NASDAQ$BRZE

Braze Inc · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

Braze's Q4 2023 financial results showcased revenue growth and customer base expansion.

Braze reported a 40% increase in revenue for the fourth quarter, reaching $98.7 million, driven by new customers, upsells, and renewals. The company's dollar-based net retention rate was 124%.

  • Revenue increased by 40% year-over-year to $98.7 million.
  • Dollar-based net retention was 124% for the trailing 12 months.
  • GAAP operating loss was $36.5 million, improved from $42.6 million in the prior year.
  • Net cash provided by operating activities was $0.01 million, compared to net cash used in operating activities of $24.5 million in the prior year.

Headline financials

Total Revenue

$98.7M

Previous: $70.4M+40.1%
EPS (adj)

-$0.14

Previous: -$0.18+22.2%
Non-GAAP Gross Margin

67.0%

Previous: 67.2%-0.3%
GAAP Gross Margin

66.1%

Previous: 64.8%+2.0%
Capital Expenditures

$1.38M

Previous: $1.2M+15.1%
Free Cash Flow

-$1.9M

Previous: -$25.7M+92.6%
Net Income

-$33.8M

Previous: -$43.3M+22.0%
Operating Income

-$36.5M

Previous: -$42.6M+14.2%
Gross Profit

$65.3M

Previous: $45.7M+42.9%
Cash & Equivalents

$68.6M

Previous: $479M-85.7%
Total Assets

$705M

Previous: $666M+5.9%
Stock-Based Comp

$18.8M

Previous: $29.1M-35.3%

Revenue & EPS history

Braze · Revenue · Quarterly

$98.7M

Q4 2023+40.1%vs Q4 2022
Beat estimate in 12 of 15 quarters(80%)
ActualEstimate

Revenue by segment

Braze · $98.7M total across 2 segments · Q4 2023

  • Subscription
    $94.8M+43.9%
  • Professional Services
    $3.9M-13.3%

Forward guidance

Braze provided guidance for the fiscal first quarter ending April 30, 2023, and the full fiscal year ending January 31, 2024. They also provided guidance on its non-GAAP operating loss margin, which it believes will be negative 7% or better during the fourth quarter of the fiscal year ending January 31, 2024.

Tailwinds

  • Revenue Q1 2024 Guidance: $98.5 - 99.5 million
  • Revenue FY 2024 Guidance: $433.0 - 438.0 million
  • Non-GAAP operating loss Q1 2024 Guidance: $(19.0) - (20.0) million
  • Non-GAAP operating loss FY 2024 Guidance: $(57.0) - (61.0) million
  • Non-GAAP operating loss margin is expected to be negative 7% or better during the fourth quarter of the fiscal year ending January 31, 2024.

Headwinds

  • Non-GAAP net loss Q1 2024 Guidance: $(17.0) - (18.0) million
  • Non-GAAP net loss FY 2024 Guidance: $(53.0) - (57.0) million
  • Non-GAAP net loss per share Q1 2024 Guidance: $(0.18) - (0.19)
  • Non-GAAP net loss per share FY 2024 Guidance: $(0.55) - (0.59)
  • Weighted average shares outstanding Q1 2024 Guidance: ~96.2 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 Q4 2023

Historical avgQ4 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

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