Braze, Inc. · NASDAQ:BRZE
Braze — Investor Presentation (June 2024)
28 slides from Braze's investor presentation, June 2024
Slide 1: Investor Presentation June 2024
Investor Presentation June 2024
Slide 2: Forward Looking Statements and Disclaimer
Forward Looking Statements and Disclaimer Forward-Looking Statements This presentation contains, and statements made during this presentation contain, "forward-looking statements" within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, including bu
Slide 3: With Braze, brands can continually imagine, create and evolve
With Braze, brands can continually imagine, create and evolve their customer engagement strategies to build stronger businesses
Slide 4: Sephora Uses In-App Message Gamification to Increase Purchases
Sephora Uses In-App Message Gamification to Increase Purchases Sephora Southeast Asia leveraged Braze’s data streaming capabilities to stand out in the saturated Malaysian market In Braze, they built a customer HTML in-app message themed as an “Ang Pao” gesture of good fortune during Lunar New Year V
Slide 5: Endowus Transforms the Investing Experience with Cross-Channel Customer Journeys
Endowus Transforms the Investing Experience with Cross-Channel Customer Journeys Digital Wealth platform Endowus personalized messaging cross channel, efficiently building trust with customers Using Braze Canvas, Endowus tested and experimented with different channels and audience segments based on firs
Slide 6: Rappi Reactivates Users and Increases Purchases with WhatsApp
Rappi Reactivates Users and Increases Purchases with WhatsApp Rappi built targeted and personalized push notifications, in-app messages, and email But needed a more effective out-of-product channel to motivate lapsed users to return to the app Leveraging Braze and WhatsApp, Rappi drove an 80% uplift i
Slide 7: Braze at a Glance
Braze at a Glance $542M QUARTERLY REVENUE RUN 33% Y/Y REVENUE 96% SUBSCRIPTION $36M GAAP RATE1 GROWTH REVENUE NET LOSS 2,102 CUSTOMERS IN OVER 117% DOLLAR-BASED NET 6.5B MONTHLY ACTIVE 2.6T+ MESSAGING AND OTHER 75 COUNTRIES RETENTION RATE USERS CANVAS ACTIONS IN CALENDAR YEAR 2023 Unless otherwise n
Slide 8: Experienced, tenured leadership team with strong technical backgrounds
Experienced, tenured leadership team with strong technical backgrounds Bill Magnuson Isabelle Winkles Myles Kleeger Jon Hyman Astha Malik CEO and Chief Financial President and Chief Chief Technology Officer Chief Business Cofounder 2011 Officer 2020 Commercial Officer 2014 and Cofounder 2011 Officer 2022 Ro
Slide 9: Key Trends in Our Favor
Key Trends in Our Favor Consumers Expect Customer First-Party Data is Customer AI/ML Drives Real-Time, Personalized Experience is the Critical for Engagement Efficiency, Better Brand Interactions New Battleground Effective Customer Demands Testing, and More Across Channels for Business Engagement Cross
Slide 10: A Customer's Experience Should Revolve around the Customer, Not the Channel
We Believe a Customer’s Experience Should Revolve around the Customer, Not the Channel CHANNEL-CENTRIC CUSTOMER-CENTRIC 10
Slide 11: Existing Solutions Do Not Meet Consumer Expectations and Needs
Existing Solutions Do Not Meet Consumer Expectations and Needs • Initially Architected as Single-Channel Point Solutions LEGACY MARKETING CLOUDS • Lack of Comprehensiveness • Limited Interoperability • High Latency • Time-Consuming and Difficult to Implement and Use POINT SOLUTIONS • Not Enterprise-Gr
Slide 12: Sage AI by Braze
Braze Customer Engagement Platform Data Activation Five functional layers create an Insights and Segmentation Sage AI by Braze™ interactive feedback loop that Predictive Analytics | Flexible Audience Building allows us to: Orchestration Continuous Insight Lifecycle Triggers | Experimentation and Fee
Slide 13: Proven AI Track Record with Product Momentum
Proven AI Track Record with Product Momentum 2015 2017 - 2018 2020 2022 2023 2024 Sage AI Launch Continued AI Innovation and BRAZE new offerings June ‘23 MILESTONES First AI feature Built a team of data Predictive Suite Generative AI introduced engineers and Launched introduced scientists to build ML
Slide 14: Sage AI by Braze drives stronger customer engagement outcomes
Sage AI by Braze drives stronger customer engagement outcomes Flexible Experimentation Real-Time Data Execution Cross-Channel Touchpoints Easily accessible A/B testing tools open Real-time processing of customer data Native cross-channel interactions power up more opportunities for AI optimization e
Slide 15: Building Momentum as Brands Place a Higher Value on Customer Engagement
We Continue to Build Momentum as Brands of all Sizes and Types Place a Higher Value on Customer Engagement Traditional Enterprises 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Emerging Disruptors 15 15
Slide 16: GTM Strategy Vectors
GTM Strategy Vectors Geography North America South America EMEA Size Asia-Pacific Verticals Japan Retail & eCommerce SMB Media & Entertainment Scale On-Demand Services Enterprise Gaming Strategic Health & Lifestyle Financial Services Stakeholders Channels Marketers Direct Sales Resellers Growth Teams
Slide 17: Diverse Customer Base Across Industry Verticals and Company Sizes
Diverse Customer Base that Cuts Across Industry Verticals and Company Sizes RETAIL & E-COMMERCE QUICK SERVE RESTAURANTS & MEDIA & ENTERTAINMENT FINANCIAL SERVICES ON-DEMAND HEALTH & FITNESS SOCIAL, MESSAGING PRODUCTIVITY & UTILITIES TRAVEL & HOSPITALITY & GAMING 17
Slide 18: Where we work
LON BER ROU CHI NYC (HQ) PAR TKO SF ATX SG JKT Where we work SYD
Slide 19: Expansion Opportunities Across Multiple Vectors
Expansion Opportunities Across Multiple Vectors E-COMMERCE CHANNEL COMPANY TRIGGER EMAIL MOBILE PUSH DIRECT WEB PUSH BROADCAST EMAIL CONTENT CARDS IN-APP MESSAGES SMS WHATSAPP RESPONSE ADS GLOBAL BRANDS ENTERTAINMENT COMPANY NEWS TV THEME STREAMING SPORTS TRAVEL & LEISURE PARKS MOBILE USE CASE PAYME
Slide 20: Our Partner Ecosystem and Community Provide a Deep Competitive Moat
Our Partner Ecosystem and Community Provide a Deep Competitive Moat GLOBAL SYSTEMS INTEGRATORS Solutions Cloud ADVERTISING / MARKETING Partners Partners HOLDING COMPANIES REGIONAL / BOUTIQUE AGENCIES CHANNEL EXTENSIONS COMMERCE PLATFORM DATA WAREHOUSE CDP AD ATTRIBUTION Technology Braze Launched 201
Slide 21: Q1 FY'25 Key Financial Highlights
Q1 FY’25 Key Financial Highlights Growth Strong Large Proven Ability Recurring and Stable Margins at Scale Customer Growth to Land and Visible Business While Investing Expand Model for Growth 33% 29% Y/Y Growth in Large 117% Dollar-Based NRR 96% Subscription Revenue 68% Non-GAAP Y/Y Revenue Growth G
Slide 22: Customer Contract Components & Revenue Recognition Model
Customer Contract Components & Revenue Recognition Model Messaging Monthly Active User Platform Add-ons Platform Professional Services Platform The Braze Platform Volume-based Monthly number including Canvas, Premium features Onboarding and purchases for of end users mobile and web such as AI-driven
Slide 23: Appendix
Appendix
Slide 24: Operating Metrics - Definitions
Operating Metrics - Definitions Number of Customers: We define a customer as the separate and distinct, ultimate parent-level entity that has an active subscription with us to use our products. A single organization could have multiple distinct contracting divisions or subsidiaries, all of which toget
Slide 25: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation DOLLARS IN THOUSANDS Reconciliation of GAAP to Non-GAAP Gross Margin Reconciliation of GAAP to Non-GAAP Operating Expenses Three Months Ended Three Months Ended April 30, April 30, 2024 2023 2024 2023 GAAP sales and marketing expense $69,827 $57,262 Less: Stock-based
Slide 26: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation DOLLARS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS Reconciliation of GAAP to Non-GAAP Operating Loss Reconciliation of GAAP to Non-GAAP Net Loss Three Months Ended Three Months Ended April 30, April 30, 2024 2023 2024 2023 Net loss attributable to Braze, Inc. ($35,641) ($
Slide 27: GAAP Cash Flows from Operations to Free Cash Flow
GAAP Cash Flows from Operations to Free Cash Flow DOLLARS IN THOUSANDS Reconciliation of GAAP Cash Flow from Operating Activities to Non-GAAP Free Cash Flow Three Months Ended April 30, 2024 2023 Net cash provided by operating $19,395 $22,549 activities Less: Purchases of property and (6,915) (40) e
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