NASDAQ$BRZE

Braze Inc · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Reported a strong quarter with 55% revenue growth and continued to provide best-in-class omni-channel customer engagement.

Braze's fiscal second quarter 2023 results showed strong revenue growth of 54.5% year-over-year, reaching $86.1 million. The company achieved a dollar-based net retention of 126% for the trailing 12 months. Despite macroeconomic headwinds, Braze remains confident in its business and customer engagement platform.

  • Revenue was $86.1 million, up 54.5% year-over-year.
  • Subscription revenue was $81.7 million, compared to $51.7 million in the second quarter of the previous fiscal year.
  • Dollar-based net retention for all customers was 126% for the trailing 12 months.
  • Total customers increased to 1,599 as of July 31, 2022, from 1,119 as of July 31, 2021.

Headline financials

Total Revenue

$86.1M

Previous: $55.8M+54.5%
EPS (adj)

-$0.16

Previous: -$0.60+73.3%
Capital Expenditures

-$9.84M

Previous: $457K-2254.0%
Free Cash Flow

-$42.7M

Previous: -$5.06M-743.8%
Net Income

-$32.9M

Previous: -$12.2M-168.9%
Operating Income

-$35.1M

Previous: -$12.2M-188.9%
Gross Profit

$58.8M

Previous: $37M+58.9%
Cash & Equivalents

$80.9M

Previous: $45.9M+76.2%
Total Assets

$702M

No prior period
Stock-Based Comp

$17.3M

Previous: $5.65M+205.9%

Revenue & EPS history

Braze · Revenue · Quarterly

$86.1M

Q2 2023+54.5%vs Q2 2022
Beat estimate in 12 of 15 quarters(80%)
ActualEstimate

Revenue by segment

Braze · $86.1M total across 2 segments · Q2 2023

  • Subscription
    $81.7M+58.0%
  • Professional Services
    $4.4M+10.0%

Forward guidance

Braze is initiating guidance for the fiscal third quarter ending October 31, 2022 and updating guidance for the fiscal year ending January 31, 2023.

Tailwinds

  • Q3 Revenue guidance: $90.0 - 91.0 million
  • FY 2023 Revenue guidance: $347.0 - 350.0 million

Headwinds

  • Q3 Non-GAAP operating loss guidance: $(23.0) - (24.0) million
  • Q3 Non-GAAP net loss guidance: $(21.0) - (22.0) million
  • Q3 Non-GAAP net loss per share guidance: $(0.22) - (0.23)
  • FY 2023 Non-GAAP operating loss guidance: $(76.0) - (78.0) million
  • FY 2023 Non-GAAP net loss guidance: $(74.0) - (76.0) million

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q2 2023

Historical avgQ2 2023

+1.3%

Avg return

Earnings day

+0.3%

Avg return

5 days after

-4.5%

Avg return

30 days after

52%

12 / 23 earnings

Positive

+22.1%

Q3 2022

Best reaction

-18.8%

Q2 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2027
Q4 2026-1.3%+1.2%-0.2%
Q3 2026+17.7%+8.1%-1.9%
Q2 2026+13.5%+8.7%+2.7%
Q1 2026-17.7%-21.2%-20.3%
Q4 2025+2.2%-1.1%-14.9%
Q3 2025-1.2%+0.4%+6.5%
Q2 2025-17.6%-20.6%-28.0%
Q1 2025+1.7%+0.5%+8.3%
Q4 2024-10.4%-13.3%-15.6%
Q3 2024-4.6%-5.5%-16.4%
Q2 2024+3.0%-0.9%-0.5%
Q1 2024+16.0%+22.2%+22.7%
Q4 2023+9.6%+12.7%-6.8%
Q3 2023+0.2%-2.7%+2.3%
Q2 2022-16.7%-19.3%-32.3%
Q2 2023-18.8%-18.8%-28.6%
Q1 2022+14.5%+12.9%+43.5%
Q1 2023-2.1%+1.4%+29.8%
Q4 2020-7.1%-13.0%-7.8%
Q4 2022-11.8%-13.9%-14.5%
Q4 2021+16.9%+19.9%-14.2%
Q3 2021+22.1%+24.1%-8.4%
Q3 2022+22.1%+24.1%-8.4%
Q2 2021
Q1 2021

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro