Summary of Braze FY Conference Call - September 10, 2025 Company Overview - **Company**: Braze (NasdaqGS:BRZE) - **Industry**: Customer Engagement and Marketing Technology Key Points Data Architecture and Competitive Advantage - Braze emphasizes the importance of data architecture as a competitive advantage in the AI era, focusing on real-time data processing rather than traditional data warehousing [7][12][11] - The company has built a stream processing engine similar to high-frequency trading systems, allowing for real-time updates and actions based on customer engagement data [8][9][10] - Braze processes over 10 trillion data points annually, highlighting its capability to handle massive data flows efficiently [29] Business Momentum and Growth Outlook - Braze has shown an improving growth outlook for margins and profits, with increased productivity in its sales force over the last two quarters [34][36] - The company has improved its renewal processes, leading to lower downsell risks and better customer retention [38][40] - The overall effectiveness of the sales team has increased, contributing to a positive forecast for future performance [41] Replacement Cycle and Market Position - Braze is four years post-IPO and is analyzing changes in enterprise replacement cycles, indicating a shift in customer engagement strategies [7] - The company is focusing on enhancing its international strategy and verticalization to improve efficiency [38] AI and Composable Intelligence - Braze is transitioning to a new framework of context, intelligence, and interaction, leveraging advancements in AI and machine learning [20][21] - The concept of "composable intelligence" is introduced, where models are imbued with brand knowledge and can operate autonomously, enhancing marketing strategies [24][23] - The integration of AI tools aims to improve marketer productivity and customer engagement by automating decision-making processes [22][28] OfferFit and Unit Economics - OfferFit, a new product line, has two SKU types priced between $100,000 and $300,000, targeting enterprises with high-leverage use cases [49][50] - The potential for cross-selling between OfferFit and Braze's existing customer base is significant, with many OfferFit customers not currently using Braze's customer engagement solutions [51] - The decisioning products have higher gross margin potential compared to traditional messaging services, positioning Braze favorably in the market [52] Future Outlook - Braze is excited about upcoming developments in AI-centric customer engagement and plans to share more at the Forge event [53] - The company is focused on enhancing its product portfolio and leveraging AI to drive customer engagement strategies [52][53] Additional Important Insights - The company has made significant investments in first-party data and real-time context understanding, which are crucial for effective customer engagement [29][30] - Braze continues to expand its channel offerings, including new functionalities for messaging platforms like WhatsApp and Kakao [30]

Market Volatility and Systemic Risk - Financial institutions face systemic risks amplified by geopolitical shocks, tariffs (spiking costs by 10-20%), and regulatory changes, necessitating proactive risk management [1] - The interconnectedness of global economies means events in one region (e g, Japan, London) can impact others, highlighting the importance of mitigating systemic risk [1] - Traditional risk models often struggle to keep pace with intraday market volatility, requiring faster data processing and analysis [7] Data and Technology Challenges - Many financial institutions still rely on legacy systems for risk management, which are inadequate for today's volatile environment [1] - Institutions face a data explosion when performing risk calculations like Monte Carlo simulations, generating 15+ terabytes of data daily for a 10-day VaR calculation [5] - Moving data to and from the public cloud for calculations can be slow (e g, taking 3 hours to retrieve 15 terabytes), hindering timely risk analysis [8] Hybrid Cloud and Data Architecture - Hybrid cloud environments are becoming essential, allowing institutions to leverage the scalability of the public cloud while keeping sensitive data on-premises due to regulatory requirements [10][39] - A well-designed data architecture is critical for CIOs, enabling them to leverage different environments for their respective strengths [44][45] - DDN enables a hybrid multi-protocol environment, allowing institutions to keep sensitive data on-premises while running analytics and making the results available quickly [44] DDN's Solutions and Capabilities - DDN offers data intelligence solutions, focusing on providing relevant information up the stack rather than just storage [1] - DDN's Infinia platform can achieve up to 8x faster performance compared to legacy NAS architectures in grid runs with Murex and scenario reloads [28][29] - DDN's data ocean concept allows institutions to leverage data where it sits, avoiding slow and difficult data movement, and provides thousands of tags for finding relevant data [36][37]