Braze, Inc. · NASDAQ:BRZE

Braze — Q3 2023 Earnings Presentation

19 slides from Braze's earnings presentation, Dec 13, 2022

  1. Slide 1: Q3 Fiscal 2023 Earnings Results

    Q3 Fiscal 2023 Earnings Results December 13, 2022

  2. 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

  3. Slide 3: Braze at a Glance

    Braze at a Glance $373M 46% 1,715 QUARTERLY REVENUE Y/Y REVENUE CUSTOMERS IN OVER RUN RATE1 GROWTH 60 COUNTRIES 126% 96% $34M DOLLAR-BASED NET SUBSCRIPTION GAAP RETENTION RATE REVENUE NET LOSS Data as of October 31, 2022 or the three months ended, as applicable 1. Represents quarterly GAAP revenue m

  4. Slide 4: Q3'23 Results Highlights

    Q3'23 Results Highlights Financial Highlights: • Revenue of $93.1 million, up 45.6% YoY and 8.1% sequentially • GAAP gross margin of 68.7%, down 130 basis points YoY; non-GAAP gross margin of 69.7%, down 60 basis points YoY • Dollar-based net retention rate of 126%, in-line with Q2 and the prior yea

  5. Slide 5: Quarterly Revenue

    Quarterly Revenue UNAUDITED, DOLLARS IN MILLIONS $93.1 $86.1 $77.5 $70.4 $64.0 $55.8 45.6% $47.9 Q3’23 Y/Y $42.9 REVENUE GROWTH $39.3 62.6% 64.1% 61.9% 56.2% 55.1% 54.5% 49.7% 47.2% 45.6% FY'21 Q3 FY'21 Q4 FY'22 Q1 FY'22 Q2 FY'22 Q3 FY'22 Q4 FY'23 Q1 FY'23 Q2 FY'23 Q3 Reported Revenue Y/Y Revenue Gr

  6. Slide 6: Non-GAAP Gross Margin

    Non-GAAP Gross Margin 69.7% 67.4% 70.3% 67.8% 69.3% 69.7% Q3’23 NON-GAAP 64.9% 66.7% 67.2% 63.8% GROSS MARGIN FY'21 Q3 FY'21 Q4 FY'22 Q1 FY'22 Q2 FY'22 Q3 FY'22 Q4 FY'23 Q1 FY'23 Q2 FY'23 Q3 See Appendix for GAAP to non-GAAP reconciliation 6

  7. Slide 7: Dollar-Based Net Retention

    Dollar-Based Net Retention 126% 128% 127% Q3’23 NET DOLLAR- 125% 126% 126% 126% BASED RETENTION 124% 123% 124% RATE FY'21 Q3 FY'21 Q4 FY'22 Q1 FY'22 Q2 FY'22 Q3 FY'22 Q4 FY'23 Q1 FY'23 Q2 FY'23 Q3 See Appendix for definitions 7

  8. Slide 8: Braze Customers

    Braze Customers 1,715 1,599 1,503 1,375 1,247 54% 1,002 1,119 48% 50% 38% 890 841 Q3'23 Y/Y 43% 41% CUSTOMER GROWTH 38% 148 CUSTOMERS WITH $500K+ ARR, UP 53% Y/Y 29% 23% 22% FY'21 Q3 FY'21 Q4 FY'22 Q1 FY'22 Q2 FY'22 Q3 FY'22 Q4 FY'23 Q1 FY'23 Q2 FY'23 Q3 Customers Growth See Appendix for definitions

  9. Slide 9: Free Cash Flow

    Free Cash Flow DOLLARS IN MILLIONS $15.7 20.2% ($6.8) ($0.6) (1.4%) ($4.6) ($5.7) ($3.5) ($26.0) ($24.7) ($28.1) ($28.1)M (5.4)% (9.6)% (10.3)% (17.3)% Q3 FY'23 (28.7)% (30.1)% FREE CASH FLOW (36.8)% FY'21 Q3 FY'21 Q4 FY'22 Q1 FY'22 Q2 FY'22 Q3 FY'22 Q4 FY'23 Q1 FY'23 Q2 FY'23 Q3 Free Cash Flow Non-

  10. Slide 10: Remaining Performance Obligations

    Remaining Performance Obligations DOLLARS IN MILLIONS 4 % Y / Y +3 2 % Y /Y +4 $410.5 $408.7 $373.6 $390.9 $304.0 $274.2 $283.3 $237.8 $255.1 $199.1 FY'22 Q3 FY'22 Q4 FY'23 Q1 FY'23 Q2 FY'23 Q3 FY'22 Q3 FY'22 Q4 FY'23 Q1 FY'23 Q2 FY'23 Q3 Less than 1 Year Total RPO 10

  11. Slide 11: Guidance

    Guidance DOLLARS IN MILLIONS, EXCEPT PER SHARE AMOUNTS Metric Q4'23 Guidance FY'23 Guidance Revenue $95.0 - 96.0 $352.0 - 353.0 Non-GAAP Operating Loss $(18.5) - (19.5) $(71.5) - (72.5) Non-GAAP Net Loss $(17.5) - (18.5) $(64.5) - (65.5) Non-GAAP Net Loss Per Share $(0.18) - (0.19) $(0.68) - (0.69)

  12. Slide 12: Appendix

    Appendix 12

  13. 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

  14. 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 Nine Months Ended Three Months Ended Nine Months Ended October 31, October 31, October 31, October 31, 2022 2021 2022 2021 202

  15. Slide 15: 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, 2022

  16. 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 Nine Months Ended October 31, October 31, 2022 2021 2022 2021 Net cash used in ($23,920) ($2,454) ($22,320) ($10,868) operat

  17. Slide 17: GAAP to Non-GAAP Gross Margin Reconciliation

    GAAP to Non-GAAP Gross Margin Reconciliation DOLLARS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS FY’21 Q3 FY’21 Q4 FY’22 Q1 FY’22 Q2 FY’22 Q3 FY’22 Q4 FY’23 Q1 FY’23 Q2 FY’23 Q3 Gross Profit $24,901 $27,651 $32,070 $37,001 $44,794 $45,659 $51,589 $58,779 $63,990 Plus: Stock-based compensation 205 245 190

  18. Slide 18: GAAP to Non-GAAP Free Cash Flow Reconciliation

    GAAP to Non-GAAP Free Cash Flow Reconciliation DOLLARS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS FY’21 Q3 FY’21 Q4 FY’22 Q1 FY’22 Q2 FY’22 Q3 FY’22 Q4 FY’23 Q1 FY’23 Q2 FY’23 Q3 Net cash provided by/(used in) ($5,879) $20 ($3,807) ($4,607) ($2,454) ($24,530) $17,921 ($16,321) ($23,920) operating activi

  19. Slide 19: Braze

Braze — Q3 2023 Earnings Presentation on 6ix