Braze (Nasdaq: BRZE) the leading customer engagement platform
that empowers brands to Be Absolutely Engaging™, today announced
results for its fiscal quarter ended October 31, 2024.
“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 compared to $124.0 million in the
third quarter of the fiscal year ended January 31, 2024, up 22.7%
year-over-year, driven primarily by new customers, upsells and
renewals.
- Subscription revenue in the quarter was $146.3 million compared
to $118.4 million in the third quarter of the fiscal year ended
January 31, 2024, and professional services and other revenue was
$5.8 million compared to $5.6 million in the third quarter of the
fiscal year ended January 31, 2024.
- Remaining performance obligations as of October 31, 2024 was
$716.8 million, of which $458.2 million is current, which the
company defines as less than one year.
- GAAP gross margin was 69.8% compared to 70.7% in the third
quarter of the fiscal year ended January 31, 2024.
- Non-GAAP gross margin was 70.5% compared to 71.4% 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% and
118%, respectively; dollar-based net retention for customers with
annual recurring revenue (ARR) of $500,000 or more was 116%
compared to 121% 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 or more as of October 31, 2024, compared to 189
customers as of October 31, 2023.
- GAAP operating loss was $32.6 million compared to an operating
loss of $35.1 million in the third quarter of the fiscal year ended
January 31, 2024. A primary contributor to the operating loss in
the quarter included $28.3 million of stock-based compensation
expense.
- Non-GAAP operating loss was $2.2 million compared to a loss of
$8.9 million in the third quarter of the fiscal year ended January
31, 2024.
- GAAP net loss per share attributable to Braze common
stockholders, basic and diluted, of $0.27 based on 102.1 million
weighted average shares outstanding in the third quarter of fiscal
year ended January 31, 2025, compared to GAAP net loss per share
attributable to Braze common stockholders, basic and diluted, of
$0.31, based on 97.9 million weighted average shares outstanding in
the third quarter of the fiscal year ended January 31, 2024.
- Non-GAAP net income per share attributable to Braze common
stockholders, diluted, was $0.02 based on 106.8 million weighted
average shares outstanding in the third quarter of fiscal year
ended January 31, 2025, compared to non-GAAP net loss per share
attributable to Braze common stockholders, basic and diluted, of
$0.05 based on 97.9 million weighted average shares outstanding in
the third quarter of the fiscal year ended January 31, 2024.
- Net cash used in operating activities was $11.4 million
compared to net cash used in operating activities of $2.0 million
in the third quarter of the fiscal year end January 31, 2024.
- Free cash flow was $(14.2) million compared to $(5.9) million
in the third quarter of the fiscal year end January 31, 2024.
- Total cash and cash equivalents, restricted cash, and
marketable securities was $493.1 million as of October 31, 2024
compared to $480.0 million as of January 31, 2024.
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 (in millions,
except per share amounts)
FY 2025 Q4 Guidance
FY 2025
Guidance
Revenue
$155.0 - 156.0
$588.0 - 589.0
Non-GAAP operating income (loss)
$2.0 - 3.0
$(5.0) - (6.0)
Non-GAAP net income
$5.0 - 6.0
$11.0 - 12.0
Non-GAAP net income per share, diluted
$0.05 - 0.06
$0.10 - 0.11
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
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 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 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, blog posts on its website (braze.com), 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
October 31,
Nine Months Ended
October 31,
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
October 31,
Nine Months Ended
October 31,
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
October 31,
Nine Months Ended
October 31,
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 1% Pledge charitable donation expense as
follows:
Three Months Ended
October 31,
Nine Months Ended
October 31,
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
October 31,
Nine Months Ended
October 31,
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
October 31,
Nine Months Ended
October 31,
2024
2023
2024
2023
General and administrative
$
101
$
215
$
459
$
363
(6) Includes restructuring related expense as follows:
Three Months Ended
October 31,
Nine Months Ended
October 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
October 31,
Nine Months Ended
October 31,
2024
2023
2024
2023
General and administrative
$
(86
)
$
—
$
(223
)
$
—
BRAZE, INC. CONDENSED
CONSOLIDATED BALANCE SHEETS (UNAUDITED) (in thousands,
except share and per share amounts)
October 31,
2024
January 31,
2024
ASSETS
CURRENT ASSETS:
Cash and cash equivalents
$
61,312
$
68,228
Restricted cash, current
—
3,373
Accounts receivable, net of allowance of
$2,696 and $2,772 at October 31, 2024 and January 31, 2024,
respectively
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, $0.0001 par value;
2,000,000,000 and 2,000,000,000 shares authorized as of October 31,
2024 and January 31, 2024, respectively; 82,534,449 and 73,037,015
shares issued and outstanding as of October 31, 2024 and January
31, 2024, respectively
8
7
Class B common stock, $0.0001 par value;
110,000,000 and 110,000,000 shares authorized as of October 31,
2024 and January 31, 2024, respectively; 20,296,274 and 27,173,408
shares issued and outstanding as of October 31, 2024 and January
31, 2024, respectively
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. CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (in
thousands)
Nine Months Ended
October 31,
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. 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
October 31,
Nine Months Ended
October 31,
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
October 31,
Nine Months Ended
October 31,
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% Pledge charitable contribution
expense
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
October 31,
Nine Months Ended
October 31,
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% Pledge charitable contribution
expense
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
October 31,
Nine Months Ended
October 31,
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% Pledge charitable contribution
expense
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
October 31,
Nine Months Ended
October 31,
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
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