Slide 1: Q2 Fiscal 2024 Earnings Results
Q2 Fiscal 2024 Earnings Results September 7, 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 Financial Highlights
Braze Financial Highlights $460M 34% 1,958 QUARTERLY REVENUE Y/Y REVENUE CUSTOMERS IN 72 RUN RATE 1 GROWTH COUNTRIES 120% 95% $32M DOLLAR-BASED NET SUBSCRIPTION GAAP RETENTION RATE REVENUE NET LOSS Data as of July 31, 2023 or the three months ended, as applicable 1. Represents quarterly GAAP revenue
Slide 4: Q2'24 Results Highlights
Q2’24 Results Highlights Financial Highlights: ● Revenue of $115.1 million, up 33.6% YoY and 13.1% sequentially ● GAAP gross margin of 69.2%, up 100 basis points YoY; non-GAAP gross margin of 70.0%, up 70 basis points YoY ● Dollar-based net retention rate of 120% compared to 126% in the prior year q
Slide 5: Quarterly Revenue
Quarterly Revenue DOLLARS IN MILLIONS 33.6% Q2’24 Y/Y REVENUE GROWTH Y/Y Revenue Growth 5
Slide 6: Non-GAAP Gross Margin
Non-GAAP Gross Margin 70.0% Q2’24 NON-GAAP GROSS MARGIN 6
Slide 7: Dollar-Based Net Retention
Dollar-Based Net Retention 120% Q2’24 NET DOLLAR- BASED RETENTION RATE 7
Slide 8: Braze Customers
Braze Customers 22% Q2'24 Y/Y 54% CUSTOMER GROWTH 173 CUSTOMERS WITH $500K+ ARR, UP 24% Y/Y Y/Y Customer Growth 8
Slide 9: Free Cash Flow
Free Cash Flow DOLLARS IN MILLIONS 21.3% 20.2% $21.7 $15.7 ($3.5) ($1.9) ($5.7) (10.3)% (5.4)% (1.9)% ($18.7)M ($18.7) Q2’24 FY’24 (16.2)% FREE CASH FLOW ($26.0) ($24.7) ($28.1) (28.7)% (36.8)% (30.1)% FY’22 Q2 FY’22 Q3 FY’22 Q4 FY’23 Q1 FY’23 Q2 FY’23 Q3 FY’23 Q4 FY’24 Q1 FY’24 Q2 Free Cash Flow Fr
Slide 10: Remaining Performance Obligations
Remaining Performance Obligations DOLLARS IN MILLIONS +28% Y/Y +29% Y/Y Less than 1 year Total RPO 10
Slide 11: Guidance
Guidance DOLLARS AND SHARES IN MILLIONS, EXCEPT PER SHARE AMOUNTS Metric Q3’24 Guidance FY’24 Guidance Revenue $116.5 - 117.5 $451.5 - 454.5 Non-GAAP Operating Loss ($15.5) - (16.5) ($47.0) - (49.0) Non-GAAP Net Loss ($13.0) - (14.0) ($37.0) - (39.0) 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 toget
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, 2023 2022 2023 2022 2023 2022 2023 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, 2023 2022 2023 2022
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 Six Months Ended July 31, July 31, 2023 2022 2023 2022 Net cash provided by/ (used in) operating ($17,517) ($16,321) $5,032
Slide 17: GAAP to Non-GAAP Gross Margin Reconciliation
GAAP to Non-GAAP Gross Margin Reconciliation DOLLARS IN THOUSANDS FY’22 Q2 FY’22 Q3 FY’22 Q4 FY’23 Q1 FY’23 Q2 FY’23 Q3 FY’23 Q4 FY’24 Q1 FY’24 Q2 Gross Profit $37,001 $44,794 $45,659 $51,589 $58,779 $63,990 $65,250 $69,093 $79,633 Plus: Stock-based compensation 177 164 1,654 920 911 889 896 889 901
Slide 18: GAAP to Non-GAAP Free Cash Flow Reconciliation
GAAP to Non-GAAP Free Cash Flow Reconciliation DOLLARS IN THOUSANDS FY’22 Q2 FY’22 Q3 FY’22 Q4 FY’23 Q1 FY’23 Q2 FY’23 Q3 FY’23 Q4 FY’24 Q1 FY’24 Q2 Net cash provided by/(used in) ($4,607) ($2,454) ($24,530) $17,921 ($16,321) ($23,920) $12 $22,549 ($17,517) operating activities Less: 1717 Purchases
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