Braze, Inc. · NASDAQ:BRZE

Braze — Q2 2025 Earnings Presentation

20 slides from Braze's earnings presentation, Sep 5, 2024

  1. Slide 1: Q2 Fiscal 2025 Earnings Results

    Q2 Fiscal 2025 Earnings Results September 5, 2024

  2. Slide 2: Braze Financial Highlights

    Braze Financial Highlights $582M QUARTERLY REVENUE RUN 26% YoY REVENUE 2,163 CUSTOMERS IN OVER 75 RATE 1 GROWTH COUNTRIES 114% DOLLAR-BASED NET 96% SUBSCRIPTION $23M GAAP RETENTION RATE REVENUE NET LOSS Data as of July 31, 2024 or the three months ended, as applicable 1. Represents quarterly GAAP re

  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: Q2'25 Financial Results Highlights

    Q2’25 Financial Results Highlights ● Revenue of $145.5 million, up 26.4% YoY and 7.4% sequentially ● GAAP gross margin of 70.2%, up 100 basis points YoY; non-GAAP gross margin of 70.9%, up 90 basis points YoY ● Dollar-based net retention rate of 114% compared to 120% in the prior year quarter and 11

  5. Slide 5: Q2'25 Recent Business Highlights

    Q2’25 Recent Business Highlights ● Notable new business wins and upsells in the quarter included Asiana Airlines, Bell Media, Gumtree, LoanDepot, Papa Johns Pizza, Strawberry Hotels, Supercell, TF1 and Zalando ● Introduced the Braze Data Platform, unifying data capabilities and partner ecosystem and

  6. Slide 6: Quarterly Revenue

    Quarterly Revenue DOLLARS IN MILLIONS 26.4% Q2’25 YoY REVENUE GROWTH Reported Revenue YoY Revenue Growth 6

  7. Slide 7: Non-GAAP Gross Margin

    Non-GAAP Gross Margin 70.9% Q2’25 NON-GAAP GROSS MARGIN 7

  8. Slide 8: Dollar-Based Net Retention

    Dollar-Based Net Retention 114% Q2’25 NET DOLLAR- BASED RETENTION RATE 8

  9. Slide 9: Braze Customers

    Braze Customers Total Customers Customers with over $500K ARR 10% Q2'25 YoY CUSTOMER GROWTH 28% Q2’25 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% $21.7 $15.7 8.4% $11.4 5.0% $7.2 ($1.9) (1.9)% ($5.9) (4.8)% ($3.5) (2.7)% $7.2M Q2’25 FREE CASH FLOW ($18.7) (16.2)% ($24.7) ($28.1) (28.7)% (30.1)% FY’23 Q2 FY’23 Q3 FY’23 Q4 FY’24 Q1 FY’24 Q2 FY’24 Q3 FY’24 Q4 FY’25 Q1 FY’25 Q2 Free Cash Flow Free Cash Flo

  11. Slide 11: Remaining Performance Obligations

    Remaining Performance Obligations DOLLARS IN MILLIONS +32% YoY +24% YoY Less than 1 year Total RPO 11

  12. Slide 12: Guidance

    Guidance DOLLARS AND SHARES IN MILLIONS, EXCEPT PER SHARE AMOUNTS Metric Q3’25 Guidance FY’25 Guidance Revenue $147.5 - 148.5 $582.5 - 585.5 Non-GAAP Operating Loss ($3.5) - (4.5) ($7.5) - (8.5) Non-GAAP Net Income (Loss) ($0.5) - (1.5) $6.5 - 7.5 Non-GAAP Net Income (Loss) Per $0.00 - (0.01) $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 Six Months Ended Three Months Ended Six Months Ended July 31, July 31, July 31, July 31, 2024 2023 2024 2023 2024 2023 2024 20

  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 Income (Loss) Reconciliation of GAAP to Non-GAAP Net Income (Loss) Three Months Ended Six Months Ended Three Months Ended Six Months Ended July 31, July 31, July 31, July 31, 2

  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 Six Months Ended July 31, July 31, 2024 2023 2024 2023 Net cash provided by/ (used in) $11,612 ($17,517) $31,007 $5,032 oper

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

    GAAP to Non-GAAP Gross Margin Reconciliation DOLLARS IN THOUSANDS FY’23 Q2 FY’23 Q3 FY’23 Q4 FY’24 Q1 FY’24 Q2 FY’24 Q3 FY’24 Q4 FY’25 Q1 FY’25 Q2 Gross Profit $58,779 $63,990 $65,250 $69,093 $79,633 $87,582 $87,965 $90,911 $102,079 Plus: Stock-based 911 889 896 889 901 900 895 964 1,078 compensation

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

    GAAP to Non-GAAP Free Cash Flow Reconciliation DOLLARS IN THOUSANDS FY’23 Q2 FY’23 Q3 FY’23 Q4 FY’24 Q1 FY’24 Q2 FY’24 Q3 FY’24 Q4 FY’25 Q1 FY’25 Q2 Net cash provided by/(used in) ($16,321) ($23,920) $12 $22,549 ($17,517) ($2,003) $3,821 $19,395 $11,612 operating activities Less: Purchases of proper

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