Slide 1: Q1 Fiscal 2023 Earnings Results
Q1 Fiscal 2023 Earnings Results June 13, 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 $310M 62% 1,503 QUARTERLY REVENUE Y/Y REVENUE CUSTOMERS IN OVER RUN RATE1 GROWTH 60 COUNTRIES 127% 94% $40M DOLLAR-BASED NET SUBSCRIPTION GAAP RETENTION RATE REVENUE NET LOSS Data as of April 30, 2022 or the three months ended, as applicable 1. Represents quarterly GAAP revenue mul
Slide 4: Q1'23 Results Highlights
Q1’23 Results Highlights Financial Highlights: • Revenue of $77.5 million, up 61.9% YoY and 10.0% sequentially • GAAP gross margin of 66.6%, down 40 basis points YoY; non-GAAP gross margin of 67.8%, up 40 basis points YoY • Dollar-based net retention rate of 127% compared to 128% in Q4 and 124% in t
Slide 5: Quarterly Revenue
Quarterly Revenue UNAUDITED, DOLLARS IN MILLIONS $77.5 $70.4 $64.0 $55.8 $42.9 $47.9 61.9% $39.3 $35.9 Q1’23 Y/Y REVENUE GROWTH $32.0 62.5% 62.6% 64.1% 61.9% 60.7% 56.2% 55.1% 49.7% 47.2% FY'21 Q1 FY'21 Q2 FY'21 Q3 FY'21 Q4 FY'22 Q1 FY'22 Q2 FY'22 Q3 FY'22 Q4 FY'23 Q1 Reported Revenue Y/Y Revenue Gr
Slide 6: Non-GAAP Gross Margin
Non-GAAP Gross Margin 67.8% 67.4% 70.3% 67.8% Q1’23 NON-GAAP 64.9% 66.7% 67.2% 63.5% 64.0% 63.8% GROSS MARGIN FY'21 Q1 FY'21 Q2 FY'21 Q3 FY'21 Q4 FY'22 Q1 FY'22 Q2 FY'22 Q3 FY'22 Q4 FY'23 Q1 See Appendix for GAAP to non-GAAP reconciliation 6
Slide 7: Dollar-Based Net Retention
Dollar-Based Net Retention 127% 128% 127% Q1’23 NET DOLLAR- 125% 125% 126% BASED RETENTION 124% 124% 123% 124% RATE FY'21 Q1 FY'21 Q2 FY'21 Q3 FY'21 Q4 FY'22 Q1 FY'22 Q2 FY'22 Q3 FY'22 Q4 FY'23 Q1 See Appendix for definitions 7
Slide 8: Braze Customers
Braze Customers 1,503 1,375 1,247 54% 1,119 50% 48% 841 890 1,002 41% 50% 774 796 Q1’23 Y/Y CUSTOMER GROWTH 32% 129 CUSTOMERS 29% WITH $500K+ ARR, UP 65% Y/Y 23% 23% 22% FY'21 Q1 FY'21 Q2 FY'21 Q3 FY'21 Q4 FY'22 Q1 FY'22 Q2 FY'22 Q3 FY'22 Q4 FY'23 Q1 Customers Growth See Appendix for definitions 8
Slide 9: Free Cash Flow
Free Cash Flow DOLLARS IN MILLIONS 20.2% $15.7 6.6% $2.4 (1.4%) ($5.4) ($6.8) ($0.6) ($4.6) ($5.7) ($3.5) ($26.0) $15.7M (5.4)% Q1 FY’23 (9.6)% (10.3)% FREE CASH FLOW (16.8)% (17.3)% (36.8)% FY'21 Q1 FY'21 Q2 FY'21 Q3 FY'21 Q4 FY'22 Q1 FY'22 Q2 FY'22 Q3 FY'22 Q4 FY'23 Q1 Free Cash Flow Non-GAAP FCF
Slide 10: Remaining Performance Obligations
Remaining Performance Obligations DOLLARS IN MILLIONS $390.9 $373.6 $304.0 $135.8 $135.8 $249.6 $268.2 $104.9 $390.9M $87.7 +57% Y/Y $85.9 TOTAL REMAINING PERFORMANCE $237.8 $255.1 OBLIGATIONS $199.1 $163.7 $180.5 FY'22 Q1 FY'22 Q2 FY'22 Q3 FY'22 Q4 FY'23 Q1 Current RPO 1-5 Years 10
Slide 11: Guidance
Guidance DOLLARS IN MILLIONS, EXCEPT PER SHARE AMOUNTS Metric Q2’23 Guidance FY’23 Guidance Revenue $80.5 - 81.5 $345.0 - 349.0 Non-GAAP Operating Loss $(19.5) - (20.5) $(77.0) - (81.0) Non-GAAP Net Loss $(18.5) - (19.5) $(74.5) - (78.5) Non-GAAP Net Loss Per Share $(0.19) - (0.20) $(0.78) - (0.82)
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 April 30, Three Months Ended April 30, 2022 2021 2022 2021 Gross Profit $51,589 $32,070 GAAP sales and marketing expense $46,0
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 April 30, Three Months Ended April 30, 2022 2021 2022 2021 Loss from operations ($39,649) ($13,025) Net loss
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 April 30, 2022 2021 Net cash provided by/(used in) $17,921 ($3,807) operating activities Less: • Purchases of property and (
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