Braze(BRZE) - 2025 Q2 - Quarterly Results

Revenue and Growth - Revenue for the fiscal second quarter 2025 was $145.5 million, a 26.4% increase year-over-year from $115.1 million[1] - Subscription revenue was $140.0 million, up from $109.7 million in the same quarter last year[1] - Revenue for the three months ended July 31, 2024, was $145.5 million, a 26.3% increase from $115.1 million in the same period last year[17] - Gross profit for the six months ended July 31, 2024, was $193.0 million, up 29.7% from $148.7 million in the prior year[17] - Total customers increased to 2,163 from 1,958 year-over-year, with 222 customers having ARR of $500,000 or more[1] Financial Performance - Non-GAAP operating income was $4.2 million, compared to a loss of $7.6 million in the same quarter last year[1] - Net cash provided by operating activities was $11.6 million, a significant improvement from a cash used of $17.5 million in the prior year[2] - Free cash flow reached $7.2 million, compared to a negative $18.7 million in the same quarter last year[2] - Net loss attributable to Braze, Inc. for the three months ended July 31, 2024, was $23.0 million, compared to a net loss of $31.7 million in the same period last year[17] - The company reported a net loss per share of $0.23 for the three months ended July 31, 2024, compared to a loss of $0.33 per share in the same period last year[17] Expenses and Margins - Total operating expenses for the three months ended July 31, 2024, were $130.0 million, an increase of 13.0% from $115.0 million in the prior year[17] - Research and development expenses for the three months ended July 31, 2024, were $33.1 million, a 13.9% increase from $29.1 million in the same period last year[17] - Sales and marketing expenses for the six months ended July 31, 2024, were $138.4 million, up 17.6% from $117.7 million in the prior year[17] - GAAP gross margin improved to 70.2% from 69.2% year-over-year, while non-GAAP gross margin increased to 70.9% from 70.0%[1] - Braze's GAAP operating margin improved to (19.2)% for the three months ended July 31, 2024, compared to (30.7)% in the same period of 2023[27] Cash and Assets - Total current assets increased to $606,422,000 as of July 31, 2024, compared to $601,121,000 on January 31, 2024, reflecting a growth of 0.5%[23] - Cash and cash equivalents rose to $79,119,000 from $68,228,000, marking an increase of 15.5%[23] - Cash provided by operating activities was $31,007,000 for the three months ended July 31, 2024, significantly higher than $5,032,000 in the prior year[24] - Total liabilities increased to $371,906,000 as of July 31, 2024, compared to $366,516,000 on January 31, 2024, reflecting a rise of 1.1%[23] - Total stockholders' equity increased to $453,693,000 as of July 31, 2024, from $444,233,000 on January 31, 2024, showing a growth of 2.9%[23] Deferred Revenue and Obligations - Remaining performance obligations as of July 31, 2024, totaled $689.6 million, with $438.3 million classified as current[1] - Deferred revenue as of July 31, 2024, was $212,145,000, up from $204,269,000, reflecting an increase of 3.4%[23] Strategic Focus and Recognition - The company has been recognized as a leader in the 2023 Magic Quadrant for Multichannel Marketing Hubs by Gartner[15] - Braze aims to enhance its platform capabilities to adapt to changing customer needs and market conditions[17] Stock-Based Compensation - Braze's total stock-based compensation expense for the six months ended July 31, 2024, was $58.1 million, an increase from $48.9 million in the prior year[18] - Braze's stock-based compensation expense increased to $29.822 million for the three months ended July 31, 2024, compared to $24.776 million in the same period of 2023, reflecting ongoing investment in talent[28]