Fourth quarter revenue grew 33% year-over-year
to $131.0 million
Achieved dollar-based net retention of 117% for
the trailing 12 months
Introduced first quarter and full year fiscal
2025 guidance
Braze (Nasdaq: BRZE) the leading customer engagement platform
that empowers brands to Be Absolutely Engaging™, today announced
results for its fiscal year ended January 31, 2024.
"Fiscal 2024 marked another significant year for Braze, as we
strengthened our position as the leading customer engagement
platform and grew revenue by 33%, helping over 2,000 global brands
foster growth, loyalty, and retention," said Bill Magnuson,
cofounder and CEO of Braze. "In 2023, we orchestrated the delivery
of over 2.6 trillion outgoing actions, including message sends,
webhook executions, and Canvas actions taken to transform data and
manage audiences, demonstrating the performance, reliability, and
scalability of the Braze Customer Engagement Platform. We remain
committed to helping brands embrace the craft of customer
engagement by harnessing the power of rich first-party data,
advanced machine learning, and artificial intelligence to create
brilliant, meaningful experiences at scale."
Fiscal Fourth Quarter 2024 Financial
Highlights
- Revenue was $131.0 million compared to $98.7 million in the
fourth quarter of the fiscal year ended January 31, 2023, up 33%
year-over year, driven primarily by new customers, upsells, and
renewals.
- Subscription revenue in the quarter was $125.9 million compared
to $94.8 million in the fourth quarter of the fiscal year ended
January 31, 2023, and professional services and other revenue was
$5.1 million compared to $3.9 million in the fourth quarter of the
fiscal year ended January 31, 2023.
- Remaining performance obligations as of January 31, 2024 was
$639.2 million, of which $409.1 million is current, which we define
as less than one year.
- GAAP gross margin was 67.2% compared to 66.1% in the fourth
quarter of the fiscal year ended January 31, 2023.
- Non-GAAP gross margin was 67.9% compared to 67.0% in the fourth
quarter of the fiscal year ended January 31, 2023.
- Dollar-based net retention for all customers for the trailing
12 months ended January 31, 2024 and January 31, 2023 was 117% and
124%, respectively; dollar-based net retention for customers with
annual recurring revenue (ARR) of $500,000 or more was 120%
compared to 126% for the fiscal year ended January 31, 2023.
- Total customers increased to 2,044 as of January 31, 2024 from
1,770 as of January 31, 2023; 202 of our customers had ARR of
$500,000 or more as of January 31, 2024, compared to 156 customers
as of January 31, 2023.
- GAAP operating loss was $32.3 million compared to an operating
loss of $36.5 million in the fourth quarter of the fiscal year
ended January 31, 2023. Contributors to the operating loss in the
quarter included $24.2 million of stock-based compensation
expense.
- Non-GAAP operating loss was $7.5 million compared to a loss of
$16.7 million in the fourth quarter of the fiscal year ended
January 31, 2023.
- GAAP net loss per basic and diluted share attributable to Braze
common stockholders was $0.29 compared to $0.35 in the fourth
quarter of the fiscal year ended January 31, 2023.
- Non-GAAP net loss per basic and diluted share attributable to
Braze common stockholders was $0.04 compared to $0.14 in the fourth
quarter of the fiscal year ended January 31, 2023.
- Free cash flow was $(3.5) million compared to $(1.9) million in
the fourth quarter of the fiscal year ended January 31, 2023.
- Total cash and cash equivalents, restricted cash, and
marketable securities was $480.0 million as of January 31, 2024
compared to $482.7 million as the fiscal year ended January 31,
2023.
Fiscal Year 2024 Financial
Highlights
- Revenue was $471.8 million compared to $355.4 million in the
fiscal year ended January 31, 2023, up 32.7% year-over year, driven
primarily by new customers, upsells, and renewals.
- Subscription revenue was $451.1 million compared to $338.4
million in the fiscal year ended January 31, 2023, and professional
services and other revenue was $20.7 million compared to $17.1
million in the fiscal year ended January 31, 2023.
- GAAP gross margin was 68.7% compared to 67.4% in the fiscal
year ended January 31, 2023.
- Non-GAAP gross margin was 69.5% compared to 68.5% in the fiscal
year ended January 31, 2023.
- GAAP operating loss was $144.7 million compared to a loss of
$148.1 million in the fiscal year ended January 31, 2023.
Contributors to the operating loss in the quarter included $97.2
million of stock-based compensation expense.
- Non-GAAP operating loss was $39.9 million compared to a loss of
$69.5 million in the fiscal year ended January 31, 2023.
- GAAP net loss per basic and diluted share attributable to Braze
common stockholders was $1.32 compared to $1.47 in the fiscal year
ended January 31, 2023.
- Non-GAAP net loss per basic and diluted share attributable to
Braze common stockholders was $0.25 compared to $0.64 in the fiscal
year ended January 31, 2023.
- Net cash provided by operating activities was $6.9 million
compared to net cash used in operating activities of $22.3 million
in the fiscal year ended January 31, 2023.
- Free cash flow was $(6.5) million compared to $(39.0) million
in the fiscal year ended January 31, 2023.
Recent Business
Highlights
- Notable new business wins and upsells in the quarter included
AB InBev, Bojangles, DraftKings, FanDuel, Flix SE (known mostly for
its brands FlixBus and Greyhound), and Nestlé Purina, among
others.
- In fiscal year 2024, DoorDash and Wendy’s partnered with Braze
to enhance their customer engagement efforts.
- Launched new Sage AI features including AI Item
Recommendations, Personalized Paths, Tone Control, and Estimated
Real Open Rates, enhancing our Sage AI by Braze offering.
- Braze earned six Best Software Awards from G2, recognized in
the categories of Best Software Products, Global Software
Companies, Highest Satisfaction Products, Marketing and Digital
Advertising Products, Products for Enterprise, and Products for
Mid-Market.
- Published fourth annual Customer Engagement Report, which
combines data from over 1,900 marketing decision makers in 14
countries across CPG, Financial Services, Health & Wellness,
Media & Entertainment, Retail & eCommerce, QSR, and
On-Demand.
Financial Outlook
Braze is initiating guidance for the fiscal first quarter ending
April 30, 2024 and fiscal year ending January 31, 2025.
Metric
(in millions, except per share
amounts)
FY 2025 Q1 Guidance
FY 2025 Guidance
Revenue
$131.0 - 132.0
$570.0 - 575.0
Non-GAAP operating loss
$(13.0) - (14.0)
$(20.0) - (24.0)
Non-GAAP net loss
$(10.0) - (11.0)
$(8.0) - (12.0)
Non-GAAP net loss per share
$(0.10) - (0.11)
$(0.08) - (0.12)
Weighted average shares outstanding
~99.5
~101.0
Braze has not reconciled its guidance as to non-GAAP operating
loss, non-GAAP net loss or non-GAAP net loss 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, 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 Fiscal Year and Fourth Quarter 2024 Financial
Results Conference Call When: Wednesday, March 27th at 4:30
pm EDT / 1:30 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 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 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, 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, 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 margin, or non-GAAP net loss for
acquisition related expense, because there was not acquisition
activity by Braze in prior periods. Additionally, prior to the
second 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
loss, non-GAAP operating margin or non-GAAP net loss for
amortization of intangible assets, because there were no such
amortizations in prior periods, or for restructuring expense,
because such amounts were not material in prior periods. Further,
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 loss, non-GAAP operating margin or non-GAAP net
loss for contingent consideration adjustments, because there were
no such adjustments 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
United States (GAAP), and may be different from similarly-titled
non-GAAP measures used by other companies.
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 first
quarter of and 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 Quarterly Report on Form
10-Q filed with the Securities and Exchange Commission (SEC) on
December 7, 2023, and other subsequent filings Braze makes with the
SEC from time to time, including Braze’s Annual Report on Form 10-K
for the fiscal year ended January 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 2023 Magic Quadrant™ for Multichannel Marketing
Hubs and in The Forrester Wave™: Cross-Channel Marketing Hubs, Q1
2023. Braze is headquartered in New York with 10+ offices across
North America, Europe, and APAC. Learn more at braze.com.
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
(in thousands, except per
share amounts)
Three Months Ended
January 31,
Fiscal Year Ended
January 31,
2024
2023
2024
2023
Revenue
$
130,957
$
98,675
$
471,800
$
355,426
Cost of revenue (1)(2)
42,992
33,425
147,527
115,818
Gross Profit
87,965
65,250
324,273
239,608
Operating expenses:
Sales and marketing (1)(2)(6)
63,051
52,792
247,125
201,684
Research and development (1)(2)
31,114
26,754
119,863
97,293
General and administrative
(1)(2)(3)(4)(5)(6)(7)
26,093
22,224
101,977
88,771
Total operating expenses
120,258
101,770
468,965
387,748
Loss from operations
(32,293
)
(36,520
)
(144,692
)
(148,140
)
Other income, net
4,354
3,637
16,220
7,977
Loss before provision for income taxes
(27,939
)
(32,883
)
(128,472
)
(140,163
)
Provision for income taxes
639
925
1,957
583
Net loss
(28,578
)
(33,808
)
(130,429
)
(140,746
)
Net loss attributable to redeemable
non-controlling interest
(301
)
(357
)
(1,263
)
(1,780
)
Net loss attributable to Braze, Inc.
$
(28,277
)
$
(33,451
)
$
(129,166
)
$
(138,966
)
Net loss per share attributable to Braze,
Inc. common stockholders, basic and diluted
$
(0.29
)
$
(0.35
)
$
(1.32
)
$
(1.47
)
Weighted-average shares used to compute
net loss per share attributable to Braze, Inc. common stockholders,
basic and diluted
98,561
94,966
98,096
94,569
(1) Includes stock-based compensation as
follows:
Three Months Ended
January 31,
Fiscal Year Ended
January 31,
2024
2023
2024
2023
Cost of revenue
$
895
$
896
$
3,585
$
3,616
Sales and marketing
7,644
6,253
31,198
23,871
Research and development
9,711
7,743
38,962
28,897
General and administrative
5,966
3,933
23,432
15,833
Total stock-based compensation expense
$
24,216
$
18,825
$
97,177
$
72,217
(2) Includes employer taxes related to
stock-based compensation as follows:
Three Months Ended
January 31,
Fiscal Year Ended
January 31,
2024
2023
2024
2023
Cost of revenue
$
44
$
14
$
125
$
71
Sales and marketing
238
60
847
603
Research and development
192
49
913
353
General and administrative
104
67
343
319
Total employer taxes related to
stock-based compensation expense
$
578
$
190
$
2,228
$
1,346
(3) Includes 1% Pledge charitable donation
expense as follows:
Three Months Ended
January 31,
Fiscal Year Ended
January 31,
2024
2023
2024
2023
General and administrative
$
1,371
$
—
$
3,762
$
4,260
(4) Includes acquisition related expense
as follows:
Three Months Ended
January 31,
Fiscal Year Ended
January 31,
2024
2023
2024
2023
General and administrative
$
—
$
773
$
1,946
$
773
(5) Includes amortization of intangible
assets acquired in the acquisition expense as follows:
Three Months Ended
January 31,
Fiscal Year Ended
January 31,
2024
2023
2024
2023
General and administrative
$
217
$
—
$
580
$
—
(6) Includes restructuring related expense
as follows:
Three Months Ended
January 31,
Fiscal Year Ended
January 31,
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
January 31,
Fiscal Year Ended
January 31,
2024
2023
2024
2023
General and administrative
$
(1,572
)
$
—
$
(1,572
)
$
—
BRAZE, INC.
CONDENSED CONSOLIDATED BALANCE
SHEETS
(in thousands, except share
and per share amounts)
January 31,
2024
2023
ASSETS
CURRENT ASSETS:
Cash and cash equivalents
$
68,228
$
68,587
Restricted cash, current
3,373
—
Accounts receivable, net of allowance of
$2,772 and $1,613 at January 31, 2024 and January 31, 2023,
respectively
92,256
78,338
Marketable securities
407,898
410,083
Prepaid expenses and other current
assets
29,366
26,163
Total current assets
601,121
583,171
Restricted cash, noncurrent
530
4,036
Property and equipment, net
29,358
20,339
Operating lease right-of-use assets
81,163
46,261
Deferred contract costs
63,661
48,451
Goodwill
28,448
—
Intangible assets, net
3,690
500
Other assets
2,970
2,648
TOTAL ASSETS
$
810,941
$
705,406
LIABILITIES, REDEEMABLE NON-CONTROLLING
INTEREST, AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable
6,321
3,101
Accrued expenses and other current
liabilities
63,264
37,415
Deferred revenue
204,269
166,092
Operating lease liabilities, current
15,585
10,695
Total current liabilities
289,439
217,303
Operating lease liabilities,
noncurrent
75,027
40,590
Other long-term liabilities
2,050
755
TOTAL LIABILITIES
366,516
258,648
COMMITMENTS AND CONTINGENCIES (Note
13)
Redeemable non-controlling interest (Note
4)
192
1,455
STOCKHOLDERS’ EQUITY
Class A common stock, $0.0001 par value;
2,000,000,000 and 2,000,000,000 shares authorized as of January 31,
2024 and January 31, 2023, respectively; 73,037,015 and 61,585,973
shares issued and outstanding as of January 31, 2024 and January
31, 2023, respectively
7
6
Class B common stock, $0.0001 par value;
110,000,000 and 110,000,000 shares authorized as of January 31,
2024 and January 31, 2023, respectively; 27,173,408 and 34,389,453
shares issued and outstanding as of January 31, 2024 and January
31, 2023, respectively
3
4
Additional paid-in capital
928,494
806,044
Accumulated other comprehensive loss
(1,178
)
(6,824
)
Accumulated deficit
(483,093
)
(353,927
)
TOTAL STOCKHOLDERS’ EQUITY
444,233
445,303
TOTAL LIABILITIES, REDEEMABLE
NON-CONTROLLING INTEREST, AND STOCKHOLDERS’ EQUITY
$
810,941
$
705,406
BRAZE, INC.
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
(in thousands)
Fiscal Year Ended
January 31,
2024
2023
CASH FLOWS FROM OPERATING
ACTIVITIES:
Net loss (including amounts attributable
to redeemable non-controlling interests)
$
(130,429
)
$
(140,746
)
Adjustments to reconcile net loss to net
cash provided by/(used in) operating activities:
Stock-based compensation
97,232
72,243
Amortization of deferred contract
costs
29,788
23,639
Depreciation and amortization
6,963
4,618
Provision for credit losses
2,020
807
Value of common stock donated to
charity
3,762
4,260
(Accretion) amortization of (discount)
premium on marketable securities
(2,077
)
1,336
Non-cash foreign exchange loss
460
1,612
Fair value adjustments to contingent
consideration
(1,572
)
—
Other
(349
)
495
Changes in operating assets and
liabilities:
Accounts receivable
(14,008
)
(14,650
)
Prepaid expenses and other current
assets
(3,413
)
3,596
Deferred contract costs
(45,119
)
(30,469
)
ROU assets and liabilities
4,275
3,355
Other assets
229
1,711
Accounts payable
3,419
906
Accrued expenses and other current
liabilities
20,990
5,075
Deferred revenue
34,108
39,894
Other long-term liabilities
571
10
Net cash provided by/(used in) operating
activities
6,850
(22,308
)
CASH FLOWS FROM INVESTING
ACTIVITIES:
Cash paid for acquisition; net of cash
acquired
(16,319
)
—
Purchases of property and equipment
(9,761
)
(15,447
)
Capitalized internal-use software
costs
(3,574
)
(1,258
)
Purchases of marketable securities
(248,059
)
(638,221
)
Maturities of marketable securities
257,737
256,407
Net cash used in investing activities
(19,976
)
(398,519
)
CASH FLOWS FROM FINANCING
ACTIVITIES:
Proceeds from exercise of common stock
options
7,263
11,332
Proceeds from stock associated with
employee stock purchase plan
6,011
—
Payments of deferred purchase
consideration
(165
)
—
Net cash provided by financing
activities
13,109
11,332
Effect of foreign currency exchange rate
changes on cash, cash equivalents, and restricted cash
(475
)
(855
)
Net change in cash, cash equivalents, and
restricted cash
(492
)
(410,350
)
Cash, cash equivalents, and restricted
cash, beginning of period
72,623
482,973
Cash, cash equivalents, and restricted
cash, end of period
$
72,131
$
72,623
BRAZE, INC.
U.S. GAAP RECONCILIATION OF
NON-GAAP ADJUSTED RESULTS
(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
January 31,
Fiscal Year Ended
January 31,
2024
2023
2024
2023
Gross profit
$
87,965
$
65,250
$
324,273
$
239,608
Plus:
Stock-based compensation expense
895
896
3,585
3,616
Employer taxes related to stock-based
compensation expense
44
14
125
71
Non-GAAP gross profit
$
88,904
$
66,160
$
327,983
$
243,295
GAAP gross margin
67.2
%
66.1
%
68.7
%
67.4
%
Non-GAAP gross margin
67.9
%
67.0
%
69.5
%
68.5
%
Reconciliation of GAAP to Non-GAAP
Operating Expenses
Three Months Ended
January 31,
Fiscal Year Ended
January 31,
2024
2023
2024
2023
GAAP sales and marketing expense
$
63,051
$
52,792
$
247,125
$
201,684
Less:
Stock-based compensation expense
7,644
6,253
31,198
23,871
Employer taxes related to stock-based
compensation expense
238
60
847
603
Restructuring expense
—
—
541
—
Non-GAAP sales and marketing expense
$
55,169
$
46,479
$
214,539
$
177,210
GAAP research and development expense
$
31,114
$
26,754
$
119,863
$
97,293
Less:
Stock-based compensation expense
9,711
7,743
38,962
28,897
Employer taxes related to stock-based
compensation expense
192
49
913
353
Non-GAAP research and development
expense
$
21,211
$
18,962
$
79,988
$
68,043
GAAP general and administrative
expense
$
26,093
$
22,224
$
101,977
$
88,771
Less:
Stock-based compensation expense
5,966
3,933
23,432
15,833
Employer taxes related to stock-based
compensation expense
104
67
343
319
1% Pledge charitable contribution
expense
1,371
—
3,762
4,260
Acquisition related expense
—
773
1,946
773
Amortization of intangibles expense
217
—
580
—
Restructuring expense
—
—
103
—
Contingent consideration adjustment
(1,572
)
—
(1,572
)
—
Non-GAAP general and administrative
expense
$
20,007
$
17,451
$
73,383
$
67,586
Reconciliation of GAAP to Non-GAAP
Operating Loss
Three Months Ended
January 31,
Fiscal Year Ended
January 31,
2024
2023
2024
2023
Loss from operations
$
(32,293
)
$
(36,520
)
$
(144,692
)
$
(148,140
)
Plus:
Stock-based compensation expense
24,216
18,825
97,177
72,217
Employer taxes related to stock-based
compensation expense
578
190
2,228
1,346
1% Pledge charitable contribution
expense
1,371
—
3,762
4,260
Acquisition related expense
—
773
1,946
773
Amortization of intangibles expense
217
—
580
—
Restructuring expense
—
—
644
—
Contingent consideration adjustment
(1,572
)
—
(1,572
)
—
Non-GAAP loss from operations
$
(7,483
)
$
(16,732
)
$
(39,927
)
$
(69,544
)
GAAP operating margin
(24.7
)%
(37.0
)%
(30.7
)%
(41.7
)%
Non-GAAP operating margin
(5.7
)%
(17.0
)%
(8.5
)%
(19.6
)%
Reconciliation of GAAP to Non-GAAP Net
Loss
Three Months Ended
January 31,
Fiscal Year Ended
January 31,
2024
2023
2024
2023
Net loss attributable to Braze, Inc.
$
(28,277
)
$
(33,451
)
$
(129,166
)
$
(138,966
)
Plus:
Stock-based compensation expense
24,216
18,825
97,177
72,217
Employer taxes related to stock-based
compensation expense
578
190
2,228
1,346
1% Pledge charitable contribution
expense
1,371
—
3,762
4,260
Acquisition related expense
—
773
1,946
773
Amortization of intangibles expense
217
—
580
—
Restructuring expense
—
—
644
—
Contingent consideration adjustment
(1,572
)
—
(1,572
)
—
Non-GAAP net loss attributable to Braze,
Inc.(1)
$
(3,467
)
$
(13,663
)
$
(24,401
)
$
(60,370
)
Non-GAAP net loss per share attributable
to Braze, Inc. common stockholders, basic and diluted
$
(0.04
)
$
(0.14
)
$
(0.25
)
$
(0.64
)
Weighted-average shares used to compute
net loss per share attributable to Braze, Inc. common stockholders,
basic and diluted
98,561
94,966
98,096
94,569
(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
January 31,
Fiscal Year Ended
January 31,
2024
2023
2024
2023
Net cash provided by/(used in) operating
activities
$
3,821
$
12
$
6,850
$
(22,308
)
Less:
Purchases of property and equipment
(6,322
)
(1,381
)
(9,761
)
(15,447
)
Capitalized internal-use software
costs
(1,038
)
(553
)
(3,574
)
(1,258
)
Non-GAAP free cash flow
$
(3,539
)
$
(1,922
)
$
(6,485
)
$
(39,013
)
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/20240327412206/en/
Investors: Christopher Ferris IR@braze.com (609) 964-0585
Media: Meghan Halaszynski Press@braze.com
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