0001676238 1-31 2027 Q1 False 1 4 1 4 1 4 1 4 1 4 P3Y P1Y 261 472 xbrli:shares iso4217:USD iso4217:USD xbrli:shares xbrli:pure brze:class brze:vote brze:segment 0001676238 2026-02-01 2026-04-30 0001676238 2026-05-20 0001676238 2026-04-30 0001676238 2026-01-31 0001676238 us-gaap:CommonClassAMember 2026-01-31 0001676238 us-gaap:CommonClassAMember 2026-04-30 0001676238 2025-02-01 2025-04-30 0001676238 us-gaap:CommonStockMember brze:CommonClassAAndBMember 2026-01-31 0001676238 us-gaap:AdditionalPaidInCapitalMember 2026-01-31 0001676238 us-gaap:RetainedEarningsMember 2026-01-31 0001676238 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2026-01-31 0001676238 us-gaap:CommonStockMember brze:CommonClassAAndBMember 2026-02-01 2026-04-30 0001676238 us-gaap:AdditionalPaidInCapitalMember 2026-02-01 2026-04-30 0001676238 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2026-02-01 2026-04-30 0001676238 us-gaap:RetainedEarningsMember 2026-02-01 2026-04-30 0001676238 us-gaap:CommonStockMember brze:CommonClassAAndBMember 2026-04-30 0001676238 us-gaap:AdditionalPaidInCapitalMember 2026-04-30 0001676238 us-gaap:RetainedEarningsMember 2026-04-30 0001676238 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2026-04-30 0001676238 2025-01-31 0001676238 us-gaap:CommonStockMember brze:CommonClassAAndBMember 2025-01-31 0001676238 us-gaap:AdditionalPaidInCapitalMember 2025-01-31 0001676238 us-gaap:RetainedEarningsMember 2025-01-31 0001676238 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2025-01-31 0001676238 us-gaap:CommonStockMember brze:CommonClassAAndBMember 2025-02-01 2025-04-30 0001676238 us-gaap:AdditionalPaidInCapitalMember 2025-02-01 2025-04-30 0001676238 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2025-02-01 2025-04-30 0001676238 us-gaap:RetainedEarningsMember 2025-02-01 2025-04-30 0001676238 2025-04-30 0001676238 us-gaap:CommonStockMember brze:CommonClassAAndBMember 2025-04-30 0001676238 us-gaap:AdditionalPaidInCapitalMember 2025-04-30 0001676238 us-gaap:RetainedEarningsMember 2025-04-30 0001676238 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2025-04-30 0001676238 us-gaap:CustomerConcentrationRiskMember brze:OneCustomerMember us-gaap:AccountsReceivableMember 2026-02-01 2026-04-30 0001676238 brze:SubscriptionRevenueMember 2026-02-01 2026-04-30 0001676238 brze:SubscriptionRevenueMember 2025-02-01 2025-04-30 0001676238 brze:ProfessionalServicesRevenueMember 2026-02-01 2026-04-30 0001676238 brze:ProfessionalServicesRevenueMember 2025-02-01 2025-04-30 0001676238 country:US 2026-02-01 2026-04-30 0001676238 country:US 2025-02-01 2025-04-30 0001676238 us-gaap:NonUsMember 2026-02-01 2026-04-30 0001676238 us-gaap:NonUsMember 2025-02-01 2025-04-30 0001676238 2025-05-01 2025-04-30 0001676238 2026-05-01 2025-04-30 0001676238 2025-07-31 0001676238 2025-08-01 2025-07-31 0001676238 2026-08-01 2025-07-31 0001676238 2025-10-31 0001676238 2025-11-01 2025-10-31 0001676238 2026-11-01 2025-10-31 0001676238 2026-02-01 2026-01-31 0001676238 2027-02-01 2026-01-31 0001676238 2026-05-01 2026-04-30 0001676238 2027-05-01 2026-04-30 0001676238 2025-05-01 2026-04-30 0001676238 brze:BrazeKKMember 2020-09-01 2021-09-30 0001676238 brze:BrazeKKMember 2021-09-01 2021-09-30 0001676238 brze:BrazeKKMember 2020-09-01 2020-09-30 0001676238 us-gaap:MoneyMarketFundsMember us-gaap:FairValueInputsLevel1Member 2026-04-30 0001676238 us-gaap:MoneyMarketFundsMember us-gaap:FairValueInputsLevel2Member 2026-04-30 0001676238 us-gaap:MoneyMarketFundsMember us-gaap:FairValueInputsLevel3Member 2026-04-30 0001676238 us-gaap:MoneyMarketFundsMember 2026-04-30 0001676238 us-gaap:USGovernmentDebtSecuritiesMember us-gaap:FairValueInputsLevel1Member 2026-04-30 0001676238 us-gaap:USGovernmentDebtSecuritiesMember us-gaap:FairValueInputsLevel2Member 2026-04-30 0001676238 us-gaap:USGovernmentDebtSecuritiesMember us-gaap:FairValueInputsLevel3Member 2026-04-30 0001676238 us-gaap:USGovernmentDebtSecuritiesMember 2026-04-30 0001676238 us-gaap:FairValueInputsLevel1Member 2026-04-30 0001676238 us-gaap:FairValueInputsLevel2Member 2026-04-30 0001676238 us-gaap:FairValueInputsLevel3Member 2026-04-30 0001676238 us-gaap:USGovernmentDebtSecuritiesMember us-gaap:FairValueInputsLevel1Member 2026-04-30 0001676238 us-gaap:USGovernmentDebtSecuritiesMember us-gaap:FairValueInputsLevel2Member 2026-04-30 0001676238 us-gaap:USGovernmentDebtSecuritiesMember us-gaap:FairValueInputsLevel3Member 2026-04-30 0001676238 us-gaap:USGovernmentDebtSecuritiesMember 2026-04-30 0001676238 us-gaap:CorporateDebtSecuritiesMember us-gaap:FairValueInputsLevel1Member 2026-04-30 0001676238 us-gaap:CorporateDebtSecuritiesMember us-gaap:FairValueInputsLevel2Member 2026-04-30 0001676238 us-gaap:CorporateDebtSecuritiesMember us-gaap:FairValueInputsLevel3Member 2026-04-30 0001676238 us-gaap:CorporateDebtSecuritiesMember 2026-04-30 0001676238 us-gaap:DesignatedAsHedgingInstrumentMember us-gaap:CashFlowHedgingMember us-gaap:FairValueInputsLevel1Member 2026-04-30 0001676238 us-gaap:DesignatedAsHedgingInstrumentMember us-gaap:CashFlowHedgingMember us-gaap:FairValueInputsLevel2Member 2026-04-30 0001676238 us-gaap:DesignatedAsHedgingInstrumentMember us-gaap:CashFlowHedgingMember us-gaap:FairValueInputsLevel3Member 2026-04-30 0001676238 us-gaap:DesignatedAsHedgingInstrumentMember us-gaap:CashFlowHedgingMember 2026-04-30 0001676238 us-gaap:MoneyMarketFundsMember us-gaap:FairValueInputsLevel1Member 2026-01-31 0001676238 us-gaap:MoneyMarketFundsMember us-gaap:FairValueInputsLevel2Member 2026-01-31 0001676238 us-gaap:MoneyMarketFundsMember us-gaap:FairValueInputsLevel3Member 2026-01-31 0001676238 us-gaap:MoneyMarketFundsMember 2026-01-31 0001676238 us-gaap:USGovernmentDebtSecuritiesMember us-gaap:FairValueInputsLevel1Member 2026-01-31 0001676238 us-gaap:USGovernmentDebtSecuritiesMember us-gaap:FairValueInputsLevel2Member 2026-01-31 0001676238 us-gaap:USGovernmentDebtSecuritiesMember us-gaap:FairValueInputsLevel3Member 2026-01-31 0001676238 us-gaap:USGovernmentDebtSecuritiesMember 2026-01-31 0001676238 us-gaap:FairValueInputsLevel1Member 2026-01-31 0001676238 us-gaap:FairValueInputsLevel2Member 2026-01-31 0001676238 us-gaap:FairValueInputsLevel3Member 2026-01-31 0001676238 us-gaap:USGovernmentDebtSecuritiesMember us-gaap:FairValueInputsLevel1Member 2026-01-31 0001676238 us-gaap:USGovernmentDebtSecuritiesMember us-gaap:FairValueInputsLevel2Member 2026-01-31 0001676238 us-gaap:USGovernmentDebtSecuritiesMember us-gaap:FairValueInputsLevel3Member 2026-01-31 0001676238 us-gaap:USGovernmentDebtSecuritiesMember 2026-01-31 0001676238 us-gaap:CorporateDebtSecuritiesMember us-gaap:FairValueInputsLevel1Member 2026-01-31 0001676238 us-gaap:CorporateDebtSecuritiesMember us-gaap:FairValueInputsLevel2Member 2026-01-31 0001676238 us-gaap:CorporateDebtSecuritiesMember us-gaap:FairValueInputsLevel3Member 2026-01-31 0001676238 us-gaap:CorporateDebtSecuritiesMember 2026-01-31 0001676238 us-gaap:DesignatedAsHedgingInstrumentMember us-gaap:CashFlowHedgingMember us-gaap:FairValueInputsLevel1Member 2026-01-31 0001676238 us-gaap:DesignatedAsHedgingInstrumentMember us-gaap:CashFlowHedgingMember us-gaap:FairValueInputsLevel2Member 2026-01-31 0001676238 us-gaap:DesignatedAsHedgingInstrumentMember us-gaap:CashFlowHedgingMember us-gaap:FairValueInputsLevel3Member 2026-01-31 0001676238 us-gaap:DesignatedAsHedgingInstrumentMember us-gaap:CashFlowHedgingMember 2026-01-31 0001676238 us-gaap:ForeignGovernmentDebtSecuritiesMember 2026-01-31 0001676238 us-gaap:SoftwareDevelopmentMember 2026-04-30 0001676238 us-gaap:SoftwareDevelopmentMember 2026-01-31 0001676238 brze:ComputerEquipmentAndSoftwareMember 2026-04-30 0001676238 brze:ComputerEquipmentAndSoftwareMember 2026-01-31 0001676238 us-gaap:LeaseholdImprovementsMember 2026-04-30 0001676238 us-gaap:LeaseholdImprovementsMember 2026-01-31 0001676238 us-gaap:FurnitureAndFixturesMember 2026-04-30 0001676238 us-gaap:FurnitureAndFixturesMember 2026-01-31 0001676238 us-gaap:CostOfRevenue 2026-02-01 2026-04-30 0001676238 us-gaap:CostOfRevenue 2025-02-01 2025-04-30 0001676238 us-gaap:CommonClassBMember 2026-01-30 2026-01-30 0001676238 2026-01-30 0001676238 us-gaap:CommonClassBMember 2026-01-30 0001676238 2026-03-31 0001676238 2026-03-01 2026-03-31 0001676238 us-gaap:CommonStockMember us-gaap:CommonClassAMember 2026-02-01 2026-04-30 0001676238 us-gaap:CommonStockMember us-gaap:CommonClassAMember 2025-02-01 2025-04-30 0001676238 brze:A2021EquityIncentivePlanMember 2021-11-30 0001676238 brze:A2021EquityIncentivePlanMember 2021-11-01 2021-11-30 0001676238 brze:A2021EquityIncentivePlanMember 2024-02-01 2024-02-01 0001676238 us-gaap:RestrictedStockUnitsRSUMember 2026-01-31 0001676238 us-gaap:RestrictedStockUnitsRSUMember 2026-02-01 2026-04-30 0001676238 us-gaap:RestrictedStockUnitsRSUMember 2026-04-30 0001676238 us-gaap:RestrictedStockUnitsRSUMember srt:MinimumMember 2026-02-01 2026-04-30 0001676238 us-gaap:RestrictedStockUnitsRSUMember srt:MaximumMember 2026-02-01 2026-04-30 0001676238 us-gaap:PerformanceSharesMember 2026-02-01 2026-04-30 0001676238 us-gaap:SubsequentEventMember us-gaap:RestrictedStockUnitsRSUMember srt:ScenarioForecastMember us-gaap:CommonClassAMember 2026-06-01 2026-06-30 0001676238 us-gaap:PerformanceSharesMember srt:MinimumMember 2026-02-01 2026-04-30 0001676238 us-gaap:PerformanceSharesMember srt:MaximumMember 2026-02-01 2026-04-30 0001676238 us-gaap:SellingAndMarketingExpense 2026-02-01 2026-04-30 0001676238 us-gaap:SellingAndMarketingExpense 2025-02-01 2025-04-30 0001676238 us-gaap:ResearchAndDevelopmentExpense 2026-02-01 2026-04-30 0001676238 us-gaap:ResearchAndDevelopmentExpense 2025-02-01 2025-04-30 0001676238 us-gaap:GeneralAndAdministrativeExpense 2026-02-01 2026-04-30 0001676238 us-gaap:GeneralAndAdministrativeExpense 2025-02-01 2025-04-30 0001676238 us-gaap:EmployeeStockOptionMember 2024-02-01 2024-04-30 0001676238 us-gaap:RestrictedStockUnitsRSUMember 2024-02-01 2024-04-30 0001676238 brze:EmployeeStockPurchasePlanMember us-gaap:EmployeeStockMember 2021-11-30 0001676238 brze:EmployeeStockPurchasePlanMember 2021-11-01 2021-11-30 0001676238 brze:EmployeeStockPurchasePlanMember 2021-11-30 0001676238 brze:EmployeeStockPurchasePlanMember 2024-02-01 2024-02-01 0001676238 brze:EmployeeStockPurchasePlanMember 2026-02-01 2026-04-30 0001676238 brze:EmployeeStockPurchasePlanMember us-gaap:EmployeeStockMember 2026-02-01 2026-04-30 0001676238 brze:EmployeeStockPurchasePlanMember us-gaap:EmployeeStockMember 2025-02-01 2025-04-30 0001676238 brze:EmployeeStockPurchasePlanMember us-gaap:EmployeeStockMember 2026-04-30 0001676238 srt:MinimumMember 2026-04-30 0001676238 srt:MaximumMember 2026-04-30 0001676238 brze:ReplacementAwardsMember 2026-02-01 2026-04-30 0001676238 brze:ReplacementAwardsMember 2025-02-01 2025-04-30 0001676238 us-gaap:EmployeeStockOptionMember 2026-02-01 2026-04-30 0001676238 us-gaap:EmployeeStockOptionMember 2025-02-01 2025-04-30 0001676238 us-gaap:RestrictedStockMember 2026-02-01 2026-04-30 0001676238 us-gaap:RestrictedStockMember 2025-02-01 2025-04-30 0001676238 brze:ShareBasedPaymentArrangementEmployeeStockPurchasePlanMember 2026-02-01 2026-04-30 0001676238 brze:ShareBasedPaymentArrangementEmployeeStockPurchasePlanMember 2025-02-01 2025-04-30 0001676238 us-gaap:DesignatedAsHedgingInstrumentMember us-gaap:PrepaidExpenseAndOtherAssetsCurrent us-gaap:CashFlowHedgingMember 2026-04-30 0001676238 us-gaap:DesignatedAsHedgingInstrumentMember us-gaap:PrepaidExpenseAndOtherAssetsCurrent us-gaap:CashFlowHedgingMember 2025-04-30 0001676238 us-gaap:DesignatedAsHedgingInstrumentMember brze:AccruedLiabilitiesAndOtherLiabilitiesCurrent us-gaap:CashFlowHedgingMember 2026-04-30 0001676238 us-gaap:DesignatedAsHedgingInstrumentMember brze:AccruedLiabilitiesAndOtherLiabilitiesCurrent us-gaap:CashFlowHedgingMember 2026-01-31 0001676238 us-gaap:DesignatedAsHedgingInstrumentMember us-gaap:CashFlowHedgingMember 2025-04-30 0001676238 us-gaap:DesignatedAsHedgingInstrumentMember us-gaap:CashFlowHedgingMember 2026-02-01 2026-04-30 0001676238 brze:OfferFitInc.Member 2025-06-02 2025-06-02 0001676238 brze:OfferFitInc.Member 2025-06-02 0001676238 brze:NorthStarMember us-gaap:CustomerRelationshipsMember 2026-04-30 0001676238 brze:OfferFitInc.Member us-gaap:CustomerRelationshipsMember 2026-04-30 0001676238 brze:RestrictedCovenantRelationshipsMember 2026-04-30 0001676238 us-gaap:TechnologyBasedIntangibleAssetsMember 2026-04-30 0001676238 brze:NorthStarMember us-gaap:CustomerRelationshipsMember 2026-01-31 0001676238 brze:OfferFitInc.Member us-gaap:CustomerRelationshipsMember 2026-01-31 0001676238 brze:RestrictedCovenantRelationshipsMember 2026-01-31 0001676238 us-gaap:TrademarksMember 2026-01-31 0001676238 us-gaap:SubsequentEventMember us-gaap:RestrictedStockUnitsRSUMember us-gaap:CommonClassAMember 2026-05-01 2026-05-31 0001676238 us-gaap:SubsequentEventMember us-gaap:RestrictedStockUnitsRSUMember us-gaap:CommonClassAMember 2026-05-31 0001676238 brze:JonHymanMember 2026-02-01 2026-04-30 0001676238 brze:JonHymanMember brze:April142026HymanPlanMember 2026-02-01 2026-04-30 0001676238 brze:JonHymanMember brze:January152026HymanPlanMember 2026-02-01 2026-04-30 0001676238 brze:JonHymanMember brze:April142026HymanPlanCommonStockMember 2026-04-30 0001676238 brze:JonHymanMember brze:April142026HymanPlanRestrictedStockUnitsMember 2026-04-30 0001676238 brze:EdwardMcDonnellMember 2026-02-01 2026-04-30 0001676238 brze:EdwardMcDonnellMember 2026-04-30
Table of Contents

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
______________________________________________________________
FORM 10-Q
______________________________________________________________
(Mark One)

☒ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended April 30, 2026
OR

☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to
Commission File Number: 001-41065
______________________________________________________________
Braze, Inc.
(Exact name of Registrant as specified in its charter)
______________________________________________________________

Delaware | 45-2505271
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification Number)

63 Madison Building
28 East 28th Street, Floor 12
New York, New York 10016
(Address of principal executive offices, including zip code)
(609) 964-0585
(Registrant’s telephone number, including area code)
______________________________________________________________
Securities registered pursuant to Section 12(b) of the Act:

Title of each class | Trading Symbol(s) | Name of each exchange on which registered
Class A Common Stock, par value $0.0001 per share | BRZE | The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No o
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes x No o
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule12b-2 of the Exchange Act.

Large accelerated filer | ☒ |  | Accelerated filer | ☐
Non-accelerated filer | ☐ |  | Smaller reporting company | ☐
|  |  | Emerging growth company | ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒
As of May 20, 2026, there were 112,631,669 shares of the registrant’s Class A common stock with a par value of $0.0001 per share, outstanding.

Table of Contents
Braze, Inc.
Quarterly Report on Form 10-Q
For the Quarterly Period Ended April 30, 2026
TABLE OF CONTENTS

| PART I | Page No.
Item 1. | Condensed Consolidated Financial Statements (Unaudited) | 5
| Condensed Consolidated Balance Sheets at April 30, 2026 (Unaudited) and January 31, 2026 | 5
| Condensed Consolidated Statements of Operations (Unaudited) for the Three Months Ended April 30, 2026 and 2025 | 6
| Condensed Consolidated Statements of Comprehensive Loss (Unaudited) for the Three Months Ended April 30, 2026 and 2025 | 7
| Condensed Consolidated Statements of Redeemable Non-controlling Interest and Stockholders’ Equity (Unaudited) for the Three Months Ended April 30, 2026 and 2025 | 8
| Condensed Consolidated Statements of Cash Flows (Unaudited) for the Three Months Ended April 30, 2026 and 2025 | 9
| Notes to Condensed Consolidated Financial Statements (Unaudited) | 11
Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations | 28
Item 3. | Quantitative and Qualitative Disclosures About Market Risk | 37
Item 4. | Controls and Procedures | 38
| PART II |
Item 1. | Legal Proceedings | 40
Item 1A. | Risk Factors | 40
Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds | 70
Item 6. | Exhibits | 71

2

Table of Contents
SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS
This Quarterly Report on Form 10-Q contains forward-looking statements about us and our industry that involve substantial risks and uncertainties. All statements other than statements of historical facts contained in this Quarterly Report on Form 10-Q, including statements regarding our future results of operations or financial condition, business strategy and plans and objectives of management for future operations, are forward-looking statements. In some cases, you can identify forward-looking statements because they contain words such as “anticipate,” “believe,” “contemplate,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “should,” “target,” “will,” or “would,” or the negative of these words or other similar terms or expressions. These forward-looking statements include, but are not limited to, statements concerning the following:
•the anticipated effects of unstable market and economic conditions that may have serious adverse consequences on our business, financial condition and share price;
•our expectations regarding our reve nue and the timing of revenue recognition under our customer contracts, ex penses and other operating results;
•our ability to acquire new customers and successfully retain existing customers;
•our ability to increase usage of our platform and upsell and cross-sell additional products;
•our ability to achieve or sustain our profitability;
•future investments in our business, our anticipated capital expenditures and our estimates regarding our capital requirements;
•the costs and success of our marketing efforts, and our ability to promote our brand;
•our reliance on key personnel and our ability to identify, recruit and retain skilled personnel;
•our growth strategies for our platform and our ability to effectively manage our growth, including any international expansion;
•the estimated addressable market opportunity for our platform;
•our use and the expected performance of artificial intelligence, or AI, and machine learning in our platform and our business and technologies;
•our ability to protect and enforce our intellectual property rights and any costs associated therewith;
•the anticipated impact of domestic and global socioeconomic events on our business;
•our ability to compete effectively with existing competitors and new market entrants;
•the size and growth rates of the markets in which we compete; and
•the anticipated benefits or effects of any completed or future acquisitions or international expansion.
You should not rely on forward-looking statements as predictions of future events. We have based the forward-looking statements contained in this Quarterly Report on Form 10-Q primarily on our current expectations and projections about future events and trends that we believe may affect our business, financial condition and operating results. The outcome of the events described in these forward-looking statements is subject to risks, uncertainties and other factors described in the section titled “Risk Factors” and elsewhere in this Quarterly Report on Form 10-Q. Moreover, we operate in a very competitive and rapidly changing environment. New risks and uncertainties emerge from time to time, and it is not possible for us to predict all risks and uncertainties that could have an impact on the forward-looking statements contained in this report. The results, events and circumstances reflected in the forward-looking statements may not be achieved or occur, and actual results, events or circumstances could differ materially from those described in the forward-looking statements.
In addition, statements that “we believe” and similar statements reflect our beliefs and opinions on the relevant subject. These statements are based on information available to us as of the date of this Quarterly Report on Form 10-Q and are inherently uncertain. While we believe that information provides a reasonable basis for these statements, that information may be limited or incomplete. Our statements should not be read to indicate that we have conducted an exhaustive inquiry into, or review of, all relevant information.
The forward-looking statements made in this Quarterly Report on Form 10-Q relate only to events as of the date on which the statements are made. We undertake no obligation to update any forward-looking statements made in this Quarterly Report on Form 10-Q to reflect events or circumstances after the date of this Quarterly Report on Form 10-Q or to reflect new information or the occurrence of unanticipated events, except as required by law. We may not actually achieve the plans, intentions or expectations disclosed in our forward-looking statements, and you should not place undue reliance on our forward-looking statements. Our forward-looking statements do not reflect the potential impact of any future acquisitions, mergers, dispositions, joint ventures or investments.
Unless the context otherwise indicates, references in this Quarterly Report on Form 10-Q to the terms “Braze,” “the Company,” “we,” “our,” and “us,” refer to Braze, Inc. and its subsidiaries.
Trademarks
3

Table of Contents
“Braze,” “Be Absolutely Engaging,” and other trade names and trademarks of ours appearing in this Quarterly Report on Form 10-Q are our property. This Quarterly Report on Form 10-Q contains trade names and trademarks of other companies, which are the property of their respective owners. We do not intend our use or display of other companies’ trade names or trademarks to imply an endorsement or sponsorship of us by such companies, or any relationship with any of these companies.
Operational Data
Our message and other operational data, such as monthly active user count, included in this Quarterly Report on Form 10-Q is approximate and is based on various assumptions. This data is tracked with internal systems and tools that are not independently verified by any third party, and is accordingly subject to adjustment. The methodology underlying the data included in this Quarterly Report on Form 10-Q may vary from prior years and prior year results may not be directly comparable to current results. Additionally, the methodology used to report this data may vary by company, and, accordingly, our data may not be comparable to similarly titled metrics used by other companies. See “We track certain operational metrics with internal systems and tools and do not independently verify such metrics. Certain of our operational metrics are subject to inherent challenges in measurement, and any real or perceived inaccuracies in such metrics may adversely affect our business and reputation” under our “Risk Factors” discussion for more information on the inherent limitations to these metrics.
Where You Can Find More Information
We announce material information to the public through a variety of means, including filings with the U.S. Securities and Exchange Commission, or the SEC, press releases, public webcasts and conference calls, blogposts on our website (braze.com), and the investor relations section of our website (www.investors.braze.com). We therefore encourage investors and others interested in Braze to review the information that we make available on our website, in addition to following our filings with the SEC, press releases, blog posts, webcasts and conference calls. Information contained on, or that can be accessed through, our website is not incorporated by reference into this Quarterly Report on Form 10-Q, and you should not consider information on our website to be part of this Quarterly Report on Form 10-Q.
4

Table of Contents
Part 1 – Financial Information
Item 1. Financial Statements
BRAZE, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(in thousands, except share and per share amounts)

| April 30, 2026 |  | January 31, 2026
ASSETS |  |  |
CURRENT ASSETS: |  |  |
Cash and cash equivalents | $ | 145,289 |  |  | $ | 124,342 |
Restricted cash, current | 566 |  |  | 566 |
Accounts receivable, net of allowance of $1,808 and $1,934, respectively | 118,471 |  |  | 122,350 |
Marketable securities | 242,232 |  |  | 287,580 |
Prepaid expenses and other current assets | 40,117 |  |  | 33,088 |
Total current assets | 546,675 |  |  | 567,926 |
Restricted cash, noncurrent | 3,430 |  |  | 3,430 |
Property and equipment, net | 42,426 |  |  | 43,517 |
Operating lease right-of-use assets | 70,591 |  |  | 72,011 |
Deferred contract costs | 103,755 |  |  | 100,738 |
Goodwill | 262,120 |  |  | 261,857 |
Intangible assets, net | 58,447 |  |  | 61,487 |
Other assets | 3,595 |  |  | 2,791 |
TOTAL ASSETS | $ | 1,091,039 |  |  | $ | 1,113,757 |
LIABILITIES, REDEEMABLE NON-CONTROLLING INTEREST, AND STOCKHOLDERS' EQUITY |  |  |
CURRENT LIABILITIES: |  |  |
Accounts payable | $ | 5,607 |  |  | $ | 1,562 |
Accrued expenses and other current liabilities | 73,579 |  |  | 95,023 |
Deferred revenue | 342,519 |  |  | 304,560 |
Operating lease liabilities, current | 19,775 |  |  | 19,269 |
Total current liabilities | 441,480 |  |  | 420,414 |
Operating lease liabilities, noncurrent | 61,681 |  |  | 63,385 |
Other long-term liabilities | 4,717 |  |  | 5,802 |
TOTAL LIABILITIES | 507,878 |  |  | 489,601 |
COMMITMENTS AND CONTINGENCIES (Note 13) |  |  |
Redeemable non-controlling interest (Note 4) | 1,488 |  |  | 389 |
STOCKHOLDERS’ EQUITY |  |  |
Class A common stock, $0.0001 par value; 2,000,000,000 and 2,000,000,000 shares authorized as of April 30, 2026 and January 31, 2026, respectively; 111,783,711 and 112,770,651 shares issued and outstanding as of April 30, 2026 and January 31, 2026, respectively | 11 |  |  | 11 |
Additional paid-in capital | 1,325,959 |  |  | 1,340,091 |
Accumulated other comprehensive income (loss) | 417 |  |  | 1,788 |
Accumulated deficit | (744,714) |  |  | (718,123) |
TOTAL STOCKHOLDERS’ EQUITY | 581,673 |  |  | 623,767 |
TOTAL LIABILITIES, REDEEMABLE NON-CONTROLLING INTEREST, AND STOCKHOLDERS’ EQUITY | $ | 1,091,039 |  |  | $ | 1,113,757 |

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
5

Table of Contents
BRAZE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(in thousands, except per share amounts)

| Three Months Ended April 30,
| 2026 |  | 2025
Revenue | $ | 210,999 |  |  | $ | 162,059 |
Cost of revenue | 72,336 |  |  | 50,857 |
Gross profit | 138,663 |  |  | 111,202 |
Operating expenses: |  |  |
Sales and marketing | 89,188 |  |  | 74,127 |
Research and development | 46,100 |  |  | 36,797 |
General and administrative | 30,889 |  |  | 40,500 |
Total operating expenses | 166,177 |  |  | 151,424 |
Loss from operations | (27,514) |  |  | (40,222) |
Other income, net | 3,450 |  |  | 5,652 |
Loss before provision for income taxes | (24,064) |  |  | (34,570) |
Provision for income taxes | 1,428 |  |  | 1,071 |
Net loss | (25,492) |  |  | (35,641) |
Net income attributable to redeemable non-controlling interest | 1,099 |  |  | 145 |
Net loss attributable to Braze, Inc. | $ | (26,591) |  |  | $ | (35,786) |
Net loss per share attributable to Braze, Inc. common stockholders, basic and diluted | $ | (0.24) |  |  | $ | (0.34) |
Weighted-average shares used to compute net loss per share attributable to Braze, Inc. common stockholders, basic and diluted | 110,797 |  |  | 104,572 |

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
6

Table of Contents
BRAZE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (UNAUDITED)
(in thousands)

| Three Months Ended April 30,
| 2026 |  | 2025
Net loss | $ | (25,492) |  |  | $ | (35,641) |
Other comprehensive income (loss): |  |  |
Change in foreign currency translation adjustments | (142) |  |  | 883 |
Unrealized gains (losses) on marketable securities | (1,295) |  |  | 1,048 |
Unrealized gains on derivatives | 66 |  |  | 963 |
Other comprehensive income (loss), net | (1,371) |  |  | 2,894 |
Comprehensive loss, net | (26,863) |  |  | (32,747) |
Less: comprehensive income, net, attributable to redeemable non-controlling interest | 1,099 |  |  | 145 |
Comprehensive loss attributable to Braze, Inc. | $ | (27,962) |  |  | $ | (32,892) |

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
7

Table of Contents
BRAZE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF REDEEMABLE NON-CONTROLLING INTEREST AND STOCKHOLDERS’ EQUITY (UNAUDITED)
(in thousands)

| Redeemable Non-controlling Interest |  |  | Class A Common Stock |  | Additional Paid-in Capital |  | Accumulated Deficit |  | Accumulated Other Comprehensive Income |  | Total Stockholders' Equity
|  |  | Shares |  | Amount |  |  |  |
Balance at January 31, 2026 | $ | 389 |  |  |  | 110,882 |  |  | $ | 11 |  |  | $ | 1,340,091 |  |  | $ | (718,123) |  |  | $ | 1,788 |  |  | $ | 623,767 |
Issuance of common stock for options exercised | — |  |  |  | 84 |  |  | — |  |  | 311 |  |  | — |  |  | — |  |  | 311 |
Vesting of restricted stock units | — |  |  |  | 622 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Stock-based compensation | — |  |  |  | — |  |  | — |  |  | 35,329 |  |  | — |  |  | — |  |  | 35,329 |
Other comprehensive loss | — |  |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (1,371) |  |  | (1,371) |
Net income attributable to redeemable non-controlling interests | 1,099 |  |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Charitable donation of stock | — |  |  |  | 24 |  |  | — |  |  | 500 |  |  | — |  |  | — |  |  | 500 |
Issuance of common stock from acquisition | — |  |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Replacement share-based awards issued in connection with acquisition | — |  |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Repurchase of common stock, including excise tax | — |  |  |  | (1,716) |  |  | — |  |  | (50,272) |  |  | — |  |  | — |  |  | (50,272) |
Net loss attributable to Braze, Inc. | — |  |  |  | — |  |  | — |  |  | — |  |  | (26,591) |  |  | — |  |  | (26,591) |
Balance at April 30, 2026 | $ | 1,488 |  |  |  | 109,896 |  |  | $ | 11 |  |  | $ | 1,325,959 |  |  | $ | (744,714) |  |  | $ | 417 |  |  | $ | 581,673 |

| Redeemable Non-controlling Interest |  |  | Class A and Class B Common Stock |  | Additional Paid-in Capital |  | Accumulated Deficit |  | Accumulated Other Comprehensive Income (Loss) |  | Total Stockholders' Equity
|  |  | Shares |  | Amount |  |  |  |
Balance at January 31, 2025 | $ | (112) |  |  |  | 103,951 |  |  | $ | 10 |  |  | $ | 1,062,613 |  |  | $ | (586,836) |  |  | $ | (926) |  |  | $ | 474,861 |
Issuance of common stock for options exercised | — |  |  |  | 251 |  |  | — |  |  | 605 |  |  | — |  |  | — |  |  | 605 |
Vesting of restricted stock units | — |  |  |  | 641 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Stock-based compensation | — |  |  |  | — |  |  | — |  |  | 30,743 |  |  | — |  |  | — |  |  | 30,743 |
Other comprehensive income | — |  |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 2,894 |  |  | 2,894 |
Net income attributable to redeemable non-controlling interests | 145 |  |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Charitable donation of stock | — |  |  |  | 24 |  |  | — |  |  | 1,109 |  |  | — |  |  | — |  |  | 1,109 |
Net loss attributable to Braze, Inc. | — |  |  |  | — |  |  | — |  |  | — |  |  | (35,786) |  |  | — |  |  | (35,786) |
Balance at April 30, 2025 | $ | 33 |  |  |  | 104,867 |  |  | $ | 10 |  |  | $ | 1,095,070 |  |  | $ | (622,622) |  |  | $ | 1,968 |  |  | $ | 474,426 |

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
8

Table of Contents
BRAZE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
(in thousands)

| Three Months Ended April 30,
| 2026 |  | 2025
CASH FLOWS FROM OPERATING ACTIVITIES: |  |  |
Net loss (including amounts attributable to redeemable non-controlling interests) | $ | (25,492) |  |  | $ | (35,641) |
Adjustments to reconcile net loss to net cash provided by operating activities: |  |  |
Stock-based compensation | 35,804 |  |  | 30,643 |
Amortization of deferred contract costs | 12,280 |  |  | 9,421 |
Depreciation and amortization | 6,284 |  |  | 2,606 |
Provision for credit losses | (78) |  |  | 232 |
Value of common stock donated to charity | 500 |  |  | 1,109 |
Accretion of discount on marketable securities | (78) |  |  | (399) |
Non-cash foreign exchange (gain) loss | 288 |  |  | 227 |
Deferred tax asset | (263) |  |  | — |
Other | 6 |  |  | 9 |
Changes in operating assets and liabilities: |  |  |
Accounts receivable | 3,848 |  |  | 9,108 |
Prepaid expenses and other current assets | (6,961) |  |  | 3,147 |
Deferred contract costs | (15,342) |  |  | (11,870) |
ROU assets and liabilities | 273 |  |  | (410) |
Other assets | (805) |  |  | (403) |
Accounts payable | 3,833 |  |  | (978) |
Accrued expenses and other current liabilities | (20,889) |  |  | (7,203) |
Deferred revenue | 38,211 |  |  | 24,547 |
Other long-term liabilities | (3,293) |  |  | (1) |
Net cash provided by operating activities | 28,126 |  |  | 24,144 |
CASH FLOWS FROM INVESTING ACTIVITIES: |  |  |
Purchases of property and equipment | (108) |  |  | (217) |
Capitalized internal-use software costs | (1,227) |  |  | (1,055) |
Purchases of marketable securities | (26,662) |  |  | (52,364) |
Maturities of marketable securities | 35,870 |  |  | 63,215 |
Return of principal on marketable securities | 34,923 |  |  | 113,258 |
Net cash provided by investing activities | 42,796 |  |  | 122,837 |
CASH FLOWS FROM FINANCING ACTIVITIES: |  |  |
Proceeds from exercise of common stock options | 310 |  |  | 605 |
Repurchase of common stock | (50,000) |  |  | — |
Net cash provided by/(used in) financing activities | (49,690) |  |  | 605 |
Effect of foreign currency exchange rate changes on cash, cash equivalents, and restricted cash | (285) |  |  | 851 |
Net change in cash, cash equivalents, and restricted cash | 20,947 |  |  | 148,437 |
Cash, cash equivalents, and restricted cash, beginning of period | 128,338 |  |  | 83,592 |
Cash, cash equivalents, and restricted cash, end of period | $ | 149,285 |  |  | $ | 232,029 |

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

Table of Contents
BRAZE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
SUPPLEMENTAL CASH FLOWS DISCLOSURE
(in thousands)

| Three Months Ended April 30,
| 2026 |  | 2025
SUPPLEMENTAL CASH FLOW DISCLOSURE: |  |  |
Cash paid for income taxes, net of refunds | $ | 2,184 |  |  | $ | 2,466 |
NON-CASH INVESTING AND FINANCING ACTIVITIES: |  |  |
Stock-based compensation capitalized to internal-use software | $ | 637 |  |  | $ | 573 |
Unrealized net gain (loss) on marketable investment securities | $ | (1,295) |  |  | $ | 1,048 |
Net change to property and equipment (included in accounts payable / accrued liabilities) | $ | 283 |  |  | $ | 535 |
Asset retirement obligation | $ | 9 |  |  | $ | 9 |
Excise tax on stock repurchase (included in accrued liabilities) | $ | 272 |  |  | $ | — |
Measurement period adjustment relating to business acquisitions | $ | (263) |  |  | $ | — |

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
10

Table of Contents
BRAZE, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
1. Company Overview
Description of Business
Braze, Inc., together with its subsidiaries (collectively, the “Company,” “we,” “us,” “our,” or “Braze”), is a cloud-based customer engagement platform that delivers customer-centric experiences across push notifications, email, in-product messaging, SMS, MMS and RCS 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 City. As of April 30, 2026, we also lease additional office space in over 10 cities across North America, South America, Europe, Asia-Pacific, and the Middle East.
2. Summary of Significant Accounting Policies
Basis of Presentation
The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”). The accompanying unaudited condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, and variable interest entities (“VIE”) for which we are the primary beneficiary. Intercompany balances and transactions have been eliminated in consolidation.
Reclassifications
Certain reclassifications and immaterial changes have been made to prior-period financial statements to conform to the current-period presentation.
Use of Estimates
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expense during the reported period. We evaluate estimates based on historical and anticipated results, trends, and various other assumptions. Significant items subject to such estimates and assumptions include, but are not limited to, the standalone selling price for separate performance obligations in our revenue arrangements, expected period of benefit for deferred contract costs, the valuation of common stock and stock-based compensation, the allocation of overhead costs between cost of revenue and operating expenses, the estimated useful lives of intangible and depreciable assets, the fair value of acquired assets and assumed liabilities from business combinations, valuation of long-lived assets and their recoverability, including goodwill, the incremental borrowing rate, 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 global or domestic macroeconomic and socioeconomic conditions such as, among others, instability in the banking and financial services sector, international and domestic supply chain risks, inflationary pressure, interest rate increases, declines in consumer confidence, international conflicts and domestic and foreign political unrest, that impact us and our customers, cannot be determined with precision, actual results could differ from those estimates and many of our estimates and assumptions have required increased judgment and carry a higher degree of variability and volatility.
Significant Accounting Policies
Our significant accounting policies are detailed in “Note 2. Summary of Significant Accounting Policies" of the audited annual consolidated financial statements for the fiscal year ended January 31, 2026 included in the Company’s Annual Report
11

Table of Contents
on Form 10-K, as filed with the SEC on March 25, 2026 (the “Annual Report”). T here have been no material changes to our significant accounting policies with the exception of the below:
Stock Repurchases
The Company elected to record the excess of the repurchase price over the par value of the repurchased shares of its Class A common stock in additional paid-in capital, subject to limitations, along with the associated transaction costs. Immediately upon repurchase, the shares are retired and returned to the status of authorized and unissued.
Concentration of Credit Risk
Financial instruments that potentially subject us to concentration of credit risk consist primarily of cash and cash equivalents, restricted cash, marketable securities, and accounts receivable. Restricted cash consists of letters of credit related to our leased properties and funds held in escrow corresponding to acquisition related activities. For cash, cash equivalents, restricted cash, and marketable securities, we are exposed to credit risk in the event of default by the financial institutions to the extent of the amounts recorded on the consolidated balance sheets in excess of the Federal Deposit Insurance Corporation (“FDIC”) limits. Cash, cash equivalents, restricted cash, and marketable securities balances are maintained at financial institutions that management believes are of high-credit, quality financial institutions, where deposits, at times, exceed the FDIC limits.
Significant customers are those which represent 10% or more of our total revenue for the period, or accounts receivable at the balance sheets dates. For the three months ended April 30, 2026 and 2025, 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 consolidated balance sheets. As of April 30, 2026, one customer accounted for approximately 12% of our accounts receivable; no other customer accounted for more than 10% of our total accounts receivable balance. As of January 31, 2026, no customer accounted for 10% or more of total accounts receivable balance.
Recently Adopted Accounting Pronouncements
In August 2017, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities, which made targeted improvements to the hedge accounting model with the objective of improving the financial reporting of hedging relationships to better portray the economic results of an entity’s risk management activities in its financial statements. The Company adopted ASU 2017-12 as of the three months ended April 30, 2025. The adoption of ASU 2017-12 coincided with the first period of derivative related activities within the Company’s consolidated financial statements.
In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which intends to increase the transparency of income tax disclosures. Under the new guidance, entities must categorize and provide greater disaggregation of information in the rate reconciliation. They must also further disaggregate income taxes paid. For public business entities, it is effective for annual periods beginning after December 15, 2024. The Company adopted this standard on a prospective basis in its consolidated financial statements for the year ended January 31, 2026. The adoption of ASU 2023-09 did not have a material impact on the Company's consolidated financial statements. Refer to Note 15, Income Taxes, to the consolidated financial statements for further details.
Recently Issued Accounting Pronouncements Not Yet Adopted
In November 2024, the FASB issued ASU No. 2024-03 Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses, (“ASU 2024-03”), which is intended to provide enhanced transparency into the nature of expenses and requires more detailed information on specific expense categories included in certain expense captions presented on the face of the income statement. ASU 2024-03 is effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027. Early adoption is permitted. The standard may be applied either (1) on a prospective basis or (2) retrospectively to all periods presented in the consolidated financial statements. The Company is currently evaluating the impact of the new standard on the consolidated financial statements and related disclosures.
In September 2025, the FASB issued ASU 2025-06, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software, which removes all references to software development stages (referred to as “project stages”) throughout Subtopic 350-40. The standard requires entities to start capitalizing software costs when both of the following occur: (i) management has authorized and committed to funding the software project and (ii) it is probable that the project will be completed and the software will be used to perform the function
12

Table of Contents
intended. This standard is effective for the Company for the annual and interim periods beginning January 1, 2028, with early adoption permitted. The Company is currently evaluating the impacts of ASU 2025-06 on its consolidated financial statements as well as the impacts to its financial reporting process and related internal controls.
In November 2025, the FASB issued ASU No. 2025-09, Derivatives and Hedging (Topic 815): Hedge Accounting Improvements, which makes targeted improvements to the hedge accounting model. The amendments address five specific areas, including expanding the hedged risks permitted to be aggregated in groups of forecasted transactions, introducing an optional model for hedging choose-your-rate debt instruments, expanding hedge accounting for forecasted purchases and sales of nonfinancial assets, eliminating the net written option test in certain instances, and eliminating recognition and presentation mismatches for dual hedge strategies. The standard is effective for the Company for annual periods beginning January 1, 2027, and interim periods within those annual periods, with early adoption permitted. The Company does not expect this guidance to have a material impact on its consolidated financial statements.
No other new accounting pronouncement issued or effective during the fiscal year had or is expected to have a material impact on the consolidated financial statements or disclosures.
13

Table of Contents
3. Revenue from Contracts with Customers
Disaggregated Revenue Streams
The following disaggregation depicts the nature, amount, timing and uncertainty of cash flows related to the primary types of revenue from contracts with customers.
The following table presents total revenue by type (in thousands):

| Three Months Ended April 30,
| 2026 |  | 2025
Subscription | $ | 195,185 |  |  | $ | 154,903 |
Professional services and other | 15,814 |  |  | 7,156 |
Total | $ | 210,999 |  |  | $ | 162,059 |

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

| Three Months Ended April 30,
| 2026 |  | 2025
United States | $ | 115,506 |  |  | $ | 87,901 |
International | 95,493 |  |  | 74,158 |
Total | $ | 210,999 |  |  | $ | 162,059 |

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.
Unbilled Accounts Receivable
Unbilled accounts receivable is 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 $5.1 million and $3.3 million as of April 30, 2026 and January 31, 2026, respectively.
Contract Balances
Contract Assets
Contract assets as of April 30, 2026 and January 31, 2026 were $0.9 million and $1.3 million, respectively. The change in contract assets for all periods presented primarily reflects revenue recognized in excess of billings partially offset by contract assets earned during the period.
Deferred Revenue
The change in deferred revenue for all periods presented primarily reflects cash payments received during the period for which the performance obligation was not satisfied prior to the end of the period, partially offset by revenues recognized during the period. Revenue recognized during the three months ended April 30, 2026, from amounts included in deferred revenue at January 31, 2026, was $149.3 million. Revenue recognized during the three months ended April 30, 2025 from amounts included in deferred revenue at January 31, 2025, was $116.6 million.
14

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

| Allowance for Credit Losses
Balance at January 31, 2026 | $ | 1,934 |
Reserve: |
Credit losses | (78) |
Deferred revenue | 706 |
Write-offs | (862) |
Recoveries | 108 |
Balance at April 30, 2026 | $ | 1,808 |

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):

| Total |  | Less than 1 Year |  | 1-5 Years
April 30, 2025 | $ | 829.3 |  |  | $ | 522.2 |  |  | $ | 307.1 |
July 31, 2025 | 862.2 |  |  | 558.2 |  |  | 304.0 |
October 31, 2025 | 891.4 |  |  | 572.7 |  |  | 318.7 |
January 31, 2026 | 1,033.0 |  |  | 642.1 |  |  | 390.9 |
April 30, 2026 | 1,079.2 |  |  | 670.3 |  |  | 408.9 |

4. Variable Interest Entity and Redeemable Non-Controlling Interest
On September 14, 2020, we, along with Japan Cloud Computing Co., Ltd., and M30 LLC, (the “Investors”), entered into an agreement, whereby each Investor agreed to purchase shares of common stock of Braze Kabushiki Kaisha (“Braze KK” and “Braze KK Shares”) for a total purchase price of $10.0 million in two tranches of $5.0 million per tranche in September 2020 and September 2021, to engage in the investment, organization, management and operation of Braze KK focused on the distribution of our products in Japan. The purpose of this arrangement was to further expand our business in the Japanese market.
In March 2022, we consented to the periodic issuance of stock options to purchase Braze KK Shares by certain employees of Braze KK. These options cannot be exercised by the holders thereof prior to the exercise of the call or put options described in more detail below. The Company considers the stock options to be a substantive class of equity, classified as a liability within other long-term liabilities on the consolidated balance sheets. As of April 30, 2026, the liability balance was $1.1 million. The issuance of stock options does not impact our majority stake in Braze KK, as the vesting criteria of the options were not met as of the balance sheet date. The issuance of stock options did not result in a reconsideration event and therefore Braze KK still met the criteria of a Variable Interest Entity 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 the consolidated balance sheets, consolidated statements of operations, and consolidated statements of cash flows.
The common stock held by the Investors is callable by us or puttable by the Investors upon certain contingent events. Should the call or put option be exercised, the redemption value would be determined based on a prescribed formula derived from the discrete revenues of Braze KK and the Company and may be settled, at our discretion, with our stock or cash. The non-controlling interest in Braze KK is classified in mezzanine equity as redeemable non-controlling interest as a result of the put right available to the Investors in the future, an event that is not solely in our control. The non-controlling interest is not accreted to redemption value because it is currently not probable that the non-controlling interest will become redeemable.
15

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

Balance as of January 31, 2026 | $ | 389
Net income attributable to redeemable non-controlling interest | 1,099
Balance as of April 30, 2026 | $ | 1,488

5. Fair Value Measurements
The following table sets forth our financial instruments that were measured at fair value on a recurring basis at the periods indicated below, by level within the fair value hierarchy (in thousands):

| April 30, 2026
| Level 1 |  | Level 2 |  | Level 3 |  | Total
Financial assets: |  |  |  |  |  |  |
Cash equivalents |  |  |  |  |  |  |
Money market funds | $ | 60,468 |  |  | $ | — |  |  | $ | — |  |  | $ | 60,468 |
U.S. government securities | — |  |  | — |  |  | — |  |  | — |
Total cash equivalents | 60,468 |  |  | — |  |  | — |  |  | 60,468 |
Marketable securities |  |  |  |  |  |  |
U.S. government securities | $ | 157,925 |  |  | $ | — |  |  | $ | — |  |  | $ | 157,925 |
Corporate debt securities | — |  |  | 84,307 |  |  | — |  |  | 84,307 |
Total marketable securities | 157,925 |  |  | 84,307 |  |  | — |  |  | 242,232 |
Derivative instruments |  |  |  |  |  |  |
Cash flow hedges | $ | — |  |  | $ | 69 |  |  | $ | — |  |  | $ | 69 |
Total financial assets | $ | 218,393 |  |  | $ | 84,376 |  |  | $ | — |  |  | $ | 302,769 |
Liabilities: |  |  |  |  |  |  |
Derivative instruments |  |  |  |  |  |  |
Cash flow hedges | $ | — |  |  | $ | (3) |  |  | $ | — |  |  | $ | (3) |
Total liabilities | $ | — |  |  | $ | (3) |  |  | $ | — |  |  | $ | (3) |

16

Table of Contents

| January 31, 2026
| Level 1 |  | Level 2 |  | Level 3 |  | Total
Financial assets: |  |  |  |  |  |  |
Cash equivalents |  |  |  |  |  |  |
Money market funds | $ | 39,538 |  |  | $ | — |  |  | $ | — |  |  | $ | 39,538 |
U.S. government securities | 3,000 |  |  | — |  |  | — |  |  | 3,000 |
Total cash equivalents | 42,538 |  |  | — |  |  | — |  |  | 42,538 |
Marketable securities |  |  |  |  |  |  |
U.S. government securities | $ | 189,238 |  |  | $ | — |  |  | $ | — |  |  | $ | 189,238 |
Corporate debt securities | — |  |  | 98,342 |  |  | — |  |  | 98,342 |
Total marketable securities | 189,238 |  |  | 98,342 |  |  | — |  |  | 287,580 |
Derivative instruments |  |  |  |  |  |  |
Cash flow hedges | $ | — |  |  | $ | 409 |  |  | $ | — |  |  | $ | 409 |
Total financial assets | $ | 231,776 |  |  | $ | 98,751 |  |  | $ | — |  |  | $ | 330,527 |
Liabilities: |  |  |  |  |  |  |
Derivative instruments |  |  |  |  |  |  |
Cash flow hedges | $ | — |  |  | $ | (25) |  |  | $ | — |  |  | $ | (25) |
Total liabilities | $ | — |  |  | $ | (25) |  |  | $ | — |  |  | $ | (25) |

Our money market funds and financial instruments are classified as Level 1 within the fair value hierarchy, because they are valued using quoted prices in active markets as of April 30, 2026 and January 31, 2026. Financial instruments, including derivative instruments, are 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.
6. Marketable Securities
Marketable securities consist of the following for the periods presented (in thousands):

| April 30, 2026
| Cost or Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Total Estimated Fair Value
U.S. government securities | $ | 157,809 |  |  | $ | 244 |  |  | $ | (128) |  |  | $ | 157,925 |
Corporate debt securities | 84,339 |  |  | 139 |  |  | (171) |  |  | 84,307 |
Total | $ | 242,148 |  |  | $ | 383 |  |  | $ | (299) |  |  | $ | 242,232 |

| January 31, 2026
| Cost or Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Total Estimated Fair Value
U.S. government securities | $ | 188,270 |  |  | $ | 968 |  |  | $ | — |  |  | $ | 189,238 |
Corporate debt securities | 97,931 |  |  | 411 |  |  | — |  |  | 98,342 |
Total | $ | 286,201 |  |  | $ | 1,379 |  |  | $ | — |  |  | $ | 287,580 |

17

Table of Contents
Accrued interest receivables related to our available-for-sale securities of $2.5 million as of April 30, 2026, and $3.2 million as of January 31, 2026, were included within prepaid expenses and other current assets on the consolidated balance sheets.
The Company’s short-term investments consist of available-for-sale debt securities and term deposits. The term deposits are at cost, which approximates fair value. The weighted-average remaining maturity of the Company’s investment portfolio is approximately one year as of the periods presented. No individual security incurred continuous unrealized losses for greater than 12 months as of April 30, 2026.
The Company purchases investment grade marketable debt securities which are rated by nationally recognized statistical credit rating organizations in accordance with its investment policy. This policy is designed to minimize the Company's exposure to credit losses. As of April 30, 2026, the credit-quality of the Company’s marketable available-for-sale debt securities had remained stable. The unrealized losses recognized on marketable available-for-sale debt securities as of April 30, 2026 was primarily related to the continued market volatility associated with market expectations in the current interest rate environment. The contractual terms of these investments do not permit the issuer to settle the securities at a price less than the amortized cost basis of the investments and it is not expected that the investments would be settled at a price less than their amortized cost basis. The Company does not intend to sell the investments and it is not more likely than not that the Company will be required to sell the investments before recovery of their amortized cost basis. The Company is not aware of any specific event or circumstance that would require the Company to change its assessment of credit losses for any marketable available-for-sale debt security as of April 30, 2026. These estimates may change, as new events occur and additional information is obtained, and will be recognized on the consolidated financial statements as soon as they become known. No credit losses were recognized as of April 30, 2026 for the Company’s marketable debt securities.
The contractual maturities of the investments classified as available-for-sale marketable securities are as follows (in thousands):

| April 30, 2026
| Amortized Cost |  | Estimated Fair Value
Due within 1 year | $ | 108,614 |  |  | $ | 108,730 |
Due in 1 year through 5 years | 133,534 |  |  | 133,502 |
Total | $ | 242,148 |  |  | $ | 242,232 |

| January 31, 2026
| Amortized Cost |  | Estimated Fair Value
Due within 1 year | $ | 115,437 |  |  | $ | 115,723 |
Due in 1 year through 5 years | 170,764 |  |  | 171,857 |
Total | $ | 286,201 |  |  | $ | 287,580 |

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

| Three Months Ended April 30,
| 2026 |  | 2025
Interest income | $ | 2,985 |  |  | $ | 4,781 |
Accretion/amortization of discount/premium, net | 78 |  |  | 399 |
Investment income | $ | 3,063 |  |  | $ | 5,180 |

18

Table of Contents
7. Property and Equipment, Net
Property and equipment, net, consist of the following (in thousands):

| April 30, 2026 |  | January 31, 2026
Capitalized internal-use software | $ | 26,857 |  |  | $ | 24,993 |
Computer equipment, office equipment, and software | 14,222 |  |  | 13,898 |
Leasehold improvements | 24,197 |  |  | 24,667 |
Furniture and fixtures | 10,399 |  |  | 10,178 |
Total property and equipment | 75,675 |  |  | 73,736 |
Less: accumulated depreciation and amortization | (33,249) |  |  | (30,219) |
Total property and equipment, net | $ | 42,426 |  |  | $ | 43,517 |

The total depreciation expense and amortization expense for property and equipment was $3.2 million and $2.7 million during the three months ended April 30, 2026 and 2025, respectively.
In the three months ended April 30, 2026, the Company wrote off $0.2 million of fixed assets. The remaining movement relates to the impact of foreign currency exchange rate fluctuations. In the three months ended April 30, 2025, the Company wrote off $0.2 million of fixed assets, which had a minimal net impact on the Company’s consolidated financial results.
We capitalized internal-use software of $1.9 million and $1.6 million during the three months ended April 30, 2026 and 2025, respectively. Amortization for capitalized internal-use software costs recognized within cost of revenue, on the consolidated statements of operations, was $1.3 million and $0.9 million for the three months ended April 30, 2026 and 2025, respectively.
8. Prepaid Expenses and Other Current Assets
Prepaid expenses and other current assets consist of the following (in thousands):

| April 30, 2026 |  | January 31, 2026
Prepaid software subscriptions | $ | 23,420 |  |  | $ | 10,717 |
Prepaid advertising | 3,715 |  |  | 3,644 |
Prepaid insurance | 2,082 |  |  | 6,539 |
Investment interest receivable | 2,521 |  |  | 3,158 |
Tax receivables | 1,727 |  |  | 1,670 |
Prepaid employee benefits | 1,388 |  |  | 1,504 |
Prepaid deposits | 1,191 |  |  | 1,180 |
Prepaid professional services | 766 |  |  | 994 |
Prepaid office related expenses | 442 |  |  | 819 |
Derivative instruments | 69 |  |  | 409 |
Other | 2,796 |  |  | 2,454 |
Total prepaid expenses and other current assets | $ | 40,117 |  |  | $ | 33,088 |

19

Table of Contents
9. Accrued Expenses and Other Current Liabilities
Accrued expenses and other current liabilities consists of the following (in thousands):

| April 30, 2026 |  | January 31, 2026
Accrued compensation costs | $ | 22,963 |  |  | $ | 42,505 |
Accrued software subscriptions | 19,906 |  |  | 16,169 |
Accrued commissions | 7,228 |  |  | 14,983 |
Accrued professional service fees | 2,947 |  |  | 3,047 |
Accrued advertising | 2,367 |  |  | 2,376 |
Accrued tax liability | 10,925 |  |  | 11,711 |
ESPP payable | 4,528 |  |  | 759 |
Other | 2,715 |  |  | 3,473 |
Total accrued expenses and other current liabilities | $ | 73,579 |  |  | $ | 95,023 |

10. Employee Benefit Plans
We 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 $2.7 million and $2.3 million for the three months ended April 30, 2026 and 2025, respectively.
11. Stockholders’ Equity
Class A and Class B Common Stock
Prior to January 30, 2026, the Company had two classes of common stock, Class A and Class B. On January 30, 2026, pursuant to the terms of the Company’s Eighth Amended and Restated Certificate of Incorporation, each outstanding share of Class B common stock automatically converted into one share of Class A common stock (the "Conversion").
On January 30, 2026, the Company filed a certificate of retirement with the Secretary of State of the State of Delaware effecting the retirement of the shares of Class B common stock that were issued but no longer outstanding following the Conversion. Upon the effectiveness of the certificate of retirement, the Company (i) reduced the total number of authorized shares of the capital stock of the Company by 110,000,000, such that the total number of authorized shares of the Company is 2,010,000,000, consisting of (x) 2,000,000,000 shares of Class A common stock, and (y) 10,000,000 shares of preferred stock, and (ii) reduced the number of authorized shares of Class B common stock by 110,000,000, such that the number of authorized shares of Class B common stock is zero.
Share Repurchase Program
In March 2026, the Board of Directors authorized a share repurchase program (the “Share Repurchase Program”), under which the Company is authorized to repurchase up to $100.0 million of the Company’s Class A common stock. Under the Share Repurchase Program, the Company may repurchase shares of the Company’s Class A common stock from time to time, in such amounts as management deems appropriate, through a variety of methods, which may include through open market purchases and accelerated share repurchase (“ASR”) transactions. The timing, manner, and amount of any repurchases pursuant to the Share Repurchase Program will be determined by Management discretion and will depend on a variety of factors, including business, economic and market conditions, prevailing stock prices, and alternative investment opportunities. The Share Repurchase Program does not have an expiration date, does not require the Company to repurchase any specific number of shares of its Class A common stock, and may be modified, suspended, or terminated at any time without notice.
In March 2026, the Company entered into an ASR transaction to repurchase a total of $50.0 million of the Company’s Class A common stock. During the three months ended April 30, 2026, the Company took initial delivery of 1,716,002 shares, which were immediately retired. The total number of shares will be determined upon final settlement based on the weighted-average price over the term of the ASR, less an agreed upon discount. The cost paid to repurchase shares in excess of the par value is recorded to additional paid-in-capital on the Company’s condensed consolidated balance sheets. As of April 30, 2026, a total of $50.0 million remained available for future repurchases under the Share Repurchase Program.
Charitable Contributions
20

Table of Contents
In connection with our Pledge 1% commitment, we donated 24,116 and 24,116 shares of our Class A common stock to a charitable donor-advised fund that resulted in the recognition of $0.5 million and $1.1 million of expense within general and administrative in the consolidated statements of operations during the three months ended April 30, 2026 and 2025, respectively.
12. Employee Stock Plans
We have historically issued equity awards under our Amended and Restated 2011 Equity Incentive Plan (the “2011 Plan”) and our 2021 Equity Incentive Plan (the “2021 Plan”).
Amended and Restated 2011 Equity Incentive Plan
Our 2011 Plan provides 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 of awards under the 2011 Plan are determined by our board of directors. Following effectiveness of the 2021 Plan in connection with our initial public offering, no further awards were made under the 2011 Plan.
2021 Equity Incentive Plan
In November 2021, our board of directors and our stockholders approved the 2021 Plan, which became effective on November 16, 2021. No grants were made under the 2021 Plan prior to its effectiveness. No further grants will be made under the 2011 Plan. At effectiveness, we 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 Class A common stock outstanding on the preceding January 31, or (2) a lesser number of shares determined by our board of directors no later than the February 1 increase. On February 1, 2026, the number of shares of our Class A common stock reserved for issuance under our 2021 Plan increased by an additional 5,638,532 shares.
Restricted Stock, Restricted Stock Units, and Performance Stock Units
The following table summarizes unvested restricted stock unit (“RSU”) and performance stock unit (“PSU”) award activity and related information:

| Shares |  | Weighted-Average Grant Date Fair Value
Balance as of January 31, 2026 | 9,775,796 |  |
Granted | 5,953,648 |  | $ | 19.01 |
Vested | (621,747) |  | $ | 39.44 |
Forfeited | (346,978) |  | $ | 32.17 |
Balance as of April 30, 2026 | 14,760,719 |  |

RSUs granted during the three months ended April 30, 2026 contained a service-based vesting condition of up to approximately a three or four year period. RSUs typically vest on a quarterly basis or have a one-year cliff vesting period with quarterly vesting thereafter.
PSUs granted to key executive employees will vest upon achievement of specified performance targets and are subject to continuous service throughout the applicable vesting date. The PSU awards include a one-year performance period within a three-year total requisite service vesting period. The achievement levels range from 0% to 200% of the target award value on the date of grant.
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):
21

Table of Contents

| Three Months Ended, April 30,
| 2026 |  | 2025
Cost of revenue | $ | 1,206 |  |  | $ | 1,077 |
Sales and marketing | 10,584 |  |  | 10,011 |
Research and development | 14,640 |  |  | 11,336 |
General and administrative | 7,171 |  |  | 7,975 |
Stock-based compensation, net of amounts capitalized | $ | 33,601 |  |  | $ | 30,399 |
Capitalized stock-based compensation expense | 637 |  |  | 573 |
Total stock-based compensation expense | $ | 34,238 |  |  | $ | 30,972 |

As of April 30, 2026, 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 Options |  | Restricted Stock, RSUs / PSUs
Unrecognized compensation costs (in thousands) | $678 |  | $265,123
Weighted-average remaining recognition period (years) | 0.25 |  | 2.62

Employee Stock Purchase Plan
In November 2021, our board of directors and our stockholders approved the 2021 Employee Stock Purchase Plan (the “ESPP”), which became effective on November 16, 2021. Following completion of our initial public offering, 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 Class A common stock outstanding on the preceding January 31; and (ii) 2,737,000 shares, except before the date of any such increase, our board of directors may determine that such increase will be less than the amount set forth in clauses (i) and (ii) above. On February 1, 2026, the number of shares of our Class A common stock reserved for issuance under our ESPP increased by an additional 1,127,706 shares.
The ESPP is implemented through a series of offerings under which eligible employees are granted purchase rights to purchase shares of the Company’s Class A common stock on specified dates during such offerings. Under the ESPP, our board of directors will be permitted to specify offerings with durations of not more than 27 months, and may specify shorter purchase periods within each offering. Each offering will have one or more purchase dates on which shares of our Class A common stock will be purchased for employees participating in the offering. On each purchase date, eligible employees will purchase the shares at a price per share equal to 85% of the lesser of (1) the fair market value of the Company’s Class A common stock on the first trading day of the offering period or (2) the fair market value of the Company’s Class A common stock on the last day of the offering period, as defined by the ESPP.
The Company recognized $1.2 million and $0.9 million of stock-based compensation expense related to the ESPP in the three months ended April 30, 2026 and 2025, respectively. As of April 30, 2026, $4.5 million has been withheld on behalf of our employees for a future purchase and is classified as accrued expenses and other current liabilities on the consolidated balance sheets.
There were no issuances of Class A common stock under the ESPP in the three months ended April 30, 2026. As of April 30, 2026, there are 6,013,553 shares of Class A common stock that remain available for issuance under the ESPP.
13. Commitments and Contingencies
Indirect Taxes
We are subject to indirect taxation in certain U.S. states and foreign jurisdictions. We 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 on applicable transactions. Following the U.S. Supreme Court’s June 21, 2018 ruling in South Dakota v. Wayfair, which overruled Quill Corp v. North Dakota, states may now require remote sellers to
22

Table of Contents
collect sales tax under certain circumstances. We began collecting sales tax in relevant jurisdictions for the fiscal year ended January 31, 2019. We continue to evaluate jurisdictions in which indirect tax nexus exists and believe our indirect tax liabilities are adequate and reasonable. Due to the complexity and uncertainty in applying these rules, results may vary materially from expectations. Accordingly, we have recognized liabilities for contingencies related to state sales and use tax, VAT, and GST deemed probable and estimable totaling $1.5 million and $1.4 million as of April 30, 2026 and January 31, 2026, respectively, which is included in accrued expenses and other current liabilities on the consolidated balance sheets.
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, among other things, 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 April 30, 2026, we believe that no material loss will be incurred in excess of the amounts recognized in our financial statements.
14. Leases
Leases
The Company’s lease portfolio consists solely of office space with lease terms ranging from approximately one to ten years. Certain lease agreements include options to renew or terminate the lease, which are not reasonably certain to be exercised and therefore are not factored into the determination of lease payments.
The components of lease cost reflected on the consolidated statements of operations were as follows (in thousands):

| Three Months Ended April 30,
| 2026 |  | 2025
Operating lease cost | $ | 4,884 |  |  | $ | 4,521 |
Variable lease cost | 997 |  |  | 867 |
Short-term lease cost | 10 |  |  | 297 |
Total net lease cost | $ | 5,891 |  |  | $ | 5,685 |

The future maturities of the Company’s operating lease liabilities by fiscal year are as follows (in thousands):

| Amount
Remainder of 2027 | $ | 15,607 |
2028 | 17,262 |
2029 | 14,938 |
2030 | 14,627 |
2031 | 13,290 |
Thereafter | 27,658 |
Total future undiscounted lease payments | $ | 103,382 |
Less: imputed interest | (21,926) |
Total reported lease liability | $ | 81,456 |

The Company's lease terms and discount rates are as follows:

| April 30,
| 2026 |  | 2025
Weighted-average remaining lease term (years) | 6.1 |  | 7.0
Weighted-average discount rate | 7.7 | % |  | 7.4 | %

Other information for the Company's leases is as follows (in thousands):
23

Table of Contents

| Three Months Ended April 30,
| 2026 |  | 2025
Cash paid for amounts included in the measurement of lease liabilities | $ | 4,459 |  |  | $ | 4,992 |
Operating lease right-of-use assets obtained in exchange for new operating lease liabilities | $ | 2,373 |  |  | $ | 828 |

15. Income Taxes
The Company computes its provision for interim periods by applying an estimated annual effective tax rate to anticipated annual pretax income or loss as directed by ASC 740. The estimated annual effective tax rate is applied to the Company’s year to date income or loss, and is adjusted for discrete items recorded in the period. The Company recorded an income tax expense of $1.4 million and $1.1 million for the three months ended April 30, 2026 and 2025, respectively. The effective tax rate for the three months ended April 30, 2026 and 2025 was (5.9)% and (3.1)%, respectively.
The provision for income taxes recorded for the three months ended April 30, 2026 consists of income taxes in state jurisdictions and foreign jurisdictions in which the Company conducts business. The primary difference between the effective tax rate and the statutory rate is the change in the valuation allowance recorded. The Company continues to maintain a full valuation allowance against its net deferred tax assets as we have concluded that it is not more likely than not that the deferred tax assets will be realized. When the Company determines that it will be able to realize some portion or all of its deferred tax assets, an adjustment to its valuation allowance on its deferred tax assets would have the effect of increasing net income in the period such determination is made.
16. Net Loss per Share
We compute the basic and diluted net loss per share of our Class A common stock and our previously outstanding Class B common stock. The rights, including the liquidation and dividend rights, of the Class A common stock and the previously outstanding Class B common stock are substantially identical, other than voting rights. Accordingly, the Class A common stock and the previously outstanding Class B common stock share in the Company’s net loss.
On January 30, 2026, the shares of Class B common stock that converted to Class A common stock were retired and will not be reissued by us.
The following table sets forth the computation of basic and diluted net loss per share attributable to Braze, Inc. common stockholders during the periods presented (in thousands, except per share amounts):

| Three Months Ended April 30,
| 2026 |  | 2025
Numerator: |  |  |
Net loss attributable to Braze, Inc. | $ | (26,591) |  |  | $ | (35,786) |
Denominator: |  |  |
Weighted-average shares used to calculate net loss per share attributable to Braze, Inc. common stockholders, basic and diluted | 110,797 |  |  | 104,572 |
Net loss per share attributable to Braze, Inc. common stockholders, basic and diluted | $ | (0.24) |  |  | $ | (0.34) |

The following outstanding shares of potentially dilutive securities have been excluded from diluted net loss per share attributable to Braze, Inc. common stockholders for the periods presented, because their inclusion would be anti-dilutive (in thousands):

| Three Months Ended April 30,
| 2026 |  | 2025
Replacement shares issued in connection with acquisition | 1,888 |  |  | — |
Options to purchase common stock | 3,242 |  |  | 4,831 |
Restricted stock units and performance stock units | 12,873 |  |  | 7,978 |
ESPP shares estimated to be purchased | 201 |  |  | 142 |
Total | 18,204 |  |  | 12,951 |

24

Table of Contents
17. Related Party Transactions
In 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 $1.4 million and $1.2 million during the three months ended April 30, 2026 and 2025, respectively.
18. Derivative Financial Instruments
The Company uses derivative instruments, specifically foreign currency forward contracts, to hedge certain portions of forecasted cash flows denominated in foreign currencies. The foreign currency forward contracts have maturities of 12 months or less. The fair value of the derivatives are disclosed on a gross basis on the consolidated balance sheets. Unrealized foreign exchange gains or losses related to those designated cash flow hedge contracts are recorded in accumulated other comprehensive income and are reclassified into the consolidated statements of operations in the same period when the hedged transaction is recognized in earnings. Cash flows from the settlement of these forward contracts are classified as operating activities on the consolidated statements of cash flows. As of April 30, 2026, the Company had designated cash flow hedge forward contracts with sell notional amounts equivalent to $19.9 million.
The Company will discontinue the cash flow hedges in the event it becomes probable that the underlying forecasted hedged transaction will not occur. The Company did not discontinue any cash flow hedges in the three months ended April 30, 2026. The Company does not anticipate any such discontinuance in the normal course of business.
The following table presents the fair value of the Company’s derivative financial instruments as well as their classification on the consolidated balance sheets (in thousands):

| Three Months Ended April 30,
| 2026 |  | 2025
Prepaid expenses and other current assets
Cash flow hedges | $ | 69 |  |  | $ | 963 |
Accrued expenses and other current liabilities
Cash flow hedges | (3) |  |  | — |
Total | $ | 66 |  |  | $ | 963 |

The following table presents the impact that changes in fair values of derivatives designated as cash flow hedges had on other comprehensive income, accumulated other comprehensive income, and earnings (in thousands):

| Unrealized Gain (Loss) on Derivative Instruments
Balance at January 31, 2026 | $ | 384 |
Other comprehensive income (loss) before reclassifications | (389) |
Amounts reclassified from accumulated other comprehensive income (loss) to operating expenses | 72 |
Balance at April 30, 2026 | $ | 66 |

19. Business Combination
Acquisition of OfferFit, Inc.
On June 2, 2025, the Company acquired OfferFit, Inc. The acquisition was intended to deepen the integration of OfferFit’s multi-agent decisioning engine into Braze’s Customer Engagement Platform. The total adjusted preliminary purchase price, as adjusted, of $303.2 million consisted of cash payments of $195.6 million, and $107.6 million in issuances of Braze Class A common stock. The preliminary purchase price, as adjusted, was allocated to intangible assets in the amount of $66.6 million and goodwill in the amount of $233.7 million based on the respective estimated fair values. The resulting goodwill is not deductible for income tax purposes.
20. Intangible Assets, Net
Intangible assets, net, consisted of the following (in thousands):
25

Table of Contents

| April 30, 2026
| Gross Carrying Amount |  | Accumulated Amortization |  | Net Carrying Amount |  | Amortization Period
Amortizable intangible assets |  |  |  |  |  |  |
Customer relationships |  |  |  |  |  |  |
North Star Y, Pty Ltd | $ | 3,119 |  |  | $ | (910) |  |  | $ | 2,209 |  |  | 10 years
OfferFit, Inc | 9,000 |  |  | (1,375) |  |  | 7,625 |  |  | 6 years
Trademark | 900 |  |  | (825) |  |  | 75 |  |  | 1 year
Technology | 56,700 |  |  | (8,662) |  |  | 48,038 |  |  | 6 years
Total amortizable intangible assets | 69,719 |  |  | (11,772) |  |  | 57,947 |  |  |
Non-amortizable intangible assets |  |  |  |  |  |  |
Technology licenses | $ | 500 |  |  | $ | — |  |  | $ | 500 |  |  | n/a
Total intangible assets, net | $ | 70,219 |  |  | $ | (11,772) |  |  | $ | 58,447 |  |  |

| January 31, 2026
| Gross Carrying Amount |  | Accumulated Amortization |  | Net Carrying Amount |  | Amortization Period
Amortizable intangible assets |  |  |  |  |  |  |
Customer relationships |  |  |  |  |  |  |
North Star Y, Pty Ltd | $ | 3,119 |  |  | $ | (832) |  |  | $ | 2,287 |  |  | 10 years
OfferFit, Inc | 9,000 |  |  | (1,000) |  |  | 8,000 |  |  | 6 years
Trademark | 900 |  |  | (600) |  |  | 300 |  |  | 1 year
Technology | 56,700 |  |  | (6,300) |  |  | 50,400 |  |  | 6 years
Total amortizable intangible assets | 69,719 |  |  | (8,732) |  |  | 60,987 |  |  |
Non-amortizable intangible assets |  |  |  |  |  |  |
Technology licenses | $ | 500 |  |  | $ | — |  |  | $ | 500 |  |  | n/a
Total intangible assets, net | $ | 70,219 |  |  | $ | (8,732) |  |  | $ | 61,487 |  |  |

Intangible amortization expense was approximately $3.0 million and $0.1 million for the three months ended April 30, 2026 and 2025, respectively.
The future intangible amortization expense by fiscal year is as follows (in thousands):

| Amount
Remainder of 2027 | $ | 8,521 |
2028 | 11,262 |
2029 | 11,262 |
2030 | 11,262 |
2031 | 11,262 |
Thereafter | 4,378 |
Total | $ | 57,947 |

21. Goodwill
The changes in the carrying amounts of goodwill were as follows (in thousands):

| Amount
Balance at January 31, 2026 | $ | 261,857 |
Acquisition related adjustments | 263 |
Balance at April 30, 2026 | $ | 262,120 |

26

Table of Contents
22. Segments
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 (the “CODM”) in deciding how to allocate resources to an individual segment and in assessing performance. Our Chief Executive Officer is the CODM. The Company derives revenues from customers by providing cloud-based customer engagement platform subscriptions. The Company derives revenue primarily in North America and manages the business activities on a consolidated basis. As such, we have one operating segment, which is the customer engagement platform segment.
The CODM reviews financial information presented on a consolidated basis for purposes of making operating decisions, allocating resources, and evaluating financial performance. Intra-entity activities are eliminated at the consolidated level. The Company’s method for measuring performance on a single operating and reportable segment basis is net loss. Refer to the consolidated statements of operations. In assessing the performance of the business, the CODM regularly reviews consolidated expense information of both historical and forecasted periods to manage operations of the segment (i.e., the consolidated business).
The CODM reviews assets for Braze’s single reportable segment on a consolidated basis. Refer to the consolidated balance sheets.
23. Subsequent Events
In May 2026, the Company granted RSUs for a total of 143,803 shares of Class A common stock to employees pursuant to the 2021 Plan. The RSUs vest over a service period of approximately four years. The grant date fair value of these awards was $3.4 million.
27

Table of Contents
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our unaudited condensed consolidated financial statements and related notes that are included elsewhere in this Quarterly Report on Form 10-Q and our audited annual consolidated financial statements and related notes for the fiscal year ended January 31, 2026 that are included in our Annual Report on Form 10-K, or the Annual Report, filed with the U.S. Securities and Exchange Commission, or the SEC, on March 25, 2026. In addition to historical financial information, the following discussion contains forward-looking statements that are based upon current plans, expectations and beliefs that involve risks and uncertainties. Our actual results may differ materially from those anticipated in these forward-looking statements as a result of various factors, including, but not limited to, those set forth under the section entitled “Risk Factors” in Item 1A of Part II of this Quarterly Report on Form 10-Q. See “Special Note Regarding Forward Looking Statements” in this Quarterly Report on Form 10-Q.
Overview
Braze is a leading customer engagement platform that empowers brands to Be Absolutely Engaging. Our platform brings together rich, first-party context, transforms that context with composable intelligence (models, agents, and operators), and delivers continuous, and personally relevant interactions across channels. Using our platform, brands ingest and process customer data in real time, orchestrate and optimize contextually relevant, marketing campaigns across multiple channels. Our platform is designed so that interactions between brands and consumers have the same relevance and cross-channel continuity as human interactions.
Our customers include many established global enterprises and leading technology innovators, and span a wide variety of sizes and industries, including retail and consumer goods, media and entertainment, gaming, sports, restaurants and on-demand services, healthcare and life sciences, technology, and financial services.
We primarily generate revenue from the sale of subscriptions to customers for the use of our platform. Our subscription fees are principally based on an upfront commitment by our customers for messaging volumes, a specific number of monthly active users, platform access and/or support and certain add-on products. Additionally, we provide professional services, which better enable customers to successfully onboard and use our platform, including certain premium professional services such as email deliverability support and dedicated technical support staff.
We employ a land-and-expand business model centered around offering products that are easy to adopt and have a rapid time to value. We expand our reach within existing customers when our customers add new channels, purchase additional subscription products, implement new engagement strategies, or onboard new business units and geographies. We also grow as our customers grow because our pricing is based in large part on the number of consumers that our customers reach and the volume of messages our customers send. Accordingly, as our customers increase the use of our platform and increase the number of end users reached via our platform, the value of our contracts with such customers also increases.
We have grown significantly in recent periods. We generated revenue of $211.0 million in the three months ended April 30, 2026, representing year-over-year growth of 30.2% from the three months ended April 30, 2025. We had net losses of $25.5 million and $35.6 million in the three months ended April 30, 2026 and 2025, respectively. We had net cash provided by operating activities of $28.1 million in the three months ended April 30, 2026 and net cash provided by operating activities of $24.1 million in the three months ended April 30, 2025. Our Non-GAAP free cash flow was $26.8 million and $22.9 million in the three months ended April 30, 2026 and 2025, respectively. See the section titled “— Non-GAAP Free Cash Flow” for additional information about how we calculate free cash flow, a non-GAAP financial metric, and a reconciliation to net cash provided by operating activities, the most directly comparable measure calculated in accordan ce with accounting principles generally accepted in the United States, or U.S. GAAP.
Factors Affecting Our Performance
Acquiring New Customers
We believe there is substantial opportunity to continue to grow our customer base. We intend to continue to expand our customer base in verticals where we already have a strong presence, such as retail and consumer goods, media and entertainment, telecommunications, restaurants and on-demand services, healthcare and life sciences, technology, manufacturing, education, government and public services, and financial services — and to increase our presence in verticals where we are not yet strongly represented. Through our sales and marketing efforts, we also plan to capitalize on industries subject to ongoing digital transformation and where direct-to-consumer relationships are accelerating, to further propel adoption of our technology. As of April 30, 2026, we had 2,713 customers across a broad range of sizes and industries. Our ability to attract new customers will depend on a number of factors, including the quality and pricing of our products, offerings of our competitors and the effectiveness of our marketing efforts.
28

Table of Contents
We define a customer as the separate and distinct, ultimate parent-level entity that has an active subscription with us to use our products. A single organization could have multiple distinct contracting divisions or subsidiaries, all of which together would be considered a single customer.
Expanding Within Our Existing Customer Base
We believe we can achieve significant growth by expanding sales within our existing customer base. We expand the use of our platform by existing customers by, among others, adding new channels and increasing the messaging volume we sell to our customers as their businesses and needs continue to grow and as they connect directly with additional consumers, which in turn leads to a need for greater messaging capacity. We intend to continue to invest in developing and enhancing our products and functionality. Our ability to increase sales to existing customers will depend on a number of factors, including our customers’ satisfaction with our solutions, the ability of our customers to attract new end users, competition, pricing and overall changes in our customers’ spending levels.
Historically, we have experienced significant expansion within a customer’s business once our platform is deployed, with customers typically increasing the number of monthly active users, channels and use cases, as well as purchasing additional products. A monthly active user is an end user of a customer who has engaged with the customer’s applications and websites in the previous thirty-day period. We include each distinguishable end user in our calculation of monthly active users, even though some users may access our customers’ applications and websites using more than one device, and multiple users may gain access using the same device. As of April 30, 2026, we had approximately 8.5 billion monthly active users, up from the approximately 8.0 billion monthly active users as of January 31, 2026.
Braze supports interactions across a broad range of both in-product and out-of-product messaging channels. The flexibility of our platform also allows us to add new channels quickly and efficiently as they become relevant to our customers. The breadth of channels we offer, and our ability to efficiently expand our offering of channels, allows us to expand our reach within existing customers as they purchase additional channels from us.
In addition to monthly active users, we have a history of increasing annual recurring revenue, or ARR, from our customers. We define ARR as the annualized value of customer subscription contracts, including certain premium professional services that are subject to contractual subscription terms, as of the measurement date, assuming any contract that expires during the next 12 months is renewed on its existing terms (including contracts for which we are negotiating a renewal). Our calculation of ARR is not adjusted for the impact of any known or projected future events (such as customer cancellations, expansion or contraction of existing customers relationships or price increases or decreases) that may cause any such contract not to be renewed on its existing terms. Our ARR may decline or fluctuate as a result of a number of factors, including customers’ satisfaction or dissatisfaction with our products and professional services, pricing, competitive offerings, economic conditions or overall changes in our customers’ spending levels. ARR should be viewed independently of revenue and does not represent our GAAP revenue on an annualized basis or a forecast of revenue, as it is an operating metric that can be impacted by contract start and end dates and renewal rates.
For clarity, we use annualized invoiced amounts per customer subscription contract, including certain premium professional services that are subject to contractual subscription terms, as compared to revenue calculated in accordance with GAAP, to calculate our ARR. Our invoiced amounts are not matched to the performance obligations associated with the underlying subscription contract and premium professional service obligations as they are with respect to our GAAP revenue. This can result in timing differences between our GAAP revenue and ARR calculations. For our revenue calculated in accordance with GAAP, we recognize revenue related to contracts with customers in an amount that reflects the consideration to which we expect to be entitled in exchange for subscription and professional services. See the section titled “— Critical Accounting Policies and Estimates” for additional information regarding how we recognize revenue on a GAAP basis. Investors should not place undue reliance on ARR as an indicator of our future or expected results. Moreover, ARR may differ from similarly titled metrics presented by other companies and may not be comparable to such other metrics.
A further indication of the propensity of our customer relationships to expand over time is our dollar-based net retention rate. We calculate our dollar-based net retention rate as of a period end by starting with the ARR from the cohort of all customers as of 12 months prior to such period-end, or the Prior Period ARR. We then calculate the ARR from these same customers as of the current period-end, or the Current Period ARR. Current Period ARR includes any expansion and is net of contraction or attrition over the last 12 months but excludes ARR from new customers in the current period. We then divide the total Current Period ARR by the total Prior Period ARR to arrive at the point-in-time dollar-based net retention rate. We then calculate the weighted average point-in-time dollar-based net retention rates as of the last day of each month in the current trailing 12-month period to arrive at the dollar-based net retention rate. Our dollar-based net retention rate for the trailing 12 months ended April 30, 2026 and April 30, 2025 was 110% and 109%, respectively, for all our customers, and 111% and 112%, respectively, for our customers with ARR of $500,000 or more. In addition, 349 and 262 of our customers had ARR of $500,000 or more as of April 30, 2026 and April 30, 2025, respectively.
29

Table of Contents
Our dollar-based net retention rate is influenced by macroeconomic factors that impact our customers’ purchasing decisions, which may impact the revenue attributable to such customers. The decline in our trailing 12-month dollar-based net retention rate was primarily due to customer turnover and renewals at lower subscription levels. In particular, we have observed that customer renewals in the current uncertain macroeconomic environment and high interest rate climate have led customers to renew their contracts at levels more closely aligned with their current needs, rather than opting for larger commitments based on anticipated future demand.
Expanding Geographically
We believe there is a significant opportunity to continue to expand our presence in international markets we have already penetrated and by entering markets we have not yet penetrated. For the three months ended April 30, 2026 and 2025, approximately 45% and 46% of our revenue was generated outside of the United States, respectively. We expect to increase market penetration in regions including Europe and Asia-Pacific and to further capitalize on the greenfield opportunities globally. Although these investments in geographic regions may negatively affect our operating results in the near term, we believe that they will contribute to our long-term growth.
Sustaining Innovation and Technology Leadership
Our success is dependent on our ability to sustain innovation and technology leadership in order to maintain our competitive advantage. We are focused on investing in research and development to continue to enhance our platform. For example, we continue to develop our artificial intelligence capabilities, to enable brands to better analyze and act on customer data, and to expand our channel offerings. We believe our market-driven product development approach maximizes the return on new feature development and channel expansion. Our customers consistently volunteer to participate in the testing of new products, which indicates their appetite for new and innovative functionality. We believe our continued innovation will provide new avenues for growth through which we will continue to deliver differentiated outcomes for our customers. We intend to continue to invest in building additional products that expand our capabilities and facilitate the extension of our platform to new channels and use cases.
Macroeconomic Conditions on Our Business
Unfavorable conditions in the economy, both in the United States and abroad, may negatively affect the growth of our business and our results of operations. General macroeconomic and socioeconomic conditions such as, among others, instability in the banking and financial services sector, international and domestic supply chain risks, inflationary pressure, interest rate increases, declines in consumer confidence, international conflicts and domestic and foreign political unrest have led to increased economic uncertainty. We cannot predict if these trends will continue, and, accordingly, we are not able to estimate the ongoing effects on our results of operations, financial condition or liquidity as a result of these macroeconomic factors. For additional details, see the section titled “Risk Factors” in Item 1A of Part II of this Quarterly Report on Form 10-Q.
Tax legislation continues to evolve globally with new laws and regulations that create uncertainty in the global economy. The Organization for Economic Cooperation and Development reached agreement among over 140 countries to implement a minimum 15% tax rate on certain multinational enterprises, commonly referred to as the Pillar Two framework. Many countries continue to announce changes in their tax laws and regulations based on the Pillar Two framework. Additionally, the U.S Congress enacted the One Big Beautiful Bill Act, or the OBBBA, which includes significant provisions, including tax cut extensions and modifications to the international tax framework. While we continue to evaluate the impact of these legislative changes as additional guidance becomes available, uncertainty remains regarding the timing and interpretation by tax authorities in affected jurisdictions. These legislative changes could have an adverse impact on our future effective tax rate, tax liabilities, and cash tax.
Components of Results of Operations
Revenue
Revenue is derived from two primary sources: (1) subscription services and (2) professional services and other.
Subscription services primarily consist of access to our customer engagement platform and related customer support. Our customers enter into a subscription for committed contractual entitlements. To the extent that our customers’ usage exceeds the committed contractual entitlements under their subscription plans, they are charged for excess usage, or they may exercise an option to purchase an incremental volume tier of committed contractual entitlements. Revenue associated with platform subscriptions is recognized ratably over the contract term, which is consistent with the period over which services are provided to the customer. Fees associated with excess usage and incremental volume are also treated as subscription revenue. To date, fees associated with excess usage have not been material.
30

Table of Contents
Professional services and other revenue consists of fees for distinct services rendered in training and assisting our customers to configure our platform for their use at the onset of their initial contract or when a new product is purchased. Such revenue is generally recognized over a period of up to six months from providing access to the platform. We also provide additional platform and feature enhancement and optimization services which are generally recognized ratably over the contract term.
Deferred revenue consists of customer billings in advance of revenue being recognized. We generally invoice our customers for subscription services arrangements annually in advance and for professional services upfront.
Cost of Revenue
Cost of revenue consists of direct costs related to providing platform access to our customers and to performing onboarding and professional services including consulting services. These costs primarily include payments to third-party cloud infrastructure providers for hosting software solutions, costs associated with application service providers utilized to deliver the platform, personnel-related costs, including salaries, cash-based performance compensation, benefits and stock-based compensation, and overhead cost allocations, including rent, utilities, information technology costs, depreciation and amortization related to the amortization of acquired intangibles and internal use software and certain administrative personnel costs.
We intend to continue to invest additional resources in our platform infrastructure and our customer support and success organizations to expand the capabilities of our platform. The level, timing and relative investment in our infrastructure could affect our cost of revenue in the future. We expect our cost of revenue to increase for the foreseeable future as we continue to grow our business.
Gross Profit and Gross Margin
Gross profit represents revenue less cost of revenue. Gross margin is gross profit expressed as a percentage of revenue. Our gross margin may fluctuate from period to period as our revenue and cost of revenue fluctuates, including as a result of the timing and amount of resources we dedicate to improving our platform and expanding our products.
Operating Expenses
Our operating expenses consist of sales and marketing, research and development and general and administrative expenses. Personnel costs, including salaries, cash-based performance compensation, benefits and stock-based compensation, are the most significant component of operating expenses. Operating expenses also include allocated overhead costs, which include rent, utilities, depreciation, amortization related to the amortization of acquired intangibles, information technology costs and certain administrative personnel costs. As we continue to expand our operations, we expect an increase in personnel headcount and expansion of our global footprint.
Sales and Marketing
Sales and marketing expenses consist primarily of personnel costs for our sales and marketing organization, sales commissions, costs related to brand awareness, sponsorships, customer marketing events and advertising, agency costs, travel-related expenses and allocated overhead costs.
We intend to continue to invest in sales and marketing to help drive the growth of our business. We expect our sales and marketing expenses will increase in absolute dollars as we continue to invest in sales and marketing activities to acquire new customers and increase sales to existing customers.
Research and Development
Research and development expenses consist primarily of personnel costs for our 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.
We expect to continue our investment in research and development to enhance the user experience of our current customers and attract new customers. We expect research and development expenses to increase in absolute dollars as we continue to invest in enhancing our platform.
General and Administrative
31

Table of Contents
General and administrative expenses consist primarily of personnel costs for finance, legal, human resources and other administrative functions, as well as non-personnel costs such as legal, accounting and other professional service fees, software costs, certain tax, license and insurance-related expenses and allocated overhead costs. Additionally, from time to time general and administrative expenses may include expenses associated with our donation of shares of Class A common stock to a charitable donor-advised fund in connection with our Pledge 1% commitment.
We expect that general and administrative expenses will increase in absolute dollars and vary from period to period as a percentage of revenue for the foreseeable future but decrease as a percentage of revenue over the long term, as we focus on processes, systems, and controls to enable our internal support functions to scale with the growth of our business. We have incurred, and expect to continue to incur, additional expenses as a result of operating as a public company, including expenses to comply with the rules and regulations applicable to companies listed on The Nasdaq Stock Market LLC, expenses related to compliance and reporting obligations pursuant to the rules and regulations of the SEC, and higher expenses for insurance, investor relations and professional services.
Other Income, Net
Other income, net, primarily consists of net exchange gains or losses on foreign currency transactions and investment income consists primarily of income earned on our investments, cash and cash equivalents, and restricted cash.
Provision for Income Taxes
The provision for income taxes consist of the release of the valuation allowance due to the acquisition of Offerfit and income taxes in state and foreign jurisdictions in which we conduct business. We maintain a valuation allowance in jurisdictions where we had net deferred tax assets as we have concluded that it is not more likely than not that the deferred tax assets will be realized.
Results of Operations
The following table sets forth the unaudited condensed consolidated statements of operations data for each of the periods indicated:

| Three Months Ended April 30,
| 2026 |  | 2025
| (in thousands)
Revenue | $ | 210,999 |  |  | $ | 162,059 |
Cost of revenue (1) | 72,336 |  |  | 50,857 |
Gross profit | 138,663 |  |  | 111,202 |
Operating expenses: |  |  |
Sales and marketing (1) | 89,188 |  |  | 74,127 |
Research and development (1) | 46,100 |  |  | 36,797 |
General and administrative (1) | 30,889 |  |  | 40,500 |
Total operating expenses | 166,177 |  |  | 151,424 |
Loss from operations | (27,514) |  |  | (40,222) |
Other income, net | 3,450 |  |  | 5,652 |
Loss before provision for income taxes | (24,064) |  |  | (34,570) |
Provision for income taxes | 1,428 |  |  | 1,071 |
Net loss | $ | (25,492) |  |  | $ | (35,641) |

(1) Includes stock-based compensation expense, net of amounts capitalized as follows:
32

Table of Contents

| Three Months Ended April 30,
| 2026 |  | 2025
| (in thousands)
Cost of revenue | $ | 1,206 |  |  | $ | 1,077 |
Sales and marketing | 10,584 |  |  | 10,011 |
Research and development | 14,640 |  |  | 11,336 |
General and administrative | 7,171 |  |  | 7,975 |
Total stock-based compensation expense | $ | 33,601 |  |  | $ | 30,399 |

The following table sets forth the unaudited condensed consolidated statements of operations data expressed as a percentage of revenue for each of the periods indicated:

| Three Months Ended April 30,
| 2026 |  | 2025
| (as a percentage of revenue)
Revenue | 100 | % |  | 100 | %
Cost of revenue | 34 | % |  | 31 | %
Gross profit | 66 | % |  | 69 | %
Operating expenses: |  |  |
Sales and marketing | 42 | % |  | 46 | %
Research and development | 22 | % |  | 23 | %
General and administrative | 15 | % |  | 24 | %
Total operating expenses | 79 | % |  | 93 | %
Loss from operations | (13) | % |  | (24) | %
Other income, net | 1 | % |  | 3 | %
Loss before provision for income taxes | (12) | % |  | (21) | %
Provision for income taxes | 1 | % |  | 1 | %
Net loss | (12) | % |  | (22) | %

Comparison of the Three Months Ended April 30, 2026 and April 30, 2025
Revenue

| Three Months Ended April 30, |  |
| 2026 |  | 2025 |  | Change |  | % Change
| ($ in thousands)
Revenue | $ | 210,999 |  |  | $ | 162,059 |  |  | $ | 48,940 |  |  | 30.2 | %

Revenue increased by $48.9 million, or 30.2%, for the three months ended April 30, 2026 compared to the three months ended April 30, 2025. Approximately 55.9% of the increase in revenue was attributable to the growth from existing customers and the remaining 44.1% was attributable to growth from new customers.
Cost of Revenue, Gross Profit and Gross Margin

| Three Months Ended April 30, |  |
| 2026 |  | 2025 |  | Change |  | % Change
| ($ in thousands)
Cost of revenue | $ | 72,336 |  | $ | 50,857 |  | $ | 21,479 |  |  | 42.2 | %
Gross profit | $ | 138,663 |  | $ | 111,202 |  | $ | 27,461 |  |  | 24.7 | %
Gross margin | 65.7 | % |  | 68.6 | % |  |  |  |

33

Table of Contents
Cost of revenue increased by $21.5 million, or 42.2%, for the three months ended April 30, 2026, compared to the three months ended April 30, 2025. This increase was primarily driven by a $9.2 million increase in third-party messaging fees associated with growth in premium messaging channels and an increase of $5.7 million in hosting, infrastructure and other third-party fees associated with delivering our platform and services. In addition, we had an increase of $6.6 million in personnel costs, other overhead, and amortization expenses. The increased infrastructure, messaging, and personnel costs were incurred to support overall revenue growth.
Our gross profit increased $27.5 million, or 24.7%, in the three months ended April 30, 2026, compared to the three months ended April 30, 2025, and our gross margin decreased 2.9% to 65.7% in the three months ended April 30, 2026 from 68.6% in the three months ended April 30, 2025. The decrease was primarily due to acquisition related operating costs, including personnel costs of acquired workforce and amortization expense of acquired technology, in addition to increased costs related to our tech stack.
Operating Expenses
Sales and Marketing Expense

| Three Months Ended April 30, |  |
| 2026 |  | 2025 |  | Change |  | % Change
| ($ in thousands)
Sales and marketing | $ | 89,188 |  |  | $ | 74,127 |  |  | $ | 15,061 |  |  | 20.3 | %

Sales and marketing expense increased by $15.1 million, or 20.3%, for the three months ended April 30, 2026, compared to the three months ended April 30, 2025. This increase was primarily due to an increase of $9.9 million in personnel costs and allocated overhead costs for our sales and marketing organization as a result of increased headcount and increased variable compensation for our sales personnel. Additionally, advertising, sales, marketing and promotional activities increased by $3.7 million.
Research and Development Expense

| Three Months Ended April 30, |  |
| 2026 |  | 2025 |  | Change |  | % Change
| ($ in thousands)
Research and development | $ | 46,100 |  |  | $ | 36,797 |  |  | $ | 9,303 |  |  | 25.3 | %

Research and development expense increased by $9.3 million, or 25.3%, for the three months ended April 30, 2026, compared to the three months ended April 30, 2025. This increase was primarily due to an increase of $7.5 million in personnel and allocated overhead costs, for our research and development organization as a result of increased headcount.
General and Administrative Expense

| Three Months Ended April 30, |  |
| 2026 |  | 2025 |  | Change |  | % Change
| ($ in thousands)
General and administrative | $ | 30,889 |  |  | $ | 40,500 |  |  | $ | (9,611) |  |  | (23.7) | %

General and administrative expense decreased by $9.6 million, or 23.7%, for the three months ended April 30, 2026, compared to the three months ended April 30, 2025. This decrease was primarily due to a reduction of $9.7 million in
34

Table of Contents
professional services and legal costs primarily associated with prior period acquisition-related expenses, offset in part by an increase of $0.7 million in personnel and allocated overhead costs.
Other Income, Net

| Three Months Ended April 30, |  |
| 2026 |  | 2025 |  | Change |  | % Change
| ($ in thousands)
Other income, net | $ | 3,450 |  |  | $ | 5,652 |  |  | $ | (2,202) |  |  | (39.0) | %

The decrease in other income, net of $2.2 million, or 39.0%, for the three months ended April 30, 2026, compared to the three months ended April 30, 2025, was attributable to a $1.5 million decrease in investment income from marketable securities. The investment income decrease was driven primarily by the decrease in the marketable securities balance period-over-period to fund acquisition activities.
Liquidity and Capital Resources
As of April 30, 2026, our principal source of liquidity was cash, cash equivalents, and marketable securities of $391.5 million. Our cash and cash equivalents consist of deposit accounts, interest-bearing money market accounts and U.S. government and corporate securities that are stated at fair value. Our marketable securities positions consist mostly of highly liquid short-term investments. The investment income that we generate on these investments is not material to our overall cash balance, but may be adversely affected due to volatility in interest rates.
Since our inception, we have financed our operations primarily through the net proceeds received from the sales of equity securities and cash generated from the sale of subscriptions to our platform. We have generated losses from our operations as reflected in our accumulated deficit of $744.7 million as of April 30, 2026. We had cash flows provided by operating activities for the three months ended April 30, 2026 of $28.1 million.
A substantial source of our cash provided by operating activities is our deferred revenue, which is included on the consolidated balance sheets as a liability. Deferred revenue consists of the unearned portion of billed fees for our subscriptions, which is recorded as revenue over the term of the subscription agreement. As of April 30, 2026, we had total deferred revenue of $342.5 million, recorded as a current liability. Deferred revenue will be recognized as revenue when all of the revenue recognition criteria are met.
In March 2026, our Board of Directors authorized a share repurchase program. During the three months ended April 30, 2026, we entered into an ASR transaction to repurchase a total of $50.0 million of our Class A common stock and took initial delivery of 1,716,002 shares. The total number of shares will be determined upon final settlement based on the weighted-average price over the term of the ASR, less an agreed upon discount. Refer to Note 11. Stockholders’ Equity in this Quarterly Report on Form 10-Q for more information regarding this program.
Cash Flow Overview
The following table summarizes our cash flows for the periods presented:

| Three Months Ended April 30,
| 2026 |  | 2025
| (in thousands)
Net cash provided by operating activities | $ | 28,126 |  |  | $ | 24,144 |
Net cash provided by investing activities | $ | 42,796 |  |  | $ | 122,837 |
Net cash provided by/(used in) financing activities | $ | (49,690) |  |  | $ | 605 |

Operating Activities
For the three months ended April 30, 2026, net cash provided by operating activities was $28.1 million, primarily due to a net loss of $25.5 million adjusted for non-cash charges of $54.7 million and net changes in our operating assets and liabilities of $1.1 million. The non-cash adjustments primarily relate to stock-based compensation of $35.8 million and amortization of deferred contract costs of $12.3 million. The cash inflow from changes in our operating assets and liabilities were primarily due to a decrease in accounts receivable of $3.8 million and increase in deferred revenue of $38.2 million as a result of billings for new bookings and renewals. The cash inflow was offset by cash outflows primarily from an increase in deferred contract costs of $15.3 million as a result of commissions on new bookings and renewals.
35

Table of Contents
For the three months ended April 30, 2025, net cash provided by operating activities was $24.1 million, primarily due to a net loss of $35.6 million adjusted for non-cash charges of $43.8 million and net changes in our operating assets and liabilities of $15.9 million. The non-cash adjustments primarily relate to stock-based compensation of $30.6 million and amortization of deferred contract costs of $9.4 million. The cash inflow from changes in our operating assets and liabilities were primarily due to a decrease in accounts receivable of $9.1 million and increase in deferred revenue of $24.5 million as a result of billings for new bookings and renewals. The cash inflow was offset by cash outflows primarily from an increase in deferred contract costs of $11.9 million as a result of commissions on new bookings and renewals.
Investing Activities
Net cash provided by investing activities was $42.8 million for the three months ended April 30, 2026, primarily consisting of the return of principal on marketable securities of $34.9 million and maturities of marketable securities of $35.9 million, partially offset by purchases of marketable securities of $26.7 million.
Net cash provided by investing activities was $122.8 million for the three months ended April 30, 2025, primarily consisting of the return of principal on marketable securities of $113.3 million and maturities of marketable securities of $63.2 million, partially offset by purchases of marketable securities of $52.4 million.
Financing Activities
Net cash used in financing activities was $49.7 million for the three months ended April 30, 2026, consisting primarily of cash outflow to fund the accelerated stock repurchase transaction of $50.0 million offset partially by proceeds from the exercise of common stock options of $0.3 million.
Net cash provided by financing activities was $0.6 million for the three months ended April 30, 2025, consisting of proceeds from the exercise of common stock options of $0.6 million.
Non-GAAP Free Cash Flow
We report our financial results in accordance with GAAP. To supplement our unaudited condensed consolidated financial statements, we provide investors with the amount of free cash flow, which is a non-GAAP financial measure. Our management uses free cash flow to assess our operating performance and our progress towards our goal of positive free cash flow. We define free cash flow as net cash used in operating activities less cash used for purchases of property and equipment and amounts capitalized for internal-use software development costs. We believe that free cash flow is a useful indicator of liquidity as it measures our ability to generate cash, or our need to access additional sources of cash, to fund operations and investments.
Free cash flow has limitations as an analytical tool, and you should not consider it in isolation or as a substitute for analysis of our results as reported under GAAP. Some of these limitations are (1) it is not a substitute for net cash provided by/(used in) operating activities, (2) other companies may calculate free cash flow or similarly titled non-GAAP measures differently or may use other measures to evaluate their performance, all of which could reduce the usefulness of free cash flow as a tool for comparison, and (3) the utility of free cash flow is further limited as it does not reflect our future contractual commitments and does not represent the total increase or decrease in our cash balance for any given period.
The following table presents a reconciliation of free cash flow to net cash provided by/(used in) operating activities, the most directly comparable measure calculated in accordance with GAAP, for the periods presented:

| Three Months Ended April 30,
| 2026 |  | 2025
| (in thousands)
Net cash provided by operating activities | $ | 28,126 |  |  | $ | 24,144 |
Less: |  |  |
Purchases of property and equipment | (108) |  |  | (217) |
Capitalized internal-use software costs | (1,227) |  |  | (1,055) |
Non-GAAP free cash flow | $ | 26,791 |  |  | $ | 22,872 |
Net cash provided by investing activities | $ | 42,796 |  |  | $ | 122,837 |
Net cash provided by/(used in) financing activities | $ | (49,690) |  |  | $ | 605 |

Our free cash flow increased for the three months ended April 30, 2026 from the three months ended April 30, 2025, primarily due to higher collections as a result of an increase in billings that are aligned with new contracts and contract
36

Table of Contents
renewals. We expect our free cash flow to fluctuate in future periods with changes in our operating expenses and as we continue to invest in our growth. Additionally, our free cash flow may be influenced by macroeconomic factors that impact our collection efforts for customer payments. If we experience collection pressure it may lengthen the time to collect on accounts receivable and increase our bad debt expense, either of which could negatively impact our free cash flow.
Liquidity Outlook
We assess our liquidity primarily through our cash on hand as well as the projected timing of billings under contracts with our paying customers and related collection cycles. While our future capital requirements will depend on many factors, including revenue growth and costs incurred to support customer usage and growth in our customer base, increased research and development expenses to support the growth of our business and related infrastructure, and increased general and administrative expenses to support being a publicly-traded company, we believe our current cash, cash equivalents and marketable securities will be sufficient to meet our working capital and capital expenditure requirements for at least the next 12 months.
Our most significant funding requirements are principally comprised of employee compensation and related taxes and benefits, non-cancelable purchase commitments, and operating lease obligations. Purchase commitments for business operations are primarily related to cloud hosting, infrastructure, and other software-based services and due primarily over the next three years. Our future funding requirements to settle our obligations in foreign jurisdictions are subject to fluctuations due to changes in foreign exchange rates.
While we anticipate being able to satisfy our commitments through a combination of our available current cash, cash equivalents, and marketable securities, and cash generated from the sale of subscriptions to our platform, if our estimates prove to be inaccurate we may seek to sell additional equity or other securities that may result in dilution to our stockholders, issue debt or seek other third-party funding, in order to satisfy our future funding requirements.
Seasonality
We have experienced seasonality in our cost of revenue as a result of our customers’ increased usage of our platform based on their business demands. We typically experience the highest sequential increase in overall messaging volume and compute and storage requirements during the fourth quarter due to the increased activity related to the holiday season and general customer engagement efforts around the end of the calendar year.
Critical Accounting Policies and Estimates
Our unaudited condensed consolidated financial statements and the related notes included elsewhere in this Quarterly Report on Form 10-Q are prepared in accordance with GAAP. The preparation of these unaudited condensed consolidated financial statements requires us to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue, expenses and related disclosures. We evaluate our estimates and assumptions on an ongoing basis. Our estimates are based on historical experience and various other assumptions that we believe to be reasonable under the circumstances. Our actual results could differ from these estimates.
There have been no material changes to our critical accounting policies and estimates from those previously reported and disclosed in our Annual Report other than those referenced in Note 2. Summary of Significant Accounting Policies in this Quarterly Report on Form 10-Q. The section entitled “Management’s Discussion and Analysis of Financial Condition and Results of Operations” contained in our Annual Report provides a more complete discussion of our critical accounting policies and estimates.
Recently Adopted Accounting Pronouncements
Refer to Note 2. Summary of Significant Accounting Policies, to the unaudited condensed consolidated financial statements appearing elsewhere in this Quarterly Report on Form 10-Q for a discussion of recent accounting pronouncements, if applicable.
Item 3. Quantitative and Qualitative Disclosures About Market Risk
We are exposed to market risk in the ordinary course of our business. Market risk represents the risk of loss that may impact our financial position due to adverse changes in financial market prices and rates. Our market risk exposure is primarily the result of fluctuations in interest rates.
37

Table of Contents
Inflation Risk
We do not believe that inflation has had a material effect on our business, financial condition, or results of operations, other than its impact on the general economy. Nonetheless, if our costs were to become subject to inflationary pressures, we might not be able to fully offset such higher costs through price increases. Our inability or failure to do so could harm our business, financial condition, and results of operations.
Interest Rate Risk and Market Risk
We had cash, cash equivalents and marketable securities of $391.5 million as of April 30, 2026, of which $242.2 million was invested in U.S. government securities and corporate debt securities. Our cash and cash equivalents are held for working capital and general corporate purposes. Our investments in marketable securities are made for capital preservation purposes. We do not enter into investments for trading or speculative purposes.
Our cash equivalents and our portfolio of marketable securities are subject to market risk due to changes in interest rates. Fixed rate securities may have their market value adversely affected due to a rise in interest rates, while floating rate securities may produce less income than expected if interest rates fall. As of April 30, 2026, a hypothetical 10% change in interest rates would not have had a material impact on our consolidated financial statements. Because we classify our debt securities as “available for sale,” no gains or losses are recognized due to changes in interest rates unless such securities are sold prior to maturity or unless declines in fair value are determined to be non-temporary.
Foreign Currency Exchange Rate Risk
Our reporting and functional currency is the U.S. dollar, and the functional currency of our foreign subsidiaries is primarily the respective local currency. Substantially all of our sales are denominated in U.S. dollars. Our only sales denominated in a currency other than the U.S. dollars are our sales in Japan, which are denominated in Yen. Therefore, our revenue is not currently subject to significant foreign currency risk. Our operating expenses are denominated in the currencies of the countries in which our operations are located, which are primarily the United States, United Kingdom, Singapore and Japan. Our consolidated results of operations and cash flows are therefore subject to fluctuations due to changes in foreign currency exchange rates and may be adversely affected in the future due to changes in foreign exchange rates. The assets and liabilities of each of our foreign subsidiaries are translated into U.S. dollars at exchange rates in effect at each balance sheet date. Adjustments resulting from translating foreign functional currency financial statements into U.S. dollars are recorded as a separate component on the consolidated statements of comprehensive loss. Gains or losses due to transactions in foreign currencies are included in interest and other income, net in the consolidated statements of operations.
The volatility of exchange rates depends on many factors that we cannot forecast with reliable accuracy. We have experienced and will continue to experience fluctuations in foreign exchange gains and losses related to changes in foreign currency exchange rates. In the event our foreign currency denominated assets, liabilities, revenue, or expenses increase, our results of operations may be more greatly affected by fluctuations in the exchange rates of the currencies in which we do business. A hypothetical 10% change in the relative value of the U.S. dollar to other currencies during any of the periods presented would not have had a material effect on our realized and unrealized gains (losses) on foreign exchange transactions. To further reduce our net exposure to foreign currency exchange rate fluctuations, we use derivative financial instruments. We primarily enter into forward exchange contracts to hedge certain portions of forecasted cash flows denominated in foreign currencies. Further, we enter into forward exchange contracts to offset the earnings impact related to foreign currency exchange rate fluctuations on certain transactions.
Item 4. Controls and Procedures
Evaluation of Disclosure Controls and Procedures
We maintain “disclosure controls and procedures” (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended, or the Exchange Act), that are designed to provide reasonable assurance that information required to be disclosed by us in the reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms.
Disclosure controls and procedures include, without limitation, controls and procedures designed to provide reasonable assurance that information required to be disclosed by us in the reports that we file or submit under the Exchange Act is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow for timely decisions regarding required disclosure.
Our management, with the participation of our Chief Executive Officer and our Chief Financial Officer, evaluated the effectiveness of our disclosure controls and procedures as of April 30, 2026, the end of the period covered by this Quarterly Report on Form 10-Q. Our Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and
38

Table of Contents
procedures were not effective at the reasonable assurance level as of April 30, 2026 because of the material weakness in our internal control, discussed below.
Material Weakness
We identified a material weakness in internal control related to ineffective information technology general controls, or ITGCs, in the areas of user access and program change management over the information technology systems that support our financial reporting processes. Automated and manual controls that rely on system-generated data or reports from the affected information technology environment or process level automated controls in the affected information technology environment were ineffective because they could have been adversely impacted.
Remediation Plan
Management is committed to the planning and implementation of remediation efforts to address this material weakness, and significant progress has been made to date. These remediation efforts, summarized below, which have been implemented, or are in process of implementation, are intended to both address the identified material weaknesses and to enhance our overall financial control environment.
In particular, we have:
•Enhanced controls and procedures over user access and program change management;
•Strengthened our systems and IT compliance functions through targeted hiring, staff training and implementation of new IT policies;
•Hired additional personnel to assist in control documentation and oversight; and
•Engaged an external advisor to assist with control documentation, gap analysis and remediation monitoring.
Remediation of the control deficiencies that aggregate to the material weakness will conclude once the controls and related documentation are consistently executed for a sufficient period of time and are determined to be effective, through formal testing. While, we currently expect this to be completed during the fiscal year ending January 31, 2027, due to the time required for implementation, testing and validation, we cannot guarantee when full remediation will be achieved.
We are committed to continuing to improve our internal control processes and will continue to diligently and vigorously review our financial reporting controls and procedures. As we continue to evaluate and work to improve our internal control over financial reporting, our management may determine to take additional remediation measures beyond those outlined above.
Changes in Internal Control Over Financial Reporting
Other than the remediation efforts noted above, there was no change in our internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) that occurred during the period covered by this Quarterly Report on Form 10-Q that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.
Inherent Limitation on the Effectiveness of Internal Controls
Our management, including our Chief Executive Officer and Chief Financial Officer, does not expect that our disclosure controls and procedures or our internal controls will prevent all error and all fraud. A control system, no matter how well conceived and operated, can provide only reasonable, and not absolute, assurance that the objectives of the control system are met. Further, the design of a control system must reflect the fact that there are resource constraints, and the benefits of controls must be considered relative to their costs. Because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within our company have been detected.
39

Table of Contents
PART II. OTHER INFORMATION
Item 1. Legal Proceedings
From time to time, we may become involved in various legal proceedings arising from the normal course of business activities. As of the date of this Quarterly Report on Form 10-Q, we are not presently a party to any litigation the outcome of which, we believe, if determined adversely to us, would individually or taken together have a material adverse effect on our business, operating results, cash flows or financial condition. Defending such proceedings can be costly and can impose a significant burden on management and employees. The results of any current or future litigation cannot be predicted with certainty, and regardless of the outcome, litigation can have an adverse impact on us because of defense and settlement costs, diversion of management resources and other factors.
Item 1A. Risk Factors
Our operations and financial results are subject to various risks and uncertainties, including those described below. You should carefully consider the risks and uncertainties described below, together with all of the other information in this Quarterly Report on Form 10-Q, including “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and our unaudited condensed consolidated financial statements and related notes. The risks and uncertainties described below are not the only ones we face. Additional risk and uncertainties not presently known to us or that we presently deem less significant may also impair our business operations. If any of the events or circumstances described in the following risk factors is realized, our business, operating results, financial condition, cash flows, and prospects could be materially and adversely affected. In that event, the market price of our Class A common stock could decline, and you could lose part or all of your investment.
Risk Factors Summary
Our business operations are subject to numerous risks, factors and uncertainties, including those outside of our control, that could cause our actual results to be harmed, including risks regarding the following:
•Unstable market and economic conditions may have serious adverse consequences on our business, financial condition, and share price.
•Our rapid revenue growth may not be indicative of our future revenue growth. Our rapid revenue growth also makes it difficult to evaluate our future prospects and may increase the risk that we will not be successful.
•We may require additional capital to support business growth, and this capital might not be available on acceptable terms, if at all.
•We have a limited history operating at our current scale, and our future results of operations may fluctuate significantly due to a wide range of factors, which make it difficult to forecast our future results of operations.
•We have a history of operating losses and may not achieve or sustain profitability in the future.
•The estimates of market opportunity and forecasts of market growth may prove to be inaccurate. Even if the market in which we compete achieves the forecasted growth, our business could fail to grow at similar rates, if at all.
•We face intense competition, including from well-established companies that offer products that compete with ours.
•We may lack sufficient financial or other resources to maintain or improve our competitive position, which may harm our ability to add new customers, retain existing customers, and grow our business.
•If we are unable to attract new customers and renew existing customers, our business, financial condition and results of operations will be adversely affected.
•If we fail to adapt and respond effectively to rapidly changing technology, evolving industry standards, or changing regulations, or to changing customer or consumer needs, requirements or preferences, our platform may become less competitive.
•We are substantially dependent upon customers renewing their subscriptions to, and expanding their use of, our platform to maintain and grow our revenue, which requires us to scale our platform infrastructure and business quickly enough to meet our customers’ growing needs. If we are not able to grow in an efficient manner, our business, financial condition and results of operations could be harmed.
•Failure to effectively develop our sales and marketing capabilities could harm our ability to expand our customer base and achieve broader market adoption of our platform and products.
•We are dependent on a single platform, and the failure to achieve continued market acceptance of our platform could cause our results of operations to suffer.
•If our platform fails to perform properly or there are defects or disruptions in the rollout of our platform updates or enhancements, our reputation could be adversely affected, our market share could decline, and we could be subject to liability claims.
•We may need to reduce prices or change our pricing model to remain competitive.
•Our business depends on our ability to send consumer engagement messages over a number of different channels and any significant disruption in service with our third-party providers or on mobile operating systems could result in a
40

Table of Contents
loss of customers or less effective consumer-brand engagement, which could harm our business, financial condition and results of operations.
•We rely upon third-party providers of cloud-based infrastructure, including Amazon Web Services and Rackspace, to host our products. Any disruption in the operations of these third-party providers or limitations on capacity or interference with our use could adversely affect our business, financial condition and results of operations.
•Our use of artificial intelligence, and machine learning in our platform and our business, as well as our potential failure to effectively implement, use, and market these technologies, may result in reputational harm or liability, or could otherwise adversely affect our business.
•We are subject to stringent and changing laws and regulations, industry standards and contractual obligations related to privacy, data security and data protection. The restrictions and costs imposed by these requirements and our actual or perceived failure to comply with them, could harm our business.
•If we or our third-party service providers or vendors experience a security breach or unauthorized parties otherwise obtain access to our customers’ data, our data or our platform, our solution may be perceived as not being secure, our reputation may be harmed, demand for our platform and products may be reduced and we may incur significant liabilities.
•Changes in laws and regulations related to the internet or changes in the internet infrastructure itself may diminish the demand for our platform and could have a negative impact on our business.
•We employ third-party licensed software for use in or with our platform, and the inability to maintain these licenses or errors or vulnerabilities in the software we license could result in increased costs, or reduced service levels, which would adversely affect our business.
•We have identified one material weakness in our internal control over financial reporting, and if we are unable to achieve and maintain effective internal control over financial reporting, the accuracy and timing of our financial reporting may be adversely affected.
Risks Related to Our Growth and Capital Requirements
Unstable market and economic conditions may have serious adverse consequences on our business, financial condition and share price.
The global economy, including credit and financial markets, has experienced extreme volatility and disruptions, including severely diminished liquidity and credit availability, declines in consumer confidence, declines in economic growth, increases in unemployment rates, increases in inflation rates, higher interest rates, tariffs, and uncertainty about economic stability. These unfavorable conditions have been, and may continue to be, exacerbated in the United States and abroad by global and domestic socioeconomic conditions, including the failure of high-profile banking and other financial institutions, the Federal Reserve’s attempts to combat inflation through interest rate increases, unrest in international trade relations (including those related to trade wars, tariffs, taxation, and importation), domestic and foreign political turmoil, natural catastrophes, pandemics related to highly infectious diseases, warfare and terrorist attacks on the United States, Europe, the Asia Pacific region or elsewhere, and international military conflicts and the related political and economic responses, including ongoing economic uncertainty from trade and resource restrictions resulting therefrom. Continued volatility and disruptions may have adverse consequences on us or the third parties on whom we rely. If the financial, equity or credit markets further deteriorate, including as a result of the measures taken to combat inflation, volatility in the banking and financial services sector, political unrest or war (including restrictions on international trade related thereto), it may make any necessary debt or equity financing more difficult to obtain in a timely manner or on favorable terms, more costly or more dilutive. Increased inflation rates can adversely affect us by increasing our costs, including labor and employee benefits costs. In addition, higher inflation and macroeconomic turmoil and uncertainty could also adversely affect our customers, which could reduce demand for our products and services. For instance, we were founded in 2011, but our business and revenue have grown rapidly over the last several years. As a result of our limited history operating at our current scale, our ability to accurately forecast our future results of operations is limited and subject to a number of uncertainties, including our ability to plan for and model future growth, particularly in a volatile economic environment. Recent increases in inflation, economic volatility and related fluctuations in interest rates have affected customer spending behavior, and if any of these factors continue or are exacerbated, could have a material adverse effect on our business, financial condition and results of operations. To the extent there is a sustained general economic downturn and our customer engagement platform is perceived by customers and potential customers as too costly, or too difficult to deploy or migrate to, our revenue may be disproportionately affected by delays or reductions in general customer engagement technology spending. This perception has previously, and may continue to, result in an extension of our sales cycle with potential customers, thus increasing the time and cost associated with our sales process. Further, even if our customers choose to use our platform, they may nonetheless reduce their customer engagement technology spending and elect not to purchase additional products and services in the future due to budget limitations. Additionally, our dollar-based net retention rate is influenced by macroeconomic factors that impact our customers’ purchasing decisions, who may choose to renew their contracts at levels more closely aligned with their current needs, rather than opting for larger commitments based on anticipated future demand. Macroeconomic factors may also impact our collection efforts for customer payments. If we experience collection pressure it may lengthen the time to collect on accounts receivable and increase in our bad debt expense, either of which could negatively impact our free cash flow. Also, competitors may respond to market conditions by lowering prices and
41

Table of Contents
attempting to lure away our current and potential customers. In addition, macroeconomic uncertainty may result in an increased pace of consolidation in certain industries in which our customers operate. If this were to occur it may result in reduced overall spending on our services, particularly if our customers are acquired by organizations that do not use our services. We cannot predict the timing, strength or duration of any economic slowdown, instability or recovery, generally or within any particular industry. If the economic conditions of the general economy or the markets in which we operate worsen from present levels, our business, results of operations and financial condition could be materially and adversely affected.
Our rapid revenue growth may not be indicative of our future revenue growth. Our rapid revenue growth also makes it difficult to evaluate our future prospects and may increase the risk that we will not be successful.
Our revenue was $211.0 million and $162.1 million for the three months ended April 30, 2026 and 2025, respectively. You should not rely on our historical revenue growth as an indication of our future performance. Even if our revenue continues to increase, we expect that our annual revenue growth rate will decline in the future as a result of a variety of factors, including the maturation of our business. Overall growth of our revenue depends on several factors, including our ability to:
•expand subscriptions for additional functionality within our platform to our existing customers;
•expand the products for and functionality of our platform and achieve market acceptance for them;
•attract new customers, particularly in verticals and organizations where we have already experienced revenue growth;
•succeed in selling our products outside the United States;
•continue to partner with existing customers to improve our platform and its products and functionality;
•keep pace with technological developments;
•price our platform subscriptions effectively;
•provide our customers with support that meets their needs;
•successfully identify and acquire or invest in businesses, products or technologies that we believe could complement or expand our platform; and
•increase awareness of our brand on a global basis and successfully compete with other companies.
We may not successfully accomplish any of these objectives and, as a result, it is difficult for us to forecast our future results of operations. If the assumptions that we use to plan our business are incorrect or change in reaction to changes in our market or as a result of macroeconomic pressures on us or our customers, or if we are unable to maintain revenue growth, our stock price could be volatile, it may be difficult to achieve and maintain profitability, and our business, financial condition and results of operations may be adversely affected. The adverse effect on our results of operations resulting from a failure to achieve our revenue expectations may be particularly acute because of the significant research, development, marketing, sales and other expenses we expect to incur.
We may require additional capital to support business growth, and this capital might not be available on acceptable terms, if at all.
We have funded our operations since inception primarily through equity financings, including through the public markets in our initial public offering, and sales of subscriptions to our platform. We cannot be certain when or if our operations will generate sufficient cash to fully fund our ongoing operations or the growth of our business. We intend to continue to make investments to support our business and may require additional funds to respond to business challenges, including the need to develop new features or enhance our platform, improve our operating infrastructure or acquire complementary businesses and technologies. Accordingly, we may need to engage in equity or debt financings to secure additional funds. Additional financing may not be available on terms favorable to us, including as a result of inflationary pressure and a higher interest rate environment, if at all. If adequate funds are not available on acceptable terms, we may be unable to invest in future growth opportunities, which could harm our business, financial condition and results of operations. If we incur debt, the debt holders would have rights senior to holders of our Class A common stock to make claims on our assets, and the terms of any debt could include restrictive covenants relating to our capital raising activities and other financial and operational matters, any of which may make it more difficult for us to obtain additional capital and to pursue business opportunities. Furthermore, if we issue equity securities, our stockholders will experience dilution, and the new equity securities could have rights senior to those of our Class A common stock. Because our decision to issue securities in the future will depend on numerous considerations, including factors beyond our control, we cannot predict or estimate the amount, timing, or nature of any future issuances of debt or equity securities. As a result, our stockholders bear the risk of future issuances of debt or equity securities reducing the value of our Class A common stock and diluting their interests.
We have a limited history operating at our current scale, and our future results of operations may fluctuate significantly due to a wide range of factors, which make it difficult to forecast our future results of operations.
Our results of operations may fluctuate significantly from period to period due to many factors, many of which are outside of our control, including:
42

Table of Contents
•failure to execute on our growth strategies;
•the level of demand for our platform;
•the rate of renewal of subscriptions with, and extent of sales of additional subscriptions to, existing customers;
•the size, timing, duration and pricing, and other terms of our subscription agreements with existing and new customers;
•the introduction of new products and product enhancements by existing competitors or new entrants into our market, and changes in pricing for products offered by our competitors;
•network outages, security breaches and other cyber-attacks, technical difficulties with or interruptions to our platform;
•customers delaying purchasing decisions in anticipation of new developments or enhancements by us or our competitors or otherwise;
•changes in customers’ budgets;
•seasonal variations related to sales and marketing and other activities, such as expenses related to our customers’ increased usage of our platform and products during the fourth quarter;
•our ability to increase, retain and incentivize the strategic partners that market and sell our platform;
•the timing of growth of our business, in particular through our hiring of new employees and international expansion;
•our ability to control our operating expenses and other costs;
•our ability to hire, train and maintain our direct sales team;
•unforeseen litigation and inability to enforce, protect or defend our intellectual property, or claims of infringement by third parties;
•the timing of our adoption of new or revised accounting pronouncements applicable to us and the impact on our results of operations;
•fluctuations in our effective tax rate; and
•general global economic and political conditions, as well as economic conditions specifically affecting industries in which our customers operate.
Any one of these or other risks or uncertainties discussed elsewhere in this report or the cumulative effect of some of these factors may result in fluctuations in our revenue, results of operations and cash flows, meaning that quarter-to-quarter comparisons of our revenue, results of operations and cash flows may not necessarily be indicative of our future performance, may cause us to miss our guidance and analyst expectations and may cause the price of our Class A common stock to decline. Additionally, if our assumptions regarding these risks and uncertainties are incorrect or change, including as a result of global or domestic macroeconomic and socioeconomic conditions such as, among others, instability in the banking and financial services sector, international and domestic supply chain risks, inflationary pressure, interest rate increases, declines in consumer confidence, international conflicts and domestic and foreign political unrest, that impact us and our customers, or if we do not address these risks successfully, our revenue and results of operations could differ materially from our expectations, and our business, financial condition and results of operations may be adversely affected.
We have a history of operating losses and may not achieve or sustain profitability in the future.
We have experienced net losses in each of our last several fiscal years. We generated a net loss of $25.5 million and $35.6 million for the three months ended April 30, 2026 and 2025, respectively. As of April 30, 2026, we had an accumulated deficit of $744.7 million. While we have experienced significant revenue growth in recent periods, we cannot guarantee whether or when we will achieve or maintain profitability in the future. We also expect our costs and expenses to increase in future periods, which could negatively affect our future results of operations if our revenue does not continue to increase. In particular, we intend to continue to expend substantial financial and other resources on:
•our technology infrastructure and operations, including systems architecture, scalability, availability, performance and security;
•our sales and marketing organization, to engage our existing and prospective customers, increase brand awareness and drive adoption of our products;
•platform development, including investments in our platform development team and the development of new products and functionality for our platform, as well as investments in further improving our existing platform and infrastructure;
•acquisitions or strategic investments;
•international expansion; and
•general administration, including increased insurance, legal and accounting expenses associated with being a public company.
These investments may not result in increased revenue. If we are unable to maintain or increase our revenue at a rate sufficient to offset the expected increase in our costs, our business, financial condition and results of operations will be adversely affected, and we may not be able to achieve or maintain profitability over the long term.
Our customers may face challenges to their businesses as a result of macroeconomic pressures or changes in the interest rate environment. We have in the past, and may in the future, adapt our strategy to address these market dynamics. We cannot guarantee that any change in strategy will be successful and such changes may cause our revenue to decline, which may inhibit
43

Table of Contents
our ability to scale our business and prevent us from achieving and maintaining profitability over the long term. Our customers may also terminate their contracts, renew their agreements on terms less favorable to us, or fail to purchase additional product subscriptions. Our historical data and operating experience may also be insufficient to adequately inform our future pricing and contracting strategies in changing market environments. Any reduction in our prices or an increase in our discounting could adversely affect our revenue, gross margin, profitability, financial position, and cash flow.
The estimates of market opportunity and forecasts of market growth may prove to be inaccurate. Even if the market in which we compete achieves the forecasted growth, our business could fail to grow at similar rates, if at all.
Market estimates and growth forecasts are uncertain and based on assumptions and estimates that may be inaccurate. Our addressable market depends on a number of factors, including businesses’ desire to differentiate themselves through digital customer engagement, partnership opportunities, changes in the competitive landscape, technological changes, data security or privacy concerns, customer budgetary constraints, changes in business practices, changes in the regulatory environment and changes in economic conditions. Our estimates and forecasts relating to the size and expected growth of our market may prove to be inaccurate, and our ability to produce accurate estimates and forecasts may be impacted by economic uncertainty that is outside our control, including as a result of global or domestic macroeconomic and socioeconomic conditions such as, among others, instability in the banking and financial services sector, international and domestic supply chain risks, inflationary pressure, interest rate increases, declines in consumer confidence, international conflicts and domestic and foreign political unrest, that impact us and our customers. Any of these risks could have a significant impact on our business or the business of our customers, either of which could result in a material adverse effect on our results and operations and cause our current estimates and projections to be inaccurate. Even if the market in which we compete meets the size estimates and growth rates we forecast, our business could fail to grow at similar rates, if at all.
We track certain operational metrics with internal systems and tools and do not independently verify such metrics. Certain of our operational metrics are subject to inherent challenges in measurement, and any real or perceived inaccuracies in such metrics may adversely affect our business and reputation.
We track certain operational metrics, including, among others, the number of customers, monthly active users, platform enabled interactions, consumer generated data points, customer messages, annual recurring revenue, dollar-based net retention rate and non-GAAP free cash flow. Our operational metrics are tracked with internal systems and tools that are not independently verified by any third party and which may differ from estimates or similar metrics published by third parties due to differences in sources, methodologies, or the assumptions on which we rely. Our internal systems and tools have a number of limitations, and our methodologies for tracking these metrics may change over time, which could result in unexpected changes to our metrics, including the metrics we publicly disclose. If the internal systems and tools we use to track these metrics undercount or overcount performance or contain algorithmic or other technical errors, the data we report may not be accurate. While these numbers are based on what we believe to be reasonable estimates of our metrics for the applicable period of measurement, there are inherent challenges in measuring how our platform is used across large populations. In addition, limitations or errors with respect to how we measure data or with respect to the data that we measure may affect our understanding of certain details of our business, which could affect our long-term strategies. If our operating metrics are not accurate representations of our business, if investors do not perceive our operating metrics to be accurate, or if we discover material inaccuracies with respect to these figures, we expect that our business, reputation, financial condition, and results of operations would be adversely affected.
Risks Related to Our Business and Our Brand
We face intense competition, including from well-established companies that offer products that compete with ours. We may lack sufficient financial or other resources to maintain or improve our competitive position, which may harm our ability to add new customers, retain existing customers, and grow our business.
The market for customer engagement products is evolving and highly competitive. There are several established and emerging competitors that address specific aspects of customer engagement. We face intense competition from software companies that offer marketing solutions, such as Adobe, Salesforce, Iterable, and Klaviyo. We also compete with internal technologies developed by our customers, particularly enterprise customers, to provide certain functionalities that are also provided by our platform. Many of our existing competitors have, and our potential competitors could have, substantial competitive advantages, such as greater name recognition, longer operating histories, larger sales and marketing budgets and resources, greater customer support resources, lower labor and development costs, larger and more mature intellectual property portfolios and substantially greater financial, technical and other resources than we do. In addition, our competitors may have an advantage in markets where our policies regarding the use of customer data are more restrictive than local laws, regulations, policies and standards. For example, competitors willing to sell customer data in markets where such activity is permissible may have a pricing advantage over us in such markets. Any such pricing advantages that our competitors have may negatively affect our ability to gain new customers and retain existing customers. Additionally, to the extent there is sustained economic volatility, our customers and potential customers may experience delays and reductions in general customer engagement
44

Table of Contents
technology spending. As a result, our competitors have in the past responded, and may continue in the future to respond, to market conditions by lowering prices and attempting to lure away our current and potential customers. With the introduction of new technologies and the entry of new competitors into the market, we expect competition to persist and intensify in the future. In addition, there has been significant merger and acquisition activity among our competitors and the broader technology industry. Continued merger and acquisition activity in the technology industry could further increase the likelihood that we compete with other large technology companies. This could harm our ability to increase sales, maintain or increase subscription renewals, and maintain our prices.
Conditions in our market could change rapidly and significantly as a result of technological advancements, partnering by our competitors or continuing market consolidation. Some of our larger competitors also have substantially broader product lines and market focus and therefore may not be as susceptible to downturns in a particular market. New start-up companies that innovate, and large companies that are making significant investments in research and development, may invent similar or superior products and technologies that compete with one or more of our platform offerings. An existing competitor or new entrant could also introduce new technology that reduces demand for our products and platform capabilities. In addition, some of our competitors may enter into new alliances with each other or may establish or strengthen cooperative relationships with agency partners, technology and application providers in complementary categories, or other parties. Competitors may also consolidate with existing service providers or strategic partners that we rely on, and as a result we could lose partnerships that are difficult to replace. Any such consolidation, acquisition, alliance or cooperative relationship could lead to pricing pressure, a loss of market share or a smaller addressable share of the market and could result in a competitor with greater financial, technical, marketing, service and other resources, all of which could harm our ability to compete.
Some of our larger competitors may use their broader product offerings to compete with us, including by bundling their competitive products with other products being purchased from that company by a customer or by restricting access to their technology platforms thereby making it more difficult for customers to integrate the use of our platform with other competitor products. Potential customers may prefer to purchase from their existing suppliers rather than a new supplier regardless of product performance or features. Furthermore, potential customers may be more willing to incrementally add solutions to their existing infrastructure from competitors than to replace their existing infrastructure with our platform and products. These competitive pressures in our market, or our failure to compete effectively, may result in price reductions, fewer sales, reduced revenue and gross margins, increased net losses and loss of, or failure to expand, our market share. Any failure to address these challenges could harm our business, financial condition and results of operations.
If we are unable to attract new customers and renew existing customers, our business, financial condition and results of operations will be adversely affected.
To increase our revenue, we must continue to attract new customers and retain, and sell more products to, existing customers. Our success will depend to a substantial extent on the widespread adoption of our platform and products as an alternative to existing products in which many enterprises have invested substantial personnel and financial resources and, therefore, may be reluctant or unwilling to abandon. In addition, as our market matures, our products evolve and competitors introduce lower cost or differentiated products that are perceived to compete with our platform, products and services, our ability to sell subscriptions for our products could be impaired. Similarly, our subscription sales could be adversely affected if customers or users within these organizations perceive that features incorporated into competitive products or their own in-house tools reduce the need for our products or if they prefer to purchase other products that are bundled with products offered by other companies that operate in adjacent markets and compete with our products. In addition, the value of our products and services to our customers depends, in part, on our customers’ ability to use them as part of an overall effective marketing strategy. To the extent our customers’ marketing strategies are not effective, they may reduce the use of our products and services or fail to renew their existing contracts. Further, to the extent there is a sustained general economic downturn and our customers and potential customers experience delays or reductions in general customer engagement technology spending, potential customers may be unwilling to take on the additional cost associated with adopting our platform as an alternative to their existing products or service providers, and if they choose to adopt our platform, they may not purchase additional products and services in the future due to budget limitations. As a result of these and other factors, we may be unable to attract new customers, which may have an adverse effect on our business, financial condition and results of operations.
If we fail to adapt and respond effectively to rapidly changing technology, evolving industry standards, or changing regulations, or to changing customer or consumer needs, requirements or preferences, our platform may become less competitive.
Our ability to attract new customers and increase revenue from existing customers depends in large part on our ability to enhance and improve our platform and its products and functionality, increase adoption and usage of our platform, and introduce new products and functionality. The market in which we compete is subject to rapid technological change, evolving industry standards and changing regulations, as well as changing customer and consumer needs, requirements and preferences, including changes in the use of channels through which consumers desire to communicate with brands. Additionally, we cannot predict what, if any, actions regulators will take regarding the use and sale of customer engagement software or in our key
45

Table of Contents
markets in the future. Any regulatory restrictions on the use of customer engagement tools from domestic or foreign regulators could reduce demand for our platform in the United States and foreign markets. Further, recent advances in, and the public availability of, generative and agentic AI have been, and may continue to be, a significant disruptor in consumer engagement and marketing strategies. The success of our business will depend, in part, on our ability to adapt and respond effectively to these changes on a timely basis. If we are unable to enhance our platform offerings to keep pace with rapid technological and regulatory change, or if new technologies emerge that are able to deliver competitive products at lower prices, more efficiently, more conveniently or more securely than our platform, our business, financial condition and results of operations may be adversely affected. Further as we develop, acquire, and introduce new services and technologies, including those that may incorporate AI and machine learning, we may be subject to new or heightened legal, ethical, and other challenges.
The success of our platform depends, in part, on our ability to continuously modify and enhance our platform to adapt to changes and innovation in existing and new technologies to maintain and grow our integrations. We expect that the number of integrations with our customers’ infrastructure that we will need to support will continue to expand as developers adopt new software solutions, and we will have to develop new versions of our platform to work with those new solutions. This development effort may require significant engineering, sales and marketing resources, all of which could adversely affect our business. Any failure of our platform to operate effectively with customer infrastructures could reduce the demand for our platform, and our business, financial condition and results of operations may be adversely affected.
We are substantially dependent upon customers renewing their subscriptions to, and expanding their use of, our platform to maintain and grow our revenue, which requires us to scale our platform infrastructure and business quickly enough to meet our customers’ growing needs. If we are not able to grow in an efficient manner, our business, financial condition and results of operations could be harmed.
We are substantially dependent upon customers renewing their subscriptions to, and expanding their use of, our platform to maintain and grow our revenue. As usage of our platform grows and as customers use it for more complex projects, we may need to devote additional resources to improving our platform architecture, updating our platform’s products and functionality, integrating with third-party systems and maintaining infrastructure performance. In addition, we will need to appropriately scale our internal business as well as grow our partner services network to serve our growing customer base, particularly as our customer base expands over time. Our ability to scale our business is dependent on our ability to maintain and grow our revenue through new and renewed customer subscriptions to our platform, from which we derive substantially all of our revenue. We cannot assure you that we will be able to renew subscriptions with any of our customers at the same or higher contract value, particularly if our customers experience reductions or delays in general customer engagement technology spending in connection with a sustained general economic downturn. In addition, some customers have multiple order forms with different divisions of their entities, which could increase the complexity of negotiating renewals. Our customer base also includes a number of large enterprise customers with high annual contract values. The loss of, or significant reduction in contract value from, one or more of these large enterprise customers could have a disproportionate adverse effect on our revenue and results of operations.
The market for customer engagement products is still evolving, and competitive dynamics may cause our pricing to change as the market matures and as existing and new market participants introduce new types of products and different approaches to enable customers to address their needs. As a result, we may be forced to reduce the prices we charge for our subscriptions and may be required to offer terms less favorable to us for new and renewal agreements, particularly for mid- to large-size enterprises that may demand substantial price discounts as part of the negotiation of subscription contracts.
Further, some of our contracts limit the amount we can increase prices from period to period or include pricing guarantees. Accordingly, these pricing restrictions may cause the revenue generated from these contracts to not keep pace with our costs, particularly if we are adversely affected by increasing costs caused by inflation, including labor and employee benefit costs. We have in the past, and may in the future, adapt our strategy to address these market dynamics for customers that were significantly negatively impacted by the macroeconomic environment. We cannot guarantee that any change in strategy will be successful and such changes may cause our revenue to decline, which may inhibit our ability to scale our business and prevent us from achieving and maintaining profitability over the long term. Our customers may also terminate their contracts, renew their agreements on terms less favorable to us, or fail to purchase additional product subscriptions. As such, our revenue may decline, and, as a result, our ability to scale our business may be impaired and our business, financial condition and results of operations would likely be harmed as a result.
Any failure of or delay in efforts to scale our business could cause difficulty or delay in deploying our products or functionality to customers, could lead to impaired performance, other declines in quality or customer satisfaction, increased costs, difficulty in introducing new features or other operational inefficiencies or failures. These issues could reduce the attractiveness of our platform to customers, resulting in decreased subscriptions with existing and new customers, lower subscription renewal rates, the issuance of service credits or requests for refunds, which could hurt our revenue growth and our reputation. Even if we can upgrade our systems and expand our staff, any such expansion will be expensive and complex, requiring management time and attention, as well as improvements to our operational and financial controls and reporting
46

Table of Contents
systems and procedures. Because of these risks and other inherent risks associated with upgrading, improving and expanding our information technology systems, any needed expansion and improvements to our infrastructure and systems may not be fully or effectively implemented on a timely basis, if at all. Any such expansion efforts may reduce revenue or may not bring the benefits we anticipate, and our business, financial condition and results of operations may be adversely affected.
Failure to effectively develop our sales and marketing capabilities could harm our ability to expand our customer base and achieve broader market adoption of our platform and products.
Our ability to expand our customer base and achieve broader market adoption of our platform will depend on the productivity of our sales and marketing operations. We plan to continue expanding our sales team and strategic partners over the long term, both domestically and internationally; however, there is no assurance that we will be successful in attracting and retaining talented sales personnel or strategic partners or that any new sales personnel will be able to achieve productivity in a reasonable period of time or at all. We also plan to dedicate significant resources to sales and marketing programs to drive new customer acquisition, as well as engage with customers to promote upsell and cross-sell opportunities. For example, to encourage awareness, usage, familiarity and adoption of our platform and products, we offer free trials of our platform. This strategy may not be successful in leading customers to purchase long term subscriptions of our product, as usage of our free tier may not cause users or others within their organization to purchase and deploy our platform. We also engage with industry analysts, consulting firms, marketing service providers, data and technology partners, marketing agencies and other solution partners, business and trade press, and other industry experts who exert considerable influence in our market to promote our platform and our brand. Our business, financial condition and results of operations may be harmed if our sales and marketing efforts do not generate a corresponding increase in revenue. In addition, we may not achieve anticipated revenue growth from expanding our sales team if we are unable to hire, develop and retain talented sales personnel, if our new sales personnel are unable to achieve desired productivity levels in a reasonable period of time, or if our sales and marketing programs are not effective. If the cost of marketing our platform and products increases or competition reduces the effectiveness of our marketing efforts, our business, financial condition and results of operations may be adversely affected.
We are dependent on a single platform, and the failure to achieve continued market acceptance of our platform could cause our results of operations to suffer.
Substantially all of our revenue is attributable to subscriptions for our cloud-based platform. We expect that we will be substantially dependent on our platform to generate revenue for the foreseeable future. As a result, our results of operations could suffer due to:
•any decline in demand for our platform, including as a result of reductions or delays in general customer engagement technology spending by our customers and potential customers in connection with a sustained general economic downturn;
•the failure of our platform to achieve continued market acceptance;
•the market for our platform not continuing to grow, or growing more slowly than we expect;
•the introduction of products and technologies, including AI technologies, that serve as a replacement or substitute for, or represent an improvement over, our platform;
•technological innovations, including related to AI, or new standards that our platform does not address;
•incidents or interruptions with third-party service providers or vendors, including Apple or Google services, that affect the ability of our customers to use our platform;
•sensitivity to current or future prices offered by us or our competitors;
•our inability to release enhanced versions of our platform on a timely basis;
•the development of new communication channels with which we are not able to adequately integrate our platform; and
•changes to mobile devices and platforms that prevent or degrade the functionality of our platform, or our inability to maintain interoperability of our platform with such mobile devices and platforms.
If the market for our platform grows more slowly than anticipated or if demand for our products does not grow as quickly as anticipated, whether as a result of competition, pricing sensitivities, product obsolescence, technological change, unfavorable economic conditions, uncertain geopolitical environment, budgetary constraints of our customers or other factors, we may not be able to grow our revenue, and our business, financial condition and results of operations may be adversely affected.
If our platform fails to perform properly or there are defects or disruptions in the rollout of our platform updates or enhancements, our reputation could be adversely affected, our market share could decline, and we could be subject to liability claims.
Our platform is inherently complex and may contain material defects or errors. Any defects or errors that impact functionality or that cause interruptions in the availability of our platform could result in:
47

Table of Contents
•loss or delayed market acceptance and subscriptions;
•breach of warranty claims;
•breach of contract claims;
•sales credits or refunds for prepaid amounts;
•loss of customers;
•diversion of development and support resources; and
•injury to our reputation.
The costs we would be forced to incur to correct any material defects or errors could be substantial and could adversely affect our business, financial condition and results of operations.
Our customer agreements often provide service level commitments. We have in the past, and may in the future, fail to meet the stated service level commitments or suffer extended periods of unavailability of our platform. Any such incident could result in us being obligated to provide these customers with service credits. We could also face contract terminations or refusal by certain of our customers to renew as a result of any such outages. We outsource substantially all the infrastructure relating to our cloud-based platform to third-party hosting providers and, as a result, our services may be impacted in the future, and have been impacted in the past, by unscheduled downtime at such providers that is beyond our control. Our revenue has in the past been affected, and could be significantly affected in the future, by unscheduled downtime that exceeds the allowed downtimes under our agreements with our customers.
Because of the large amount of data that we collect, process, transmit, store and manage, it is possible that hardware failures or errors in our systems could result in data loss or cause the information that we collect to be incomplete which may result in breach of contract claims, damage our reputation or subject us to regulatory fines or investigations. Furthermore, the availability or performance of our platform could be adversely affected by a number of factors outside our control, including customers’ inability to access the internet, the failure of software systems caused by our third-party vendors, security breaches, cyberattacks or variability in user traffic for our services. For example, our customers access our platform through their internet service providers. If a customer’s service provider fails to provide sufficient capacity to support our platform or otherwise experiences service outages, such failure could interrupt our customers’ access to our platform and adversely affect their perception of our platform’s reliability. In addition to potential liability, if we experience interruptions in the availability of our cloud-based platform, our reputation could be adversely affected, and we could lose customers or have difficulty acquiring new customers.
We also provide frequent incremental releases of updates and functional enhancements to our platform. Despite extensive pre-release testing, such new versions occasionally contain undetected errors when first introduced or released. We have, from time to time, found errors in our platform, and new errors in our platform may be detected in the future. Since our customers use our products for important aspects of their business, any errors, defects, disruptions in our platform or other performance problems with our solutions could hurt our reputation and may damage our customers’ businesses. If that occurs, some of our customers may delay or withhold payment to us, elect not to renew their subscriptions with us, make service credit claims, warranty claims or other claims against us, and we could lose future sales. The occurrence of any of these events could result in an increase in our bad debt expense, an increase in collection cycles for accounts receivable or a decrease in future revenue and earnings, or could cause us to incur the risk or expense of litigation.
We may need to reduce prices or change our pricing model to remain competitive.
Our subscription fees are principally based on an upfront commitment by our customers for a specific number of monthly active users, messaging volume, platform access and/or support and certain add-on products. We expect that we may need to change our pricing from time to time. As new or existing competitors introduce products that compete with ours or reduce their prices, we may be unable to attract new customers or retain existing customers. We also must determine the appropriate price to enable us to compete effectively internationally. Customers may demand substantial price discounts as part of the negotiation of subscription agreements. As a result, we may be required or choose to reduce our prices or otherwise change our pricing model, which could adversely affect our business, financial condition and results of operations.
Our sales cycle with large enterprise customers can be long and unpredictable, and our sales efforts require considerable time and expense.
The timing of our sales cycles with our large enterprise customers and related revenue recognition is difficult to predict because of the length and unpredictability of the sales cycle for these customers. Large enterprise customers may have a lengthy sales cycle for the evaluation and procurement of our platform. Additionally, to the extent there is a sustained general economic downturn resulting in delays or reductions in general customer engagement technology spending by large enterprise customers, we may experience an extension of our sales cycle with potential customers or a reduction in sales cycle win rates due to budgetary constraints. Any delays in our sales cycles may cause a delay between increasing operating expenses for such sales efforts and, upon successful sales, the generation of corresponding revenue. We are often required to spend significant time and
48

Table of Contents
resources to better educate our potential large enterprise customers and familiarize them with the platform. The length of our sales cycle for these customers, from initial evaluation to contract execution, is generally three to six months but can vary substantially and sometimes extend for over 12 months. Large enterprise customers often view a subscription to our platform and products as a strategic decision with significant investment. As a result, customers frequently require considerable time to evaluate, test and qualify our platform prior to entering into or expanding a subscription. During the sales cycle, we expend significant time and money on sales and marketing and contract negotiation activities, which may not result in a sale. Moreover, large enterprise customers may demand complicated configuration and integration services, which can increase our upfront investment with no guarantee that these customers will deploy our offering widely enough across their organization to justify our substantial upfront investment. Further, if we are not able to satisfy the demands of our enterprise customers, we may also face reputational harm.
Additional factors that may influence the length and variability of our sales cycle include:
•the effectiveness of our sales team as we hire and train our new salespeople to sell to large enterprise customers;
•our ability to meet with customers in person during a sales cycle;
•the discretionary nature of purchasing and budget cycles and decisions;
•the obstacles placed by customers’ procurement process;
•economic conditions and other factors impacting customer budgets;
•customers’ familiarity with our products;
•customers’ evaluation of competing products during the purchasing process; and
•evolving customer demands.
Given these factors, it is difficult to predict whether and when a sale will be completed. Consequently, a shortfall in demand for our products and services or a decline in new or renewed contracts in a given period may not significantly reduce our revenue for that period but could negatively affect our revenue in future periods, which could have a material adverse effect on our business, financial condition and results of operations.
Our business and reputation could be adversely affected if our customers are not satisfied with the integration, implementation, or services provided by us or our partners.
The success of our business depends on our customers’ satisfaction with our platform, the support that we provide for our platform and the services that we provide to help integrate and utilize our platform. Onboarding services may be performed by our own staff, by a third party or by a combination of the two. We have partnered with third parties to increase the breadth, capability and depth of capacity for delivery of these onboarding services to our customers, and third parties provide a significant portion of such support. If a customer is not satisfied with the quality of work performed by us or a third party or with the solutions delivered, we could incur additional costs to address the deficiency, which would diminish the profitability of the customer relationship. If we do not help our customers quickly resolve issues and provide effective ongoing support, our ability to sell new products to existing and new customers will suffer and our reputation with existing or potential customers will be harmed, even if the dissatisfaction is with services provided by a third party partner. Further, customer dissatisfaction with our services could impair our ability to expand the subscriptions within our customer base or adversely affect our customers’ renewal of existing subscriptions. In addition, negative publicity related to our customer relationships, regardless of accuracy, may further damage our business by affecting our ability to compete for new business with actual and prospective customers.
Because we generally recognize revenue ratably over the term of each subscription agreement, downturns or upturns in our sales may not be immediately reflected in our financial condition and results of operations.
We recognize revenue ratably over the term of each subscription agreement. Consequently, while a decline in new sales or renewals in any one period may not be reflected in our revenue for that period, this decline will negatively affect our revenue in future periods. Accordingly, the effect of significant downturns in sales and market acceptance of our products and potential changes in our rate of renewals may not be fully reflected in our results of operations until future periods. Our model also makes it difficult for us to rapidly increase our revenue through additional sales in any period, as revenue from new customers generally is recognized over the term of the applicable agreement.
If we fail to maintain and enhance our brand, our ability to expand our customer base may be impaired and our business, financial condition and results of operations may suffer.
We believe that maintaining and enhancing our brand is important to support the marketing and sale of our existing and future products to new customers and expand sales of our platform and products to existing customers. We also believe that the importance of brand recognition will increase as competition in our market increases. Successfully maintaining and enhancing our brand will depend largely on the effectiveness of our marketing efforts, our ability to provide reliable products that continue to meet the needs of our customers at competitive prices, our ability to maintain our customers’ trust, our ability to continue to
49

Table of Contents
develop new functionality and use cases, and our ability to successfully differentiate our products and platform capabilities from competitive products. If we are not able to effectively differentiate our platform and its capabilities from those of our competitors, we may experience difficulty in attracting new customers. Our brand promotion activities may not generate customer awareness or yield increased revenue and, even if they do, any increased revenue may not offset the expenses we incur in building our brand. If we fail to successfully promote and maintain our brand, our business, financial condition and results of operations may be adversely affected.
If we fail to manage our growth effectively, we may be unable to execute our business plan, maintain high levels of service and customer satisfaction or adequately address competitive challenges.
We may continue to experience rapid growth and organizational change, which may continue to place significant demands on our management and our operational and financial resources. We have also experienced growth in the number of customers, the number of engagements we enable and the amount of data that our infrastructure supports. In particular, acquiring and supporting enterprise customers can require significant resources due to their size, volume of messaging and complexity. Our success will depend in part on our ability to manage this growth effectively. We will require significant capital expenditures and valuable management resources to grow without undermining our culture of innovation, teamwork and attention to customer success, which has been central to our growth so far.
We intend to continue to expand our international operations in the future and may expand our product and service offerings with future acquisitions. Our expansion will continue to place a significant strain on our managerial, administrative, financial and other resources. If we are unable to manage our growth successfully, our business, financial condition and results of operations may be adversely affected.
It is important that we maintain a high level of customer services, integration services, technical support and satisfaction as we expand our business. As our customer base continues to grow and as our penetration within existing customers expands, we will need to expand our account management, customer service and other personnel. Failure to manage growth could result in difficulty or delays in launching our platform, declines in quality or customer satisfaction, increases in costs, difficulties in introducing new features, or other operational difficulties. Any of these could adversely impact our business, financial condition and results of operations.
We anticipate that our operations will continue to increase in complexity as we grow, which will create management challenges.
Our business has experienced strong growth and is complex. We expect this growth to continue and for our operations to become increasingly complex. To manage this growth, we continue to make substantial investments to improve our operational, financial and management controls as well as our reporting systems and procedures. We may not be able to implement and scale improvements to our systems and processes in a timely or efficient manner or in a manner that does not negatively affect our results of operations. For example, we may not be able to effectively monitor certain contract requirements for specific products. We may have difficulty managing improvements to our systems, processes and controls or in connection with third-party software, which could impair our ability to provide our platform to our customers, causing us to lose customers, limiting our platform to less significant updates or increasing our technical support costs. If we are unable to manage this complexity, our business, financial condition and results of operations may be adversely affected.
As our customer base continues to grow, we will need to expand our services and other personnel, and maintain and enhance our partnerships, to provide a high level of customer service. We also will need to manage our sales processes as our sales personnel and partner network continue to grow and become more complex and as we continue to expand into new geographies and market segments. If we do not effectively manage this increasing complexity, the quality of our platform and customer service could suffer, and we may not be able to adequately address competitive challenges. These factors could impair our ability to attract and retain customers and expand our customers’ use of our platform.
We depend on our senior management team and the loss of one or more key employees or an inability to attract and retain highly skilled employees could adversely affect our business.
Our success depends largely upon the continued services of our executive officers, particularly our chief executive officer. We rely heavily on our chief executive officer’s vision, expertise and reputation. We rely on our leadership team for research and development, marketing, sales, services and general and administrative functions, and on mission-critical individual contributors. From time to time, our executive management team may change due to the hiring or departure of executives, which could disrupt our business. We have recently experienced, and may in the future experience, transitions in our executive leadership team. The impact of such transitions could result in disruption to our business or strategic plans. We do not have employment agreements with our executive officers or other key personnel that require them to continue to work for us for any specified period; therefore, they could terminate their employment with us at any time. The loss of one or more of our executive officers, particularly our chief executive officer, or key employees (including any limitation on the performance
50

Table of Contents
of their duties or short-term or long-term absences as a result of illness or disability) could have a serious adverse effect on our business.
To execute our growth plan, we must attract and retain highly qualified personnel. Competition for these personnel is intense, especially for experienced software engineers and senior sales executives. We expect to continue to experience difficulty in hiring and retaining employees with appropriate qualifications. In addition, as a result of our hybrid work model, we have a large, remote workforce, which adds to the complexity and costs of our business operations. Our hybrid work model may impact our ability to identify, hire and train new personnel. Also, as a public company, potential candidates may not perceive our compensation package, including our equity awards, as favorably as employees hired prior to our initial public offering or as compared to our private competitors. In addition, our recruiting personnel, methodology and approach may need to be altered to address a changing candidate pool and profile. We may not be able to identify or implement such changes in a timely manner. If we fail to attract new personnel, experience significant turnover or the loss of key personnel or fail to retain and motivate our current personnel, it could adversely affect our business and future growth prospects. Further, many of the companies with which we compete for experienced personnel have greater resources than we have. If we hire employees from competitors or other companies, their former employers may attempt to assert that these employees or we have breached legal obligations, resulting in a diversion of our time and resources.
If we are unable to maintain our culture and core values as we grow, we could lose the innovation, teamwork, passion and focus on execution that we believe contribute to our success, and our business may be harmed.
We believe our culture and core values are critical to our success and have delivered tangible financial and operational benefits to our customers, employees and stockholders. We are a mission-driven company and have designed our core values as a guiding set of principles for our employees and business. Accordingly, we have invested substantial time and resources in building a team that reflects our culture and core values. As we grow and develop our infrastructure as a public company, our operations may become increasingly complex. We may find it difficult to maintain these important aspects of our culture and core values. In addition, the growth of our remote workforce may impact our ability to preserve our culture and core values. Any failure to preserve our culture or core values could negatively affect our future success, including our ability to retain and recruit personnel, and to effectively focus on and pursue our corporate objectives.
Indemnity provisions in various agreements potentially expose us to substantial liability for intellectual property infringement, violations of privacy, data protection and other laws, regulations or contractual obligations, data breaches and other losses.
Many of our agreements with customers and certain other third parties include indemnification provisions under which we agree to indemnify them for losses suffered or incurred as a result of claims of intellectual property infringement, violation of applicable privacy, data protection or other laws, regulations or contractual obligations, data breaches or other liabilities relating to or arising from our platform, products or other contractual obligations. Some of these agreements provide for uncapped liability for losses caused by claims alleging gross negligence or willful misconduct, or claims alleging third party intellectual property infringement, and some indemnity provisions survive termination or expiration of the applicable agreement. While we generally cap all other liabilities, in some instances, the cap may represent a significant amount of potential liability, and such large indemnity payments could harm our business, financial condition and results of operations. Although we normally contractually limit our liability with respect to these obligations, we may still incur substantial liability related to them and we may be required to cease use of certain functionalities offered by our platform as a result of any such claims. Additionally, while we maintain insurance related to these matters, this insurance might not cover all such claims, provide sufficient payments to cover all the costs to resolve one or more of such claims or continue to be available on terms acceptable to us. A claim brought against us that is uninsured or under-insured could result in unanticipated costs, and our business, financial condition and results of operations may be adversely affected. Further, any dispute with a customer with respect to such obligations could have adverse effects on our relationship with that customer, other existing customers and new customers, which could adversely affect our business, financial condition and results of operations.
Our current operations are international in scope, and we plan further geographic expansion. This will create a variety of operational challenges. If we are not successful in sustaining and expanding our international business, we may incur additional losses and our revenue growth could be harmed.
A component of our growth strategy involves the further expansion of our operations and customer base internationally, which will require significant dedication of management attention and financial resources. We are continuing to adapt to and develop strategies to address international markets, but there is no guarantee that such efforts will have the desired effect. We currently have customers in North and South America, Europe, the Middle East, and the Asia-Pacific region. We are continuing to adapt and develop strategies to address international markets, but such efforts may not be successful. In addition, any future stay-at-home, business closure and other restrictive orders and travel restrictions into and outside the United States as a result of international conflicts, domestic unrest or the emergence of new highly infectious diseases, if any, may pose additional challenges for international expansion and may impact our ability to launch new locations and further expand geographically.
51

Table of Contents
Our ability to expand internationally involves various risks, including the need to invest significant resources in such expansion, and the possibility that returns on such investments will not be achieved in the near future or at all in these less familiar competitive environments. We may also choose to conduct our international business through strategic partnerships or other collaboration arrangements. If we are unable to identify partners or negotiate favorable terms, our international growth may be limited. In addition, we have incurred and may continue to incur significant expenses in advance of generating material revenue as we attempt to establish our presence in certain international markets.
We expect that our international activities will continue to grow over the foreseeable future as we continue to pursue opportunities in existing and new international markets. This and any other future expansion of our international activities and operations will require significant management attention and financial resources.
Our current international operations and future initiatives involve a variety of risks, including:
•changes in a country’s or region’s political or economic conditions;
•the need to adapt and localize our platform for specific countries;
•greater difficulty collecting accounts receivable and longer payment cycles;
•unexpected changes in laws, regulatory requirements, taxes or trade laws;
•more stringent regulations relating to privacy, data security and data protection and the collection, transmission, use or other processing of, or access to, sensitive, proprietary, confidential, regulated and personal data, particularly in Europe;
•differing labor regulations, especially in regions where labor laws are generally more advantageous to employees as compared to the United States, including deemed hourly wage and overtime regulations in some of these locations;
•difficulties in managing a business in new markets with diverse cultures, languages, customs, legal systems, alternative dispute systems and regulatory systems;
•increased travel, real estate, infrastructure and legal compliance costs associated with international operations;
•currency exchange rate fluctuations and the resulting effect on our revenue and expenses and the cost and risk of entering into hedging transactions if we chose to do so in the future;
•laws and business practices favoring local competitors or general preferences for local vendors;
•limited or insufficient intellectual property protection or difficulties enforcing our intellectual property;
•political instability, economic sanctions, terrorist activities, or international conflicts, may impact the operations of our business or the businesses of our customers;
•risks related to global health epidemics and related restrictions on our ability and our customers’ ability to travel;
•exposure to liabilities under anti-corruption and anti-money laundering laws, including the U.S. Foreign Corrupt Practices Act of 1977, as amended, or the FCPA, the U.S. domestic bribery statute contained in 18 U.S.C. § 201, the U.S. Travel Act, the U.K. Bribery Act of 2010, the U.K. Proceeds of Crime Act 2002 and similar laws and regulations in other jurisdictions; and
•adverse tax burdens and foreign exchange controls that could make it difficult to repatriate earnings and cash.
Failure to overcome any of these difficulties could negatively affect our results of operations. If we invest substantial time and resources to expand our international operations and are unable to do so successfully, our business, financial condition and results of operations may be adversely affected.
We have a limited history of operating with a substantial remote workforce and the long-term impact of this workplace arrangement on our financial results and business operations is uncertain.
In September 2022, we implemented our hybrid work model, pursuant to which each department may choose to have its employees function primarily as in-person, remote or hybrid workers. We have also hired a large number of employees who are permanently remote, regardless of their department’s determination. As a result, remote work has become the primary experience for a large number of our employees, and our intention is for our workforce to continue to have remote work opportunities into the future. However, we have a limited history of operating with a large remote workforce and, while we anticipate that implementing our hybrid work model will have a long-term positive impact on our financial results and business operations, the impact remains uncertain, particularly in the near term. Additionally, there is no guarantee that we will realize any anticipated benefits to our business, including any cost savings, operational efficiencies or productivity.
Our continuing shift to hybrid and remote work may make it increasingly difficult to manage our business and adequately oversee our employees and business functions, potentially resulting in harm to our company culture, increased employee attrition, the loss of key personnel, difficulty in properly classifying employees and a potentially negative impact on product research and development, and the growth of our business. We may also experience an increased risk of privacy and data security breaches and incidents involving our or our customers’ data as a result of the decentralization of the technology used to operate our business. The mobility of our remote workers may also subject us to an increased risk of regulatory claims if our remote employees establish a nexus for our business in unanticipated jurisdictions. This could cause us to be subject to
52

Table of Contents
tax and employment claims in the applicable jurisdiction. Any of these factors could adversely affect our financial condition and operating results.
We may also face operational or other challenges as we and our customers, partners, suppliers and vendors and other parties with whom we do business continue to adjust to a hybrid model of remote and onsite work. These challenges may result in operational inefficiencies or employee dissatisfaction, either of which could harm our business.
Acquisitions, strategic investments, partnerships or alliances pose integration challenges, divert the attention of management, disrupt our business, dilute stockholder value and adversely affect our business, financial condition and results of operations.
We have in the past and may in the future seek to acquire or invest in businesses, joint ventures, products and platform capabilities, or technologies that we believe could complement or expand our products and platform capabilities, enhance our technical capabilities or otherwise offer growth opportunities. For example, in June 2025, we completed our acquisition of OfferFit, Inc. This acquisition, and any other acquisition or investment we may make in the future, may result in unforeseen operating difficulties and expenditures. In particular, we may encounter difficulties assimilating or integrating the businesses, technologies, products and platform capabilities, personnel or operations of any acquired companies, including those of OfferFit, particularly if the key personnel of an acquired company choose not to work for us, their software is not easily adapted to work with our platform or we have difficulty retaining the customers of any acquired business due to changes in ownership, management or otherwise. These transactions may also disrupt our business, divert our resources and require significant management attention that would otherwise be available for development of our existing business. Any such transactions that we are able to complete may not result in any synergies or operational, financial or other benefits we had expected to achieve, which could result in impairment charges that could be substantial. Additionally, we funded a significant portion of the OfferFit acquisition with the issuance of shares of our Class A common stock, which has had a dilutive impact. Future transactions could also result in dilutive issuances of equity securities or the incurrence of debt, which could adversely affect our business, financial condition and results of operations. In addition, if the resulting business from such a transaction, including OfferFit, fails to meet our expectations, our business, financial condition and results of operations may be adversely affected, or we may be exposed to unknown risks or liabilities.
Risks Related to Our Dependence on Third Parties
Our business depends on our ability to send consumer engagement messages over a number of different channels and any significant disruption in service with our third-party providers or on mobile operating systems could result in a loss of customers or less effective consumer-brand engagement, which could harm our business, financial condition and results of operations.
Our brand, reputation and ability to attract new customers depend on the reliable performance of our technology infrastructure and content delivery. Our platform engages with consumers through a number of channels and integrations, and we are dependent on third-party providers for delivery of content in many of these channels and integrations, including, among others, emails, SMS/MMS/RCS, third-party messaging services and audience sync advertising campaigns. We are also dependent on Apple services and Google services for delivery of mobile and web notifications. If any of these third-party providers change their policies regarding the delivery of certain messages or content, or if our customers do not comply with these third-party providers’ current policies or procedures, some of our customers may no longer be able to use the applicable channels and integrations through our platform. In addition, our network service providers, mobile device operating system providers or inbox service providers may adopt new filtering technologies in an effort to combat spam or robocalling. For example, Apple, Google, Yahoo and other mobile device operating system providers or inbox service providers have developed, and may in the future develop, new applications or functions intended to filter spam and unwanted phone calls, messages or emails. Such technologies may inadvertently filter desired messages or calls to consumers from our customers. If such third-party providers, our customers or their end users adopt new software platforms or infrastructure, we may be required to modify our products and services to account for those new platforms or infrastructure. This development effort may require significant resources, which would adversely affect our business, results of operations and financial condition. Any failure of our products and platform to operate effectively with evolving or new platforms and technologies could also reduce customer satisfaction with, and by extension reduce demand for, our products.
Further, if any of these third-party providers were to suspend or terminate our customers’ use of their services or to suffer extended service outages, then our customers may not be able to deliver the applicable messages or content using our platform. If this were to occur, it could lead to customer dissatisfaction, harm to our reputation or subject us to liability, any of which may harm our business, financial condition and results of operations. For instance, any incident broadly affecting the interaction of Apple or Android devices with necessary Apple or Google services (e.g., iCloud or Apple push notifications), including any delays or interruptions in such Apple or Google services, could adversely affect our business. Further, any cybersecurity events affecting Apple or Google Android devices could result in a disruption to Apple or Google services, regulatory investigations, reputational damage and a loss of sales and customers for Apple or Google, which could in turn impact our business. A
53

Table of Contents
prolonged disruption, cybersecurity event or any other negative event affecting Apple or Google could lead to customer dissatisfaction and could in turn damage our reputation with current and potential customers, expose us to liability and cause us to lose customers or otherwise harm our business, financial condition and results of operations. We will also face similar risks as we add new channels and integrations to our platform that are supported by third parties if such third parties were to face similar challenges or disruptions with regard to their respective channels or integrations. Additionally, many of the third parties that we use or with which we integrate hold us responsible for the acts and omissions of our customers. While we contractually obligate our customers to comply with the requirements of third-party providers and applicable laws when using our platform to deliver content through our messaging channels or integrations, we cannot guarantee that all customers will do so at all times. If any of our customers were to use our platform in violation of the policies of third-party providers or applicable law, even without our knowledge, we may be subject to financial penalties and reputational harm.
We depend in part on mobile operating systems, such as Android and iOS, and their respective infrastructures, to send notifications through various applications that utilize our platform. Any changes in such systems that negatively impact the functionality of our platform could adversely affect our ability to interact with consumers in a timely and effective fashion, which could adversely affect our ability to retain and attract new customers. For example, any anti-tracking features adopted by Apple or Google that require applications to obtain additional permissions to track end user data may impact our customers’ decisions relating to how to interact with end users through our platform. Additionally, if such mobile operating systems change their policies or otherwise limit or prohibit us from sending notifications or otherwise make changes that degrade the functionality of our platform, such changes could adversely affect our business, financial condition and results of operations.
As new mobile devices and mobile, web, email and other messaging platforms are released, there is no guarantee that these mobile devices and platforms will continue to support our platform or effectively roll out updates to our customers’ applications. The parties that control the operating systems for mobile devices and such platforms have no obligation to test the interoperability of new mobile devices or platforms with our platform, and third parties may produce new products that are incompatible with or not optimal for the operation of our platform. Additionally, in order to deliver high-quality customer engagement, we need to ensure that our platform is designed to work effectively with a range of mobile technologies, systems, networks and standards. If consumers choose to use products or platforms that do not support our platform, or if we do not ensure our platform can work effectively with such products or platforms, our business and growth could be harmed. We also may not be successful in developing or maintaining relationships with key participants in the mobile industry that permit such interoperability. If we are unable to adapt to changes in popular operating systems, we expect that our customer retention and customer growth would be adversely affected.
We rely upon third-party providers of cloud-based infrastructure, including Amazon Web Services and Rackspace, to host our products. Any disruption in the operations of these third-party providers or limitations on capacity or interference with our use could adversely affect our business, financial condition and results of operations.
We outsource substantially all the infrastructure relating to our cloud-based platform to third-party hosting providers. Our customers need to be able to access our platform at any time, without interruption or degradation of performance, and we provide many of them with service-level commitments with respect to uptime and, occasionally, throughput. Our products depend on protecting the virtual cloud infrastructure hosted by third-party hosting providers by maintaining its configuration, architecture, features and interconnection specifications, as well as the information stored in these virtual data centers, which is transmitted by third-party internet service providers. Any limitation on the capacity or availability of our third-party hosting providers could impede our ability to onboard new customers or expand the usage of our existing customers, which could adversely affect our business, financial condition and results of operations. Currently, we rely on cloud computing infrastructure, particularly from Amazon Web Services, or AWS, to host our platform and support our operations and many of the internal products we use to operate our business. We also host our end user profiles on Rackspace. We do not have control over the operations of the facilities of AWS, Rackspace or other cloud providers. Each provider’s respective facilities may be vulnerable to damage or interruption from earthquakes, hurricanes, floods, fires, cybersecurity attacks, security breaches, terrorist attacks, power losses, service outages, software or hardware failures, telecommunications failures and other events beyond our or their control. In the event that AWS’s, Rackspace’s or any other third-party provider’s systems or service abilities are hindered by any of the events discussed above, our ability to operate our platform may be impaired, our customers may be impacted, we may be subject to claims for refunds or terminations under our contracts, and our reputation and brand may be harmed. A decision to close these facilities without adequate notice, or other unanticipated problems, could result in lengthy interruptions to our platform. All of the aforementioned risks may be exacerbated if our or our partners’ business continuity and disaster recovery plans prove to be inadequate in such a scenario.
Additionally, AWS, Rackspace or other cloud providers may experience threats, attacks or security breaches from computer malware, ransomware, viruses, social engineering (including phishing attacks), denial-of-service or other attacks, employee error, theft or misuse and general hacking, including from state-sponsored or criminal hacking groups, which have become more prevalent in our industry. Any of these security incidents could result in unauthorized access or damage to, or the disablement, encryption, use or misuse, disclosure, modification, destruction or loss of our data or our customers’ data, including personal data, or disrupt our ability to provide our platform or services. Further, any incident affecting our third-party
54

Table of Contents
hosting providers’ infrastructure that may be caused by natural disasters, fire, flood, severe storm, earthquake, power loss, telecommunications failures, outbreaks of contagious diseases, terrorist or other attacks, and other similar events beyond our control could negatively affect our cloud-based products. Our platform’s continuing and uninterrupted performance is critical to our success. Customers may become dissatisfied by any system failure that interrupts our ability to provide our platform to them and could make claims for refunds or terminations under our contracts. We may not be able to easily switch our AWS or Rackspace operations to another cloud or other data center provider if there are disruptions or interference with our use of any third-party provider’s services, and even if we do switch our operations, the process can require significant time and expense and other cloud and data center providers are subject to the same risks. Sustained or repeated system failures would reduce the attractiveness of our platform to our customers, thereby reducing revenue. Moreover, negative publicity arising from these types of disruptions could damage our reputation and may adversely impact use of our platform. We may not carry sufficient business interruption insurance or have sufficient contractual remedies to compensate us for losses that may occur as a result of any events that cause interruptions in our service.
In the event that our service agreements with our third-party hosting providers are terminated or there is a lapse of service, elimination of services or features that we utilize, interruption of internet service provider connectivity or damage to such facilities, we could experience interruptions in access to our platform as well as significant delays and additional expense in arranging or creating new facilities and services and/or re-architecting our cloud solution for deployment on a different cloud infrastructure service provider, which could adversely affect our business, financial condition and results of operations.
Our agreement with AWS allows AWS to terminate for any reason with 30 days’ advance notice or in case of a breach of contract if such breach is uncured for 30 days. AWS may also terminate immediately upon notice if (1) AWS determines that our use of its service poses a security risk to its services or any other third party, could otherwise adversely impact AWS’s systems, could subject AWS to liability or could be fraudulent, (2) we fail to pay AWS in accordance with our agreement, (3) we cease to operate in the ordinary course, make an assignment for the benefit of creditors or become the subject of any bankruptcy, reorganization, liquidation, dissolution or other similar proceeding, (4) AWS’s relationship with any third-party providers terminates or requires AWS to change the way it provides services or (5) termination is necessary to comply with the law or the requests of governmental entities. Although we expect that we could receive similar services from other third parties if any of our arrangements with AWS are terminated, transitioning the cloud infrastructure currently hosted by AWS to alternative providers would likely be disruptive, and we could incur significant one-time costs. If we are unable to renew our agreement with AWS on commercially reasonable terms or at all, our agreement with AWS is prematurely terminated or we add additional infrastructure providers, we may experience costs or downtime in connection with the transfer to, or the addition of, new data center providers. If AWS or other infrastructure providers increase the costs of their services, our business, financial condition and results of operations could be adversely affected.
Our growth depends in part on the success of our strategic relationships with third parties.
In order to grow our business, we anticipate that we will continue to depend on relationships with strategic partners, including cloud alliance/marketing, infrastructure and technology partners, to provide broader customer coverage and solution delivery capabilities, and also achieve product stickiness. While our strategic partners have not played a lead role in our customer generation process in the past, we intend to develop these relationships to rely more heavily on our partners to help us generate business going forward. Identifying partners, and negotiating, documenting and maintaining relationships with them, requires significant time and resources. Our agreements with our strategic partners are non-exclusive and do not prohibit them from working with our competitors or recommending competing products. Our competitors may be effective in providing incentives to such third parties to favor their products or services or to prevent or reduce subscriptions to our services. If our partners choose to place greater emphasis on products of their own or those offered by our competitors or do not effectively market and sell our platform, our ability to grow our business and sell our products and services may be adversely affected. In addition, acquisitions of our partners by our competitors could result in a decrease in the number of our current and potential customers, as our partners may no longer facilitate the adoption of our platform by potential customers.
We are highly dependent upon our relationship with the developer platforms, web browsers and operating systems provided by third-party technology companies such as Apple and Google. Changes to mobile device operating systems may diminish the usefulness of marketing providers or require significant modifications or demands on our business to continue supporting those operating systems. Changes to developer platform policies related to third-party software, such as Apple or Google, creating restrictions that limit the ability of our existing or potential customers to use software development kits or that further limit the use of cookies could similarly adversely affect our business.
If we are unsuccessful in establishing or maintaining our relationships with third parties, our ability to compete in the marketplace or to grow our revenue could be impaired and our business, financial condition and results of operations may suffer. Even if we are successful, it is not assured that these relationships will result in increased customer usage of our platform or increased revenue.
Risks Related to Privacy, Data Security and Data Protection Laws
55

Table of Contents
We are subject to stringent and changing laws, regulations, rules, industry standards and contractual obligations related to privacy, data security and data protection. The restrictions and costs imposed by these requirements and our actual or perceived failure to comply with them, could harm our business.
Operating our business and platform involves the collection, use, storage, transfer, sharing and other processing of sensitive, proprietary, confidential, regulated and personal data, including such information that we handle on behalf of our customers. These activities subject us to numerous privacy, data security and data protection obligations, such as various laws, regulations, rules, guidance, industry standards, external and internal policies, contracts, and other obligations that govern the processing of personal data by us and on our behalf.
In the United States, federal, state, and local governments have enacted numerous privacy, data security and data protection laws, including data breach notification laws, personal data privacy laws, and consumer protection laws. For example, the federal Health Insurance Portability and Accountability Act of 1996, or HIPAA, as amended by the Health Information Technology for Economic and Clinical Health Act, or HITECH, and their respective implementing regulations, imposes specified requirements relating to the privacy, security and transmission of individually identifiable health information. Federal laws also limit the processing of personal data of children under 13. Violations of these laws can lead to statutory penalties (up to $53,088 per violation in the case of the Children’s Online Privacy Protection Act, for example). If a private plaintiff or regulator alleges that our privacy, data security or data protection policies and practices are either unfair or deceptive, we may be subject to litigation or regulatory enforcement. In the United States, there are federal and state laws that prohibit unfair and deceptive acts and practices, with federal enforcement typically arising out of Section 5 of the Federal Trade Commission Act, or FTC Act. State analogs to the FTC Act, such as the California Unfair Competition Law, often allow for a private right of action as well.
Similarly, the California Consumer Privacy Act (as amended by the California Privacy Rights Act), or the CCPA, imposes privacy, data security and data protection obligations on businesses to which it applies. These obligations include, but are not limited to, providing specific disclosures in privacy notices and affording California residents certain rights related to their personal data. The CCPA allows for statutory fines for noncompliance (up to $7,988 per violation) and provides a private right of action for certain data breaches. Numerous other states also have enacted, or are considering enacting, comprehensive data privacy laws. If we become subject to further new privacy, data security or data protection laws at the state level, the risk of enforcement action against us could increase because we may become subject to additional obligations, and the number of individuals or entities that can initiate actions against us may increase (including individuals, via a private right of action, and state actors).
Outside of the United States, an increasing number of laws, regulations, rules and industry standards apply with respect to privacy, data security and data protection. For example, the European Union’s General Data Protection Regulation, or the EU GDPR, and the version thereof implemented into the laws of the United Kingdom, or the U.K. GDPR, impose strict requirements with respect to processing the personal data of individuals located within the European Economic Area, or the EEA, and the United Kingdom, or the U.K., respectively. While the EU GDPR and the U.K. GDPR remain substantially similar for the time being, the U.K. government has amended the U.K. GDPR through the Data (Use and Access) Act 2025 and may further reform its relevant laws, including in ways that may differ from the EU GDPR. While these developments increase uncertainty with regard to data protection regulation in the U.K., even in their current, substantially similar form, the EU GDPR and U.K. GDPR can expose businesses to divergent parallel regimes that may be subject to different interpretations and enforcement actions for certain violations and related uncertainty. Under the EU GDPR, government regulators may impose temporary or definitive bans on data processing, as well as fines of up to 20 million euros or 4% of annual global revenue, whichever is greater (and the U.K. GDPR currently imposes comparable penalties). Furthermore, because both regimes allow for private rights of action, individuals in the EEA and the U.K. may initiate litigation related to our processing of their personal data.
In addition, many jurisdictions have enacted data localization laws and cross-border personal data transfer laws. These laws may make it more difficult for us to transfer personal data across jurisdictions, which could impede our business. For example, legal developments in the EEA have created complexity and uncertainty regarding processing and transfers of personal data from the EEA to the United States and other countries outside the EEA. Similar complexities and uncertainties also apply to transfers from the U.K. to third countries. For example, the EU, U.K. and Switzerland have agreed to a ‘Data Privacy Framework’ for transfers of personal data from Europe to the U.S. which we rely on. For the time being, this provides a valid mechanism for the international transfer of personal data. Privacy activists have challenged, and are expected to continue to challenge, the adequacy of this transfer mechanism, and therefore we cannot guarantee that such mechanism will remain available to us indefinitely. Additionally, with respect to transfers of personal data from the EEA to the U.K., on June 28, 2021, the European Commission issued an adequacy decision in respect of the U.K.’s data protection framework, enabling data transfers from EU member states to the U.K. to continue until June 27, 2025 without requiring organizations to put in place contractual or other measures in order to lawfully transfer personal data between the territories. While this adequacy decision was extended subsequently until December 2031, the European Commission may unilaterally revoke the adequacy decision at
56

Table of Contents
any point, and if this occurs, it could lead to additional costs and increase our overall risk exposure. While we have taken additional steps to mitigate the impact on us, such as implementing the European Commission’s updated standard contractual clauses, or the SCCs, and the U.K.’s international Data Transfer Agreement (or the U.K.’s international data transfer addendum that can be used with the SCCs), the validity of relying on the SCCs as a transfer mechanism has been, and is expected to continue to be, the subject of further litigation in the EU. Likewise, the validity of relying on the Data Privacy Framework to transfer data to the U.S. is vulnerable to litigation or regulatory action.
In addition to EU and U.K. restrictions on cross-border transfers of personal data, other jurisdictions have enacted or are considering similar cross-border personal data transfer laws and data localization laws, any of which could increase the cost and complexity of doing business in those jurisdictions. For example, Brazil's General Data Protection Law (LGPD) implementing regulations require the mandatory use of specific Brazilian standard contractual clauses to validate cross-border data transfers originating from the country. If we cannot implement a workable, valid compliance mechanism for cross-border transfers of personal data, we may face increased exposure to regulatory actions, substantial fines, and injunctions against processing or transferring personal data from the EEA or elsewhere. The inability to import personal data to the United States could significantly and negatively impact our business operations, including by limiting our ability to offer our full range of services in the EEA and elsewhere, limiting our ability to collaborate with parties that are subject to EU and other privacy, data security and data protection laws or requiring us to increase our personal data processing capabilities in the EEA and elsewhere at significant expense.
We enter into agreements with our customers regarding our collection, use, storage, transfer, sharing and other processing of personal data in relation to the services we provide to them. We also publish public privacy policies and make other public statements about our privacy, data security and data protection practices. Although we endeavor to comply with such agreements, policies and public statements, we may at times fail to do so or may be perceived to have failed to do so, including due to the errors or omissions of our personnel and third-party service providers and vendors. Such failures or perceived failures can subject us to customer lawsuits, termination of customer agreements and governmental enforcement actions. Even if we eventually prevail in any such dispute, resolving them could be expensive and time-consuming to defend and could result in adverse publicity and reputational harm that could adversely affect our business, financial condition and results of operations.
Our obligations related to privacy, data protection and data security are quickly changing in an increasingly stringent fashion. These obligations may be subject to differing applications and interpretations, which may be inconsistent or in conflict among jurisdictions. Preparing for and complying with these obligations requires us to devote significant resources (including, without limitation, financial and time-related resources). These obligations may necessitate changes to our information technologies, systems and practices and to those of any third parties that process personal data on our behalf. In addition, these obligations may require us to change our business model. Although we endeavor to comply with all applicable privacy, data security and data protection obligations, we may at times fail (or be perceived to have failed) to do so. Moreover, despite our efforts, our personnel or third parties upon whom we rely may fail to comply with such obligations which could impact our compliance posture. If we fail, or are perceived to have failed, to address or comply with privacy, data security and data protection obligations, we could face significant consequences. These consequences may include, but are not limited to, government enforcement actions (e.g., investigations, fines, penalties, audits, inspections, and similar actions), litigation (including class-related claims), additional reporting requirements or oversight, bans on processing personal data and orders to delete or not use personal data. Any of these events could have a material adverse effect on our reputation, business, or financial condition, including, but not limited to, loss of customers, interruptions or stoppages in our business operations, inability to process personal data or to operate in certain jurisdictions, limited ability to develop or commercialize our products, expenditure of time and resources to defend any claim or action, adverse publicity or revision or restructuring of our operations.
For more information on the privacy, data security and data protection laws and regulations to which we are or may become subject, see the section titled “Business – Privacy, Data Security and Data Protection” in our Annual Report.
If we or our third-party service providers or vendors experience a security breach or unauthorized third parties otherwise obtain access to our customers’ data, our data or our platform, our solution may be perceived as not being secure, our reputation may be harmed, demand for our platform and products may be reduced and we may incur significant liabilities.
Operating our business and platform involves the collection, storage, transmission and other processing of sensitive, regulated, proprietary and confidential information, including personal data of our customers, their users and our personnel and our customers’ proprietary and confidential information. We may rely upon third parties (such as service providers or vendors) for our data storage and data processing–related activities. We may share or receive sensitive, regulated, proprietary and confidential information, including personal data, with or from third parties. Cyberattacks, malicious internet-based activity, and online and offline fraud are prevalent and continue to increase in frequency and severity. These threats are becoming increasingly difficult to detect, and these threats come from a variety of sources. In addition to traditional computer “hackers,” threat actors, personnel (such as through theft or misuse), sophisticated nation-states, and nation-state-supported actors now engage in cyberattacks, and nation-state actors may do so for geopolitical reasons and in conjunction with military conflicts and
57

Table of Contents
defense activities. We may be subject to a variety of evolving threats, including, but not limited to, social-engineering attacks (including through phishing, vishing and hybrid phishing attacks), malicious code (such as viruses and worms), malware (including as a result of advanced persistent threat intrusions), denial-of-service attacks (such as credential stuffing), personnel misconduct or error by us or third-party service providers or vendors, ransomware attacks, supply-chain attacks, service outages, software bugs, server malfunctions, software or hardware failures, loss of data or other information technology assets, adware, telecommunications failures, earthquakes, fires, floods, and other similar threats. Additionally, our customers have been and may be in the future, targeted by similar cybersecurity threats, and bad actors have accessed, and may in the future, access our platform and services using such customer’s credentials. Accordingly, the failure of our customers to use appropriate cybersecurity technology and practices can result in unauthorized parties obtaining access to our platform and customer data.
Our products may be subject to fraudulent usage, including but not limited to revenue share fraud, domestic traffic pumping, subscription fraud, premium text message scams and other fraudulent schemes, such as phishing. Although our customers are required to set passwords or personal identification numbers to protect their accounts, third parties have in the past been, and may in the future be, able to access customers’ accounts through fraudulent means and use the accounts for fraudulent activity. Ransomware attacks, including those perpetrated by organized criminal threat actors, nation-states, and nation-state-supported actors, are becoming increasingly prevalent and severe and can lead to significant interruptions in our operations, loss of data and income, reputational harm, and diversion of funds. Extortion payments may alleviate the negative impact of a ransomware attack, but we may be unwilling or unable to make such payments due to, for example, applicable laws or regulations prohibiting such payments. Threat actors could also use artificial intelligence technology for malicious purposes, increasing the frequency and complexity of their attacks, e.g., phishing attacks, fraud, social engineering, and other possible malicious uses, such as with writing malware. Code, including code generated by generative artificial intelligence, could potentially be used and deployed that contains undetected vulnerable or malicious components. This could cause widespread deployment of vulnerable code within our systems. Any of the previously identified or similar threats could cause a security incident. We have also implemented a free trial program that may increase the number of users with access to our platform, and some of these users may include malicious actors who may attempt to breach our platform’s security. This may heighten the likelihood of us experiencing a cybersecurity incident. Additionally, the risk of these threats may increase for us and our third-party service providers and vendors due to ongoing international instability. In the past, nation-states have sponsored cyberattacks against private companies in response to U.S. governmental actions or for other strategic purposes. We cannot guarantee that similar actions will not occur in the future. A security incident could result in unauthorized, unlawful, or accidental acquisition, modification, destruction, loss, alteration, encryption, disclosure of, or access to data. A security incident could disrupt our ability (and that of third parties upon whom we rely) to provide our platform.
We may expend significant resources or modify our business activities in an effort to protect against security incidents. Certain data privacy and security obligations require us to implement and maintain specific security measures, industry-standard or reasonable security measures to protect our information technology systems and data. While we have taken steps designed to protect the proprietary, regulated, sensitive, confidential and personal data in our control, our security measures or those of the third parties on which we rely may not be effective against current or future security risks and threats. Moreover, we or our third-party service providers or vendors may be more vulnerable to such attacks in remote work environments, which have increased in recent years and will likely continue into the foreseeable future.
If we, our customers or our third-party service providers or vendors suffer, or are perceived to have suffered, a security breach or other security incident, we may experience adverse consequences. Applicable data privacy and security obligations may require us to notify relevant stakeholders or regulators of security incidents. We may also be required to publicly disclose certain cybersecurity incidents pursuant to the rules and regulations adopted by the SEC. The repercussions of such disclosures can be costly, and the disclosures or the failure to comply with such requirements could lead to adverse consequences. If we, our customers or a third party upon whom we rely, experience a security incident or are perceived to have experienced a security incident, we may experience adverse consequences. These consequences may include, but are not limited to, government enforcement actions (for example, investigations, fines, penalties, audits, and inspections), additional reporting requirements or oversight, restrictions on processing data (including personal data), litigation (including class action claims), indemnification obligations, negative publicity, reputational harm, monetary fund diversions, interruptions in our operations (including availability of data to us and our customers), financial loss and other similar harms. Security incidents and attendant consequences may cause customers to stop using our platform, deter new customers for using our platform and negatively impact our ability to grow and operate our business.
Risks Related to Other Laws and Litigation
Changes in laws and regulations related to the internet or changes in the internet infrastructure itself may diminish the demand for our platform and could have a negative impact on our business.
The future success of our business depends upon the continued use of smart cell phones, other mobile devices and internet-connected devices as primary mediums for commerce, communication and business applications. Government bodies or agencies have in the past adopted, and may in the future adopt, laws or regulations affecting the use of the internet and
58

Table of Contents
internet-connected devices and cell phones as commercial mediums. Changes in these laws or regulations could require us to modify our platform in order to comply with these changes. In addition, government agencies or private organizations may begin to impose taxes, fees or other charges for accessing the internet or commerce conducted via the internet. These laws or charges could limit the growth of internet-related commerce or communications generally, resulting in reductions in the demand for internet-based solutions such as ours.
In addition, the use of the internet as a business tool could be adversely affected due to delays in the development or adoption of new standards and protocols to handle increased demands of internet activity, security, reliability, cost, ease of use, accessibility and quality of service. The performance of the internet and its acceptance as a business tool have been adversely affected by “viruses,” “worms” and similar malicious programs, along with distributed denial-of-service and similar attacks. As a result, the internet has experienced a variety of outages and other delays as a result of such damage to or attacks on portions of its infrastructure. If the use of the internet is adversely affected by these issues, demand for our platform could suffer.
Any future litigation against us could be costly and time-consuming to defend.
We have in the past, and may continue in the future to, become subject to legal proceedings and claims that arise in the ordinary course of business, such as claims brought by our customers in connection with commercial disputes or employment claims made by our current or former employees. Litigation may result in substantial costs and may divert management’s attention and resources, which could seriously harm our business, financial condition and results of operations. Insurance may not cover such claims, provide sufficient payments to cover all the costs to resolve one or more of such claims or continue to be available on terms acceptable to us. A claim brought against us that is uninsured or under-insured could result in unanticipated costs, and our business, financial condition and results of operations may be adversely affected.
If we fail to provide services that our customers can use in compliance with regulations and/or industry standards, our revenue and results of operations could be harmed.
Since our customers are able to upload data into our platform, we may be hosting or otherwise processing substantial amounts of personal data. Our cloud platform has completed a SOC 2 Type 2 audit for security, is ISO 27001 certified and is designed to comply, in all material respects, with various HIPAA standards. Governments and industry organizations may also adopt new laws, regulations, rules, certifications, requirements or standards, or make changes to existing laws, regulations, rules, requirements or standards, that could impact the demand for, or value of, our platform. If we fail to maintain our current security certifications and/or to continue to meet security standards, or if we are unable to adapt our platform to changing legal and regulatory standards or other requirements in a timely manner, our customers may lose confidence in our platform, and our revenue, business, financial condition and results of operations could be adversely affected.
We are subject to anti-corruption, anti-bribery and similar laws, and non-compliance with such laws can subject us to criminal or civil liability and harm our business, financial condition and results of operations.
We are subject to the FCPA, the U.S. domestic bribery statute contained in 18 U.S.C. § 201, the U.S. Travel Act, the U.K. Bribery Act of 2010, the U.K. Proceeds of Crime Act 2002 and other anti-corruption laws in countries in which we conduct activities. Anti-corruption laws are interpreted broadly and prohibit our company from authorizing, offering or providing, directly or indirectly, improper payments or benefits to recipients in the public or private sector. We use third-party law firms, accountants and other representatives for regulatory compliance, sales and other purposes in several countries. We can be held liable for the corrupt or other illegal activities of these third-party representatives, our employees, contractors, partners and other agents, even if we do not explicitly authorize such activities. In addition, although we have implemented policies and procedures to ensure compliance with anti-corruption laws, our employees, representatives, contractors, partners and agents may not comply with these laws at all times.
Noncompliance with these laws could subject us to whistleblower complaints, investigations, sanctions, settlements, prosecution, other enforcement actions, disgorgement of profits, significant fines, damages, other civil and criminal penalties or injunctions, suspension and/or debarment from contracting with certain persons, the loss of export privileges, reputational harm, adverse media coverage and other collateral consequences. If any subpoenas or investigations are launched, or governmental or other sanctions are imposed, or if we do not prevail in any possible civil or criminal litigation, our business, financial condition and results of operations could be materially harmed. In addition, responding to any action will likely result in a materially significant diversion of management’s attention and resources and significant defense costs and other professional fees. Enforcement actions and sanctions could further harm our business, financial condition and results of operations.
Moreover, as an issuer of securities, we also are subject to the accounting and internal controls provisions of the FCPA. These provisions require us to maintain accurate books and records and a system of internal controls sufficient to detect and prevent corrupt conduct. Failure to abide by these provisions may have an adverse effect on our business, financial condition or results of operations.
59

Table of Contents
We are required to comply with governmental export and import controls and economic sanctions that could impair our ability to compete in international markets and subject us to liability if we violate the controls.
Our platform is subject to U.S. export controls, including the Export Administration Regulations. We incorporate encryption technology into our platform. These encryption products and the underlying technology are currently considered “publicly available” by the Export Administration Regulations and may be freely exported outside of the United States. However, if they cease to be considered “publicly available,” then these encryption products and underlying technology may be exported outside of the United States only with the required export authorizations, including by license, a license exception or other appropriate government authorizations. Obtaining the necessary export license or other authorization for a particular sale may be time consuming and may result in the delay or loss of sales opportunities even if the export license ultimately may be granted.
Furthermore, our activities are subject to U.S. economic sanctions laws and regulations that prohibit transactions and dealings, including the export or reexport of certain products and services, to countries, governments and persons targeted by U.S. embargoes or sanctions. While we take precautions to prevent our platform from being exported in violation of these laws, including obtaining authorizations for our platform and performing geolocation IP blocking and screenings against United States and other lists of restricted and prohibited persons, we cannot guarantee that the precautions we take will prevent violations of export control and sanctions laws. Additionally, U.S. embargoes, trade restrictions and sanctions can change rapidly and unpredictably in response to international events, such as the application of broad sanctions and export control restrictions against Russia and Belarus in connection with the invasion of Ukraine. Future embargoes or sanctions on other jurisdictions could have a significant impact on our business or the business of our customers, either of which could have a material adverse effect on our financial results and operations. Violations of U.S. sanctions or export control laws can result in incarceration for responsible employees and managers or the imposition of significant fines or penalties.
If our partners fail to obtain appropriate import, export or re-export licenses or permits, we may also be adversely affected through reputational harm as well as other negative consequences, including government investigations and penalties. We presently incorporate export control compliance requirements into our strategic partner agreements, however, our partners may not comply with such requirements.
In addition to the United States, various other countries regulate the import and export of certain encryption and other technology, including import and export licensing requirements. Some countries have enacted laws that could limit our ability to distribute our platform or could limit our customers’ ability to implement our platform in those countries. Changes in our platform or future changes in export and import regulations may create delays in the introduction of our platform in international markets, prevent our customers with international operations from launching our platform globally or, in some cases, prevent the export or import of our platform to certain countries, governments or persons altogether. Various governmental agencies have proposed additional regulation of encryption technology, including the escrow and government recovery of private encryption keys.
Changes in export or import regulations, economic sanctions or related legislation, or change in the countries, governments, persons or technologies targeted by such regulations, could limit our ability to export or sell our platform to existing or potential customers with international operations and impose additional licensing requirements for the sale of our products. Any decreased use of our platform or limitation on our ability to export or sell our platform would adversely affect our business, results of operations and prospects.
We are exposed to fluctuations in currency exchange rates, which could negatively affect our results of operations.
Our sales contracts are denominated primarily in U.S. dollars, and therefore, our revenue is not directly subject to significant foreign currency risk. However, a strengthening of the U.S. dollar could increase the real cost of our platform and products to our customers outside of the United States, which could adversely affect demand for our platform in international markets and our results of operations. In addition, an increasing amount of our operating expenses are incurred outside the United States, including costs related to our international employees, offices and operations. These operating expenses are denominated in foreign currencies and are subject to fluctuations due to changes in foreign currency exchange rates, including the euro, British pound sterling, and other currencies in jurisdictions where we operate. Consequently, our results of operations could be adversely affected by fluctuations in foreign currency exchange rates. While we from time to time enter into hedging transactions to reduce our foreign currency exposure, these hedging transactions may not adequately mitigate the adverse effects of currency exchange rate fluctuations or may themselves result in additional risks or costs to us. As we continue to expand our international operations, our exposure to foreign currency risk may increase, and our business, financial condition and results of operations could be adversely affected.
Our international operations may subject us to potential adverse tax consequences.
60

Table of Contents
We are expanding our international operations and staff to better support our growth into international markets. Our corporate structure and associated transfer pricing policies contemplate future growth into the international markets, and consider the functions, risks and assets of the various entities involved in the intercompany transactions. The amount of taxes we pay in different jurisdictions may depend on (1) the application of the tax laws of the various jurisdictions, including the United States, to our international business activities, (2) changes in tax rates, (3) new or revised tax laws or interpretations of existing tax laws and policies and (4) our ability to operate our business in a manner consistent with our corporate structure and intercompany arrangements. Taxing authorities may challenge the pricing methodologies of our intercompany arrangements or disagree with our determinations as to the income and expenses attributable to specific jurisdictions. If such a challenge or disagreement were to occur and our position were not sustained, we could be required to pay additional taxes, interest and penalties. This could result in one-time tax charges, higher effective tax rates, reduced cash flows and lower overall profitability of our operations. Our financial statements could fail to reflect adequate reserves to cover such a contingency.
Further, tax legislation continues to evolve globally with new laws and regulations that create uncertainty in the global economy. The Organization for Economic Cooperation and Development reached agreement among over 140 countries to implement a minimum 15% tax rate on certain multinational enterprises, commonly referred to as the Pillar Two framework. Many countries continue to announce changes in their tax laws and regulations based on the Pillar Two framework. Additionally, the U.S Congress enacted the One Big Beautiful Bill Act which includes significant provisions, including tax cut extensions and modifications to the international tax framework. While we continue to evaluate the impact of these legislative changes as additional guidance becomes available, uncertainty remains regarding the timing and interpretation by tax authorities in affected jurisdictions. These legislative changes could have an adverse impact on our future effective tax rate, tax liabilities, and cash tax.
Our ability to use our net operating losses to offset future taxable income may be subject to certain limitations.
As of January 31, 2026, we had net operating loss, or NOL, carryforwards for federal and state income tax purposes of approximately $543.1 million and $339.6 million, respectively, some of which may be available to offset taxable income in the future, and which expire in various years beginning in 2035 for federal purposes and 2026 for state purposes if not utilized. 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, $503.7 million of our NOLs may be carried forward indefinitely for federal tax purposes and various states have enacted tax policies or rules that conform to federal tax laws. A lack of future taxable income would adversely affect our ability to utilize NOLs incurred in tax years beginning on or before December 31, 2017, before they expire. In general, under Section 382 of the Internal Revenue Code of 1986, as amended, the IRC or the Code, a corporation that undergoes an “ownership change” (which generally is defined under Section 382 of the Code and applicable Treasury Regulations as a greater than 50% change, by value, in its equity ownership over a three-year period) is subject to limitations on its ability to utilize its pre-change NOLs to offset future taxable income. We have experienced ownership changes in the past and we may experience a future ownership change under Section 382 of the Code that could affect our ability to utilize the NOLs to offset our income, some of which may be outside of our control. Furthermore, our ability to utilize NOLs of companies that we have acquired or may acquire in the future may be subject to limitations. There is also a risk that due to regulatory changes, such as suspensions on the use of NOLs or other unforeseen reasons, our existing NOLs could expire or otherwise be unavailable to reduce future income tax liabilities, including for state tax purposes. For these reasons, we may not be able to utilize a material portion of the NOLs reflected on our balance sheets, even if we attain profitability, which could potentially result in increased future tax liability to us and could adversely affect our business, financial condition and results of operations.
Changes in our effective tax rate or tax liability may have an adverse effect on our results of operations.
Our effective tax rate could increase due to several factors, including:
•changes in the relative amounts of income before taxes in the various jurisdictions in which we operate that have differing statutory tax rates;
•expansion to new jurisdictions;
•changes in tax laws, tax treaties and regulations or the interpretation of them;
•changes in our assessment of our ability to realize our deferred tax assets that are based on estimates of our future results, the advisability and feasibility of possible tax planning strategies and the economic and political environments in which we do business;
•the outcome of future tax audits, examinations or administrative appeals; and
•limitations or adverse findings regarding our ability to do business in some jurisdictions.
Any of these developments could adversely affect our business, financial condition and results of operations.
We could be required to collect additional sales taxes or be subject to other tax liabilities that may increase the costs our customers would have to pay for our products and adversely affect our results of operations.
61

Table of Contents
An increasing number of states have considered or adopted laws that attempt to impose tax collection obligations on out-of-state companies. Additionally, the Supreme Court of the United States ruled in 2018 in South Dakota v. Wayfair, Inc. et al, or Wayfair, that online sellers can be required to collect sales and use tax despite not having a physical presence in the buyer’s state. In response to Wayfair, or otherwise, state or local governments have adopted and may continue to adopt, or begin to enforce, laws requiring us to calculate, collect and remit taxes on sales in their jurisdictions. In addition, we are subject to indirect taxes in foreign jurisdictions, such as value-added tax and goods and services tax, in connection with certain foreign sales transactions. A successful assertion by one or more tax authorities requiring us to collect taxes where we presently do not do so, or to collect more taxes in a jurisdiction in which we currently do collect some taxes, could result in substantial tax liabilities, including taxes on past sales, as well as penalties and interest that we otherwise have not accounted for in our financial statements. The imposition by tax authorities of indirect tax collection obligations on out-of-jurisdiction sellers also could create additional administrative burdens for us, put us at a competitive disadvantage if similar obligations are not imposed on our competitors and decrease our future sales, which could adversely affect our business, financial condition and results of operations.
Risks Related to Intellectual Property
We employ third-party licensed software for use in or with our platform, and the inability to maintain these licenses or errors or vulnerabilities in the software we license could result in increased costs, or reduced service levels, which would adversely affect our business.
Our platform incorporates certain third-party software obtained under licenses from third parties. We anticipate that we will continue to rely on such third-party software and development tools from third parties in the future. Although we believe that there are commercially reasonable alternatives to the third-party software we currently license, including open-source software, this may not always be the case, or it may be difficult or costly to migrate to other third-party software. Our use of additional or alternative third-party software may require us to enter into new license agreements with third parties, which may not be available on as favorable terms as our current licenses. In addition, integration of the third-party software used in our software with new third-party software may require significant work and require substantial investment of our time and resources, or require downtime affecting our service level commitments. Also, any undetected errors, defects or security vulnerabilities in third-party software could prevent the deployment or impair the functionality of our software, delay new updates or enhancements to our platform, result in a failure of our platform and injure our reputation.
We use open-source software in our products, which could negatively affect our ability to sell our services or subject us to litigation or other actions.
We use open-source software in our products, and we expect to continue to incorporate open-source software in our services in the future. Few of the licenses applicable to open-source software have been interpreted by courts, and there is a risk that these licenses could be construed in a manner that could impose unanticipated conditions or restrictions on our ability to commercialize our products or to maintain the confidentiality of our proprietary source code. Moreover, we may encounter instances in which we have incorporated additional open-source software in our proprietary software in a manner that is inconsistent with the terms of the applicable license or our current policies and procedures. While we have adopted guidelines for the appropriate use of, and regularly audit our use of, open-source software, these measures may not always be effective. If we were to combine or link our proprietary software products with open-source software in a certain manner, we could, under certain open-source licenses, be required to release the source code of our proprietary software products and allow others to use it at no cost. If an author or other third party that distributes such open-source software were to allege that we had not complied with the conditions of one or more of these licenses, we could be required to incur significant legal expenses defending against such allegations and could be subject to significant damages, enjoined from the sale of our products that contained the open-source software and required to comply with onerous conditions or restrictions on these products, which could disrupt the distribution and sale of these products or put our proprietary source code at risk.
From time to time, there have been claims challenging the ownership rights in open-source software against companies that incorporate it into their products and the licensors of such open-source software provide no warranties or indemnities with respect to such claims. As a result, we and our customers could be subject to lawsuits by parties claiming ownership of what we believe to be open-source software. Litigation could be costly for us to defend, have a negative effect on our business, financial condition and results of operations, or require us to devote additional research and development resources to change our products. Some open-source projects have known vulnerabilities and architectural instabilities and are provided on an “as-is” basis which, if not properly addressed, could negatively affect the performance of our product. If we inappropriately use or incorporate open-source software subject to certain types of open-source licenses that challenge the proprietary nature of our products, we may be required to re-engineer such products, discontinue the sale of such products or take other remedial actions.
Any failure to protect our proprietary technology and intellectual property rights could substantially harm our business, financial condition and results of operations.
62

Table of Contents
Our success and ability to compete depend in part on our ability to protect our proprietary technology and intellectual property. To safeguard these rights, we rely on a combination of patent, trademark, copyright and trade secret laws and contractual protections, all of which provide only limited protection and may not now or in the future provide us with a competitive advantage.
As of April 30, 2026, we owned 29 granted patents related to our platform and its technology and four patent applications pending for examination in the United States and no non-U.S. patents or patent applications pending. Our patent applications may not result in the issuance of a patent, or the examination process may require us to narrow our claims. Any patents that issue from any patent applications may not give us the protection that we seek or may be challenged, invalidated or circumvented. Any patents that may issue in the future from our pending or future patent applications may not provide sufficiently broad protection and may not be valid and enforceable in actions against alleged infringers or provide us with a competitive advantage. Any patents we have obtained or may obtain in the future may be found to be invalid or unenforceable in light of recent and future changes in the law, or because of technology developed prior to the inventions we have sought to patent or because of defects in our patent prosecution process. The United States Patent and Trademark Office, or the USPTO, and various foreign governmental patent agencies also require compliance with a number of procedural, documentary, fee payment and other similar provisions during the patent application process and after a patent has issued. There are situations in which noncompliance can result in abandonment or lapse of the patent or patent application, resulting in partial or complete loss of patent rights in the relevant jurisdiction.
We have registered the “Braze” name, logo, and/or other marks as trademarks in Australia, Brazil, Canada, the EU, India, Indonesia, Japan, New Zealand, Singapore, Tonga, the United Arab Emirates, the United Kingdom, and the United States. However, any pending or future trademark applications may not be approved, and any registered trademarks may not be enforceable or provide adequate protection of our proprietary rights. The USPTO and various foreign trademark offices also require compliance with a number of procedural, documentary, fee payment and other similar provisions during the trademark registration process and after a registration has issued. There are situations in which noncompliance can result in abandonment or cancellation of a trademark filing, resulting in partial or complete loss of trademark rights in the relevant jurisdiction. If this occurs, our competitors might be able to enter the market under identical or similar brands or we may be forced to abandon marks that we currently rely on.
In order to protect our proprietary technologies and processes, we also rely on trade secret laws and confidentiality and invention assignment agreements with our employees, consultants, strategic partners, vendors and others. Also, despite our efforts to protect our proprietary technology and trade secrets, unauthorized parties may attempt to misappropriate, copy, reverse engineer or otherwise obtain and use them. In addition, others may independently discover our trade secrets. Further, the contractual provisions that we enter into may not prevent unauthorized use or disclosure of our proprietary technology or intellectual property rights and may not provide an adequate remedy in the event of unauthorized use or disclosure of our proprietary technology or intellectual property rights. Moreover, policing unauthorized use of our technologies, trade secrets and intellectual property is difficult, expensive and time-consuming, particularly in countries where the laws may not be as protective of intellectual property rights as those in the United States and where mechanisms for enforcement of intellectual property rights may be weak. For instance, in response to U.S. sanctions, the Russian government has adopted a decree which allows local companies and individuals to use inventions, utility models and industrial designs held by owners from “unfriendly countries” without the owner’s consent and without paying any compensation. If similar policies or laws are adopted in other jurisdictions, it may be difficult for us to enforce our intellectual property rights internationally and subject us to material risk of unauthorized use of our technologies, trade secrets and intellectual property. As we expand our activities outside of the United States, our exposure to unauthorized copying and use of our platform and proprietary information may increase. We may be unable to determine the extent of any unauthorized use or infringement of our platform, technologies or intellectual property rights.
The steps that we take may not be adequate to protect our proprietary technology and intellectual property, others may develop or patent similar or superior technologies, products or services, or our trademarks, patents and other intellectual property may be challenged, invalidated or circumvented by others. Furthermore, effective trademark, patent, copyright and trade secret protection may not be available or commercially feasible in every country in which our software is available or where we have employees or independent contractors.
In order to protect our intellectual property rights, we may be required to spend significant resources to monitor and protect these rights. Litigation brought to protect and enforce our intellectual property rights could be costly, time-consuming and distracting to management. Furthermore, our efforts to enforce our intellectual property rights may be met with defenses, counterclaims and countersuits attacking the validity and enforceability of our intellectual property rights. Our failure to secure, protect and enforce our intellectual property rights could materially adversely affect our brand and business. An adverse determination of any litigation proceedings could put our intellectual property at risk of being invalidated or interpreted narrowly and could put our related patents, patent applications and trademark filings at risk of not issuing or being cancelled. Furthermore, because of the substantial amount of discovery required in connection with intellectual property litigation, some
63

Table of Contents
of our confidential or sensitive information could be compromised by disclosure in the event of litigation. Our inability to protect our proprietary technology against unauthorized copying or use, as well as any costly litigation or diversion of our management’s attention and resources, could delay further sales or the implementation of our platform, impair the functionality of our platform, delay introductions of new functionality to our platform, result in our substituting inferior or more costly technologies into our platform or injure our reputation. We will not be able to protect our intellectual property if we are unable to enforce our rights or if we do not detect unauthorized use of our intellectual property. If we fail to meaningfully protect our intellectual property and proprietary rights, our business, financial condition and results of operations could be adversely affected.
We may be subject to intellectual property rights claims by third parties, which are extremely costly to defend, could require us to pay significant damages and could limit our ability to use certain technologies.
We cannot guarantee that the operation of our business does not infringe the intellectual property rights of third parties. Companies in the software and technology industries, including some of our current and potential competitors, own significant numbers of patents, copyrights, trademarks and trade secrets and frequently enter into litigation based on allegations of infringement or other violations of intellectual property rights. In addition, many of these companies have the capability to dedicate substantially greater resources to enforce their intellectual property rights and to defend claims that may be brought against them. Further, patent litigation may involve patent holding companies, commonly known as patent “trolls,” or other adverse patent owners that have no relevant product revenue and against which our patents may therefore provide little or no deterrence. In the past, we have been subject to allegations of patent infringement that were unsuccessful, and we may in the future be subject to claims that we have misappropriated, misused, or infringed other parties’ intellectual property rights, and, to the extent we gain greater market visibility or face increasing competition, we face a higher risk of being the subject of intellectual property infringement claims, which is not uncommon with respect to enterprise software companies. In addition, we may in the future be subject to claims that employees or contractors, or we, have inadvertently or otherwise used or disclosed trade secrets or other proprietary information of our competitors or other parties. Because patent applications can take years to issue and are often afforded confidentiality for some period of time, there may currently be pending applications, unknown to us, that later result in issued patents that could cover one or more of our products. To the extent that intellectual property claims are made against our customers based on their usage of our technology, we have certain obligations to indemnify and defend such customers from those claims. The term of our contractual indemnity provisions often survives termination or expiration of the applicable agreement. Large indemnity payments, defense costs or damage claims from contractual breach could adversely affect our business, financial condition and results of operations.
Any intellectual property claims, with or without merit, could be very time-consuming, could be expensive to settle or litigate, could divert our management’s attention and other resources and could result in adverse publicity. These claims could also subject us to making substantial payments for legal fees, settlement payments and other costs or damages, potentially including treble damages if we are found to have willfully infringed patents or copyrights. Intellectual property claims could also result in our having to stop making, selling, offering for sale or using technology found to be in violation of a third party’s rights. We might be required to seek a license for the third-party intellectual property rights, which may not be available on reasonable terms or at all. Even if a license is available to us, we may be required to pay significant upfront fees, milestone payments or royalties, which would increase our operating expenses. Moreover, to the extent we only have a license to any intellectual property used in our platform, there may be no guarantee of continued access to such intellectual property, including on reasonable terms. As a result, we may be required to develop alternative non-infringing technology, which could require significant effort and expense. If a third party is able to obtain an injunction preventing us from accessing such third-party intellectual property rights, or if we cannot license or develop technology for any infringing aspect of our business, we would be forced to limit or stop sales of our products or cease business activities covered by such intellectual property and may be unable to compete effectively. Any of these results would adversely affect our business, financial condition and results of operations.
We could face liability, or our reputation might be harmed, as a result of the activities of our customers, the content sent through our platform or the data they store on our servers.
As a provider of cloud-based solutions, we may be subject to potential liability for the activities of our customers on or in connection with the content or data they store on or send through our servers. Although our customer terms of use and our acceptable use policy, or AUP, prohibit (1) illegal use of our services by our customers, (2) the use of our services for certain activities that do not comply with industry standards and guidelines outlined in our AUP, or (3) the use of our services in any manner that would infringe, misappropriate or otherwise violate the intellectual property rights of third parties, customers may nonetheless engage in prohibited activities or upload or store content with us in violation of our agreement, our AUP, applicable law or the customer’s own policies, which could subject us to liability and/or harm our reputation.
We do not typically monitor the content, activities or messages of our customers in connection with their use of our services, so inappropriate content may be sent to third parties, which could subject us to legal liability. Even if we comply with legal obligations to remove or disable certain content, our customers may continue to send messages through our platform that
64

Table of Contents
third parties may find hostile, offensive or inappropriate. The activities of our customers or the content of our customers’ messages may lead us to experience adverse political, business and reputational consequences, especially if such use is high profile. For instance, if our customers use our platform in violation of law it may subject us to increased regulatory scrutiny or direct financial penalties, either of which may have an adverse effect on our reputation and financial results, even if we have complied with our legal obligations. Conversely, actions we take in response to the activities of our customers or users, up to and including suspending their use of our products or services, may harm our brand and reputation.
There are certain statutory and common law frameworks and doctrines that offer defenses against liability for customer activities, including the Digital Millennium Copyright Act, the Communications Decency Act and the fair use doctrine in the United States and the Electronic Commerce Directive in the European Union. Although these and other statutes and case law in the United States offer certain defenses against liability from customer activities under U.S. copyright law or regarding secondary liability from the Telephone Consumer Protection Act or the Controlling the Assault of Non-Solicited Pornography and Marketing Act, they are subject to uncertain or evolving judicial interpretation and regulatory and legislative amendments, and in any event we cannot assure you that we will be successful in asserting them. In addition, pending or recently adopted legislation in the European Union may impose additional obligations or liability on us associated with content uploaded by users to our platform. Laws governing these activities are unsettled in many international jurisdictions, or may prove difficult or impossible for us to comply with in some international jurisdictions. Even if ultimately resolved in our favor, we may become involved in related complaints, lawsuits or investigations which add cost to our doing business and may divert management’s time and attention or otherwise harm our reputation.
Our use of artificial intelligence, and machine learning in our platform and our business, as well as our potential failure to effectively implement, use, and market these technologies, may result in reputational harm or liability, or could otherwise adversely affect our business.
We have incorporated and may continue to incorporate AI and machine learning solutions and features, including generative and agentic AI solutions and features, into our platform, and otherwise within our business, and these solutions and features may become more important to our operations or to our future growth over time. There can be no assurance that the use of AI and machine learning solutions and features will enhance our products or services, produce the intended results, or be beneficial to our business, including our efficiency or profitability, and we may fail to properly implement or market our AI and machine learning solutions and features. Our competitors or other third parties may incorporate AI and machine learning tools into their products, offerings, and solutions more quickly or more successfully than we do, which could impair our ability to compete effectively, and adversely affect our results of operations. Any of which may have an adverse impact on our results of operations even as our use and development of AI technologies expands.
Additionally, our AI and machine learning solutions and features may expose us to additional claims, demands, and proceedings by private parties and regulatory authorities and subject us to legal liability as well as brand and reputational harm. There are significant risks involved in utilizing AI and machine learning technologies, and in particular, generative and agentic AI technologies. For example, AI and machine learning algorithms may be flawed, insufficient, or of poor quality, reflect unwanted forms of bias, or contain other errors or inadequacies, any of which may not easily be detectable. AI and machine learning technologies have also been known to produce false or “hallucinatory” inferences or outputs. Further, inappropriate or controversial data practices by developers and end-users, or other factors adversely affecting public opinion regarding the use of AI and machine learning, could impair the acceptance of AI and machine learning solutions, including those incorporated into our products and services. If the AI and machine learning tools incorporated into our platform, or the content generated by such tools, is harmful, biased, inaccurate, discriminatory or controversial, we could suffer operational efficiencies in addition to legal, competitive and reputational harm, and our customers may be less likely to utilize our AI and machine learning tools or may cease using our platform altogether. If we do not have sufficient rights to use the output of such AI and machine learning tools, or the data or other material or content on which the AI and machine learning tools we use rely, we also may incur liability through the violation of applicable laws and regulations, third-party intellectual property, privacy or other rights, or contracts to which we are a party.
In addition, we are subject to the risks of new or enhanced governmental or regulatory scrutiny, litigation, or other legal liability, ethical concerns, negative consumer perceptions as to automation and AI and machine learning technologies, any of which could adversely affect our business, reputation, or financial results. The technologies underlying AI and machine learning and their uses are subject to a variety of laws and regulations related to online services, intermediary liability, intellectual property rights, privacy, data security and data protection, consumer protection, competition and equal opportunity laws, and are expected to be subject to increased regulation and new laws or new applications of existing laws and regulations. AI and machine learning technologies are the subject of ongoing review by various federal, state and foreign governments and regulators, which are applying, or are considering applying, their platform moderation, privacy, data security and data protection laws and regulations to such technologies. Additionally, various federal, state and foreign governments and regulators have implemented, or are considering implementing, general legal and regulatory frameworks for the appropriate use of AI and machine learning, such as the EU’s Artificial Intelligence Act, or the EU AI Act, which entered into force on August 1, 2024. The EU AI Act establishes, among other things, a risk-based governance framework for regulating AI systems
65

Table of Contents
operating in the EU. This framework would categorize AI systems, based on the risks associated with such AI systems’ intended purposes, as creating unacceptable or high risks, with all other AI systems being considered low risk. Although there are not yet any comprehensive U.S. federal laws specifically governing AI development and use, federal agencies in the United States are applying existing laws to address AI-related risks. In addition, an Executive Order issued in December 2025 seeks to establish uniform federal standards and challenge state laws that regulate AI. Various U.S. states, including New York, California and Colorado, have also passed laws regulating the development and use of AI. As the legal, regulatory, and policy environments around AI and machine learning evolve, we may become subject to new legal and regulatory obligations in connection with our use of AI and machine learning technology, which could require us to make significant changes to our policies and practices, necessitating expenditure of significant time, expense, and other resources. We may not be able to anticipate how to respond to rapidly evolving legal and regulatory frameworks, and we may have to expend resources to adjust our offerings in certain jurisdictions if the legal and regulatory frameworks on AI and machine learning products are not consistent across jurisdictions. Accordingly, it is not possible to predict all of the risks related to the use of AI and machine learning solutions that we may face, and changes in laws, rules, directives, and regulations governing the use of AI and machine learning solutions may adversely affect our ability to use or sell these solutions or subject us to legal liability.
Risks Related to Socioeconomic Factors
Natural catastrophic events and human-made problems such as climate change, power disruptions, computer viruses, global pandemics, data security breaches, terrorism and war may disrupt our business.
We rely heavily on our network infrastructure and information technology systems for our business operations. An online attack, damage as a result of civil unrest, earthquake, fire, terrorist attack, war, power loss, global pandemics, telecommunications failures, climate change-related events or other similar catastrophic event could cause system interruptions, delays in accessing our service, reputational harm and loss of critical data. Such events could prevent us from providing our platform and products to our customers. A catastrophic event that results in the destruction or disruption of our data centers, or our network infrastructure, or information technology systems, including any errors, defects, or failures in third-party hardware, could affect our ability to conduct normal business operations and adversely affect our results of operations. In addition, many companies that provide cloud-based services have reported a significant increase in cyberattack activity in recent years. Further, events outside of our control, including natural disasters, climate change-related events, pandemics or health crises may arise from time to time and be accompanied by governmental actions. Any such events and responses, including regulatory developments, may cause significant volatility and declines in the global markets, disproportionate impacts to certain industries or sectors, disruptions to commerce (including to economic activity, travel and supply chains), loss of life and property damage, and may materially and adversely affect the global economy or capital markets, as well as our business and results of operations.
Risks Related to Public Company Reporting and Public Disclosure Practices
We have identified a material weakness in our internal control over financial reporting associated with certain Information Technology General Controls, or ITGCs. If we are unable to remediate this, or otherwise fail to maintain proper and effective internal controls, our ability to produce timely and accurate financial statements could be impaired, which could adversely affect our operating results, our ability to operate our business, our stock price and access to the capital markets.
We are required, pursuant to Section 404 of the Sarbanes-Oxley Act, to furnish a report by management on, among other things, the effectiveness of our internal control over financial reporting on an annual basis. Accordingly, we are required to establish and periodically evaluate and assess procedures with respect to our internal control over financial reporting. In connection with the year-end assessment as part of the Annual Report on form 10-K for the fiscal year ended January 31, 2026, filed with the SEC on March 25, 2026, we determined that we did not maintain effective internal control over financial reporting due to a material weakness identified in the operation of certain ITGCs relevant to our key accounting, reporting, and proprietary information technology systems, as more fully described in the section entitled "Controls and Procedures" in Item 4 of Part I of this Quarterly Report on Form 10-Q. The material weakness did not result in any identified misstatements to the financial statements, and there were no changes to previously issued financial results. However, if we are unable to remediate this matter, we cannot guarantee this will be the case in future periods.
While we are in the process of implementing changes to remediate the material weakness identified, we cannot be certain as to when remediation will be complete or if the remediation efforts will be successful. Further, remediation efforts may place a significant burden on management and add increased pressure to our financial and information technology resources and processes. As a result, we may not be successful in making the improvements necessary to remediate the material weakness identified by management in a timely manner or in identifying and remediating additional control deficiencies, including material weaknesses, in the future. Any failure to remediate the material weakness identified, or the development of new material weaknesses in our internal control over financial reporting, could severely inhibit our ability to accurately report our financial condition or results of operations. We could lose investor confidence in the accuracy and completeness of our financial reports, the market price of our Class A common stock could decline, and we could be subject to sanctions or investigations by
66

Table of Contents
the SEC or other regulatory authorities. Failure to remedy the material weakness in our internal control over financial reporting, or the implement or maintain other effective control systems required of public companies, could harm our results of operations or cause us to fail to meet our future reporting obligations.
We are subject to risks related to our environmental, social, and governance, or ESG, practices and disclosures.
ESG matters have been a focus of regulators, certain investors, and other stakeholders, both in the United States and internationally. Often those stakeholders have differing, and sometimes conflicting, priorities or requirements regarding ESG matters. The heightened and sometimes conflicting stakeholder focus on ESG issues related to our business requires the continuous monitoring of various and evolving laws, regulations, standards and expectations and the associated reporting requirements. Our interpretation or application of such reporting requirements may change over time or differ from other similarly situated companies. Certain organizations also provide ESG ratings, scores and benchmarking studies that assess companies’ ESG practices. Although there are no universal standards for such ratings, scores or benchmarking studies, they are used by some investors to inform their investment and voting decisions. It is possible that our future shareholders or organizations that report on, rate or score ESG practices will not be satisfied with our ESG strategy or performance. Unfavorable or inaccurate press about ratings or assessments of our ESG strategies or practices, regardless of whether or not we comply with applicable legal requirements, may lead to adverse investor sentiment toward us, which in turn could have an adverse impact on our share price, demand for our securities and our access to, and cost of, capital.
In addition, any of our current or future social impact practices and initiatives could be difficult to achieve and costly to implement. In the event that we publicly disclose, voluntarily or otherwise, certain practices and initiatives regarding ESG matters, we could fail, or be perceived to fail, in our achievement of such practices or initiatives, or we could be criticized for the scope of such practices or initiatives, which could negatively impact our ability to attract or retain employees or customers or reduce the attractiveness of our stock in the investment community. There has also been a recent increase in litigation surrounding ESG practices and related disclosures. Further, “anti-ESG” sentiment has gained momentum across the United States, with a growing number of states and federal agencies having enacted, proposed or indicated an intent to pursue “anti-ESG” policies, legislation or issued related legal opinions and engaged in related investigations and litigation. There can be no assurance that we will not be subject to allegations or claims associated with our sustainability-related claims or other ESG practices and initiatives.
Risks Related to Ownership of Our Class A Common Stock
We do not intend to pay dividends for the foreseeable future and, as a result, your ability to achieve a return on your investment will depend on appreciation in the price of our Class A common stock.
We have never declared or paid any cash dividends on our Class A common stock and we do not intend to pay any cash dividends in the foreseeable future. We anticipate that we will retain all of our future earnings for use in the development of our business and for general corporate purposes. Any determination to pay dividends in the future will be at the discretion of our board of directors and governed by the limitations of any credit agreements we may become party to. Accordingly, investors must rely on sales of their Class A common stock after price appreciation, which may never occur, as the only way to realize any future gains on their investments.
The automatic conversion of all outstanding shares of our Class B common stock into Class A common stock has eliminated our dual-class structure, which may subject us to increased stockholder activism and potential proxy contests.
Upon the retirement and automatic conversion of our Class B common stock into Class A common stock on January 30, 2026, our executive officers and early investors no longer hold super-voting stock. Consequently, our voting power is now more widely distributed among our public stockholders. This transition may make us more susceptible to stockholder activism, proxy contests, and unsolicited takeover proposals. Responding to activist campaigns can be costly and time-consuming, disrupt our operations, and divert the attention of management and our employees. Furthermore, perceived uncertainties as to our future strategic direction resulting from this change in voting control could result in the loss of potential business opportunities and cause volatility in our stock price.
An active public trading market for our Class A common stock may not develop or be sustained.
Prior to the closing of our initial public offering, no public market for our Class A common stock existed. An active public trading market for our Class A common stock may not continue to develop or, if further developed, it may not be sustained. The lack of an active market may impair the ability of holders of our Class A common stock to sell their shares at the time they wish to sell them or at a price that the holders of our Class A common stock consider reasonable. The lack of an active market may also reduce the fair value of shares of our Class A common stock. An inactive market may also impair our ability to raise capital to continue to fund operations by selling shares and may impair our ability to acquire other companies or technologies by using our shares as consideration.
67

Table of Contents
Anti-takeover provisions in our charter documents and under Delaware law could make an acquisition of our company more difficult, limit attempts by our stockholders to replace or remove our current management and limit the market price of our Class A common stock.
Provisions in our amended and restated certificate of incorporation and amended and restated bylaws, each as currently in effect, may have the effect of delaying or preventing a change of control or changes in our management. Such amended and restated certificate of incorporation and amended and restated bylaws include provisions that:
•authorize our board of directors to issue, without further action by the stockholders, shares of undesignated preferred stock with terms, rights and preferences determined by our board of directors that may be senior to our Class A common stock;
•require that any action to be taken by our stockholders be effected at a duly called annual or special meeting and not by written consent;
•specify that special meetings of our stockholders can be called only by our board of directors, the chairperson of our board of directors or our chief executive officer;
•establish an advance notice procedure for stockholder proposals to be brought before an annual meeting, including proposed nominations of persons for election to our board of directors;
•establish that our board of directors is divided into three classes, with each class serving three-year staggered terms;
•prohibit cumulative voting in the election of directors;
•provide that our directors may be removed for cause only upon the vote of at least 66 2/3% of our outstanding shares of voting stock;
•provide that vacancies on our board of directors may be filled only by a majority of directors then in office, even though less than a quorum; and
•require the approval of our board of directors or the holders of at least 66 2/3% of our outstanding shares of voting stock to amend our bylaws and certain provisions of our certificate of incorporation.
These provisions may frustrate or prevent any attempts by our stockholders to replace or remove our current management by making it more difficult for stockholders to replace members of our board of directors, which is responsible for appointing the members of our management. In addition, because we are incorporated in Delaware, we are governed by the provisions of Section 203 of the Delaware General Corporation Law, or DGCL, which generally, subject to certain exceptions, prohibits a Delaware corporation from engaging in any of a broad range of business combinations with any “interested” stockholder for a period of three years following the date on which the stockholder became an “interested” stockholder. Any of the foregoing provisions could limit the price that investors might be willing to pay in the future for shares of our Class A common stock, and they could deter potential acquirers of our company, thereby reducing the likelihood that holders of our Class A common stock would receive a premium for their shares of our Class A common stock in an acquisition.
The provision of our amended and restated certificate of incorporation requiring exclusive venue in the Court of Chancery in the State of Delaware and the federal district courts of the United States for certain types of lawsuits may have the effect of discouraging lawsuits against our directors and officers.
Our amended and restated certificate of incorporation as currently in effect provides that, unless we consent in writing to the selection of an alternative forum, the Court of Chancery of the State of Delaware be the sole and exclusive forum for:
•any derivative claim or cause of action brought on our behalf;
•any claim or cause of action asserting a breach of fiduciary duty;
•any claim or cause of action against us arising under the DGCL;
•any claim or cause of action arising under or seeking to interpret our amended and restated certificate of incorporation or our amended and restated bylaws; and
•any claim or cause of action against us that is governed by the internal affairs doctrine.
Our amended and restated certificate of incorporation as currently in effect further provides that, unless we consent in writing to the selection of an alternative forum, the federal district courts of the United States of America shall, to the fullest extent permitted by law, be the sole and exclusive forum for the resolutions of any complaint asserting a cause of action arising under the Securities Act of 1933, as amended, or the Securities Act, including all causes of action asserted against any defendant named in such complaint. The exclusive forum clauses described above shall not apply to suits brought to enforce a duty or liability created by the Exchange Act or any other claim for which the federal courts have exclusive jurisdiction. For the avoidance of doubt, this provision is intended to benefit and may be enforced by us, our officers and directors, the underwriters to any offering giving rise to such complaint, and any other professional entity whose profession gives authority to a statement made by that person or entity and who has prepared or certified any part of the documents underlying any offering.
68

Table of Contents
Although we believe these provisions benefit us by providing increased consistency in the application of applicable law in the types of lawsuits to which they apply, the provisions may have the effect of discouraging lawsuits against our directors and officers. The enforceability of similar choice of forum provisions in other companies’ certificates of incorporation has been challenged in legal proceedings, and there is uncertainty as to whether a court would enforce such provisions. In addition, investors cannot waive compliance with the federal securities laws and the rules and regulations thereunder. It is possible that, in connection with any applicable action brought against us, a court could find the choice of forum provisions contained in our currently effective amended and restated certificate of incorporation to be inapplicable or unenforceable in such action. If so, we may incur additional costs associated with resolving such action in other jurisdictions, which could adversely affect our business, financial condition and results of operations.
Future sales of our Class A common stock in the public market could cause the market price of our Class A common stock to decline.
Future sales of a substantial number of shares of our Class A common stock in the public market, or the perception that these sales might occur, could depress the market price of our Class A common stock and could impair our ability to raise capital through the sale of additional equity securities. Some of our existing equity holders may have substantial unrecognized gains on the value of the equity they hold, and therefore they may take steps to sell their shares or otherwise secure the unrecognized gains on those shares. Additionally, we issued shares of Class A commons stock in our acquisition of OfferFit, and have registered the re-sale of these shares. We are unable to predict the effect that such sales may have on the prevailing market price of our Class A common stock.
We have registered all of our common stock issuable upon the exercise or settlement of outstanding equity awards, pursuant to the terms of the purchase rights under our employee stock purchase plan or under any other equity incentives we may grant in the future, for public resale under the Securities Act. Such underlying shares of Class A common stock will become eligible for sale in the public market to the extent such shares are issued pursuant to the terms of the applicable equity incentive plan or award agreement, subject to compliance with applicable securities laws.
We cannot guarantee that our share repurchase program will be fully consummated or that it will enhance long-term stockholder value. Share repurchases could affect the stock price of our Class A common stock and increase its volatility and could diminish our cash reserves
In March 2026, we announced a program to repurchase up to $100 million of our Class A common stock, which included the repurchase $50 million of shares of our Class A common stock through the use of an accelerated share repurchase program. The timing, manner, and amount of any other repurchases pursuant to this share repurchase program will be determined by us at our discretion and will depend on a variety of factors, including business, economic and market conditions, prevailing stock prices, and alternative investment opportunities. The program does not obligate us to repurchase any specific dollar amount or to acquire any specific number of Class A common stock shares, and may be modified, suspended, or terminated at any time without notice.
Such repurchases could affect our stock price and increase its volatility and will reduce the market liquidity for our stock. These activities may have the effect of maintaining the market price of our Class A common stock or slow down a decline in the market price of our Class A common stock, and, as a result, the price of our Class A common stock may be higher than the price that otherwise might exist in the open market. Additionally, these repurchases will diminish our cash reserves, which could impact our ability to pursue possible future strategic opportunities and acquisitions and result in lower overall returns on our cash balances.
General Risk Factors
The price of our Class A common stock may be volatile, and you may lose some or all of your investment.
The market price of our Class A common stock may be highly volatile and may fluctuate substantially as a result of a variety of factors. Factors that may affect the market price of our Class A common stock include:
•actual or anticipated fluctuations in our financial condition and results of operations;
•variance in our financial performance from expectations of securities analysts;
•changes in the prices of our products and services;
•changes in our projected financial condition and results of operations;
•changes in laws or regulations applicable to the provision of our products and services or changes that may cause us to incur, among other things, additional or unforeseen expenses associated with regulatory compliance;
•announcements by us or our competitors of significant business developments, acquisitions or new offerings;
•security breaches impacting us or similar companies;
•our involvement in any material litigation;
69

Table of Contents
•future sales of our Class A common stock by us or our stockholders or our sales of other securities in the future;
•changes in senior management or key personnel;
•the trading volume of our Class A common stock;
•changes in the anticipated future size and growth rate of our market;
•general economic, regulatory and market conditions; and
•technical factors in the public trading market for our Class A common stock that may produce price movements that may or may not comport with macro, industry, or company-specific fundamentals, including, without limitation, the sentiment of retail investors, the amount and status of short interest in our securities, access to margin debt, trading in options and other derivatives on our Class A common stock and other technical trading factors.
Accordingly, we cannot assure you of the liquidity of an active trading market, your ability to sell your shares of our Class A common stock when desired, or the prices that you may obtain for your shares of our Class A common stock. The lack of an active market may impair your ability to sell your shares at the time you wish to sell them or at a price that you consider reasonable. The lack of an active market may also reduce the fair value of your shares. An inactive market may also impair our ability to raise capital to continue to fund operations by selling shares and may impair our ability to acquire other companies or technologies by using our shares as consideration.
The stock markets have experienced extreme price and volume fluctuations that have affected and continue to affect the market prices of equity securities of many companies. These fluctuations have often been unrelated or disproportionate to the operating performance of those companies. Additionally, the recent and acute volatility among certain financial institutions have raised questions regarding the stability of the banking sector and, while such volatility has not adversely affected our operations, it has had an adverse impact on the equity and credit markets. Broad market and industry fluctuations, as well as general economic, political, regulatory and market conditions, may negatively impact the market price of our Class A common stock. In the past, companies that have experienced volatility in the market price of their securities have been subject to securities class action litigation. We may be the target of this type of litigation in the future, which could result in substantial costs and divert our management’s attention.
Our issuance of additional capital stock in connection with financings, acquisitions, investments, our equity incentive plans or otherwise will dilute all other stockholders.
We expect to issue additional capital stock in the future that will result in dilution to all other stockholders. We expect to grant equity awards to employees, directors and consultants under our equity incentive plans and purchase rights to our employees under our employee stock purchase plan. We may also raise capital through equity financings in the future. As part of our business strategy, we may acquire or make investments in companies, products, services or technologies and issue equity securities to pay for any such acquisition or investment. For instance, we issued shares of Class A common stock as a portion of the consideration in our acquisition of OfferFit. Any such issuances of additional capital stock may cause stockholders to experience significant dilution of their ownership interests and the per share value of our Class A common stock to decline.
If securities or industry analysts do not publish research or reports about our business or publish negative reports about our business, our share price and trading volume could decline.
The trading market for our Class A common stock depends, in part, on the research and reports that securities or industry analysts publish about us or our business. We do not have any control over these analysts. If our financial performance fails to meet analyst estimates or one or more of the analysts who cover us downgrade our shares or change their opinion of our shares, our share price would likely decline. Our business results may vary significantly from such analyst estimates or any analyst consensus due to a number of factors, many of which are outside of our control, including due to the global economic uncertainty and financial market conditions, including as a result of global or domestic macroeconomic and socioeconomic conditions such as, among others, instability in the banking and financial services sector, international and domestic supply chain risks, inflationary pressure, interest rate increases, declines in consumer confidence, international conflicts and domestic and foreign political unrest, that impact us and our customers, which could adversely affect our business, financial condition and results of operations. If one or more of these analysts cease coverage of our company or fail to regularly publish reports on us, we could lose visibility in the financial markets, which could cause our share price or trading volume to decline.
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
Unregistered Sales of Equity Securities
The following sets forth information regarding all of our unregistered securities issued in the fiscal quarter ended April 30, 2026:
•On February 2, 2026, we issued 24,116 shares of our Class A common stock to a charitable donor-advised fund for no consideration in connection with our Pledge 1% commitment pursuant to Section 4(a)(2) of the Securities Act as this issuance did not involve a public offering.
70

Table of Contents
Company Purchases of Equity Securities
Stock repurchases during the fiscal quarter ended April 30, 2026 were as follows:

Period | Total Number of Shares Purchased |  | Average Price Paid per Share(1) |  | Total Number of Shares Purchased as Part of Publicly Announced Plans or Program |  | Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Program(1)
|  |  |  |  |  |  | (in thousands)
February 1, 2026 through February 28, 2026 | — |  |  | $ | — |  |  | — |  |  | $ | — |
March 1, 2026 through March 31, 2026(2) | 1,716,002 |  |  | 29.14 |  |  | 1,716,002 |  |  | 50,000 |
April 1, 2026 through April 30, 2026 | — |  |  | — |  |  | — |  |  | 50,000 |
Balance as of April 30, 2026 | 1,716,002 |  |  | $ | 29.14 |  |  | 1,716,002 |  |  | $ | 50,000 |

(1) In March 2026, the Board of Directors authorized a share repurchase program (the “Share Repurchase Program”), under which the Company is authorized to repurchase up to $100.0 million of the Company’s Class A common stock.
(2) Represents repurchases under the accelerated share repurchase agreement, which was entered into in March 2026. During the three months ended April 30, 2026, the Company received initial delivery of 1,716,002 shares. Refer to Note 11 Stockholders’ Equity in the notes to the condensed consolidated financial statements for more information.
Use of Proceeds
Not applicable.
Item 3. Defaults Upon Senior Securities
Not applicable.
Item 4. Mine Safety Disclosures
Not applicable.
Item 5. Other Information
On April 14, 2026, Jon Hyman, our Chief Technology Officer, modified a trading plan intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) under the Exchange Act. The trading plan was originally entered into on January 15, 2026 and as modified, provides for the sale of, in the aggregate, up to 712,000 shares of our Class A common stock and all the shares received upon the settlement of 94,388 outstanding restricted stock unit and performance-based restricted stock unit awards during the duration of the plan, excluding any shares withheld or sold by the Company to satisfy its income tax withholding and remittance obligations in connection with the settlement of such equity award, in certain cases, subject to the satisfaction of specified price conditions. The plan will terminate on December 31, 2026, subject to early termination for certain specified events set forth in the plan.
On April 15, 2026, Edward McDonnell, our Chief Revenue Officer, entered into a trading plan intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) under the Exchange Act. The trading plan provides for the sale of, in the aggregate, all the shares of our Class A common stock received upon the settlement of 47,355 outstanding restricted stock unit and performance-based restricted stock unit awards during the duration of the plan, excluding any shares withheld or sold by the Company to satisfy its income tax withholding and remittance obligations in connection with the settlement of such equity award. The plan will terminate on July 31, 2027, subject to early termination for certain specified events set forth in the plan.
Item 6. Exhibits
The documents listed in the Exhibit Index of this Quarterly Report on Form 10-Q are incorporated by reference or are filed with this Quarterly Report on Form 10-Q, in each case as indicated therein (numbered in accordance with Item 601 of Regulation S-K).
71

Table of Contents
EXHIBIT INDEX

|  |  |  | Incorporated by Reference
Exhibit Number |  | Description |  | Form |  | File No. |  | Exhibit |  | Filing Date
3.1 |  | Amended and Restated Certificate of Incorporation of Braze, Inc. |  | 8-K |  | 001-41065 |  | 3.1 |  | November 23, 2021
3.1 |  | Certificate of Retirement of Class B Common Stock of Braze, Inc. |  | 8-K |  | 001-41065 |  | 3.1 |  | February 2, 2026
3.2 |  | Amended and Restated Bylaws of Braze, Inc. |  | 10-Q |  | 001-41065 |  | 3.2 |  | December 10, 2024
10.1 |  | Consulting Agreement between Isabelle Winkles and Braze, Inc., dated April 28, 2026 |  | 8-K |  | 001-41065 |  | 10.1 |  | April 28, 2026
31.1+ |  | Certification of Chief Executive Officer pursuant to Exchange Act Rules 13a-14(a) and 15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |  |  |  |  |  |  |  |
31.2+ |  | Certification of Chief Financial Officer pursuant to Exchange Act Rules 13a-14(a) and 15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |  |  |  |  |  |  |  |
32*+ |  | Certifications of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |  |  |  |  |  |  |  |
101.INS+ |  | Inline XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document |  |  |  |  |  |  |  |
101.SCH+ |  | Inline XBRL Taxonomy Extension Schema Document |  |  |  |  |  |  |  |
101.CAL+ |  | Inline XBRL Taxonomy Extension Calculation Linkbase Document |  |  |  |  |  |  |  |
101.DEF+ |  | Inline XBRL Taxonomy Extension Definition Linkbase Document |  |  |  |  |  |  |  |
101.LAB+ |  | Inline XBRL Taxonomy Extension Label Linkbase Document |  |  |  |  |  |  |  |
101.PRE+ |  | Inline XBRL Taxonomy Extension Presentation Linkbase Document |  |  |  |  |  |  |  |
104+ |  | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) |  |  |  |  |  |  |  |

72

Table of Contents
* The certifications attached as Exhibit 32 that accompany this Quarterly Report on Form 10-Q are deemed furnished and not filed with the Securities and Exchange Commission and are not to be incorporated by reference into any filing of Braze, Inc. under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended, whether made before or after the date of this Quarterly Report on Form 10-Q, irrespective of any general incorporation language contained in such filing.
+ Indicates an Exhibit filed herewith.
73

Table of Contents
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

|  | Braze, Inc.
| By: | /s/ William Magnuson
|  | William Magnuson
|  | President and Chief Executive Officer
|  | (Principal Executive Officer)
Date: May 27, 2026 |  |
| By: | /s/ Isabelle Winkles
|  | Isabelle Winkles
|  | Chief Financial Officer
|  | (Principal Financial Officer)
Date: May 27, 2026 |  |

74