Slide 1: Q3 Fiscal 2024 Earnings Results
Q3 Fiscal 2024 Earnings Results December 6, 2023
Slide 2: Forward Looking Statements and Disclaimer
Forward Looking Statements and Disclaimer Forward-Looking Statements This presentation contains, and statements made during this presentation contain, "forward-looking statements" within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, including bu
Slide 3: Braze Financial Highlights
Braze Financial Highlights $496M 33% 2,011 QUARTERLY REVENUE Y/Y REVENUE CUSTOMERS IN 72 RUN RATE 1 GROWTH COUNTRIES 118% 95% $31M DOLLAR-BASED NET SUBSCRIPTION GAAP RETENTION RATE REVENUE NET LOSS Data as of October 31, 2023 or the three months ended, as applicable 1. Represents quarterly GAAP reve
Slide 4: Q3'24 Financial Results Highlights
Q3’24 Financial Results Highlights ● Revenue of $124.0 million, up 33.1% YoY and 7.7% sequentially ● GAAP gross margin of 70.7%, up 200 basis points YoY; non-GAAP gross margin of 71.4%, up 170 basis points YoY ● Dollar-based net retention rate of 118% compared to 126% in the prior year quarter and 1
Slide 5: Q3'24 Recent Business Highlights
Q3’24 Recent Business Highlights ● Notable new business wins and upsells in the quarter included FabFitFun, Mythical Games, Ouro (formerly Netspend), Papa John’s UK, and Sonos. ● Introduced Feature Flags to drive personalization and enable more efficient marketing and product teams. ● Announced new AI
Slide 6: Quarterly Revenue
Quarterly Revenue DOLLARS IN MILLIONS 33.1% Q3’24 Y/Y REVENUE GROWTH Reported Revenue Y/Y Revenue Growth 6
Slide 7: Non-GAAP Gross Margin
Non-GAAP Gross Margin 71.4% Q3’24 NON-GAAP GROSS MARGIN 7
Slide 8: Dollar-Based Net Retention
Dollar-Based Net Retention 118% Q3’24 NET DOLLAR- BASED RETENTION RATE 8
Slide 9: Braze Customers
Braze Customers 17% 54% Q3'24 Y/Y CUSTOMER GROWTH 189 CUSTOMERS WITH $500K+ ARR, UP 28% Y/Y Customers CustomerY/Y Customer Growth Growth 9
Slide 10: Free Cash Flow
Free Cash Flow DOLLARS IN MILLIONS 21.3% 20.2% $21.7 $15.7 ($3.5) ($1.9) ($5.9)M ($5.9) (5.4)% (1.9)% (4.8)% ($18.7) Q3’24 FY’24 (16.2)% FREE CASH FLOW ($26.0) ($24.7) ($28.1) (28.7)% (36.8)% (30.1)% FY’22 Q3 FY’22 Q4 FY’23 Q1 FY’23 Q2 FY’23 Q3 FY’23 Q4 FY’24 Q1 FY’24 Q2 FY’24 Q3 Free Cash Flow Free
Slide 11: Remaining Performance Obligations
Remaining Performance Obligations DOLLARS IN MILLIONS +37% Y/Y +31% Y/Y Less than 1 year Total RPO 11
Slide 12: Guidance
Guidance DOLLARS AND SHARES IN MILLIONS, EXCEPT PER SHARE AMOUNTS Metric Q4’24 Guidance FY’24 Guidance Revenue $124.0 - 125.0 $465.0 - 466.0 Non-GAAP Operating Loss ($7.0) - (8.0) ($39.5) - (40.5) Non-GAAP Net Loss ($4.5) - (5.5) ($25.5) - (26.5) Non-GAAP Net Loss Per Share ($0.04) - (0.05) ($0.26)
Slide 13: Appendix
Appendix 13
Slide 14: Operating Metrics - Definitions
Operating Metrics - Definitions Number of Customers: 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 toget
Slide 15: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation DOLLARS IN THOUSANDS Reconciliation of GAAP to Non-GAAP Gross Margin Reconciliation of GAAP to Non-GAAP Operating Expenses Three Months Ended Nine Months Ended Three Months Ended Nine Months Ended October 31, October 31, October 31, October 31, 2023 2022 2023 2022 202
Slide 16: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation DOLLARS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS Reconciliation of GAAP to Non-GAAP Operating Loss Reconciliation of GAAP to Non-GAAP Net Loss Three Months Ended Nine Months Ended Three Months Ended Nine Months Ended October 31, October 31, October 31, October 31, 2023
Slide 17: GAAP Cash Flows from Operations to Free Cash Flow
GAAP Cash Flows from Operations to Free Cash Flow DOLLARS IN THOUSANDS Reconciliation of GAAP Cash Flow from Operating Activities to Non-GAAP Free Cash Flow Three Months Ended Nine Months Ended October 31, October 31, 2023 2022 2023 2022 Net cash provided by/ (used in) operating ($2,003) ($23,920) $
Slide 18: GAAP to Non-GAAP Gross Margin Reconciliation
GAAP to Non-GAAP Gross Margin Reconciliation DOLLARS IN THOUSANDS FY’22 Q3 FY’22 Q4 FY’23 Q1 FY’23 Q2 FY’23 Q3 FY’23 Q4 FY’24 Q1 FY’24 Q2 FY’24 Q3 Gross Profit $44,794 $45,659 $51,589 $58,779 $63,990 $65,250 $69,093 $79,633 $87,582 Plus: Stock-based compensation 164 1,654 920 911 889 896 889 901 900
Slide 19: GAAP to Non-GAAP Free Cash Flow Reconciliation
GAAP to Non-GAAP Free Cash Flow Reconciliation DOLLARS IN THOUSANDS FY’22 Q3 FY’22 Q4 FY’23 Q1 FY’23 Q2 FY’23 Q3 FY’23 Q4 FY’24 Q1 FY’24 Q2 FY’24 Q3 Net cash provided by/(used in) ($2,454) ($24,530) $17,921 ($16,321) ($23,920) $12 $22,549 ($17,517) ($2,003) operating activities Less: 1717 Purchases
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