    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash equivalents 0 0
Marketable securities 0 0
Total 0 0
Level 3 | U.S. government bonds    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities 0 0
Level 3 | Foreign bonds    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities 0  
Level 3 | Commercial paper    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities 0 0
Level 3 | Corporate debt securities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities 0 0
Level 3 | Asset-backed securities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities 0 0
Level 3 | Money market funds    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash equivalents $ 0 $ 0
v3.22.1
Marketable Securities - Components of Marketable Securities (Details) - USD ($)
$ in Thousands
Jan. 31, 2022
Jan. 31, 2021
Debt Securities, Available-for-sale [Line Items]    
Total $ 35,183 $ 58,054
Gross Unrealized Gains 0 28
Gross Unrealized Losses (27) (78)
Total Estimated Fair Value 35,156 58,004
U.S. government bonds    
Debt Securities, Available-for-sale [Line Items]    
Total 4,021 10,546
Gross Unrealized Gains 0 1
Gross Unrealized Losses (15) (14)
Total Estimated Fair Value 4,006 10,533
Foreign bonds    
Debt Securities, Available-for-sale [Line Items]    
Total 3,203  
Gross Unrealized Gains 0  
Gross Unrealized Losses 0  
Total Estimated Fair Value 3,203  
Commercial paper    
Debt Securities, Available-for-sale [Line Items]    
Total 18,993 17,582
Gross Unrealized Gains 0 0
Gross Unrealized Losses 0 0
Total Estimated Fair Value 18,993 17,582
Corporate debt securities    
Debt Securities, Available-for-sale [Line Items]    
Total 3,025 20,089
Gross Unrealized Gains 0 25
Gross Unrealized Losses (5) (39)
Total Estimated Fair Value 3,020 20,075
Asset-backed securities    
Debt Securities, Available-for-sale [Line Items]    
Total 5,941 9,837
Gross Unrealized Gains 0 2
Gross Unrealized Losses (7) (25)
Total Estimated Fair Value $ 5,934 $ 9,814
v3.22.1
Marketable Securities - Narrative (Details) - security
Jan. 31, 2022
Jan. 31, 2021
Investments, Debt and Equity Securities [Abstract]    
Number of available for sale debt securities in unrealized loss position for greater than 12 months (in securities) 0 0
Number of available for sale debt securities in unrealized loss position (in securities) 10  
v3.22.1
Marketable Securities - Contractual Maturity (Details) - USD ($)
$ in Thousands
Jan. 31, 2022
Jan. 31, 2021
Amortized Cost    
Due within 1 year $ 33,671 $ 55,811
Due in 1 year through 5 years 1,512 2,243
Total 35,183 58,054
Estimated Fair Value    
Due within 1 year 33,646 55,761
Due in 1 year through 5 years 1,510 2,243
Total $ 35,156 $ 58,004
v3.22.1
Marketable Securities - Investment Income (Details) - USD ($)
$ in Thousands
12 Months Ended
Jan. 31, 2022
Jan. 31, 2021
Jan. 31, 2020
Investments, Debt and Equity Securities [Abstract]      
Interest income $ 506 $ 1,185 $ 1,671
Amortization of discount/premium, net (369) (345) 456
Investment income $ 137 $ 840 $ 2,127
v3.22.1
Property and Equipment, Net (Details) - USD ($)
$ in Thousands
12 Months Ended
Jan. 31, 2022
Jan. 31, 2021
Jan. 31, 2020
Property, Plant and Equipment [Line Items]      
Property, plant and equipment, gross $ 12,622 $ 8,126  
Less: accumulated depreciation and amortization (5,229) (2,640)  
Total property and equipment, net 7,393 5,486  
Depreciation and amortization 2,773 1,589 $ 645
Capitalized internal-use software 2,400 2,100 900
Cost of revenue      
Property, Plant and Equipment [Line Items]      
Amortization for capital internal-use software 1,200 500 $ 100
Capitalized internal-use software      
Property, Plant and Equipment [Line Items]      
Property, plant and equipment, gross 5,353 2,958  
Computer equipment and software      
Property, Plant and Equipment [Line Items]      
Property, plant and equipment, gross 3,833 2,077  
Leasehold improvements      
Property, Plant and Equipment [Line Items]      
Property, plant and equipment, gross 2,470 1,977  
Furniture and fixtures      
Property, Plant and Equipment [Line Items]      
Property, plant and equipment, gross $ 966 $ 1,114  
v3.22.1
Accrued Expenses and Other Current Liabilities (Details) - USD ($)
$ in Thousands
Jan. 31, 2022
Jan. 31, 2021
Payables and Accruals [Abstract]    
Accrued compensation costs $ 14,075 $ 8,117
Accrued software subscriptions 3,217 5,672
Accrued commissions 5,961 4,761
Accrued professional service fees 2,218 2,864
Other 6,152 4,490
Total accrued expenses and other current liabilities $ 31,623 $ 25,904
v3.22.1
Employee Benefit Plans (Details) - USD ($)
$ in Millions
12 Months Ended
Jan. 31, 2022
Jan. 31, 2021
Jan. 31, 2020
Retirement Benefits [Abstract]      
Contributions $ 2.4 $ 1.5 $ 1.0
v3.22.1
Stockholders' Equity (Deficit) - Narrative (Details)
$ in Millions
12 Months Ended
Nov. 19, 2021
shares
Jan. 31, 2022
USD ($)
vote
class
shares
Class of Warrant or Right [Line Items]    
Classes of common stock (in classes) | class   2
Threshold for conversion   10.00%
Warrants exercised (in shares)   216,354
Class A common stock    
Class of Warrant or Right [Line Items]    
Votes per share (in votes) | vote   1
Number of convertible shares per ten votes (in shares)   1
Class B common stock    
Class of Warrant or Right [Line Items]    
Votes per share (in votes) | vote   10
Class B common stock | Common Stock    
Class of Warrant or Right [Line Items]    
Conversion of convertible securities (in shares) 62,800,000  
Series E Convertible Preferred Stock    
Class of Warrant or Right [Line Items]    
Offering proceeds threshold | $   $ 50.0
v3.22.1
Employee Stock Plans - Narrative (Details) - USD ($)
$ in Thousands
1 Months Ended 3 Months Ended 12 Months Ended
Nov. 30, 2021
Mar. 31, 2021
Jan. 31, 2022
Jan. 31, 2022
Jan. 31, 2021
Jan. 31, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Vesting of early exercised options       $ 524 $ 263 $ 260
Exercises (in shares)       88,099 287,963 129,225
Nonvested options exercised       $ 200 $ 400 $ 200
Liability for non vested options     $ 200 200 500  
Stock-based compensation       $ 47,180 7,540 12,408
Stock-based compensation expense           $ 8,700
Common Stock | 2021 Secondary Transaction, Shares Sold By Employees            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Shares sold (in shares)   292,486        
Stock-based compensation expense   $ 3,000        
Common Stock | 2020 Secondary Transaction, Shares Sold By Employees            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Shares sold (in shares)           893,500
RSUs            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Award cliff vesting period       1 year    
Stock-based compensation     $ 16,100      
Maximum | RSUs            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Requisite service period       4 years    
Minimum | RSUs            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Requisite service period       3 years    
2021 Equity Incentive Plan            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Number of shares reserved for future issuance (in shares) 25,660,249          
Automatic increase period 10 years          
Increase in shares authorized, percentage of total shares 5.00%          
Vesting of early exercised options       $ 500 $ 300 $ 300
Employee Stock Purchase Plan            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Automatic increase period 10 years          
Increase in shares authorized, percentage of total shares 1.00%          
Automatic increase in ESPP (in shares) 2,737,000          
Employee Stock Purchase Plan | Employee stock            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Number of shares reserved for issuance (in shares) 1,825,000          
v3.22.1
Employee Stock Plans - Schedule of Stock Option Activity (Details) - USD ($)
12 Months Ended
Jan. 31, 2022
Jan. 31, 2021
Jan. 31, 2020
Number of Options      
Beginning balance in shares) 11,186,400 10,456,625  
Granted (in shares) 3,120,516 3,464,655  
Exercised (in shares) (2,855,522) (2,334,263)  
Forfeited (in shares) (415,690) (377,318)  
Expired (in shares)   (23,299)  
Ending balance (in shares) 11,035,704 11,186,400 10,456,625
Vested and expected to vest (in shares) 10,230,240    
Exercisable, number (in shares) 4,741,556    
Weighted Average Exercise Price      
Beginning balance (in dollars per share) $ 3.58 $ 2.39  
Granted (in dollars per share) 35.02 5.65  
Exercised (in dollars per share) 2.94 1.20  
Forfeited (in dollars per share) 5.48 4.28  
Expired (in dollars per share)   2.95  
Ending balance (in dollars per share) 12.56 $ 3.58 $ 2.39
Vested and expected to vest (in dollars per share) 11.60    
Exercisable (in dollars per share) $ 3.25    
Options, outstanding, weighted average remaining contractual life 7 years 8 months 8 days 7 years 11 months 26 days 8 years 2 months 23 days
Options, vested and expected to vest, weighted average remaining contractual life 7 years 7 months 9 days    
Options, exercisable, weighted average remaining contractual life 6 years 7 months 20 days    
Options, outstanding, intrinsic value $ 413,384,000 $ 351,321,000 $ 30,253,000
Options, vested and expected to vest, intrinsic value 393,072,000    
Options, exercisable, intrinsic value $ 221,763,000    
Weighted-average grant date fair value of options granted (in dollars per share) $ 24.53 $ 7.41 $ 2.24
Options, exercised in period, intrinsic value $ 121,900 $ 78,900 $ 10,300
v3.22.1
Employee Stock Plans - Assumptions in Calculating Stock Option Awards (Details) - $ / shares
12 Months Ended
Jan. 31, 2022
Jan. 31, 2021
Jan. 31, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Expected volatility, minimum 61.80% 55.70% 55.10%
Expected volatility, maximum 66.10% 62.50% 57.30%
Risk-free interest rate, minimum 1.00% 0.30% 1.40%
Risk-free interest rate, maximum 120.00% 150.00% 2.60%
Fair value of common stock (in dollars per share) $ 65.00    
Options to purchase common stock      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Dividend yield 0.00% 0.00% 0.00%
Expected term (in years) 10 years    
Minimum      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Expected term (in years) 5 years 10 months 24 days 5 years 6 months 5 years 7 months 6 days
Fair value of common stock (in dollars per share)   $ 5.28 $ 3.46
Maximum      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Expected term (in years) 6 years 8 months 12 days 6 years 1 month 6 days 6 years 1 month 6 days
Fair value of common stock (in dollars per share)   $ 28.35 $ 5.14
v3.22.1
Employee Stock Plans - Summary of Activity for Early Exercised Options (Details) - shares
12 Months Ended
Jan. 31, 2022
Jan. 31, 2021
Jan. 31, 2020
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Number of Shares [Roll Forward]      
Beginning balance (in shares) 268,664 195,989  
Exercises (in shares) 88,099 287,963 129,225
Vested (in shares) (296,400) (210,764)  
Repurchased (in shares) (3,251) (4,524)  
Ending balance (in shares) 57,112 268,664 195,989
v3.22.1
Employee Stock Plans - Schedule of Summarized Unvested RSU Award Activity (Details) - RSUs
12 Months Ended
Jan. 31, 2022
$ / shares
shares
Stock units  
Beginning balance, outstanding (in shares) | shares 0
Granted (in shares) | shares 1,512,709
Vested (in shares) | shares (70,121)
Forfeited (in shares) | shares (87,523)
Ending balance, outstanding (in shares) | shares 1,355,065
Weighted-average grant date fair value  
Beginning balance (in dollars per share) | $ / shares
Granted (in dollars per share) | $ / shares 52.20
Vested (in dollars per share) | $ / shares 46.71
Forfeited (in shares) | $ / shares 45.08
Ending balance (in dollars per share) | $ / shares
v3.22.1
Employee Stock Plans - Stock-Based Compensation Expense (Details) - USD ($)
$ in Thousands
12 Months Ended
Jan. 31, 2022
Jan. 31, 2021
Jan. 31, 2020
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]      
Stock-based compensation $ 47,180 $ 7,540 $ 12,408
Capitalized stock-based compensation expense 387 126 38
Total stock-based compensation expense 47,567 7,666 12,446
Cost of revenue      
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]      
Stock-based compensation 2,185 650 276
Sales and marketing      
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]      
Stock-based compensation 16,281 2,892 6,365
Research and development      
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]      
Stock-based compensation 15,613 2,102 3,705
General and administrative      
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]      
Stock-based compensation $ 13,101 $ 1,896 $ 2,062
v3.22.1
Employee Stock Plans - Compensation Cost by Plan (Details)
$ in Thousands
12 Months Ended
Jan. 31, 2022
USD ($)
Stock Options  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Unrecognized compensation costs (in thousands) $ 65,615
Weighted-average remaining recognition period (Years) 3 years 4 months 17 days
RSUs  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Unrecognized compensation costs (in thousands) $ 40,400
Weighted-average remaining recognition period (Years) 1 year 9 months 10 days
v3.22.1
Commitments and Contingencies - Narrative (Details) - USD ($)
$ in Millions
12 Months Ended
Jan. 31, 2022
Jan. 31, 2021
Jan. 31, 2020
Commitments and Contingencies Disclosure [Abstract]      
Rental expense for operating leases $ 10.2 $ 8.8 $ 5.9
Sublease rentals 0.4 1.1 $ 0.9
Taxes payable $ 1.3 $ 0.6  
v3.22.1
Commitments and Contingencies - Future Lease Liability Obligations (Details)
$ in Thousands
Jan. 31, 2022
USD ($)
Commitments and Contingencies Disclosure [Abstract]  
2023 $ 9,900
2024 11,557
2025 11,112
2026 8,804
Thereafter 34,697
Total future lease payments $ 76,070
v3.22.1
Income Taxes - Components of Income Tax Expense (Benefit) (Details) - USD ($)
$ in Thousands
12 Months Ended
Jan. 31, 2022
Jan. 31, 2021
Jan. 31, 2020
Current:      
Federal $ 0 $ 0 $ 0
State and local 15 26 26
Foreign (100) 451 369
Total current (85) 477 395
Deferred:      
Federal 0 0 0
State and local 0 0 0
Foreign (80) 60 57
Deferred income taxes (80) 60 57
(Benefit from) provision for income taxes $ (165) $ 537 $ 452
v3.22.1
Income Taxes - Income before Income Tax, Domestic and Foreign (Details) - USD ($)
$ in Thousands
12 Months Ended
Jan. 31, 2022
Jan. 31, 2021
Jan. 31, 2020
Income Tax Disclosure [Abstract]      
United States $ (76,030) $ (33,352) $ (32,880)
Foreign (2,302) 1,920 1,522
Loss before provision for income taxes $ (78,332) $ (31,432) $ (31,358)
v3.22.1
Income Taxes - Reconciliation of the Statutory Federal Income Tax Rate to the Effective Tax Rate (Details)
12 Months Ended
Jan. 31, 2022
Jan. 31, 2021
Jan. 31, 2020
Income Tax Disclosure [Abstract]      
Statutory income tax expense 21.00% 21.00% 21.00%
Foreign tax rate differential 0.80% 0.20% 0.30%
State taxes 2.80% 5.30% 2.40%
Permanent items (3.00%) (2.00%) (2.30%)
Change in valuation allowance (29.30%) (27.00%) (6.30%)
Section 382 NOL 0.00% 0.00% (9.00%)
Stock-based compensation 5.80% (1.40%) (7.50%)
Tax credits 2.10% 2.20% 0.00%
Effective tax rate 0.20% (1.70%) (1.40%)
v3.22.1
Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($)
$ in Thousands
Jan. 31, 2022
Jan. 31, 2021
Deferred tax assets:    
Net operating losses $ 46,886 $ 30,743
Bad debt reserve 186 237
Other reserves 1,016 1,105
Stock-based compensation 8,402 106
Property, equipment, and software 272 185
Accrued taxes 113 37
Accrued bonus 1,552 902
R&D credit 3,541 1,927
Deferred payroll taxes 250 594
Other 410 432
Deferred tax assets 62,628 36,268
Less: valuation allowance (52,209) (29,297)
Deferred tax asset, net of valuation allowance 10,419 6,971
Deferred tax liabilities:    
Capitalized costs (10,286) (6,952)
Property, equipment and software (133) (99)
Deferred tax liabilities (10,419) (7,051)
Net deferred tax assets $ 0  
Net deferred tax liability   $ (80)
v3.22.1
Income Taxes - Narrative (Details) - USD ($)
12 Months Ended
Jan. 31, 2022
Jan. 31, 2021
Jan. 31, 2020
Jan. 31, 2019
Operating Loss Carryforwards [Line Items]        
Decrease in operating loss carryforward     $ (13,800,000)  
Decrease in tax credit carryforward     (700,000)  
Increase in valuation allowance $ 22,900,000 $ 8,500,000    
Penalties and interest accrued 0 0 0  
Unrecognized tax benefits 647,000 902,000 $ 647,000 $ 0
Research tax credit carryforward        
Operating Loss Carryforwards [Line Items]        
Tax credit carryforward 3,500,000      
Federal        
Operating Loss Carryforwards [Line Items]        
Operating loss carryforwards 179,400,000 118,300,000    
Operating loss carryforward not subject to expiration 140,000,000      
Operating loss carryforward subject to expiration 39,400,000      
State and Local Jurisdiction        
Operating Loss Carryforwards [Line Items]        
Operating loss carryforwards $ 119,100,000 $ 79,700,000    
v3.22.1
Income Taxes - Reconciliation of Unrecognized Tax Benefits (Details) - USD ($)
$ in Thousands
12 Months Ended
Jan. 31, 2022
Jan. 31, 2021
Jan. 31, 2020
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]      
Unrecognized tax benefits, beginning of year $ 902 $ 647 $ 0
Additions for tax positions of prior years 0 902 647
Reductions for tax positions of prior years (255) (647) 0
Unrecognized tax benefits, end of year $ 647 $ 902 $ 647
v3.22.1
Net Loss per Share Attributable to Braze, Inc. Common Shareholders - Schedule of Net Loss Per Share (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands
12 Months Ended
Jan. 31, 2022
Jan. 31, 2021
Jan. 31, 2020
Numerator:      
Net loss attributable to Braze, Inc. $ (76,719) $ (31,752) $ (31,810)
Denominator:      
Weighted-average shares of Braze, Inc. common stock outstanding, basic (in shares) 35,078 18,205 16,446
Less: weighted-average unvested shares of Braze, Inc. subject to repurchase (in shares) (181) (233) (257)
Weighted-average shares used to compute net loss per share attributable to Braze, Inc. common stockholders, basic (in shares) 34,897 17,972 16,189
Weighted-average shares used to compute net loss per share attributable to Braze, Inc. common stockholders, diluted (in shares) 34,897 17,972 16,189
Net loss per share:      
Net loss per share attributable to Braze, Inc. common stockholders, basic (in dollars per share) $ (2.20) $ (1.77) $ (1.96)
Net loss per share attributable to Braze, Inc. common stockholders, diluted (in dollars per share) $ (2.20) $ (1.77) $ (1.96)
v3.22.1
Net Loss per Share Attributable to Braze, Inc. Common Shareholders - Schedule of Potentially Dilutive Securities (Details) - shares
shares in Thousands
12 Months Ended
Jan. 31, 2022
Jan. 31, 2021
Jan. 31, 2020
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]      
Antidilutive securities excluded from computation of loss per share (in shares) 12,391 74,235 73,505
Convertible preferred stock on an as-converted basis      
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]      
Antidilutive securities excluded from computation of loss per share (in shares) 0 62,831 62,831
Options to purchase common stock      
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]      
Antidilutive securities excluded from computation of loss per share (in shares) 11,036 11,186 10,456
Restricted stock units      
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]      
Antidilutive securities excluded from computation of loss per share (in shares) 1,355 0 0
Warrants to purchase common stock      
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]      
Antidilutive securities excluded from computation of loss per share (in shares) 0 218 218
v3.22.1
Related Party Transactions - Narrative (Details) - USD ($)
$ in Millions
12 Months Ended
Jan. 31, 2022
Jan. 31, 2021
Related Party Transactions [Abstract]    
Purchases from related party $ 1.2 $ 0.7
v3.22.1
Subsequent Events - Narrative (Details) - RSUs - USD ($)
$ in Thousands
1 Months Ended 12 Months Ended
Mar. 31, 2022
Jan. 31, 2022
Subsequent Event [Line Items]    
Granted (in shares)   1,512,709
Unrecognized compensation costs (in thousands)   $ 40,400
Subsequent event    
Subsequent Event [Line Items]    
Unrecognized compensation costs (in thousands) $ 60,400  
Requisite service period 3 years 6 months  
Subsequent event | Class A common stock    
Subsequent Event [Line Items]    
Granted (in shares) 1,600,000  
v3.22.1
Label Element Value
Accounting Standards Update [Extensible Enumeration] us-gaap_AccountingStandardsUpdateExtensibleList Accounting Standards Update 2014-09 [Member]