NASDAQ$BRZE

Braze Inc · Q3 2024 earnings

Q3 2024 earnings · · Investor relations

Briefing

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

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.

Headline financials

Total Revenue

$124M

Previous: $93.1M+33.1%
EPS (adj)

-$0.05

Previous: -$0.15+66.7%
Capital Expenditures

-$3.44M

Previous: -$14.1M+75.6%
Free Cash Flow

-$34.2M

Previous: -$47.4M+27.9%
Net Income

-$30.7M

Previous: -$33.4M+7.9%
Operating Income

-$35.1M

Previous: -$36.9M+4.7%
Gross Profit

$87.6M

Previous: $64M+36.9%
Cash & Equivalents

$60.5M

Previous: $45.4M+33.2%
Total Assets

$769M

Previous: $677M+13.5%
R&D Expense

$29.9M

No prior period
Stock-Based Comp

$24M

Previous: $19.1M+25.2%

Revenue & EPS history

Braze · Revenue · Quarterly

$124M

Q3 2024+33.1%vs Q3 2023
Beat estimate in 11 of 14 quarters(79%)
ActualEstimate

Revenue by segment

Braze · $124M total across 2 segments · Q3 2024

  • Subscription
    $118M+33.0%
  • Professional Services
    $5.6M+36.6%

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.

Tailwinds

  • 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.

Headwinds

  • 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.

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 2024

Historical avgQ3 2024

+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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