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Braze
🇺🇸 NASDAQ:BRZE
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•
Oct 31, 2023

Braze Q3 2024 Earnings Report

Braze's Q3 2024 results demonstrated a balance between high growth and operational efficiency.

Key Takeaways

Braze reported a strong third quarter for fiscal year 2024, with revenue increasing by 33.1% year-over-year to $124.0 million. The company is on track to meet its profitability targets for the fourth quarter of fiscal 2024 and fiscal 2025.

Revenue was $124.0 million, a 33.1% increase compared to the third quarter of the previous fiscal year.

Subscription revenue reached $118.4 million, while professional services and other revenue amounted to $5.6 million.

GAAP gross margin was 70.7%, and non-GAAP gross margin was 71.4%.

Dollar-based net retention was 118% for the trailing 12 months.

Total Revenue
$124M
Previous year: $93.1M
+33.1%
EPS
-$0.05
Previous year: -$0.15
-66.7%
Net Retention Rate
118%
Previous year: 126%
-6.3%
Total Customers
2.01K
Previous year: 1.72K
+17.3%
Gross Profit
$87.6M
Previous year: $64M
+36.9%
Cash and Equivalents
$60.5M
Previous year: $45.4M
+33.2%
Free Cash Flow
-$5.9M
Previous year: -$28.1M
-79.0%
Total Assets
$769M
Previous year: $677M
+13.5%

Braze

Braze

Braze Revenue by Segment

Forward Guidance

Braze is initiating guidance for the fiscal fourth quarter ending January 31, 2024, and updating guidance for the fiscal year ending January 31, 2024.

Positive Outlook

  • Revenue Q4 is expected to be between $124.0 - 125.0 million.
  • Revenue FY24 is expected to be between $465.0 - 466.0 million.
  • Non-GAAP operating loss for Q4 is expected to be between $(7.0) - (8.0) million.
  • Non-GAAP operating loss for FY24 is expected to be between $(39.5) - (40.5) million.
  • Braze updated its non-GAAP operating loss margin guidance, which it believes will be negative 6% or better during the fourth quarter of the fiscal year ending January 31, 2024.

Challenges Ahead

  • Non-GAAP net loss for Q4 is expected to be between $(4.5) - (5.5) million.
  • Non-GAAP net loss for FY24 is expected to be between $(25.5) - (26.5) million.
  • Non-GAAP net loss per share for Q4 is expected to be between $(0.04) - (0.05).
  • Non-GAAP net loss per share for FY24 is expected to be between $(0.26) - (0.27).
  • Braze has not reconciled its guidance as to non-GAAP operating loss, non-GAAP operating loss margin, non-GAAP net loss or non-GAAP net loss per share to their most directly comparable GAAP measure as a result of uncertainty regarding, and the potential variability of, reconciling items such as stock-based compensation expense specific to equity compensation awards that are directly impacted by unpredictable fluctuations in Braze’s stock price.

Revenue & Expenses

Visualization of income flow from segment revenue to net income

Company Overview

Full financial data and analysis

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