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Oct 31, 2022
Braze Q3 2023 Earnings Report
Reported a strong quarter with revenue growth and strategic investments.
Key Takeaways
Braze reported a robust fiscal third quarter with a 45.6% increase in revenue year-over-year, driven by new customers, upsells, and renewals. The company continues to invest in technology and customer engagement strategies to drive loyalty and retention.
Revenue increased by 45.6% year-over-year, reaching $93.1 million.
Subscription revenue grew to $89.0 million, while professional services revenue was $4.1 million.
Dollar-based net retention remained strong at 126%.
Total customer count increased to 1,715, with 148 customers having ARR of $500,000 or more.
Revenue by Segment
Forward Guidance
Braze provided revenue guidance of $95.0 - 96.0 million for the fiscal fourth quarter and $352.0 - 353.0 million for the full fiscal year 2023. Non-GAAP operating loss is expected to be $(18.5) - (19.5) million for Q4 and $(71.5) - (72.5) million for the full year.
Positive Outlook
- Revenue guidance of $95.0 - 96.0 million for Q4.
- Full year revenue guidance of $352.0 - 353.0 million.
- Focus on continued robust investment.
- Engagement with customer community.
- Creating a generational brand.
Challenges Ahead
- Non-GAAP operating loss guidance of $(18.5) - (19.5) million for Q4.
- Non-GAAP operating loss guidance of $(71.5) - (72.5) million for the full year.
- Uncertainty regarding reconciling items such as stock-based compensation expense.
- Impacted by unpredictable fluctuations in Braze’s stock price.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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