Braze, Inc. · NASDAQ:BRZE

Braze — Q1 2025 Earnings Presentation

20 slides from Braze's earnings presentation, Jun 6, 2024

  1. Slide 1: Q1 Fiscal 2025 Earnings Results

    Q1 Fiscal 2025 Earnings Results June 6, 2024

  2. Slide 2: Braze Financial Highlights

    Braze Financial Highlights $542M QUARTERLY REVENUE RUN 33% YoY REVENUE 2,102 CUSTOMERS IN OVER 70 RATE 1 GROWTH COUNTRIES 117% DOLLAR-BASED NET 96% SUBSCRIPTION $36M GAAP RETENTION RATE REVENUE NET LOSS Data as of April 30, 2024 or the three months ended, as applicable 1. Represents quarterly GAAP r

  3. Slide 3: 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

  4. Slide 4: Q1'25 Financial Results Highlights

    Q1’25 Financial Results Highlights ● Revenue of $135.5 million, up 33.1% YoY and 3.4% sequentially; first quarter revenue was impacted by a $0.8 million revenue reserve related to the company’s April service outage ● GAAP gross margin of 67.1%, down 80 basis points YoY; non-GAAP gross margin of 67.9%

  5. Slide 5: Q1'25 Recent Business Highlights

    Q1’25 Recent Business Highlights ● Notable new business wins include Bauer Media Group, Bolt Technology, Country Road Group, Hugo Boss, Leonardo.ai, Property Finder, and Solaris Bank AG, among others. Notable upsells include Etsy, Lime, MyEyeDr.,Talkspace, and the rewards credit card Yonder ● Braze

  6. Slide 6: Quarterly Revenue

    Quarterly Revenue DOLLARS IN MILLIONS * 33.1%* Q1’25 YoY REVENUE GROWTH Reported Revenue YoY Revenue Growth *Includes the negative impact of revenue reserve of $0.8M resulting from April outage 6

  7. Slide 7: Non-GAAP Gross Margin

    Non-GAAP Gross Margin 67.9%* Q1’25 NON-GAAP * GROSS MARGIN *Includes the negative impact of revenue reserve of $0.8M resulting from April outage 7

  8. Slide 8: Dollar-Based Net Retention

    Dollar-Based Net Retention 117% Q1’25 NET DOLLAR- BASED RETENTION RATE 8

  9. Slide 9: Braze Customers

    Braze Customers Total Customers Customers with over $500K ARR 13% Q1'25 YoY CUSTOMER GROWTH 29% Q1’25 YoY GROWTH OF $500K+ ARR CUSTOMERS Total Customers Total Customers YoY Growth Customers with $500K+ ARR Customers with $500K+ ARR YoY Growth 9

  10. Slide 10: Free Cash Flow

    Free Cash Flow DOLLARS IN MILLIONS 21.3% 20.2% $21.7 $15.7 8.4% $11.4 ($1.9) (1.9)% ($5.9) (4.8)% ($3.5) (2.7)% $11.4M Q1’25 FREE CASH FLOW ($18.7) (16.2)% ($24.7) ($26.0) ($28.1) (28.7)% (30.1)% FY’23 Q1 FY’23 Q2 FY’23 Q3 FY’23 Q4 FY’24 Q1 FY’24 Q2 FY’24 Q3 FY’24 Q4 FY’25 Q1 Free Cash Flow Free Cas

  11. Slide 11: Remaining Performance Obligations

    Remaining Performance Obligations DOLLARS IN MILLIONS +38% YoY +29% YoY Less than 1 year Total RPO 11

  12. Slide 12: Guidance

    Guidance DOLLARS AND SHARES IN MILLIONS, EXCEPT PER SHARE AMOUNTS Metric Q2’25 Guidance FY’25 Guidance* Revenue $140.5 - 141.5 $577.0 - 581.0 Non-GAAP Operating Loss ($6.5) - (7.5) ($19.5) - (23.5) Non-GAAP Net Loss ($3.0) - (4.0) ($6.0) - (10.0) Non-GAAP Net Loss Per Share ($0.03) - (0.04) ($0.06)

  13. Slide 13: Appendix

    Appendix

  14. 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

  15. 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 Three Months Ended April 30, April 30, 2024 2023 2024 2023 GAAP sales and marketing expense $69,827 $57,262 Less: Stock-based

  16. 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 Three Months Ended April 30, April 30, 2024 2023 2024 2023 Net loss attributable to Braze, Inc. ($35,641) ($

  17. 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 April 30, 2024 2023 Net cash provided by operating $19,395 $22,549 activities Less: Purchases of property and (6,915) (40) e

  18. Slide 18: GAAP to Non-GAAP Gross Margin Reconciliation

    GAAP to Non-GAAP Gross Margin Reconciliation DOLLARS IN THOUSANDS FY’23 Q1 FY’23 Q2 FY’23 Q3 FY’23 Q4 FY’24 Q1 FY’24 Q2 FY’24 Q3 FY’24 Q4 FY’25 Q1 Gross Profit $51,589 $58,779 $63,990 $65,250 $69,093 $79,633 $87,582 $87,965 $90,911 Plus: Stock-based 920 911 889 896 889 901 900 895 964 compensation ex

  19. Slide 19: GAAP to Non-GAAP Free Cash Flow Reconciliation

    GAAP to Non-GAAP Free Cash Flow Reconciliation DOLLARS IN THOUSANDS FY’23 Q1 FY’23 Q2 FY’23 Q3 FY’23 Q4 FY’24 Q1 FY’24 Q2 FY’24 Q3 FY’24 Q4 FY’25 Q1 Net cash provided by/(used in) $17,921 ($16,321) ($23,920) $12 $22,549 ($17,517) ($2,003) $3,821 $19,395 operating activities Less: Purchases of proper

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