Braze(US:BRZE)2024-09-05 21:45Financial Performance - Revenue for the three months ended July 31, 2024, was $145,499,000, representing a 26.3% increase from $115,107,000 in the same period of 2023[17]. - Gross profit for the six months ended July 31, 2024, was $192,990,000, up from $148,726,000 in the prior year, indicating a 29.7% growth[17]. - Total operating expenses for the three months ended July 31, 2024, were $130,029,000, compared to $115,002,000 in 2023, reflecting a 13.0% increase[17]. - Net loss attributable to Braze, Inc. for the three months ended July 31, 2024, was $22,999,000, an improvement from a net loss of $31,694,000 in the same quarter of 2023[17]. - Comprehensive loss attributable to Braze, Inc. for the three months ended July 31, 2024, was $19,859,000, down from $32,260,000 in the same period of 2023[20]. - Net loss for the quarter ending July 31, 2024, was $58.856 million, compared to a net loss of $70.875 million for the same period in 2023, indicating a reduction in losses of approximately 17.8%[29]. - Revenue for the six months ended July 31, 2024, was $280.96 million, an increase of $64.07 million or 29.5% compared to $216.89 million for the same period in 2023[153]. Assets and Liabilities - Cash and cash equivalents increased to $79.1 million as of July 31, 2024, from $68.2 million as of January 31, 2024, representing a growth of 13%[15]. - Total current assets rose to $606.4 million, up from $601.1 million, indicating a slight increase of 0.5%[15]. - Total liabilities increased to $371.9 million from $366.5 million, a rise of 1.2%[15]. - The accumulated deficit grew to $541.7 million from $483.1 million, an increase of 12.1%[15]. - Total stockholders' equity increased to $453.7 million from $444.2 million, a growth of 2.5%[15]. - Total assets as of July 31, 2024, were $825,575,000, up from $810,941,000 as of January 31, 2024[15]. - Total accrued expenses and other current liabilities amounted to $65,164,000 as of July 31, 2024, up from $63,264,000 as of January 31, 2024[72]. Revenue Streams - Subscription revenue for the six months ended July 31, 2024, reached $270.1 million, up 30.7% from $206.9 million in the same period of 2023[45]. - Revenue recognized from deferred revenue for the three and six months ended July 31, 2024, was $59.9 million and $158.3 million, respectively, compared to $51.1 million and $128.2 million for the same periods in 2023[49]. - Deferred revenue increased to $212.1 million, up from $204.3 million, reflecting a growth of 3.9%[15]. - Deferred revenue rose to $7.828 million for the quarter ending July 31, 2024, compared to $6.471 million for the same period in 2023, marking an increase of about 20.9%[29]. Expenses - Research and development expenses for the three months ended July 31, 2024, were $33,141,000, an increase from $29,132,000 in the same quarter of 2023, marking a 13.9% rise[17]. - Sales and marketing expenses for the three months ended July 31, 2024, were $68,569,000, compared to $60,417,000 in the same period of 2023, reflecting a 13.5% increase[17]. - Total operating expenses for the three months ended July 31, 2024, were $130,029,000, compared to $115,002,000 in 2023, reflecting a 13.0% increase[17]. - General and administrative expenses grew by $2,866 thousand, or 11.3%, to $28,319 thousand, mainly due to investments in finance and administrative functions[151]. Cash Flow - Net cash provided by operating activities was $31.007 million for the quarter ending July 31, 2024, compared to $5.032 million for the same period in 2023, representing a significant increase of approximately 515%[29]. - Free cash flow for the six months ended July 31, 2024, increased to $18,675,000 from $2,965,000 for the same period in 2023, primarily due to higher collections from new contracts and renewals[170]. - The company reported cash flows from operating activities of $31.007 million for the quarter ending July 31, 2024, a significant increase from $5.032 million in the previous year[29]. Customer Metrics - The company had approximately 2,163 customers as of July 31, 2024, indicating growth opportunities in various verticals[116]. - Monthly active users increased to approximately 6.7 billion as of July 31, 2024, up from approximately 6.2 billion as of January 31, 2024[120]. - The dollar-based net retention rate for the trailing 12 months ended July 31, 2024, was 114%, down from 120% in the previous year[124]. - Approximately 45% of revenue for the six months ended July 31, 2024, was generated outside of the United States, compared to 43% in the same period of 2023[127]. Future Outlook - The company anticipates continued growth in customer acquisition and retention, aiming to enhance platform usage and upsell opportunities[6]. - Future strategies include potential international expansion and investments in new product development to capture a larger market share[6]. - The company plans to continue investing in research and development to enhance its platform and expand its channel offerings[128]. - Operating expenses are expected to increase as the company expands its operations and invests in sales and marketing[136]. Stock-Based Compensation - Stock-based compensation increased to $58.756 million in the quarter ending July 31, 2024, up from $49.002 million in the same quarter of 2023, reflecting a growth of about 19.5%[29]. - Total stock-based compensation expense for the three months ended July 31, 2024 was $30.5 million, compared to $25.2 million for the same period in 2023, reflecting a year-over-year increase of 13.1%[82]. - As of July 31, 2024, the company had unrecognized compensation costs of $18.6 million related to stock options and $201.7 million related to RSUs[83]. Acquisitions - The Company acquired North Star Y, Pty Ltd for a total purchase price of $26.9 million, which included cash payments of $17.6 million and $6.1 million in Braze Class A common stock[102][103]. - The fair value of contingent consideration related to the North Star acquisition is $0.1 million, with earn-out payments capped at $10.0 million for the first period and $16.0 million for the second period[103].