Braze Reports Fiscal First Quarter 2024 Results
Braze (BRZE) reported strong fiscal Q1 2024 results, with revenue growing 31.3% year-over-year to $101.8 million. The company achieved a dollar-based net retention of 122% for the trailing 12 months. Key financial highlights include:
- Subscription revenue: $97.1 million
- GAAP Gross Margin: 67.9%
- Non-GAAP Gross Margin: 68.8%
- Total customers: 1,866
- GAAP operating loss: $41.9 million
- Non-GAAP operating loss: $16.0 million
- Net cash provided by operating activities: $22.5 million
- Free cash flow: $21.7 million
Braze also provided guidance for Q2 FY2024 and updated full-year FY2024 guidance, projecting continued growth. The company launched new products, announced partnerships, and completed the acquisition of North Star, launching Braze Australia.
Braze (BRZE) ha riportato risultati fiscali forti per il primo trimestre 2024, con un fatturato in crescita del 31,3% rispetto all'anno precedente, raggiungendo $101,8 milioni. L'azienda ha raggiunto una retention netta basata su dollari del 122% per i 12 mesi precedenti. I principali punti finanziari includono:
- Ricavi da abbonamento: $97,1 milioni
- Margine lordo GAAP: 67,9%
- Margine lordo non-GAAP: 68,8%
- Clienti totali: 1.866
- Perdita operativa GAAP: $41,9 milioni
- Perdita operativa non-GAAP: $16,0 milioni
- Mezzi liquidi netti forniti dalle attività operative: $22,5 milioni
- Flusso di cassa libero: $21,7 milioni
Braze ha inoltre fornito indicazioni per il secondo trimestre dell'anno fiscale 2024 e ha aggiornato le previsioni per l'intero anno fiscale 2024, prevedendo una crescita continua. L'azienda ha lanciato nuovi prodotti, annunciato collaborazioni e completato l'acquisizione di North Star, avviando Braze Australia.
Braze (BRZE) reportó resultados fiscales sólidos para el primer trimestre de 2024, con ingresos creciendo un 31.3% interanual hasta $101.8 millones. La compañía logró una retención neta basada en dólares del 122% durante los últimos 12 meses. Los puntos financieros clave incluyen:
- Ingresos por suscripción: $97.1 millones
- Margen bruto GAAP: 67.9%
- Margen bruto no-GAAP: 68.8%
- Total de clientes: 1,866
- Pérdida operativa GAAP: $41.9 millones
- Pérdida operativa no-GAAP: $16.0 millones
- Efectivo neto proporcionado por actividades operativas: $22.5 millones
- Flujo de caja libre: $21.7 millones
Braze también proporcionó guías para el segundo trimestre del año fiscal 2024 y actualizó su guía para todo el año fiscal 2024, proyectando un crecimiento continuo. La compañía lanzó nuevos productos, anunció asociaciones y completó la adquisición de North Star, lanzando Braze Australia.
Braze (BRZE)는 2024 회계연도 1분기 강력한 실적을 보고했으며, 매출이 전년 대비 31.3% 증가하여 1억 180만 달러에 달했습니다. 이 회사는 지난 12개월 동안 달러 기반 순 유지율이 122%에 도달했습니다. 주요 재무 하이라이트는 다음과 같습니다:
- 구독 매출: 9,710만 달러
- GAAP 총 이익률: 67.9%
- 비 GAAP 총 이익률: 68.8%
- 총 고객 수: 1,866명
- GAAP 운영 손실: 4,190만 달러
- 비 GAAP 운영 손실: 1,600만 달러
- 운영 활동에 의해 제공된 순 현금: 2,250만 달러
- 자유 현금 흐름: 2,170만 달러
Braze는 2024 회계연도 2분기 가이던스를 제공하고 전체 회계연도 2024 가이던스를 업데이트하여 지속적인 성장을 전망했습니다. 이 회사는 새로운 제품을 출시하고 파트너십을 발표하며 North Star 인수를 완료하여 Braze Australia를 출범했습니다.
Braze (BRZE) a rapporté de solides résultats pour le premier trimestre de l'exercice 2024, avec un chiffre d'affaires en hausse de 31,3 % d'une année sur l'autre, atteignant 101,8 millions de dollars. L'entreprise a enregistré un taux de rétention net basé sur le dollar de 122% pour les 12 mois précédents. Les points forts financiers clés comprennent :
- Revenus d'abonnement : 97,1 millions de dollars
- Marge brute GAAP : 67,9 %
- Marge brute non-GAAP : 68,8 %
- Nombre total de clients : 1 866
- Perte d'exploitation GAAP : 41,9 millions de dollars
- Perte d'exploitation non-GAAP : 16,0 millions de dollars
- Trésorerie nette fournie par les activités opérationnelles : 22,5 millions de dollars
- Flux de trésorerie libre : 21,7 millions de dollars
Braze a également fourni des prévisions pour le deuxième trimestre de l'exercice 2024 et a mis à jour ses prévisions pour l'ensemble de l'exercice 2024, projetant une croissance continue. L'entreprise a lancé de nouveaux produits, annoncé des partenariats et finalisé l'acquisition de North Star, lançant Braze Australia.
Braze (BRZE) berichtete von starken Ergebnissen im ersten Geschäftsquartal 2024, mit einem Umsatzwachstum von 31,3% im Jahresvergleich auf 101,8 Millionen US-Dollar. Das Unternehmen erreichte eine auf Dollar basierende Netto-Retention von 122% für die letzten 12 Monate. Zu den wichtigsten finanziellen Highlights gehören:
- Abonnementumsatz: 97,1 Millionen US-Dollar
- GAAP Bruttomarge: 67,9%
- Non-GAAP Bruttomarge: 68,8%
- Gesamtzahl der Kunden: 1.866
- GAAP Betriebsverlust: 41,9 Millionen US-Dollar
- Non-GAAP Betriebsverlust: 16,0 Millionen US-Dollar
- Nettobarmittel aus betrieblicher Tätigkeit: 22,5 Millionen US-Dollar
- Freier Cashflow: 21,7 Millionen US-Dollar
Braze gab auch eine Prognose für das 2. Quartal des Geschäftsjahres 2024 ab und aktualisierte die Prognose für das gesamte Geschäftsjahr 2024 und rechnet mit weiterem Wachstum. Das Unternehmen führte neue Produkte ein, kündigte Partnerschaften an und schloss die Übernahme von North Star ab, um Braze Australia zu starten.
- Revenue grew 31.3% year-over-year to $101.8 million
- Subscription revenue increased to $97.1 million from $72.8 million in Q1 FY2023
- Dollar-based net retention rate of 122% for trailing 12 months
- Total customers increased to 1,866 from 1,503 year-over-year
- Net cash provided by operating activities was $22.5 million
- Free cash flow improved to $21.7 million from $15.7 million in Q1 FY2023
- Launched new products to help marketers drive efficiency and ROI
- Completed acquisition of North Star, launching Braze Australia
- GAAP operating loss increased to $41.9 million from $39.6 million in Q1 FY2023
- Dollar-based net retention rate decreased from 127% in Q1 FY2023 to 122%
- Non-GAAP net loss per share of $0.13, although improved from $0.19 in Q1 FY2023
First quarter revenue grew
Achieved dollar-based net retention of
Net cash provided by operating activities of
“We are off to a great start to fiscal 2024, delivering impressive results driven by strong demand for the Braze Customer Engagement Platform,” said Bill Magnuson, cofounder and CEO of Braze. “As we move forward this year, we will continue developing exceptional, industry-leading solutions that drive high ROI for our customers while simultaneously upholding our commitment to cost-discipline and efficiency, driving value for our shareholders.”
Fiscal First Quarter 2024 Financial Highlights
-
Revenue was
$101.8 million $77.5 million 31.3% year-over year, driven primarily by new customers, upsells and renewals. -
Subscription revenue in the quarter was
$97.1 million $72.8 million $4.6 million $4.7 million -
Remaining performance obligations as of April 30, 2023 was
$477.5 million $325.4 million -
GAAP Gross Margin was
67.9% compared to66.6% in the first quarter of the fiscal year ended January 31, 2023. -
Non-GAAP Gross Margin was
68.8% compared to67.8% in the first quarter of the fiscal year ended January 31, 2023. -
Dollar-based net retention for all customers for the trailing 12 months ended April 30, 2023 and April 30, 2022 was
122% and127% , respectively; dollar-based net retention for customers with annual recurring revenue (ARR) of$500,000 124% compared to133% in the first quarter of the fiscal year ended January 31, 2023. -
Total customers increased to 1,866 as of April 30, 2023 from 1,503 as of April 30, 2022; 164 of our customers had ARR of
$500,000 -
GAAP operating loss was
$41.9 million $39.6 million $24.1 million -
Non-GAAP operating loss was
$16.0 million $18.0 million -
GAAP net loss per basic and diluted share attributable to Braze common stockholders was
$0.40 $0.42 -
Non-GAAP net loss per basic and diluted share attributable to Braze common stockholders was
$0.13 $0.19 -
Net cash provided by operating activities was
$22.5 million $17.9 million -
Free cash flow was
$21.7 million $15.7 million -
Total cash and cash equivalents, restricted cash, and marketable securities was
$507.4 million $482.7 million
Recent Business Highlights
- Notable new business wins and upsells in the quarter included Procore Technologies, Sonos, Sweetgreen, and Swimply.
- Launched a suite of new and enhanced products designed to help marketers drive efficiency, team collaboration, and creativity to drive ROI.
- Announced exclusive partnership with Stitch, a boutique consultancy focused on innovative marketing solutions, as its customer engagement platform of choice.
- Completed the acquisition of North Star, launching Braze Australia.
Financial Outlook
Braze is initiating guidance for the fiscal second quarter ending July 31, 2023, and updating guidance for the fiscal year ending January 31, 2024.
Metric
|
FY 2024 Q2 Guidance |
FY 2024 Guidance |
Revenue |
|
|
Non-GAAP operating loss |
|
|
Non-GAAP net loss |
|
|
Non-GAAP net loss per share |
|
|
Weighted average shares outstanding |
~97.4 |
~97.8 |
Braze also reiterated guidance on its non-GAAP operating loss margin, which it believes will be negative
Braze has not reconciled its guidance as to non-GAAP operating loss, non-GAAP operating loss margin, non-GAAP net loss, non-GAAP net loss per share or free cash flow to their most directly comparable GAAP measure as a result of uncertainty regarding, and the potential variability of, reconciling items such as stock-based compensation expense specific to equity compensation awards that are directly impacted by unpredictable fluctuations in Braze’s stock price. Accordingly, reconciliation is not available without unreasonable effort, although it is important to note that these factors could be material to Braze’s results calculated in accordance with GAAP.
Conference Call Information:
What: Braze First Quarter Fiscal Year 2024 Financial Results Conference Call
When: Thursday, June 8th at 5:00 pm EDT / 2:00 pm PDT
Webcast & Supplemental Data: investors.braze.com
Replay: A webcast replay will be available on Braze’s investor site at investors.braze.com.
Supplemental and Other Financial Information
Supplemental information, including an accompanying financial presentation and other information can be accessed through Braze’s investor website at investors.braze.com
Non-GAAP Financial Measures
This press release and the accompanying tables contain the following non-GAAP financial measures: non-GAAP gross profit and margin, non-GAAP sales and marketing expense, non-GAAP research and development expense, non-GAAP general and administrative expense, non-GAAP operating loss, non-GAAP operating income margin, non-GAAP net loss, non-GAAP net loss per share, basic and diluted, and non-GAAP free cash flow. Braze defines non-GAAP gross profit and margin, non-GAAP sales and marketing expense, non-GAAP research and development expense, non-GAAP general and administrative expense, non-GAAP operating loss, non-GAAP operating income margin, and non-GAAP net loss as the respective GAAP balances, adjusted for stock-based compensation expense, employer taxes related to stock-based compensation, charitable contribution expense and acquisition related expense. Prior to the fourth quarter of the fiscal year ended January 31, 2023, Braze did not adjust non-GAAP gross profit and margin, non-GAAP sales and marketing expense, non-GAAP research and development expense, non-GAAP general and administrative expense, non-GAAP operating loss, non-GAAP operating income margin, or non-GAAP net loss for acquisition related expense, because there was not acquisition activity by Braze in prior periods. Braze defines non-GAAP free cash flow as net cash used in operating activities, minus purchases of property and equipment and minus capitalized internal-use software costs. Investors are encouraged to review the reconciliation of these historical non-GAAP financial measures to their most directly comparable GAAP financial measures.
Braze uses this non-GAAP financial information internally in analyzing its financial results and believes that this non-GAAP financial information, when taken collectively with GAAP financial measures, may be helpful to investors because it provides consistency and comparability with past financial performance and assists in comparisons with other companies, some of which use similar non-GAAP financial information to supplement their GAAP results. The non-GAAP financial information is presented for supplemental informational purposes only, and should not be considered a substitute for financial information presented in accordance with generally accepted accounting principles in
The principal limitation of these non-GAAP financial measures is that they exclude significant expenses that are required by GAAP to be recorded in Braze’s financial statements. In addition, they are subject to inherent limitations as they reflect the exercise of judgment by Braze’s management about which expenses are excluded or included in determining these non-GAAP financial measures. A reconciliation is provided below in the financial statement tables included below in this press release for each non-GAAP financial measure to the most directly comparable financial measure stated in accordance with GAAP.
Braze encourages investors to review the related GAAP financial measures and the reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measures, which it includes in press releases announcing quarterly and fiscal year financial results, including this press release, and not to rely on any single financial measure to evaluate Braze’s business.
Definition of Other Business Metrics
Customer: Braze defines a customer, as of period end, as the separate and distinct, ultimate parent-level entity that has an active subscription with Braze to use its products. A single organization could have multiple distinct contracting divisions or subsidiaries, all of which together would be considered a single customer.
Annual Recurring Revenue (ARR): Braze defines ARR as the annualized value of customer subscription contracts, including certain premium professional services that are subject to contractual subscription terms, as of the measurement date, assuming any contract that expires during the next 12 months is renewed on its existing terms (including contracts for which Braze is negotiating a renewal). Braze’s calculation of ARR is not adjusted for the impact of any known or projected future events (such as customer cancellations, expansion or contraction of existing customers relationships or price increases or decreases) that may cause any such contract not to be renewed on its existing terms. ARR may decline or fluctuate as a result of a number of factors, including customers’ satisfaction or dissatisfaction with Braze’s products and professional services, pricing, competitive offerings, economic conditions or overall changes in Braze’s customers’ spending levels. ARR should be viewed independently of revenue and does not represent Braze’s GAAP revenue on an annualized basis or a forecast of revenue, as it is an operating metric that can be impacted by contract start and end dates and renewal rates.
Dollar-Based Net Retention Rate: Braze calculates dollar-based net retention rate as of a period end by starting with the ARR from a cohort of customers as of 12 months prior to such period-end (the Prior Period ARR). Braze then calculates the ARR from the same cohort of customers as of the end of the current period (the Current Period ARR). Current Period ARR includes any expansion and is net of contraction or attrition over the last 12 months, but excludes ARR from new customers in the current period. Braze then divides the total Current Period ARR by the total Prior Period ARR to arrive at the point-in-time dollar-based net retention rate. Braze then calculates the weighted average point-in-time dollar-based net retention rates as of the last day of each month in the current trailing 12-month period to arrive at the dollar-based net retention rate.
Remaining Performance Obligations: The transaction price allocated to remaining performance obligations represents amounts under non-cancelable contracts expected to be recognized as revenue in future periods, and may be influenced by several factors, including seasonality, the timing of renewals, the timing of service delivery and contract terms. Unbilled portions of the remaining performance obligation are subject to future economic risks including bankruptcies, regulatory changes and other market factors.
Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, including but not limited to, statements regarding Braze’s financial outlook for the second quarter of and full fiscal year ended January 31, 2024. These forward-looking statements are based on current expectations, estimates, forecasts and projections. Words such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “goal,” “hope,” “intend,” “may,” might,” “potential,” “predict,” “project,” “shall,” “should,” “target,” “will” “and variations of these terms and similar expressions are intended to identify these forward-looking statements, although not all forward-looking statements contain these identifying words.
Forward-looking statements are based on Braze’s current assumptions, expectations and beliefs and are subject to substantial risks, uncertainties, assumptions and changes in circumstances that may cause Braze’s actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. These risks include, but are not limited to, risks and uncertainties related to: (1) unstable market and economic conditions may have serious adverse consequences on Braze’s business, financial condition and share price; (2) Braze’s recent rapid revenue growth may not be indicative of its future revenue growth; (3) Braze’s history of operating losses; (4) Braze’s limited operating history at its current scale; (5) Braze’s ability to successfully manage its growth; (6) the accuracy of estimates of market opportunity and forecasts of market growth and the impact of global and domestic socioeconomic events on Braze’s business; (7) Braze’s ability and the ability of its platform to adapt and respond to changing customer or consumer needs, requirements or preferences; (8) Braze’s ability to attract new customers and renew existing customers; (9) the competitive markets in which Braze participates and the intense competition that it faces; (10) Braze’s ability to adapt and respond effectively to rapidly changing technology, evolving cybersecurity and data privacy risks, evolving industry standards or changing regulations; and (11) Braze’s reliance on third-party providers of cloud-based infrastructure; as well as other risks and uncertainties discussed in the “Risk Factors” section of Braze’s Annual Report on Form 10-K filed with the Securities and Exchange Commission (SEC) on March 31, 2023 and other subsequent filings Braze makes with the SEC from time to time, including Braze’s Quarterly Report on Form 10-Q for the fiscal quarter ended April 30, 2023 that will be filed with the SEC. The forward-looking statements included in this press release represent Braze’s views only as of the date of this press release and Braze assumes no obligation, and does not intend to update these forward-looking statements, except as required by law.
About Braze
Braze is a leading comprehensive customer engagement platform that powers interactions between consumers and brands they love. With Braze, global brands can ingest and process customer data in real time, orchestrate and optimize contextually relevant, cross-channel marketing campaigns and continuously evolve their customer engagement strategies. Braze has been recognized as one of Fortune’s 2022 Best US Workplaces in Technology, Fortune’s 2022 Best US Workplaces for Women, 2022 UK Best Workplaces for Women by Great Place to Work, and Fortune's 2022 Best US Workplace for Millennials. The company is headquartered in
Braze uses its Investor website at investors.braze.com as a means of disclosing material non-public information, announcing upcoming investor conferences and for complying with its disclosure obligations under Regulation FD. Accordingly, you should monitor its investor relations website in addition to following its press releases, SEC filings and public conference calls and webcasts.
Selected Financial Data |
|||||||
BRAZE, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) (in thousands, except per share amounts) |
|||||||
|
Three Months Ended
|
||||||
|
|
2023 |
|
|
|
2022 |
|
|
|
|
|
||||
Revenue |
$ |
101,780 |
|
|
$ |
77,495 |
|
Cost of revenue (1)(2) |
|
32,687 |
|
|
|
25,906 |
|
Gross Profit |
|
69,093 |
|
|
|
51,589 |
|
|
|
|
|
||||
Operating expenses: |
|
|
|
||||
Sales and marketing (1)(2) |
|
57,262 |
|
|
|
46,044 |
|
Research and development (1)(2) |
|
29,745 |
|
|
|
21,620 |
|
General and administrative (1)(2)(3)(4) |
|
23,983 |
|
|
|
23,574 |
|
Total operating expenses |
|
110,990 |
|
|
|
91,238 |
|
Loss from operations |
|
(41,897 |
) |
|
|
(39,649 |
) |
Other income, net |
|
3,459 |
|
|
|
30 |
|
Loss before provision for income taxes |
|
(38,438 |
) |
|
|
(39,619 |
) |
Provision for income taxes |
|
388 |
|
|
|
14 |
|
Net loss |
|
(38,826 |
) |
|
|
(39,633 |
) |
Net loss attributable to redeemable non-controlling interest |
|
(372 |
) |
|
|
(364 |
) |
Net loss attributable to Braze, Inc. |
$ |
(38,454 |
) |
|
$ |
(39,269 |
) |
|
|
|
|
||||
Net loss per share attributable to Braze, Inc. common stockholders, basic and diluted |
$ |
(0.40 |
) |
|
$ |
(0.42 |
) |
Weighted-average shares used to compute net loss per share attributable to Braze, Inc. common stockholders, basic and diluted |
|
96,353 |
|
|
|
93,250 |
|
(1) Includes stock-based compensation as follows: |
|||||
|
Three Months Ended
|
||||
|
2023 |
|
2022 |
||
Cost of revenue |
$ |
889 |
|
$ |
920 |
Sales and marketing |
|
7,848 |
|
|
5,667 |
Research and development |
|
9,843 |
|
|
6,173 |
General and administrative |
|
5,566 |
|
|
4,211 |
Total stock-based compensation expense |
$ |
24,146 |
|
$ |
16,971 |
(2) Includes employer taxes related to stock-based compensation as follows: |
|||||
|
Three Months Ended
|
||||
|
2023 |
|
2022 |
||
Cost of revenue |
$ |
22 |
|
$ |
16 |
Sales and marketing |
|
117 |
|
|
167 |
Research and development |
|
256 |
|
|
127 |
General and administrative |
|
90 |
|
|
65 |
Total employer taxes related to stock-based compensation |
$ |
485 |
|
$ |
375 |
(3) Includes |
|||||
|
Three Months Ended
|
||||
|
2023 |
|
2022 |
||
General and administrative |
$ |
— |
|
$ |
4,260 |
(4) Includes acquisition related expense as follows: |
|||||
|
Three Months Ended
|
||||
|
2023 |
|
2022 |
||
General and administrative |
$ |
1,268 |
|
$ |
— |
BRAZE, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (in thousands, except share and per share amounts) |
|||||||
|
April 30,
|
|
January 31,
|
||||
ASSETS |
|||||||
CURRENT ASSETS: |
|
|
|
||||
Cash and cash equivalents |
$ |
116,932 |
|
|
$ |
68,587 |
|
Restricted cash, current |
|
3,373 |
|
|
|
— |
|
Accounts receivable, net of allowance of |
|
66,649 |
|
|
|
78,338 |
|
Marketable securities |
|
385,869 |
|
|
|
410,083 |
|
Prepaid expenses and other current assets |
|
25,285 |
|
|
|
26,163 |
|
Total current assets |
|
598,108 |
|
|
|
583,171 |
|
Restricted cash, noncurrent |
|
1,193 |
|
|
|
4,036 |
|
Property and equipment, net |
|
20,433 |
|
|
|
20,339 |
|
Operating lease right-of-use assets |
|
46,623 |
|
|
|
46,261 |
|
Deferred contract costs |
|
51,229 |
|
|
|
48,451 |
|
Other assets |
|
3,707 |
|
|
|
3,148 |
|
TOTAL ASSETS |
$ |
721,293 |
|
|
$ |
705,406 |
|
LIABILITIES, REDEEMABLE NON-CONTROLLING INTEREST, AND STOCKHOLDERS' EQUITY |
|
|
|
||||
CURRENT LIABILITIES: |
|
|
|
||||
Accounts payable |
$ |
3,571 |
|
|
$ |
3,101 |
|
Accrued expenses and other current liabilities |
|
47,018 |
|
|
|
37,415 |
|
Deferred revenue |
|
181,216 |
|
|
|
166,092 |
|
Operating lease liabilities, current |
|
13,231 |
|
|
|
10,695 |
|
Total current liabilities |
|
245,036 |
|
|
|
217,303 |
|
Operating lease liabilities, noncurrent |
|
39,211 |
|
|
|
40,590 |
|
Other long-term liabilities |
|
814 |
|
|
|
755 |
|
TOTAL LIABILITIES |
|
285,061 |
|
|
|
258,648 |
|
COMMITMENTS AND CONTINGENCIES (Note 13) |
|
|
|
||||
Redeemable non-controlling interest (Note 4) |
|
1,083 |
|
|
|
1,455 |
|
STOCKHOLDERS’ EQUITY |
|
|
|
||||
Class A common stock, |
|
6 |
|
|
|
6 |
|
Class B common stock, |
|
4 |
|
|
|
4 |
|
Additional paid-in capital |
|
832,831 |
|
|
|
806,044 |
|
Accumulated other comprehensive loss |
|
(5,311 |
) |
|
|
(6,824 |
) |
Accumulated deficit |
|
(392,381 |
) |
|
|
(353,927 |
) |
TOTAL STOCKHOLDERS’ EQUITY |
|
435,149 |
|
|
|
445,303 |
|
TOTAL LIABILITIES, REDEEMABLE NON-CONTROLLING INTEREST, AND STOCKHOLDERS’ EQUITY |
$ |
721,293 |
|
|
$ |
705,406 |
|
BRAZE, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (in thousands) |
|||||||
|
Three Months Ended
|
||||||
|
|
2023 |
|
|
|
2022 |
|
CASH FLOWS FROM OPERATING ACTIVITIES: |
|
|
|
||||
Net loss (including amounts attributable to redeemable non-controlling interests) |
$ |
(38,826 |
) |
|
$ |
(39,633 |
) |
Adjustments to reconcile net loss to net cash used in operating activities: |
|
|
|
||||
Stock-based compensation |
|
24,179 |
|
|
|
16,971 |
|
Amortization of deferred contract costs |
|
6,660 |
|
|
|
5,407 |
|
Depreciation and amortization |
|
1,526 |
|
|
|
965 |
|
Provision for credit losses |
|
594 |
|
|
|
(143 |
) |
Value of common stock donated to charity |
|
— |
|
|
|
4,260 |
|
Amortization of discount/premium on marketable securities |
|
471 |
|
|
|
13 |
|
Non-cash foreign exchange loss |
|
310 |
|
|
|
505 |
|
Other |
|
20 |
|
|
|
4 |
|
Changes in operating assets and liabilities: |
|
|
|
||||
Accounts receivable |
|
11,046 |
|
|
|
21,984 |
|
Prepaid expenses and other current assets |
|
745 |
|
|
|
3,615 |
|
Deferred contract costs |
|
(9,479 |
) |
|
|
(8,205 |
) |
ROU assets and liabilities |
|
705 |
|
|
|
879 |
|
Other assets |
|
(380 |
) |
|
|
614 |
|
Accounts payable |
|
405 |
|
|
|
28 |
|
Accrued expenses and other current liabilities |
|
9,364 |
|
|
|
(2,530 |
) |
Deferred revenue |
|
15,228 |
|
|
|
13,177 |
|
Other long-term liabilities |
|
(19 |
) |
|
|
10 |
|
Net cash provided by operating activities |
|
22,549 |
|
|
|
17,921 |
|
CASH FLOWS FROM INVESTING ACTIVITIES: |
|
|
|
||||
Purchases of property and equipment |
|
(40 |
) |
|
|
(1,960 |
) |
Capitalized internal-use software costs |
|
(852 |
) |
|
|
(306 |
) |
Purchases of marketable securities |
|
(46,297 |
) |
|
|
(421,537 |
) |
Maturities of marketable securities |
|
71,486 |
|
|
|
16,000 |
|
Net cash provided by/(used in) investing activities |
|
24,297 |
|
|
|
(407,803 |
) |
CASH FLOWS FROM FINANCING ACTIVITIES: |
|
|
|
||||
Proceeds from exercise of common stock options |
|
2,211 |
|
|
|
2,630 |
|
Net cash provided by financing activities |
|
2,211 |
|
|
|
2,630 |
|
Effect of foreign currency exchange rate changes on cash, cash equivalents, and restricted cash |
|
(180 |
) |
|
|
(1,075 |
) |
Net change in cash, cash equivalents, and restricted cash |
|
48,877 |
|
|
|
(388,327 |
) |
Cash, cash equivalents, and restricted cash, beginning of period |
|
72,623 |
|
|
|
482,973 |
|
Cash, cash equivalents, and restricted cash, end of period |
$ |
121,500 |
|
|
$ |
94,646 |
|
BRAZE, INC.
(in thousands, except per share amounts) |
|||||||
The following tables reconcile each non-GAAP financial measure to its most directly comparable GAAP financial measure: |
|||||||
Reconciliation of GAAP to Non-GAAP Gross Margin |
Three Months Ended
|
||||||
|
|
2023 |
|
|
|
2022 |
|
|
|
|
|
||||
Gross profit |
$ |
69,093 |
|
|
$ |
51,589 |
|
Plus: |
|
|
|
||||
Stock-based compensation expense |
|
889 |
|
|
|
920 |
|
Employer taxes related to stock-based compensation expense |
|
22 |
|
|
|
16 |
|
Non-GAAP gross profit |
$ |
70,004 |
|
|
$ |
52,525 |
|
GAAP gross margin |
|
67.9 |
% |
|
|
66.6 |
% |
Non-GAAP gross margin |
|
68.8 |
% |
|
|
67.8 |
% |
Reconciliation of GAAP to Non-GAAP Operating Expenses |
Three Months Ended
|
||||
|
2023 |
|
2022 |
||
|
|
|
|
||
GAAP sales and marketing expense |
$ |
57,262 |
|
$ |
46,044 |
Less: |
|
|
|
||
Stock-based compensation expense |
|
7,848 |
|
|
5,667 |
Employer taxes related to stock-based compensation expense |
|
117 |
|
|
167 |
Non-GAAP sales and marketing expense |
$ |
49,297 |
|
$ |
40,210 |
|
|
|
|
||
GAAP research and development expense |
$ |
29,745 |
|
$ |
21,620 |
Less: |
|
|
|
||
Stock-based compensation expense |
|
9,843 |
|
|
6,173 |
Employer taxes related to stock-based compensation expense |
|
256 |
|
|
127 |
Non-GAAP research and development expense |
$ |
19,646 |
|
$ |
15,320 |
|
|
|
|
||
GAAP general and administrative expense |
$ |
23,983 |
|
$ |
23,574 |
Less: |
|
|
|
||
Stock-based compensation expense |
|
5,566 |
|
|
4,211 |
Employer taxes related to stock-based compensation expense |
|
90 |
|
|
65 |
|
|
— |
|
|
4,260 |
Acquisition related expense |
|
1,268 |
|
|
— |
Non-GAAP general and administrative expense |
$ |
17,059 |
|
$ |
15,038 |
Reconciliation of GAAP to Non-GAAP Operating Loss |
Three Months Ended
|
||||||
|
|
2023 |
|
|
|
2022 |
|
|
|
|
|
||||
Loss from operations |
$ |
(41,897 |
) |
|
$ |
(39,649 |
) |
Plus: |
|
|
|
||||
Stock-based compensation expense |
|
24,146 |
|
|
|
16,971 |
|
Employer taxes related to stock-based compensation expense |
|
485 |
|
|
|
375 |
|
|
|
— |
|
|
|
4,260 |
|
Acquisition related expense |
|
1,268 |
|
|
|
— |
|
Non-GAAP loss from operations |
$ |
(15,998 |
) |
|
$ |
(18,043 |
) |
Reconciliation of GAAP to Non-GAAP Net Loss |
Three Months Ended
|
||||||
|
|
2023 |
|
|
|
2022 |
|
|
|
|
|
||||
Net loss attributable to Braze, Inc. |
$ |
(38,454 |
) |
|
$ |
(39,269 |
) |
Plus: |
|
|
|
||||
Stock-based compensation expense |
|
24,146 |
|
|
|
16,971 |
|
Employer taxes related to stock-based compensation expense |
|
485 |
|
|
|
375 |
|
|
|
— |
|
|
|
4,260 |
|
Acquisition related expense |
|
1,268 |
|
|
|
— |
|
Non-GAAP net loss attributable to Braze, Inc.(1) |
$ |
(12,555 |
) |
|
$ |
(17,663 |
) |
|
|
|
|
||||
Non-GAAP net loss per share attributable to Braze, Inc. common stockholders, basic and diluted |
$ |
(0.13 |
) |
|
$ |
(0.19 |
) |
Weighted-average shares used to compute net loss per share attributable to Braze, Inc.
|
|
96,353 |
|
|
|
93,250 |
|
(1) Assumes no tax impact due to the Company’s net loss position and deferred tax assets. |
|||||||
Reconciliation of GAAP Cash Flow from Operating Activities to Non-GAAP Free Cash Flow |
Three Months Ended
|
||||||
|
|
2023 |
|
|
|
2022 |
|
|
|
|
|
||||
Net cash provided by operating activities |
$ |
22,549 |
|
|
$ |
17,921 |
|
Less: |
|
|
|
||||
Purchases of property and equipment |
|
(40 |
) |
|
|
(1,960 |
) |
Capitalized internal-use software costs |
|
(852 |
) |
|
|
(306 |
) |
Non-GAAP free cash flow |
$ |
21,657 |
|
|
$ |
15,655 |
|
Braze is a registered trademark of Braze, Inc.
All product and company names herein may be trademarks of their registered owners.
View source version on businesswire.com: https://www.businesswire.com/news/home/20230608005655/en/
Investors:
Christopher Ferris
IR@braze.com
(609) 964-0585
Media:
Meghan Halaszynski
Press@braze.com
Source: Braze
FAQ
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