Braze, Inc. · NASDAQ:BRZE
Braze — Q2 2023 Earnings Presentation
19 slides from Braze's earnings presentation, Sep 12, 2022
Slide 1: Q2 Fiscal 2023 Earnings Results
Q2 Fiscal 2023 Earnings Results September 12, 2022
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 $344M 55% 1,599 QUARTERLY REVENUE Y/Y REVENUE CUSTOMERS IN OVER RUN RATE1 GROWTH 60 COUNTRIES 126% 95% $33M DOLLAR-BASED NET SUBSCRIPTION GAAP RETENTION RATE REVENUE NET LOSS Data as of July 31, 2022 or the three months ended, as applicable 1. Represents quarterly GAAP revenue mult
Slide 4: Q2'23 Results Highlights
Q2’23 Results Highlights Financial Highlights: • Revenue of $86.1 million, up 54.5% YoY and 11.1% sequentially • GAAP gross margin of 68.2%, up 180 basis points YoY; non-GAAP gross margin of 69.3%, up 260 basis points YoY • Dollar-based net retention rate of 126% compared to 127% in Q1 and 125% in t
Slide 5: Quarterly Revenue
Quarterly Revenue UNAUDITED, DOLLARS IN MILLIONS $86.1 $77.5 $70.4 $64.0 $47.9 $55.8 54.5% $42.9 Q2’23 Y/Y $39.3 $35.9 REVENUE GROWTH 62.5% 62.6% 64.1% 61.9% 56.2% 55.1% 54.5% 49.7% 47.2% FY'21 Q2 FY'21 Q3 FY'21 Q4 FY'22 Q1 FY'22 Q2 FY'22 Q3 FY'22 Q4 FY'23 Q1 FY'23 Q2 Reported Revenue Y/Y Revenue Gr
Slide 6: Non-GAAP Gross Margin
Non-GAAP Gross Margin 69.3% 67.4% 70.3% 67.8% 69.3% Q2’23 NON-GAAP 64.9% 66.7% 67.2% 64.0% 63.8% GROSS MARGIN FY'21 Q2 FY'21 Q3 FY'21 Q4 FY'22 Q1 FY'22 Q2 FY'22 Q3 FY'22 Q4 FY'23 Q1 FY'22 Q2 See Appendix for GAAP to non-GAAP reconciliation 6
Slide 7: Dollar-Based Net Retention
Dollar-Based Net Retention 126% 128% 127% Q2’23 NET DOLLAR- 125% 126% 126% BASED RETENTION 124% 124% 123% 124% RATE FY'21 Q2 FY'21 Q3 FY'21 Q4 FY'22 Q1 FY'22 Q2 FY'22 Q3 FY'22 Q4 FY'23 Q1 FY'23 Q2 See Appendix for definitions 7
Slide 8: Braze Customers
Braze Customers 1,599 1,503 1,375 1,247 54% 1,119 50% 48% 841 890 1,002 41% 43% 43% 796 Q2’23 Y/Y CUSTOMER GROWTH 139 CUSTOMERS 29% WITH $500K+ ARR, UP 70% Y/Y 23% 23% 22% FY'21 Q2 FY'21 Q3 FY'21 Q4 FY'22 Q1 FY'22 Q2 FY'22 Q3 FY'22 Q4 FY'23 Q1 FY'23 Q2 Customers Growth See Appendix for definitions 8
Slide 9: Free Cash Flow
Free Cash Flow DOLLARS IN MILLIONS $15.7 20.2% 6.6% $2.4 ($0.6) ($6.8) ($4.6) ($5.7) ($3.5) ($26.0) ($24.7) $(24.7)M (1.4%) (5.4)% Q2 FY’23 (9.6)% (10.3)% FREE CASH FLOW (17.3)% (28.7)% (36.8)% FY'21 Q2 FY'21 Q3 FY'21 Q4 FY'22 Q1 FY'22 Q2 FY'22 Q3 FY'22 Q4 FY'23 Q1 FY'23 Q2 Free Cash Flow Non-GAAP F
Slide 10: Remaining Performance Obligations
Remaining Performance ObligationsDOLLARS IN MILLIONS $410.5 $390.9 $373.6 $304.0 $135.8 $136.3 $410.5M $135.8 $268.2 +53% Y/Y $104.9 $87.7 TOTAL REMAINING PERFORMANCE OBLIGATIONS $255.1 $274.2 $237.8 $180.5 $199.1 FY'22 Q2 FY'22 Q3 FY'22 Q4 FY'23 Q1 FY'23 Q2 Current RPO 1-5 Years 10
Slide 11: Guidance
Guidance DOLLARS IN MILLIONS, EXCEPT PER SHARE AMOUNTS Metric Q3’23 Guidance FY’23 Guidance Revenue $90.0 - 91.0 $347.0 - 350.0 Non-GAAP Operating Loss $(23.0) - (24.0) $(76.0) - (78.0) Non-GAAP Net Loss $(21.0) - (22.0) $(74.0) - (76.0) Non-GAAP Net Loss Per Share $(0.22) - (0.23) $(0.77) - (0.79)
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 Six Months Ended Three Months Ended Six Months Ended July 31, July 31, July 31, July 31, 2022 2021 2022 2021 2022 2021 2022 20
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 Six Months Ended Three Months Ended Six Months Ended July 31, July 31, July 31, July 31, 2022 2021 2022 2021
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 July 31, Six Months Ended July 31, 2022 2021 2022 2021 Net cash provided by/ (used in) operating ($16,321) ($4,607) ($1,600)
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 Q2 FY’21 Q3 FY’21 Q4 FY’22 Q1 FY’22 Q2 FY’22 Q3 FY’22 Q4 FY’23 Q1 FY’23 Q2 Gross Profit $22,905 $24,901 $27,651 $32,070 $37,001 $44,794 $45,659 $51,589 $58,779 Plus: Stock-based compensation 108 205 245
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 Q2 FY’21 Q3 FY’21 Q4 FY’22 Q1 FY’22 Q2 FY’22 Q3 FY’22 Q4 FY’23 Q1 FY’23 Q2 Net cash provided by/(used in) $3,375 ($5,879) $20 ($3,807) ($4,607) ($2,454) ($24,530) $17,921 ($16,321) operating activitie
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