Slide 1: Q1 Fiscal 2024 Earnings Results
Q1 Fiscal 2024 Earnings Results June 8, 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 at a Glance
Braze at a Glance $407M 31% 1,866 QUARTERLY REVENUE Y/Y REVENUE CUSTOMERS IN 72 RUN RATE1 GROWTH COUNTRIES 122% 95% $39M DOLLAR-BASED NET SUBSCRIPTION GAAP RETENTION RATE REVENUE NET LOSS Data as of April 30, 2023 or the three months ended, as applicable 1. Represents quarterly GAAP revenue multipli
Slide 4: Q1'24 Results Highlights
Q1’24 Results Highlights Financial Highlights: • Revenue of $101.8 million, up 31.3% YoY and 3.1% sequentially • GAAP gross margin of 67.9%, up 130 basis points YoY; non-GAAP gross margin of 68.8%, up 100 basis points YoY • Dollar-based net retention rate of 122% compared to 127% in the prior year q
Slide 5: Quarterly Revenue
Quarterly Revenue DOLLARS IN MILLIONS $101.8 $98.7 $93.1 $86.1 $77.5 $70.4 $55.8 $64.0 31.3% 62.6% 64.1% 61.9% $47.9 55.1% Q1’24 Y/Y 54.5% 49.7% REVENUE GROWTH 45.6% 40.1% 31.3% FY'22 Q1 FY'22 Q2 FY'22 Q3 FY'22 Q4 FY'23 Q1 FY'23 Q2 FY'23 Q3 FY'23 Q4 FY'24 Q1 Reported Revenue Y/Y Revenue Growth 5
Slide 6: Non-GAAP Gross Margin
Non-GAAP Gross Margin 68.8% 67.4% 70.3% 67.8% 69.3% 69.7% 68.8% Q1’24 NON-GAAP 66.7% 67.2% 67.0% GROSS MARGIN FY'22 Q1 FY'22 Q2 FY'22 Q3 FY'22 Q4 FY'23 Q1 FY'23 Q2 FY'23 Q3 FY'23 Q4 FY'24 Q1 See Appendix for GAAP to non-GAAP reconciliation 6
Slide 7: Dollar-Based Net Retention
Dollar-Based Net Retention 122% 128% 127% Q1’24 NET DOLLAR- 125% 126% 126% 126% BASED RETENTION 124% 124% 122% RATE FY'22 Q1 FY'22 Q2 FY'22 Q3 FY'22 Q4 FY'23 Q1 FY'23 Q2 FY'23 Q3 FY'23 Q4 FY'24 Q1 See Appendix for definitions 7
Slide 8: Braze Customers
Braze Customers 1,866 1,770 1,715 1,599 1,503 1,375 1,247 1,002 1,119 24% Q1'24 Y/Y CUSTOMER GROWTH 164 CUSTOMERS 54% WITH $500K+ ARR, UP 48% 50% 27% Y/Y 41% 43% 38% 29% 29% 24% FY'22 Q1 FY'22 Q2 FY'22 Q3 FY'22 Q4 FY'23 Q1 FY'23 Q2 FY'23 Q3 FY'23 Q4 FY'24 Q1 Customers Y/Y Customer Growth See Appendi
Slide 9: Free Cash Flow
Free Cash Flow DOLLARS IN MILLIONS 21.3% $21.7 20.2% $15.7 $21.7M ($3.5) ($1.9) ($4.6) (1.9)% ($5.7) (5.4)% Q1 FY’24 (9.6)% (10.3)% FREE CASH FLOW ($24.7) ($26.0) (28.7)% ($28.1) (36.8)% (30.1)% FY'22 Q1 FY'22 Q2 FY'22 Q3 FY'22 Q4 FY'23 Q1 FY'23 Q2 FY'23 Q3 FY'23 Q4 FY'24 Q1 Free Cash Flow Free Cash
Slide 10: Remaining Performance Obligations
Remaining Performance Obligations DOLLARS IN MILLIONS 2% Y /Y + 2 % Y /Y +28 $477.5 $455.7 $410.5 $408.7 $390.9 $312.6 $325.4 $274.2 $283.3 $255.1 FY'23 Q1 FY'23 Q2 FY'23 Q3 FY'23 Q4 FY'24 Q1 FY'23 Q1 FY'23 Q2 FY'23 Q3 FY'23 Q4 FY'24 Q1 Less than 1 Year Total RPO 10
Slide 11: Guidance
Guidance DOLLARS AND SHARES IN MILLIONS, EXCEPT PER SHARE AMOUNTS Metric Q2’24 Guidance FY’24 Guidance Revenue $108.0 - 109.0 $442.5 - 446.5 Non-GAAP Operating Loss $(15.0) - (16.0) $(54.0) - (58.0) Non-GAAP Net Loss $(13.0) - (14.0) $(50.0) - (54.0) Non-GAAP Net Loss Per Share $(0.13) - (0.14) $(0.
Slide 12: Appendix
Appendix 12
Slide 13: 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 tog
Slide 14: 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 April 30, Three Months Ended April 30, 2023 2022 GAAP sales and marketing expense $57,262 $46,044 2023 2022 Less: Stock-based
Slide 15: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation DOLLARS AND SHARES 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 April 30, Three Months Ended April 30, 2023 2022 2023 2022 Net loss attributable to Braze, Inc. (
Slide 16: 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, 2023 2022 Net cash provided by $22,549 $17,921 operating activities Less: • Purchases of property and (40) (1,960)
Slide 17: GAAP to Non-GAAP Gross Profit and Gross Margin Reconciliation
GAAP to Non-GAAP Gross Profit and Gross Margin Reconciliation DOLLARS IN THOUSANDS FY’22 Q1 FY’22 Q2 FY’22 Q3 FY’22 Q4 FY’23 Q1 FY’23 Q2 FY’23 Q3 FY’23 Q4 FY’24 Q1 Gross Profit $32,070 $37,001 $44,794 $45,659 $51,589 $58,779 $63,990 $65,250 $69,093 Plus: Stock-based compensation 190 177 164 1,654 92
Slide 18: GAAP to Non-GAAP Free Cash Flow Reconciliation
GAAP to Non-GAAP Free Cash Flow Reconciliation DOLLARS IN THOUSANDS FY’22 Q1 FY’22 Q2 FY’22 Q3 FY’22 Q4 FY’23 Q1 FY’23 Q2 FY’23 Q3 FY’23 Q4 FY’24 Q1 Net cash provided by/(used in) ($3,807) ($4,607) ($2,454) ($24,530) $17,921 ($16,321) ($23,920) $12 $22,549 operating activities Less: 1 177 Purchases
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