Slide 1: Q4 Fiscal 2023 Earnings Results
Q4 Fiscal 2023 Earnings Results March 30, 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 $395M 40% 1,770 QUARTERLY REVENUE Y/Y REVENUE CUSTOMERS IN 73 RUN RATE1 GROWTH COUNTRIES 124% 96% $34M DOLLAR-BASED NET SUBSCRIPTION GAAP RETENTION RATE REVENUE NET LOSS Data as of January 31, 2023 or the three months ended, as applicable 1. Represents quarterly GAAP revenue multip
Slide 4: Q4'23 Results Highlights
Q4’23 Results Highlights Financial Highlights: • Revenue of $98.7 million, up 40.1% YoY and 6.0% sequentially • GAAP gross margin of 66.1%, up 130 basis points YoY; non-GAAP gross margin of 67.0%, down 20 basis points YoY • Dollar-based net retention rate of 124% compared to 128% in the prior year q
Slide 5: Quarterly Revenue
Quarterly Revenue UNAUDITED, DOLLARS IN MILLIONS $98.7 $93.1 $86.1 $77.5 $70.4 $64.0 $55.8 40.1% $47.9 64.1% 62.6% 61.9% Q4’23 Y/Y $42.9 55.1% 54.5% REVENUE GROWTH 49.7% 47.2% 45.6% 40.1% FY'21 Q4 FY'22 Q1 FY'22 Q2 FY'22 Q3 FY'22 Q4 FY'23 Q1 FY'23 Q2 FY'23 Q3 FY'23 Q4 Reported Revenue Y/Y Revenue Gr
Slide 6: Non-GAAP Gross Margin
Non-GAAP Gross Margin 67.0% 67.4% 70.3% 67.8% 69.3% 69.7% Q4’23 NON-GAAP 64.9% 66.7% 67.2% 67.0% GROSS MARGIN FY'21 Q4 FY'22 Q1 FY'22 Q2 FY'22 Q3 FY'22 Q4 FY'23 Q1 FY'23 Q2 FY'23 Q3 FY'23 Q4 See Appendix for GAAP to non-GAAP reconciliation 6
Slide 7: Dollar-Based Net Retention
Dollar-Based Net Retention 124% 128% 127% Q4’23 NET DOLLAR- 125% 126% 126% 126% BASED RETENTION 123% 124% 124% RATE FY'21 Q4 FY'22 Q1 FY'22 Q2 FY'22 Q3 FY'22 Q4 FY'23 Q1 FY'23 Q2 FY'23 Q3 FY'23 Q4 See Appendix for definitions 7
Slide 8: Braze Customers
Braze Customers 1,770 1,715 1,599 1,503 1,375 1,247 1,002 1,119 29% 890 Q4'23 Y/Y 54% CUSTOMER GROWTH 48% 50% 41% 43% 156 CUSTOMERS 38% WITH $500K+ ARR, UP 29% 29% 46% Y/Y 22% FY'21 Q4 FY'22 Q1 FY'22 Q2 FY'22 Q3 FY'22 Q4 FY'23 Q1 FY'23 Q2 FY'23 Q3 FY'23 Q4 Customers Growth See Appendix for definitio
Slide 9: Free Cash Flow
Free Cash Flow DOLLARS IN MILLIONS $15.7 20.2% ($0.6) ($1.9)M ($1.9) ($3.5) ($4.6) ($5.7) ($26.0) ($24.7) ($28.1) (1.9)% (1.4%) (9.6)% (10.3)% (5.4)% Q4 FY'23 (28.7)% (30.1)% FREE CASH FLOW (36.8)% FY'21 Q4 FY'22 Q1 FY'22 Q2 FY'22 Q3 FY'22 Q4 FY'23 Q1 FY'23 Q2 FY'23 Q3 FY'23 Q4 Free Cash Flow Non-GA
Slide 10: Remaining Performance Obligations
Remaining Performance Obligations DOLLARS IN MILLIONS 2% Y / Y +2 1 % Y /Y +3 $455.7 $410.5 $408.7 $373.6 $390.9 $283.3 $312.6 $255.1 $274.2 $237.8 FY'22 Q4 FY'23 Q1 FY'23 Q2 FY'23 Q3 FY'23 Q4 FY'22 Q4 FY'23 Q1 FY'23 Q2 FY'23 Q3 FY'23 Q4 Less than 1 Year Total RPO 10
Slide 11: Guidance
Guidance DOLLARS IN MILLIONS, EXCEPT PER SHARE AMOUNTS Metric Q1’24 Guidance FY’24 Guidance Revenue $98.5 - 99.5 $433.0 - 438.0 Non-GAAP Operating Loss ($19.0) - (20.0) ($57.0) - (61.0) Non-GAAP Net Loss ($17.0) - (18.0) ($53.0) - (57.0) Non-GAAP Net Loss Per Share ($0.18) - (0.19) ($0.55) - (0.59)
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 Twelve Months Ended Three Months Ended Twelve Months Ended Ended January 31, January 31, January 31, January 31, 2023 2022 2023 2022
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 Twelve Months Ended Three Months Ended Twelve Months Ended January 31, January 31, January 31, January 31, 2
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 Twelve Months Ended January 31, January 31, 2023 2022 2023 2022 Net cash provided by/ (used in) operating $12 ($24,530) ($22
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 Q4 FY’22 Q1 FY’22 Q2 FY’22 Q3 FY’22 Q4 FY’23 Q1 FY’23 Q2 FY’23 Q3 FY’23 Q4 Gross Profit $27,651 $32,070 $37,001 $44,794 $45,659 $51,589 $58,779 $63,990 $65,250 Plus: Stock-based compensation 245 190 177
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 Q4 FY’22 Q1 FY’22 Q2 FY’22 Q3 FY’22 Q4 FY’23 Q1 FY’23 Q2 FY’23 Q3 FY’23 Q4 Net cash provided by/(used in) $20 ($3,807) ($4,607) ($2,454) ($24,530) $17,921 ($16,321) ($23,920) $12 operating activities
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