Braze(US:BRZE)2023-06-09 01:35Financial Data and Key Metrics Changes - Braze reported revenue of $101.8 million for Q1 2024, representing a 31% increase year-over-year [5][59] - Non-GAAP gross profit was $70 million, with a non-GAAP gross margin of 68.8%, up from 67.8% in the prior year [22] - Free cash flow reached a record $21.7 million, compared to $15.7 million in the same quarter last year [6][24] - Non-GAAP operating loss improved to $16 million from $18 million year-over-year [62] Business Line Data and Key Metrics Changes - Subscription revenue accounted for 95% of total revenue, with remaining revenue from one-time fees and professional services [46] - Total remaining performance obligation (RPO) was $478 million, up 22% year-over-year, driven by contract renewals and upsells [47] - Dollar-based net retention was 122% overall and 124% for large customers, indicating strong customer engagement [60] Market Data and Key Metrics Changes - Revenue outside the U.S. contributed 43% of total revenue, consistent with the previous quarter [60] - The total customer count increased by 24% year-over-year to 1,866 customers, with large customers (spending at least $500,000 annually) growing by 27% [21] Company Strategy and Development Direction - Braze aims to leverage AI-driven advancements in customer engagement, focusing on real-time data processing and messaging flexibility [8][19] - The company is committed to maintaining cost discipline while driving top-line growth and achieving profitability goals [6][54] - Braze's strategy includes enhancing customer education and community investments to facilitate the adoption of modern customer engagement practices [15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in executing growth plans despite macroeconomic challenges, anticipating continued demand for customer engagement solutions [44][51] - The company expects revenue for Q2 2024 to be between $108 million and $109 million, reflecting a year-over-year growth rate of approximately 26% [52] - For the full fiscal year 2024, total revenue is projected to be between $442.5 million and $446.5 million, representing a year-over-year growth rate of about 25% [53] Other Important Information - Braze closed the acquisition of North Star, enhancing its presence in the Australia and New Zealand markets [57] - The company is actively integrating generative AI features into its platform to improve customer engagement and operational efficiency [11][19] Q&A Session Summary Question: How does generative AI impact marketing campaigns? - Management noted early adoption of generative AI features, with customers integrating content suggestions into campaigns [70] Question: Were there any deals pushed from Q4 into Q1? - Management confirmed that deals from previous quarters have been pushed into Q1, which is considered in their guidance [74] Question: What is driving vendor consolidation? - Management highlighted the need for brands to upgrade from legacy systems to modern solutions like Braze, driven by the increasing complexity of customer engagement [32][88] Question: What is the momentum with global GSIs? - Management reported positive momentum with global GSIs, enhancing partnerships and increasing certified personnel ready to integrate Braze [97] Question: What are the drivers of improvement in retail and media entertainment? - Management indicated that Braze's diversified approach allows it to build on momentum in various categories, contributing to robust growth [112]