NASDAQ$BRZE

Braze Inc · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Reported a strong quarter with revenue growth and strategic investments.

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.

Headline financials

Total Revenue

$93.1M

Previous: $64M+45.6%
EPS (adj)

-$0.15

Previous: -$0.16+6.3%
Non-GAAP Gross Margin

69.7%

No prior period
GAAP Gross Margin

68.7%

No prior period
Capital Expenditures

-$14.1M

Previous: -$1.11M-1167.2%
Free Cash Flow

-$47.4M

Previous: -$9.83M-382.4%
Net Income

-$33.4M

Previous: -$8.72M-282.5%
Operating Income

-$36.9M

Previous: -$10.4M-252.8%
Gross Profit

$64M

Previous: $44.8M+42.9%
Cash & Equivalents

$45.4M

Previous: $42M+8.1%
Total Assets

$677M

Previous: $184M+268.0%
Stock-Based Comp

$19.1M

Previous: $5.43M+252.5%

Revenue & EPS history

Braze · Revenue · Quarterly

$93.1M

Q3 2023+45.6%vs Q3 2022
Beat estimate in 11 of 14 quarters(79%)
ActualEstimate

Revenue by segment

Braze · $93.1M total across 2 segments · Q3 2023

  • Subscription
    $89M+50.1%
  • Professional Services
    $4.1M-12.8%

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.

Tailwinds

  • 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.

Headwinds

  • 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.
  • Factors could be material to Braze’s results calculated in accordance with GAAP.

Historical earnings impact

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

Avg. return before/after earnings

Based on 18 quarterly earnings reports · overlaid with Q3 2023

Historical avgQ3 2023

+1.1%

Avg return

Earnings day

-0.0%

Avg return

5 days after

-4.7%

Avg return

30 days after

50%

12 / 24 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
Q4 2026-1.3%-9.8%
Q1 2027-4.8%+4.4%
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

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