Braze Reports Fiscal Third Quarter 2025 Results
Braze (BRZE) reported fiscal Q3 2025 results with revenue of $152.1 million, up 22.7% year-over-year. Subscription revenue reached $146.3 million, while professional services revenue was $5.8 million. The company's total customer base grew to 2,211, with 234 customers having ARR of $500,000 or more.
Key metrics include a dollar-based net retention rate of 113% for all customers and 116% for high-value customers. While GAAP operating loss was $32.6 million, non-GAAP operating loss improved to $2.2 million. The company maintains a strong financial position with $493.1 million in cash and equivalents.
For Q4 FY2025, Braze expects revenue between $155.0-156.0 million and projects full-year revenue of $588.0-589.0 million.
Braze (BRZE) ha riportato i risultati fiscali del terzo trimestre 2025 con un fatturato di 152,1 milioni di dollari, in aumento del 22,7% rispetto all'anno precedente. I ricavi da abbonamenti hanno raggiunto i 146,3 milioni di dollari, mentre i ricavi da servizi professionali sono stati di 5,8 milioni di dollari. La base totale di clienti dell'azienda è cresciuta a 2.211, con 234 clienti che hanno un ARR di 500.000 dollari o più.
Le metriche chiave includono un tasso di ritenzione netto basato sul dollaro del 113% per tutti i clienti e del 116% per i clienti ad alto valore. Sebbene la perdita operativa GAAP sia stata di 32,6 milioni di dollari, la perdita operativa non GAAP è migliorata a 2,2 milioni di dollari. L'azienda mantiene una posizione finanziaria solida con 493,1 milioni di dollari in contanti e equivalenti.
Per il quarto trimestre dell'anno fiscale 2025, Braze prevede ricavi compresi tra 155,0 e 156,0 milioni di dollari e proietta ricavi annuali totali tra 588,0 e 589,0 milioni di dollari.
Braze (BRZE) reportó los resultados fiscales del tercer trimestre de 2025 con ingresos de 152,1 millones de dólares, un aumento del 22,7% en comparación con el año anterior. Los ingresos por suscripciones alcanzaron los 146,3 millones de dólares, mientras que los ingresos por servicios profesionales fueron de 5,8 millones de dólares. La base total de clientes de la empresa creció a 2.211, con 234 clientes que tienen un ARR de 500.000 dólares o más.
Las métricas clave incluyen una tasa de retención neta basada en dólares del 113% para todos los clientes y del 116% para clientes de alto valor. Si bien la pérdida operativa GAAP fue de 32,6 millones de dólares, la pérdida operativa no GAAP mejoró a 2,2 millones de dólares. La empresa mantiene una posición financiera sólida con 493,1 millones de dólares en efectivo y equivalentes.
Para el cuarto trimestre del año fiscal 2025, Braze espera ingresos entre 155,0 y 156,0 millones de dólares y proyecta ingresos anuales totales entre 588,0 y 589,0 millones de dólares.
브레이즈(BRZE)는 2025 회계연도 3분기 실적을 보고하였으며, 매출은 1억 5천2백1십만 달러로 전년 대비 22.7% 증가했습니다. 구독 수익은 1억 4천6백3십만 달러에 달했으며, 전문 서비스 수익은 580만 달러였습니다. 회사의 총 고객 기반은 2,211명으로 증가하였으며, 234명의 고객이 50만 달러 이상의 ARR을 가지고 있습니다.
주요 지표로는 모든 고객에 대한 달러 기준 순 유지율이 113%로, 고가치 고객에 대해서는 116%입니다. GAAP 운영 손실은 3천2백6십만 달러였던 반면, 비 GAAP 운영 손실은 2백2십만 달러로 개선되었습니다. 회사는 4억 9천삼백1십만 달러의 현금 및 현금성 자산을 보유하며 강력한 재무 상태를 유지하고 있습니다.
2025 회계연도 4분기에는 브레이즈가 매출을 1억 5천5백만 달러에서 1억 5천6백만 달러로 예상하며, 전체 연간 매출은 5억 8천8백만 달러에서 5억 8천9백만 달러로 전망하고 있습니다.
Braze (BRZE) a annoncé les résultats financiers du troisième trimestre 2025 avec un chiffre d'affaires de 152,1 millions de dollars, en hausse de 22,7 % par rapport à l'année précédente. Les revenus d'abonnement ont atteint 146,3 millions de dollars, tandis que les revenus des services professionnels étaient de 5,8 millions de dollars. La base totale de clients de la société a augmenté pour atteindre 2.211, avec 234 clients ayant un ARR de 500.000 dollars ou plus.
Les indicateurs clés incluent un taux de rétention net basé sur le dollar de 113 % pour tous les clients et de 116 % pour les clients de grande valeur. Bien que la perte d'exploitation selon les normes GAAP ait été de 32,6 millions de dollars, la perte d'exploitation non-GAAP s'est améliorée à 2,2 millions de dollars. L'entreprise maintient une solide position financière avec 493,1 millions de dollars en liquidités et équivalents.
Pour le quatrième trimestre de l'exercice 2025, Braze prévoit un chiffre d'affaires compris entre 155,0 et 156,0 millions de dollars et projette un chiffre d'affaires total annuel compris entre 588,0 et 589,0 millions de dollars.
Braze (BRZE) hat die Ergebnisse für das fiskalische Q3 2025 mit einem Umsatz von 152,1 Millionen Dollar veröffentlicht, was einem Anstieg von 22,7% im Vergleich zum Vorjahr entspricht. Die Abonnementeinnahmen beliefen sich auf 146,3 Millionen Dollar, während die Einnahmen aus professionellen Dienstleistungen 5,8 Millionen Dollar betrugen. Die gesamte Kundenbasis des Unternehmens wuchs auf 2.211, wobei 234 Kunden ein ARR von 500.000 Dollar oder mehr haben.
Wichtige Kennzahlen umfassen eine dollarbasierte Netto-Kundenbindungsrate von 113% für alle Kunden und 116% für hochpreisige Kunden. Während der GAAP-Betriebsverlust 32,6 Millionen Dollar betrug, verbesserte sich der Nicht-GAAP-Betriebsverlust auf 2,2 Millionen Dollar. Das Unternehmen hat eine starke finanzielle Position mit 493,1 Millionen Dollar in liquiden Mitteln und Äquivalente.
Für das vierte Quartal des Geschäftsjahres 2025 erwartet Braze einen Umsatz zwischen 155,0 und 156,0 Millionen Dollar und prognostiziert einen Gesamtjahresumsatz zwischen 588,0 und 589,0 Millionen Dollar.
- Revenue grew 22.7% YoY to $152.1 million
- Customer base expanded to 2,211, up from 2,011 YoY
- High-value customers ($500k+ ARR) increased to 234 from 189 YoY
- Non-GAAP operating loss improved to $2.2M from $8.9M YoY
- Strong cash position of $493.1M, up from $480.0M
- GAAP operating loss of $32.6 million
- Dollar-based net retention rate declined to 113% from 118% YoY
- Gross margin decreased to 69.8% from 70.7% YoY
- Free cash flow worsened to -$14.2M from -$5.9M YoY
Insights
Braze delivered a solid fiscal Q3 2025 with
However, some concerns emerge: dollar-based net retention declined to
The forward guidance is encouraging, with Q4 revenue projected at
The customer engagement platform market remains competitive, but Braze continues to demonstrate leadership with notable wins across diverse sectors - from retail (Crumbl Cookies, Kurt Geiger) to media (SMARTNEWS) and utilities (E.On Next). The company's investment in AI capabilities through BrazeAI™ agent shows strategic alignment with industry trends.
The slower net retention rates suggest market maturity and potentially tighter customer spending, though the increase in
“We continued to execute in the third quarter, delivering strong revenue growth and operating leverage while maintaining steady investment in our product, our ecosystem, and our go-to-market motion to continue positioning Braze as the leading cross-channel customer engagement platform,” said Bill Magnuson, Cofounder and CEO of Braze. “We are confidently on track to meet our profitability targets for the fiscal fourth quarter of and full fiscal year 2025, and continue to focus on driving growth through customer engagement innovations that empower our customers to create more valuable customer experiences.”
Fiscal Third Quarter 2025 Financial Highlights
-
Revenue was
$152.1 million $124.0 million 22.7% year-over-year, driven primarily by new customers, upsells and renewals. -
Subscription revenue in the quarter was
$146.3 million $118.4 million $5.8 million $5.6 million -
Remaining performance obligations as of October 31, 2024 was
$716.8 million $458.2 million -
GAAP gross margin was
69.8% compared to70.7% in the third quarter of the fiscal year ended January 31, 2024. -
Non-GAAP gross margin was
70.5% compared to71.4% in the third quarter of the fiscal year ended January 31, 2024. -
Dollar-based net retention for all customers for the trailing 12 months ended October 31, 2024 and October 31, 2023 was
113% and118% , respectively; dollar-based net retention for customers with annual recurring revenue (ARR) of$500,000 116% compared to121% in the third quarter of the fiscal year ended January 31, 2024. -
Total customers increased to 2,211 as of October 31, 2024 from 2,011 as of October 31, 2023; 234 of the company’s customers had ARR of
$500,000 -
GAAP operating loss was
$32.6 million $35.1 million $28.3 million -
Non-GAAP operating loss was
$2.2 million $8.9 million -
GAAP net loss per share attributable to Braze common stockholders, basic and diluted, of
$0.27 $0.31 -
Non-GAAP net income per share attributable to Braze common stockholders, diluted, was
$0.02 $0.05 -
Net cash used in operating activities was
$11.4 million $2.0 million -
Free cash flow was
$(14.2) million $(5.9) million -
Total cash and cash equivalents, restricted cash, and marketable securities was
$493.1 million $480.0 million
Recent Business Highlights
- Notable new business wins and upsells in the quarter included AEON Financial Services Co. Ltd, Burpple, Crumbl Cookies, E.On Next, Exact Sciences, Hugo Boss, Ippen Digital, Kurt Geiger, Love’s Travel Stops & Country Stores, LUSH Cosmetics, Rightmove, SMARTNEWS, INC., Telstra, and WeatherBug, a leading consumer weather company, along with many others.
-
Hosted over 1,000 attendees, including over 750 customers and prospects, and nearly 250 partners at its annual customer conference, Forge 2024, in
Las Vegas . - Announced BrazeAI™ agent, codenamed Project Catalyst (in development), designed to deliver 1:1 customer engagement by rapidly creating, testing, and optimizing thousands of experience variations.
- Debuted additional Canvas template and BrazeAI™ assistant features to help marketers more easily start and deliver sophisticated customer experiences.
- Expanded channel offerings to include LINE (generally available now) and RCS Business (in Beta), as well as new WhatsApp features such as dynamic images, click tracking, and commerce support.
- Named a Leader in the 2024 Gartner® Magic Quadrant™ for Multichannel Marketing Hubs for second consecutive year.
-
For the third consecutive year, Braze was named by Deloitte as one of the fastest growing technology, media, telecommunications, life sciences, fintech, and energy tech companies in
North America in the 2024 Deloitte Technology Fast 500™. - Partnered with streaming network BET+ to help expand the Braze Tech for an Equitable Future product grant program, which offers 20 companies with underrepresented founders 12 months of free access to Braze technology and supporting resources.
Financial Outlook
Braze is initiating guidance for the fiscal fourth quarter ending January 31, 2025 and updating guidance for the fiscal year ending January 31, 2025.
Metric
|
FY 2025
|
FY 2025
|
Revenue |
|
|
Non-GAAP operating income (loss) |
|
|
Non-GAAP net income |
|
|
Non-GAAP net income per share, diluted |
|
|
Weighted average common shares used in computing non-GAAP net income per share, diluted |
~107.5 |
~107.0 |
Braze has not reconciled its guidance as to non-GAAP operating income (loss), non-GAAP net income or non-GAAP net income per share 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, reconciliations are 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 Third Quarter Fiscal Year 2025 Financial Results Conference Call
When: Monday, December 9th at 4:30 pm EST / 1:30 pm PST
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 income (loss), non-GAAP operating margin, non-GAAP net income (loss), non-GAAP net income (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 income (loss), non-GAAP operating margin, and non-GAAP net income (loss) as the respective GAAP balances, adjusted for stock-based compensation expense, employer taxes related to stock-based compensation, charitable contribution expense, contingent consideration adjustments, acquisition related expense, amortization of intangible assets, and restructuring expense. Prior to the fourth quarter of the fiscal year ended January 31, 2024, 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 income (loss), non-GAAP operating margin or non-GAAP net income (loss) for contingent consideration adjustments, because there were no such adjustments in prior periods. Braze defines non-GAAP free cash flow as net cash provided by/(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 fourth quarter of and the full fiscal year ended January 31, 2025. 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 April 1, 2024 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 October 31, 2024 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 the leading customer engagement platform that empowers brands to Be Absolutely Engaging.™ Braze allows any marketer to collect and take action on any amount of data from any source, so they can creatively engage with customers in real time, across channels from one platform. From cross-channel messaging and journey orchestration to Al-powered experimentation and optimization, Braze enables companies to build and maintain absolutely engaging relationships with their customers that foster growth and loyalty. The company has been recognized as a 2024 U.S. News Best Technology Companies to Work For, is a 2023 UK Best Workplace for Women by Great Place to Work, and was named a Leader by Gartner® in the 2024 Magic Quadrant™ for Multichannel Marketing Hubs and in The Forrester Wave™: Cross-Channel Marketing Hubs, Q1 2023. Braze 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, blog posts on its website (braze.com), SEC filings and public conference calls and webcasts.
Selected Financial Data
BRAZE, INC.
|
|||||||||||||||
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
|
|
|
|
|
|
||||||||
Revenue |
$ |
152,052 |
|
|
$ |
123,956 |
|
|
$ |
433,010 |
|
|
$ |
340,843 |
|
Cost of revenue (1)(2) |
|
45,910 |
|
|
|
36,374 |
|
|
|
133,878 |
|
|
|
104,535 |
|
Gross profit |
|
106,142 |
|
|
|
87,582 |
|
|
|
299,132 |
|
|
|
236,308 |
|
|
|
|
|
|
|
|
|
||||||||
Operating expenses: |
|
|
|
|
|
|
|
||||||||
Sales and marketing (1)(2)(6) |
|
74,658 |
|
|
|
66,395 |
|
|
|
213,054 |
|
|
|
184,074 |
|
Research and development (1)(2) |
|
32,855 |
|
|
|
29,872 |
|
|
|
100,369 |
|
|
|
88,749 |
|
General and administrative (1)(2)(3)(4)(5)(6)(7) |
|
31,199 |
|
|
|
26,448 |
|
|
|
86,309 |
|
|
|
75,884 |
|
Total operating expenses |
|
138,712 |
|
|
|
122,715 |
|
|
|
399,732 |
|
|
|
348,707 |
|
Loss from operations |
|
(32,570 |
) |
|
|
(35,133 |
) |
|
|
(100,600 |
) |
|
|
(112,399 |
) |
Other income, net |
|
5,294 |
|
|
|
4,542 |
|
|
|
15,968 |
|
|
|
11,866 |
|
Loss before provision for income taxes |
|
(27,276 |
) |
|
|
(30,591 |
) |
|
|
(84,632 |
) |
|
|
(100,533 |
) |
Provision for income taxes |
|
851 |
|
|
|
385 |
|
|
|
2,351 |
|
|
|
1,318 |
|
Net loss |
|
(28,127 |
) |
|
|
(30,976 |
) |
|
|
(86,983 |
) |
|
|
(101,851 |
) |
Net loss attributable to redeemable non-controlling interest |
|
(216 |
) |
|
|
(235 |
) |
|
|
(432 |
) |
|
|
(962 |
) |
Net loss attributable to Braze, Inc. |
$ |
(27,911 |
) |
|
$ |
(30,741 |
) |
|
$ |
(86,551 |
) |
|
$ |
(100,889 |
) |
|
|
|
|
|
|
|
|
||||||||
Net loss per share attributable to Braze, Inc. common stockholders, basic and diluted |
$ |
(0.27 |
) |
|
$ |
(0.31 |
) |
|
$ |
(0.85 |
) |
|
$ |
(1.03 |
) |
Weighted-average shares used to compute net loss per share attributable to Braze, Inc. common stockholders, basic and diluted |
|
102,146 |
|
|
|
97,880 |
|
|
|
101,714 |
|
|
|
97,615 |
|
(1) Includes stock-based compensation as follows:
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Cost of revenue |
$ |
1,003 |
|
|
$ |
900 |
|
|
$ |
3,045 |
|
|
$ |
2,690 |
|
Sales and marketing |
|
9,608 |
|
|
|
7,899 |
|
|
|
28,945 |
|
|
|
23,554 |
|
Research and development |
|
10,343 |
|
|
|
9,479 |
|
|
|
32,623 |
|
|
|
29,251 |
|
General and administrative |
|
7,364 |
|
|
|
5,761 |
|
|
|
21,805 |
|
|
|
17,466 |
|
Total stock-based compensation expense |
$ |
28,318 |
|
|
$ |
24,039 |
|
|
$ |
86,418 |
|
|
$ |
72,961 |
|
(2) Includes employer taxes related to stock-based compensation as follows:
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Cost of revenue |
$ |
42 |
|
|
$ |
29 |
|
|
$ |
156 |
|
|
$ |
81 |
|
Sales and marketing |
|
247 |
|
|
|
245 |
|
|
|
1,070 |
|
|
|
609 |
|
Research and development |
|
220 |
|
|
|
199 |
|
|
|
1,400 |
|
|
|
721 |
|
General and administrative |
|
127 |
|
|
|
84 |
|
|
|
567 |
|
|
|
239 |
|
Total employer taxes related to stock-based compensation expense |
$ |
636 |
|
|
$ |
557 |
|
|
$ |
3,193 |
|
|
$ |
1,650 |
|
(3) Includes
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
General and administrative |
$ |
1,417 |
|
|
$ |
1,427 |
|
|
$ |
2,764 |
|
|
$ |
2,391 |
|
(4) Includes acquisition related expense as follows:
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
General and administrative |
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
1,946 |
|
(5) Includes amortization of intangible assets acquired in the acquisition expense as follows:
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
General and administrative |
$ |
101 |
|
|
$ |
215 |
|
|
$ |
459 |
|
|
$ |
363 |
|
(6) Includes restructuring related expense as follows:
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Sales and marketing |
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
541 |
|
General and administrative |
|
— |
|
|
|
— |
|
|
|
— |
|
|
$ |
103 |
|
Total restructuring costs |
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
644 |
|
(7) Includes adjustment to the fair value of the contingent consideration liability as follows:
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
General and administrative |
$ |
(86 |
) |
|
$ |
— |
|
|
$ |
(223 |
) |
|
$ |
— |
|
BRAZE, INC.
|
|||||||
|
October 31,
|
|
January 31,
|
||||
ASSETS |
|
|
|
||||
CURRENT ASSETS: |
|
|
|
||||
Cash and cash equivalents |
$ |
61,312 |
|
|
$ |
68,228 |
|
Restricted cash, current |
|
— |
|
|
|
3,373 |
|
Accounts receivable, net of allowance of |
|
90,299 |
|
|
|
92,256 |
|
Marketable securities |
|
431,258 |
|
|
|
407,898 |
|
Prepaid expenses and other current assets |
|
30,452 |
|
|
|
29,366 |
|
Total current assets |
|
613,321 |
|
|
|
601,121 |
|
Restricted cash, noncurrent |
|
530 |
|
|
|
530 |
|
Property and equipment, net |
|
39,910 |
|
|
|
29,358 |
|
Operating lease right-of-use assets |
|
80,352 |
|
|
|
81,163 |
|
Deferred contract costs |
|
72,388 |
|
|
|
63,661 |
|
Goodwill |
|
28,448 |
|
|
|
28,448 |
|
Intangible assets, net |
|
3,231 |
|
|
|
3,690 |
|
Other assets |
|
3,832 |
|
|
|
2,970 |
|
TOTAL ASSETS |
$ |
842,012 |
|
|
$ |
810,941 |
|
LIABILITIES, REDEEMABLE NON-CONTROLLING INTEREST, AND STOCKHOLDERS' EQUITY |
|
|
|
||||
CURRENT LIABILITIES: |
|
|
|
||||
Accounts payable |
$ |
2,912 |
|
|
$ |
6,321 |
|
Accrued expenses and other current liabilities |
|
63,322 |
|
|
|
63,264 |
|
Deferred revenue |
|
223,682 |
|
|
|
204,269 |
|
Operating lease liabilities, current |
|
18,315 |
|
|
|
15,585 |
|
Total current liabilities |
|
308,231 |
|
|
|
289,439 |
|
Operating lease liabilities, noncurrent |
|
73,768 |
|
|
|
75,027 |
|
Other long-term liabilities |
|
2,200 |
|
|
|
2,050 |
|
TOTAL LIABILITIES |
|
384,199 |
|
|
|
366,516 |
|
COMMITMENTS AND CONTINGENCIES (Note 13) |
|
|
|
||||
Redeemable non-controlling interest (Note 4) |
|
(240 |
) |
|
|
192 |
|
STOCKHOLDERS’ EQUITY |
|
|
|
||||
Class A common stock, |
|
8 |
|
|
|
7 |
|
Class B common stock, |
|
2 |
|
|
|
3 |
|
Additional paid-in capital |
|
1,027,339 |
|
|
|
928,494 |
|
Accumulated other comprehensive loss |
|
348 |
|
|
|
(1,178 |
) |
Accumulated deficit |
|
(569,644 |
) |
|
|
(483,093 |
) |
TOTAL STOCKHOLDERS’ EQUITY |
|
458,053 |
|
|
|
444,233 |
|
TOTAL LIABILITIES, REDEEMABLE NON-CONTROLLING INTEREST, AND STOCKHOLDERS’ EQUITY |
$ |
842,012 |
|
|
$ |
810,941 |
|
BRAZE, INC.
|
|||||||
|
Nine Months Ended
|
||||||
|
|
2024 |
|
|
|
2023 |
|
CASH FLOWS FROM OPERATING ACTIVITIES: |
|
|
|
||||
Net loss (including amounts attributable to redeemable non-controlling interests) |
$ |
(86,983 |
) |
|
$ |
(101,851 |
) |
Adjustments to reconcile net loss to net cash provided by operating activities: |
|
|
|
||||
Stock-based compensation |
|
87,184 |
|
|
|
72,961 |
|
Amortization of deferred contract costs |
|
26,004 |
|
|
|
21,684 |
|
Depreciation and amortization |
|
7,368 |
|
|
|
5,082 |
|
Provision for credit losses |
|
2,157 |
|
|
|
1,717 |
|
Value of common stock donated to charity |
|
2,764 |
|
|
|
2,391 |
|
(Accretion) amortization of (discount) premium on marketable securities |
|
(1,605 |
) |
|
|
1,579 |
|
Non-cash foreign exchange loss |
|
(802 |
) |
|
|
473 |
|
Fair value adjustments to contingent consideration |
|
(223 |
) |
|
|
— |
|
Fixed asset write offs |
|
436 |
|
|
|
128 |
|
Other |
|
1 |
|
|
|
8 |
|
Changes in operating assets and liabilities: |
|
|
|
||||
Accounts receivable |
|
(227 |
) |
|
|
7,269 |
|
Prepaid expenses and other current assets |
|
(1,365 |
) |
|
|
1,946 |
|
Deferred contract costs |
|
(34,764 |
) |
|
|
(32,609 |
) |
ROU assets and liabilities |
|
2,123 |
|
|
|
1,903 |
|
Other assets |
|
(506 |
) |
|
|
(324 |
) |
Accounts payable |
|
(3,326 |
) |
|
|
2,859 |
|
Accrued expenses and other current liabilities |
|
2,105 |
|
|
|
9,321 |
|
Deferred revenue |
|
19,517 |
|
|
|
8,363 |
|
Other long-term liabilities |
|
(261 |
) |
|
|
129 |
|
Net cash provided by operating activities |
|
19,597 |
|
|
|
3,029 |
|
CASH FLOWS FROM INVESTING ACTIVITIES: |
|
|
|
||||
Cash paid for acquisition, net of cash acquired |
|
— |
|
|
|
(16,319 |
) |
Purchases of property and equipment |
|
(12,147 |
) |
|
|
(3,439 |
) |
Capitalized internal-use software costs |
|
(3,023 |
) |
|
|
(2,536 |
) |
Purchases of marketable securities |
|
(179,545 |
) |
|
|
(191,922 |
) |
Maturities of marketable securities |
|
159,086 |
|
|
|
194,737 |
|
Net cash used in investing activities |
|
(35,629 |
) |
|
|
(19,479 |
) |
CASH FLOWS FROM FINANCING ACTIVITIES: |
|
|
|
||||
Proceeds from exercise of common stock options |
|
3,682 |
|
|
|
5,949 |
|
Proceeds from stock associated with employee stock purchase plan |
|
4,752 |
|
|
|
3,222 |
|
Payments of deferred purchase consideration |
|
(2,916 |
) |
|
|
(165 |
) |
Net cash provided by financing activities |
|
5,518 |
|
|
|
9,006 |
|
Effect of foreign currency exchange rate changes on cash, cash equivalents, and restricted cash |
|
225 |
|
|
|
(806 |
) |
Net change in cash, cash equivalents, and restricted cash |
|
(10,289 |
) |
|
|
(8,250 |
) |
Cash, cash equivalents, and restricted cash, beginning of period |
|
72,131 |
|
|
|
72,623 |
|
Cash, cash equivalents, and restricted cash, end of period |
$ |
61,842 |
|
|
$ |
64,373 |
|
BRAZE, INC.
|
|||||||||||||||
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
|
|
Nine Months Ended
|
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
|
|
|
|
|
|
||||||||
Gross profit |
$ |
106,142 |
|
|
$ |
87,582 |
|
|
$ |
299,132 |
|
|
$ |
236,308 |
|
Plus: |
|
|
|
|
|
|
|
||||||||
Stock-based compensation expense |
|
1,003 |
|
|
|
900 |
|
|
|
3,045 |
|
|
|
2,690 |
|
Employer taxes related to stock-based compensation expense |
|
42 |
|
|
|
29 |
|
|
|
156 |
|
|
|
81 |
|
Non-GAAP gross profit |
$ |
107,187 |
|
|
$ |
88,511 |
|
|
$ |
302,333 |
|
|
$ |
239,079 |
|
GAAP gross margin |
|
69.8 |
% |
|
|
70.7 |
% |
|
|
69.1 |
% |
|
|
69.3 |
% |
Non-GAAP gross margin |
|
70.5 |
% |
|
|
71.4 |
% |
|
|
69.8 |
% |
|
|
70.1 |
% |
Reconciliation of GAAP to Non-GAAP Operating Expenses |
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
|
|
|
|
|
|
||||||||
GAAP sales and marketing expense |
$ |
74,658 |
|
|
$ |
66,395 |
|
|
$ |
213,054 |
|
|
$ |
184,074 |
|
Less: |
|
|
|
|
|
|
|
||||||||
Stock-based compensation expense |
|
9,608 |
|
|
|
7,899 |
|
|
|
28,945 |
|
|
|
23,554 |
|
Employer taxes related to stock-based compensation expense |
|
247 |
|
|
|
245 |
|
|
|
1,070 |
|
|
|
609 |
|
Restructuring expense |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
541 |
|
Non-GAAP sales and marketing expense |
$ |
64,803 |
|
|
$ |
58,251 |
|
|
$ |
183,039 |
|
|
$ |
159,370 |
|
|
|
|
|
|
|
|
|
||||||||
GAAP research and development expense |
$ |
32,855 |
|
|
$ |
29,872 |
|
|
$ |
100,369 |
|
|
$ |
88,749 |
|
Less: |
|
|
|
|
|
|
|
||||||||
Stock-based compensation expense |
|
10,343 |
|
|
|
9,479 |
|
|
|
32,623 |
|
|
|
29,251 |
|
Employer taxes related to stock-based compensation expense |
|
220 |
|
|
|
199 |
|
|
|
1,400 |
|
|
|
721 |
|
Non-GAAP research and development expense |
$ |
22,292 |
|
|
$ |
20,194 |
|
|
$ |
66,346 |
|
|
$ |
58,777 |
|
|
|
|
|
|
|
|
|
||||||||
GAAP general and administrative expense |
$ |
31,199 |
|
|
$ |
26,448 |
|
|
$ |
86,309 |
|
|
$ |
75,884 |
|
Less: |
|
|
|
|
|
|
|
||||||||
Stock-based compensation expense |
|
7,364 |
|
|
|
5,761 |
|
|
|
21,805 |
|
|
|
17,466 |
|
Employer taxes related to stock-based compensation expense |
|
127 |
|
|
|
84 |
|
|
|
567 |
|
|
|
239 |
|
|
|
1,417 |
|
|
|
1,427 |
|
|
|
2,764 |
|
|
|
2,391 |
|
Acquisition related expense |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,946 |
|
Amortization of intangibles expense |
|
101 |
|
|
|
215 |
|
|
|
459 |
|
|
|
363 |
|
Restructuring expense |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
103 |
|
Contingent consideration adjustment |
|
(86 |
) |
|
|
— |
|
|
|
(223 |
) |
|
|
— |
|
Non-GAAP general and administrative expense |
$ |
22,276 |
|
|
$ |
18,961 |
|
|
$ |
60,937 |
|
|
$ |
53,376 |
|
Reconciliation of GAAP to Non-GAAP Operating Loss |
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
|
|
|
|
|
|
||||||||
Loss from operations |
$ |
(32,570 |
) |
|
$ |
(35,133 |
) |
|
$ |
(100,600 |
) |
|
$ |
(112,399 |
) |
Plus: |
|
|
|
|
|
|
|
||||||||
Stock-based compensation expense |
|
28,318 |
|
|
|
24,039 |
|
|
|
86,418 |
|
|
|
72,961 |
|
Employer taxes related to stock-based compensation expense |
|
636 |
|
|
|
557 |
|
|
|
3,193 |
|
|
|
1,650 |
|
|
|
1,417 |
|
|
|
1,427 |
|
|
|
2,764 |
|
|
|
2,391 |
|
Acquisition related expense |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,946 |
|
Amortization of intangibles expense |
|
101 |
|
|
|
215 |
|
|
|
459 |
|
|
|
363 |
|
Restructuring expense |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
644 |
|
Contingent consideration adjustment |
|
(86 |
) |
|
|
— |
|
|
|
(223 |
) |
|
|
— |
|
Non-GAAP loss from operations |
$ |
(2,184 |
) |
|
$ |
(8,895 |
) |
|
$ |
(7,989 |
) |
|
$ |
(32,444 |
) |
GAAP operating margin |
|
(21.4 |
)% |
|
|
(28.3 |
)% |
|
|
(23.2 |
)% |
|
|
(33.0 |
)% |
Non-GAAP operating margin |
|
(1.4 |
)% |
|
|
(7.2 |
)% |
|
|
(1.8 |
)% |
|
|
(9.5 |
)% |
Reconciliation of GAAP to Non-GAAP Net Income (Loss) |
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
|
|
|
|
|
|
||||||||
Net loss attributable to Braze, Inc. |
$ |
(27,911 |
) |
|
$ |
(30,741 |
) |
|
$ |
(86,551 |
) |
|
$ |
(100,889 |
) |
Plus: |
|
|
|
|
|
|
|
||||||||
Stock-based compensation expense |
|
28,318 |
|
|
|
24,039 |
|
|
|
86,418 |
|
|
|
72,961 |
|
Employer taxes related to stock-based compensation expense |
|
636 |
|
|
|
557 |
|
|
|
3,193 |
|
|
|
1,650 |
|
|
|
1,417 |
|
|
|
1,427 |
|
|
|
2,764 |
|
|
|
2,391 |
|
Acquisition related expense |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,946 |
|
Amortization of intangibles expense |
|
101 |
|
|
|
215 |
|
|
|
459 |
|
|
|
363 |
|
Restructuring expense |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
644 |
|
Contingent consideration adjustment |
|
(86 |
) |
|
|
— |
|
|
|
(223 |
) |
|
|
— |
|
Non-GAAP net income (loss) attributable to Braze, Inc. (1) |
$ |
2,475 |
|
|
$ |
(4,503 |
) |
|
$ |
6,060 |
|
|
$ |
(20,934 |
) |
|
|
|
|
|
|
|
|
||||||||
Non-GAAP net income (loss) per share attributable to Braze, Inc. common stockholders, basic |
$ |
0.02 |
|
|
$ |
(0.05 |
) |
|
$ |
0.06 |
|
|
$ |
(0.21 |
) |
Non-GAAP net income (loss) per share attributable to Braze, Inc. common stockholders, diluted |
$ |
0.02 |
|
|
$ |
(0.05 |
) |
|
$ |
0.06 |
|
|
$ |
(0.21 |
) |
Weighted-average shares used to compute net income (loss) per share attributable to Braze, Inc. common stockholders, basic |
|
102,146 |
|
|
|
97,880 |
|
|
|
101,714 |
|
|
|
97,615 |
|
Weighted-average shares used to compute net income (loss) per share attributable to Braze, Inc. common stockholders, diluted |
|
106,820 |
|
|
|
97,880 |
|
|
|
106,614 |
|
|
|
97,615 |
|
(1) Assumes no non-GAAP tax expenses associated with the non-GAAP adjustment due to the Company’s historical non-GAAP net loss position and available deferred tax assets sufficient to offset such non-GAAP tax expense. |
|||||||||||||||
Reconciliation of GAAP Cash Flow from Operating Activities to Non-GAAP Free Cash Flow |
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
|
|
|
|
|
|
||||||||
Net cash provided by/(used in) operating activities |
$ |
(11,410 |
) |
|
$ |
(2,003 |
) |
|
$ |
19,597 |
|
|
$ |
3,029 |
|
Less: |
|
|
|
|
|
|
|
||||||||
Purchases of property and equipment |
|
(1,923 |
) |
|
|
(3,012 |
) |
|
|
(12,147 |
) |
|
|
(3,439 |
) |
Capitalized internal-use software costs |
|
(915 |
) |
|
|
(896 |
) |
|
|
(3,023 |
) |
|
|
(2,536 |
) |
Non-GAAP free cash flow |
$ |
(14,248 |
) |
|
$ |
(5,911 |
) |
|
$ |
4,427 |
|
|
$ |
(2,946 |
) |
Source: Braze, Inc.
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/20241209508572/en/
Investors:
Christopher Ferris
IR@braze.com
(609) 964-0585
Media:
Meghan Halaszynski
Press@braze.com
Source: Braze
FAQ
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