Braze (BRZE) 14 Jun 222023 Q1 Earnings call transcript

[Call starts abruptly] … I will be your conference operator today. At this time, I would like to welcome everyone to the Braze Fiscal First Quarter Results. [Operator Instructions] Thank you. I'd like to turn the call over to Chris.

You may begin.

Operator. you, Thank thank Braze's and joining today us Good for you the review results XXXX. fiscal to afternoon for first quarter music performed, composed, a Braze's was by office. hold London Saxena, in solutions and Franky consultant Today's provided again Thank you, Franky. Chief I'm Officer, and Isabelle Bill Officer, Executive joined Financial Co-Founder Chief Magnuson, our Winkles. by and our results press release our after the announced We issued in a today. market closed a website supplemental our to for investors.braze.com refer at Investor announcement. Relations related presentation information, Please today's earnings and more

statements our materially anticipated our impact targets. related to Safe this variety business we the call, market competitive make statements the federal XXXX; development; future behaviors of planned subject to planned opportunity; to, uncertainties differ actual update limited and We During such our of no to and forward-looking plan; second product customer social are could our laws Private expectations Act outlook the and Harbor our under our quarter include, These only Reform and will year cause are growth of that a for risks our initiatives; XX, of results financial XXXX. assume obligation landscape; to our long-term today. statements. that statements our forward-looking any as full are not Securities anticipated securities and Litigation January provisions These our statements financial and reflect and regarding views investments; but fiscal our from ended

substitute management fiscal items measures our will non-GAAP quarter financial these to measures the operations like both to measures the our the reconciliations website. portion the our of our on release identified U.S. section calculated non-GAAP The accordance the not to the prepared company's XXXX press a available non-GAAP the now U.S. results, turn For release of to the in GAAP. superior in as material earnings Bill. in the results. further measures to filings, I'd our and the website. in today's GAAP a include Investors Relations in our could discussion financial provided to of and risks the on I'd first performance have SEC Investor also or like financial remind accordance financial be with Please to of to and financial refer for actual that in impact considered call risks please refer used to our that should with investors call aid evaluate measures And uncertainties performance affect of financial today's over addition comparable under directly most to you included understanding, ongoing certain by

Thank you, and afternoon, good everyone. Chris,

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Our net retention customers and spending least XXX% base annually. for dollar $XXX,XXX overall, at was XXX% our

in We also bookings $XX strong flow cash part from driven by of million, generated free nearly QX. our

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we outlook. XXXX uncertainty, fiscal our our is and the increased in and had confident confronting good outlook. world feel quarter a While very about geopolitical volatility macroeconomic remain great We

helping customer to build great in even commitment challenging strong believe And prioritize Our more customers times customers continue engagement our environment. to becomes through and that a will lasting relationships our of uncertainty. relevant even customer we in services, our

We makes time resilient customer potential Braze value, coupled slowdown. a rapid the that believe also engagement, necessity during to of our with more

our We I while updating massive months. market are customer progress creative and lean forward you to members responsibility coming that execution, under on remains to we represents And engagement potential, to accepting our will a potential confident strategy. opportunity that against in deliver look to into you growth again the that and team relentless continue winning Thank shareholders, innovation, our the through all and customers, of penetrated.

Thank was and you, you renewals. of $XX.X by year-over-year existing as We This expansion quarter to first noted, combination driven today. rose first sales, quarter customer us contracts, revenue joining for Bill, everyone and business million. a and strong new a thank of Bill reported XX%

our April year-over-year based represents subject the as X% primary component terms year. quarter XX% XXX from XX% the revenues. are professional combination as strong, was of as that quarter our contributing fees, similar of Our a with and customers remains Customer customer annual remaining one same onboarding line, total subscription time our well X,XXX services of configuration as revenue. to The momentum first up last the XX, contract to other customers revenue top subscription period over of total increasing count during first

April Our contributed least as contribution to of spending total last large XX% XX% same our XX, to we number as customers, and ARR. to year-over-year at time which grew XX% the as of total year. XXX a annually This compares of define those $XXX,XXX

net Turning base to retention. dollar

the retention services. upsell volumes monthly pre-committed business base base of messaging dollar dollars existing trailing a include further net XX-month to on our as entitlements, penetrate sources and and of reminder, to features our continue of and increases statistic, expansion through brand a represents new both we addition recurring users customer and add geographic active As signing professional and units

to combined increase upsells renewal continue our with year-over-year on total retention effective base as dollar Our rate strong to we our motion. and land the drove net rate execute our expand

the net Dollar $XXX,XXX points industries XXX%, to fourth base our points was quarter. base and regions dollar up prior quarter. first down compared retention revenue year last XX% company, spending the XXX basis net the Expansion and with large annually basis compared XX first the to quarter points total for from quarter, revenue XX% compared XXX XXX the year basis U.S in to retention and the of of the prior compared down the strong outside down geographic quarter. in sequentially least fourth was our points XXX%, was to For contributing customers, total those at across basis up

momentum remaining contract obligation. total XX% renewals remaining the to to our strong million. including million. $XXX X% XX% first performance and sequentially performance term year-over-year and driven increases quarter, rose business were rose sequentially $XXX new and to RPO by Current year-over-year, contracts, our X% extensions. These obligation Moving In

continues Our length contract years. overall be X to weighted dollar approximately

income to more statement like in Now I'd detail. review the

As non-GAAP. a are will the of reminder, I metrics discuss some

percent earnings XX points margin core We a gross technology and Non-GAAP economies margin of of a million, was in earnings of of in GAAP core and XX.X%. accompanying have million ongoing quarter and representing in scale continued QX. of first improved and basis costs. in non-GAAP gross in due our $XX.X gross reconciliation our This in to to year, non-GAAP presentation. non-GAAP profit year-over-year efficiencies provided the of GAAP release margin XX.X% personnel the non financials compares profit XX.X% a to quarter $XX.X last expenses gross Gross

$XX compared prior revenue expense XX% in compared quarter. R&D of Non-GAAP $XX in investments of This or the was support revenue $XX.X to XX% operating headcount expenses. year expansion. our was the of was Non-GAAP net marketing compared continued quarter. sales million, $XX.X $X.X of to strong and million, the growth or was $XX.X growth to our or prior reflects million, to loss driven public global or Turning attributable increase revenue shareholders investments as by to The to and company to XX% to in expense to to million, and million, was the develop by dollar existing million, headcount of products and support Non-GAAP offering, revenue year increase drive features growth. of of quarter. The XX% year in in or revenue the Braze Non-GAAP XX% support revenue quarter our our primarily expansion new overall $X.X a well company driven was a prior XX% outstanding or expense on million, G&A as dollar of based the on quarter. per year during or outstanding XX.X million average million, loss period. $X.XX average the prior shares share, of shares weighted to million share of $X.XX or loss a basic $X.X per weighted This based compares during XX.X basic loss expenses.

increase in Now turning Cash generated funded consistent roadshow equivalents, calls, sheet 'XX. and $XX ago free in the cash IPO cash by last cash accounts from to $XX a FY deferred flow million change is believe receivable ended cash million, collections record growth and and driven the with Braze in costs, during the We quarter the and the million $X.X with in impact currently plan million flow $XX.X approximately made cash to $XX.X $XXX.X strong we marketable quarter, in restricted through comments quarter. million our revenue. continue our with and Taking of decrease of on to execute customers, two compared as from operations into in of we was use the business securities. our consideration a We million cash fully statement. evidenced the cash, generated balance quarter since year earnings capitalized a by

previous indicated customer from our quarters, have payments. we to given we of expect vendor and the free timing in quarter-to-quarter, fluctuate flow cash As

a a take our for macro and for would our like frame about demand to given to while drive for year, revenue us. We that while growth solution significant turn market are eye and our strong efficiencies And to remain opportunity moments spend with focused across strong profitability. the our have environment. organization is discretionary long-term I investments Before returns. plan ahead we on And a I towards uncertain confident long-term potential excited remain navigating ability capitalizing to forecast, opportunity the managing this an our on the an we our few of driving more investment

second appropriate guidance includes quarter to business have renewals new and Our revenue quarter. close we adjustments for yet this risk

to be $XX.X For which midpoint. quarter, second we in of revenue rate to the expect a XX% of at the range approximately million, the million $XX.X represents growth year-over-year

$XX.X Second be quarter non-GAAP of to operating million. million loss the is range to expected in $XX.X

to $X.XX share, approximately loss non-GAAP the in range $XX.X $X.XX quarter outstanding be per is loss Second per net based on weighted during the basic to period. expected $XX.X quarter non-GAAP net of average XX.X million shares to million million with share second

non-GAAP we For to rate approximately year-over-year in in revenue the based XXXX growth the Fiscal to XX% be represents range range now count raising the XX.X in summary, full strong shares. million, a great million are In which fiscal period a XXXX average loss of a year are expected year is of to in of $X.XX guidance. is million Fiscal net year loss our Non-GAAP Revenues our $X.XX per share XXXX, net a range operating in $XXX by per midpoint. million. loss range share, quarter. in are of $XXX the to be loss $XX approximately of be to the the weighted is of to for loss of on start fiscal to off a expected a we million year of evidenced to full execution $XX.X non-GAAP million. $XX.X XXXX, be share $XX expected at expected loss the as the million to same

the to New please. realize call open customers technology and questions. our that, And we'll scale. value and we remain now delivering and for focused continue to the of existing committed with Operator, growth at revenue

now operator, session. Hello, this will is your Macy, begin we the Q&A

Ryan MacWilliams with and ask Barclays. from comes Our first question. please your question unmute Ryan,

the Thanks has speed accelerate to few implementation question. lot and years. for ROI the to done over a taking last time Braze

So thinking implementation required through how a macro, as cost we process more potentially enter the and to are into new to difficult Braze customers those point? move

going the everybody come for as and thanks -- you for Thanks well. to up question that's to thank

that to better about are a glimpse really results, environment in. excited and talk operating into you these give also We the we're

customer So I to start implementations, a to seeing in in particularly to priorities. cycles, we're that's seeing way analyze, sales response we're what think notable what customer

a you once I think that and value get that that last we fashion running you're you customer things and in a the centric. that as up as been years. the get Braze running one is and to up great on few very We focused have as correct, over customers you of time we've the quickly, that

that, you're that priorities going as sure of handful each higher trying ROI investment, Braze, to the are you're make to you always so always a base people the start going customer where on start on or committed want a what So, one seeing that retention large implementing those we're kind to they focused. focus we platforms, an offs few or a happens middle. depending getting on either and of to increased their drop course, where integrated bases which of current channel able over are is to a orchestration out on with customers customer develop to the that at of they they're have acquisition user pipe, in But then -- or means obviously integrated trying pace channels, priorities your improve is improve stage the kind more your and level, kind a will, we're of obviously, in And one customers or have, is what your be if at through vertically flow become priority various platform the rates all with seeing the perspective, our and and the of into habits customers turning way data do you're customers. time. that funnel acquiring But not you sitting is is layer, having the centric, on generally defend the which from to

people marketing that and more to But have we focused focus that going retention, with or that those their their that either we're value, necessarily focused not through, first like improve But priorities a environments seeing really making acquisition maximally traditionally advertising activation, past ROI ROI from effective them for a investments amongst their ultimately spend. in Braze are was maximize on right sure audiences maximum think, party I those things made lot are shift the priorities toward in now lifetime a overall, things is the to business what those seeing we're going and are what about toward retention, maximize for caring going higher that be in of acquisition So acquisition ongoing a focus the customers. do spend are and what see ROI. they've this

and Braze's as Isabelle, should going Appreciate just net retention the how the color. monthly users And then about growth historically, changes impacted customer Brazes How retention. within think customers takes Thanks. about the forward? and as net think base active any supported that your your we puts view has investors to Braze's within MAU

continues to to our about when talking the before IPO were of education largest sessions. in component we we've active be that, talking monthly user the been single top the you line. aXctually guys since so Yes, And

but based the are growing other The CPM messaging, less those fairly components, than MOU, also quickly.

kind our drive, also will continue to of be base dollar to and will large MAU a additions component the retention. net So

for rates of SMS higher components us. components And the data I other smaller the think size, the starting base. mix smaller messaging obviously, in one smaller you off just the for will based is the example, because of growth on smaller get well. as lower CPM

growth. continue the other we're additions and seeing that strong well I components grow, to but seeing are add from continue So as to think will strong MAU

Good color. Thanks, guys.

thank you. Yes,

Our next DJ, question comes Canaccord. and from ask DJ Hynes at unmute question. your please

this customers marketing investors I look, out Hey, thanks I'm think some marketing sure of your a a more anyways. at more way versus is to parse discretionary customer I cases more of I'm engagement Is question, And to category, use it ask guys. resilient. there look cases? Bill, whereas use may spend not going asked, Braze engaging fair with reason the be existing for a as kind

in you you some Just on love think kind that where of would fall spectrum. get color to

and about cases to use appreciate and more sticky. up you more bringing marketing how that customer DJ. use closer where are obviously messaging think a things Thanks, Yes. headwinds engagement also lot they cases that broadly kind they sentiment how of I just investor are economic to of product and transactional or respond to or infrastructure be going

integration, they people time. with Braze started Ryan's though, get about and over them how Now going how think back with to how grow answer question, to my about we

more someone going are those really that thinking, apps the with get those get engagement into or and actually in move those in with cases in integration either over you way because sliver be that places are then they're data that's into integrate to use to to going then thing either certainly, order and either correlated start to through going use the Braze key implemented, us the or running kind websites your you message or personalization. going deliver user them kind warehouses, to they not type signals volumes their to of customer have. messages. case marketing use the to generate those and into into Braze, going targeting those split, And in I is or But general, we're necessarily the be of of think whether their but the And going it's broadly all when important those in end because they're how their and how or up interfaces, are is with things in of is integrate of to of orchestration that or their either enable generated actually cases they rather the data places -- number center flow to going to any same then to inform time. starts

utilitarian activation, promotional, type user are of are a cases. when both all through -- onboarding, monthly same marketing, of addressing most more bunch of examples retention product majority so right? as flow. things, of running customers And active use these well running whole They're they're actually vast got we've running the customers our the They're base. -- as running the just that all data same And much

that. your back relationships response have, to just demand simulating that channel earned the of the is portion cases, in control. you already them to to customer CPM high about how gave we're is sit on our terms marketing use you always you've of You're go back revenue base, certainly, that that she paid to But for, talking communicate thinking you've from this that a already Isabelle's right on then marketing those top it, going you're within the where ROI a you even is lot right? existing So of already structured about with that and of I the

we so though by are so what that use and is much just so nature, their versus on because are of always are the And they cases function ROI those are cost the generally and they see marginal even them marketing sense. valuable the makes they

run more that about marginal within not is they're the So even act not that life to the even that building like marginal world. the cycle, some to is due the things marketing base more the We environment think like, someone the behavior you that of see just types use cases have issues, the demand or to they marginal to pay Braze's there in supply long-term chain maybe the It's customer whatever in oh, the the extent much volume. in cases if be see same of type cost don't will ROI spending advertising supply And because don't functions trying about our sense of message advertising might kind to use that. willing they're you're value. are that like stimulate we because portion that promotional, of about

follow-up you. that. a color. Yes. I maybe helpful quick for Thank Super you. Isabelle, appreciate

we comments the off growth understand can't profits Just to clear, interested business kind best a agenda continued forward? investment appease of pretty agenda? things a balancing to about thinking sacrifice your kind update needle, in have I investment still balanced going kind I this have you to high you're -- environment. year. they're for press is markets. are will, think in with you more mean, what's return the Obviously, heard if the -- threading what of about kind how investors of thinking your on want I how look, of that around for But the business? it forward and fairly mean, capital I risk made just loss you Like you I any raised kind threshold of

for Yes, absolutely. Thanks the question.

capital consistently that think disciplined years, cash deployment a and of deployment, So last very, continues. look, deployment, had over the to sort approach have we and I several very expense

And our now deploy diligent to the clear we now headcount world. focus be around very, headcount the are are our so. are having we continue so very us to right want as and to into is plans world. growth where for to folks And to expected continue we have travel we bring bring that important across strategy right very to And about do our how it's we capital that's deploying

are and in deploy way to do possible. -- strategy, we most continue that can expense to so when continue we we're it so that effective And came efficient have going the we always maintained to to our discipline it and

We're plan. execute no our there's to continuing on pullback So on anything.

also us the seeing you're seeing line outlook You're year. top guidance, our for us burn raise improve

So continue said on were us -- we're that's to what going that to to to do do. consistent of with are do growth what ahead is we opportunity very here, trying and the capitalize going we and we that's

Yes, and also record restress kind from to perspective. want of track I just our that

decade. at more at a in in our at been late that million IPO run point So that had over $XX only we if about burned you history, time billion. point, [indiscernible] had cash that look year, point the had than entire And company's we a $X.XX at of rate which last of

culture rewarding in part how or the it it's of efficiency orientation for of terms important and building keep rare that start-ups. to X.X:X among it So because a achieved having it. metrics mind relatively valuing it's those We we when of the building think time really important value for is even wasn't greater did long-term. we in than an in market at I think about our that ratio And efficiency

make at years. and that culturally, culture the would the it a that on that more prepared market's for the way with a shift for people efficiency, and with in field. that actually anticipating been value have well to We're it respect appetite large spend for levels place costs because, like all to like the this a company ours We market investment decisions and profitability, starting excited is it's state around to to playing back growth a set we're the scrutiny extent, today

guys helpful, congrats Very quarter. the next for and

you. Thank

from Borges Gabriela from comes Goldman. question next Our

for I versus Thanks on the Thank what was from Isabelle, an a And the the question of U.S. bit or standpoint? on pipeline. afternoon. taking quarter. any Good nuance rest seeing between you're enterprise, mid-market could on or hoping you world comment and market little you. congrats Bill end

Yes.

year. So overall, and diverse the I geographically, strong, continues to It the think diverse. of excited we be outlook -- continued Pipeline, rest are really remains remains about across we our industries.

some some we're of over evolution. to with our so and Europe top five And and smaller quarters verticals, time is last several some continued continuing of kind in kind what face-to-face there. seen of the folks had we've verticals, travel over we've growth to over strength in Geographically, continued that get see the

leadership there, our they back enthusiastic. and gone of Some really came has over

mindful going over. not the and war look, things the Europe are how risks Eastern economically around of So certainly world. we're The in is

potential to but this, and are customers the seeing of customers be existing all on eye strong our new enthusiastic. from then that have sentiment our and We we continues

just for to marketing pretty on are last your Great. and in now economics. follow-up unit calculation we over year, with And business. by is on the CAC LTV And steady. unit that even commentary is to your is economics LTV the the on and holding sales What noticing the CAC spending acceleration focusing

Any that maybe force? that a seeing little comment with can nuance you're bit Braze productivity have been versus the the sales folks So on in who longer between are you ramping? Isabelle, folks

Yes, Yes. absolutely.

of them of that lot we've speaks in some done lot of our of that the beauty that those leverage just We've make the more investments across a and of automation other particularly the area. sort efficient, for to think place really And kind out SMB a of So the things the more and strategy, that business. to use for get effective of accelerate tools. more put into actually is, area we I develop existing go-to-market really of things SMB, to parts we can as

test do to be refine it it and then is and for so and when can up that. scaled develop And great customers, it hone we it. and can ready, SMB a this enterprise place mid-market And it's or

comes think that And have what of a is so seeing you're I deployment. And strong to some -- some really play. again, it of discipline as capital it at efficiency as relates

Sounds good. Thanks for the color.

thank you. Yes,

you question from next may from Sandler. Brent, Brent Piper Bracelin unmute comes Your yourself.

environment, on this party side? at DXC they brands the environment? have think in? first out and in there. you these Are of and telling brands BXC some BXC current how kind you but current tailwinds leaning through they those are of large this engagement into stacks? to questions, Thank Just and and brands, how to what trying the durable data back go of point? How a investments lots where some pausing afternoon. are good those of BXC are Thanks. are consumer Bill, respond first-party of lots lot I we unknowns Are investment wanted fielding wave this tailwinds to these investment You durable direct-to-consumer more

Yes.

generally cetera. is are work And towards we extremely with, -- amongst ends I'll DXC the like that diversified. you going up, this with what So is I there do brands revenue there's that reminder and as trends there's be that which think quality, time of any the the you're base kind things seeing seeing same being Braze's happening provide that to show we that headwinds consolidation up et

an the of multiproduct five that customer And brands it's up build we with certainly, is are that and subset right one have work that And a contribution and of to a enduring general, four our in e-commerce with while verticals, DXC So within business. its important, to a in terms relationship the through attempting are of that, longer-term retail portfolio. a outlook those there top of more many our within percentage that. are even brands, other DXC even

a CAC good of terms what have of of able of a Instagram Facebook lot that years, working affording focused and lot kind product I growth been other being that a think IDFA you But is that really a the not their in that Facebook, run that kind of like when on being those look were cycles, to headwind few earnings. see it DXC lost a dollars them of use a last small seeing we tactics. of of So it's products kind over really in and are to the work the of platforms arbitrage general, solely into through kind And of small many LTV to in through number lot those the that reliant was caused the acquisition. we at that retargeting lot of transparency affects on that we are the portfolio, the And marginal in them was you places. cases the that of kind there with and not with note important going types those on Braze by of growth brands they've work

customer brands making they’ve if longer. also purchase they're these a We portfolio. maybe have many enduring many with nurture -- cases, looking over is They time, not more cases, of in those And been a that They today. the are working in around kind more relationships value. even to multiproduct have

you're a observations important base, exists again, already hearing within certainly into we of aspects those customer is of seeing that And we lot the it, then our bias categories. business in places. run and really use to probably work of with with that translate back the those are cases of and about selection the that we things subset that kind But other so types those that amongst the

than But the a this mean point? outlook little talked have you do if year. helpful. the you're extremely you for you much about what how do I as expecting this at cash to How burn respond about macro? in improving flexibility And quarter. turn Super much in a flow the for flexibility do operating Isabelle the surprised worse XX% see then bit quickly to model free here, things have operating changing follow-up think quick margins you

Yes.

don't and obviously, about the on people not to to free certainly, I comment executing dime to anything, free quarter have cash flow at -- flow. expecting to is cash a tell always cash free guide reiterate, on turn So I will make this we -- four to trailing. don't would flow we we as I the our that on are plan. look

obviously saw cash from free a cash big You perspective outflow a in QX. flow

of is that bit that. little a from of a snapback Some

have of go need So all are we're place of that that should changes, that. very comfortable with four at trailing to landing we no to expectation in ready soon. the where communication we sort do have need And we on point would infrastructure have data think a quarter to and do and should and make statistic. anytime I we But we this channels to we

Thank Great you so to much. hear.

Raymond question next Our James. Peterson comes Brian from with

the question. Thanks for taking

So just one me. for

London. in North America and think both is terms next to And in-person, conference, a catalyst curious, we customers? business user new or I'm the of it's into with expansion know to what in as be head we driven net it's interesting that that see should as existing So I year? going about historically

the Yes, great so thanks question. for

in-person well. excited We as super to back are be

sides including and and on a We in are of year, our also are, event we to the our so excited customers will to of increasingly leaning are world, both into the and Atlantic efforts the Singapore Japan number regional our growth do throughout around where activations this this bringing production community we have year. closer

lot a for come to from out that more watch So perspective.

last years new Now past, been one multiple had, driver event nature upsell, this quite we obviously that we've how drives business with have has in of a going assume also the the years a But for but the are run it's a we bit. we -- business, in respect changed event. that the certainly customer it X COVID to to versus your question around historically,

feed And surprising going generation so of but done respect plan into pipeline will us that to as about on end with not we've this the that, from us excited way speculate potential any have perspective, in for that year would exactly to a how I'm we year-over-year. are

Understood. Thanks, Bill.

Yes.

question comes JPMorgan. Bora Pinjalim next from The with

starting congrats the strong high-level learning thanks to doubling like Braze on question platform Success What last kind you this on Great. Bill. on community careers wanted be year, I bigger for a in path question, and see with make people a as hear of remains are default On certified Braze done Hey, Braze the you the It LinkedIn. to to kind with portal. I’m the down taking for people marketer And brand drumbeat recognition ask customer community, very you of badges quarter. flaunt the time seems point broadly? to starting to starting are for the at do to in more build of starting on a the so engagement? kind of of people spreading to

and supporting terms practitioners augmenting improve of of that our that's part our economics definitely ago that I we've with customers efficiency our been That's kind SMB initiatives higher elsewhere. been our rest which of of its into in noticing. community, all supporting of think of and community Marketing We of those from years Isabelle for that come world, work partner-led early in education, with referenced important with one up we help together, early grown those bit agencies PLO then building and of and the growth. the growth has are it many in the we Yes, ventures sector will the driving. the helping a thanks investments how our us additional into advent obviously onboarding, things the GSIs are an little our from timeline over later agency trained the mean and that traditional absolutely, through still community progression our the from

there's a So lot there.

we to different the think about few when investments, has I dimensions it it. think a

value if onboarding more expansively to because that have get up up running customers efficient running we more time improves make that quickly, more. is have and them and of education retain can early One and and more and them get

All those get help and things up them obviously of running.

people that net competitors Braze, people retention also on deliver and quicker that also use frankly they that people It to usage know they very have fewer up more that their as that most things. above deliver and that rise large of compete same dollar-based types we running, and truly but over move sophisticated differentiated their usage to Braze the get and new rest that advanced can in us see. confident can of quicker time feel the the and quicker out channels There in that there more becomes leads platforms as and advanced a we across become you are expand customer means the to the in we of on more fewer on Braze, We cases, strong the certainly more parts really with way basic the the is a entire that market. really

also point And state-of-the-art thinking of engagement the a motivation we have skills. our continue that we in to well. They so this and make showing this build marketing. customer sure and that want ultimately, customers to to obviously as strong terms And around getting are to willingness are around desire push to those their careers

really excited goes are We the next few about that over where years.

it are those without understand directly And things. that these the to strategy teams along to day, creativity and product that think kind day close are it more building of Braze the has them that we a over data that, happening are to few empower making intuitively more to flywheel them and community. flow make the spin like I in it leads business that life explaining their and of We are an and more to flowing in we just science is feedback really the think the getting more. people that's all that the the of that kind to really maybe going not over to only team, with and to Canvas engineering the to there really be focused to are system, that in loops to want -- super investment, express experts, last fully are constantly able time of through in more we through on data up. and the seeing problems the Braze we that usable needing beginning combination enable been education things over with We investing bring and sure to of over want amazing and or deal with programs of day-to-day and their the our the tool marketer

That's decelerated. great is said looking to a the to hear. One strong. at then you I were at bit lengths RPO follow-up, of Isabelle. little I was super growth, I which And contract think wanted the looking clarify, kind approximately billings growth, which XX months. I'm

RPO in QX? it Was said a contract that slightly slight you to was quarter, last think I months. above was headwind length, XX

in month was sort it mean range. I So XX the of still

I think sort a month, the of we still up range. nitty-gritty are going X-year down It's providing details in month. of the stop a to

to just are to the that we disclosure. stick as So going

year I if a calculated perspective, same to a change at look the the revenue than stronger actually you the ago. think what significantly billings components from billings, period deferred of drove obviously was

obviously fed a from as cash well. customers of strong very into So that also part collections but that, growth,

read sort RPO relative the So weakness of the number. necessarily I to otherwise in billings into wouldn't

you. Thank it. Got

The Bhatia with Arjun next question come William will from Blair.

you like, I Braze, of Braze, a Is you're customer-led where more Thank you're obviously, of are other terms I'm importance my it vendors dollars reallocating first party are realize consolidation from? it larger you see deal what customers are are seeing where quarter. displaced? in getting you on Perfect. trend that the this about customers seems vendors data. sizes seeing add curious when curious, as congrats and they're dynamics with Bill, those reallocations? seeing with more spending Is noticing a -- what spend customers growth Just advertising will maybe -- dollars? great in you are budget

Yes.

that. for thanks So

course, and of kind long a seeing of for are we of -- we above, all the haven't time. the So

stage I in think new more at with that the the -- plays and that really land business.

consolidation see was lot a product something they're So survey a a of you're there going something vendor and like in advertising for that. you e-mail vendor or to running else in and kind of us maybe to and moved vendor, going out maybe notification money get respect or previously and an happens like mobile push with

of and with consolidating starting a out coming places. long in have other replacing we So record track or either

often new of budgets, also especially We part when are net new there's initiatives.

So QSRs places of or of move like media they've type leagues the at offerings look with in and more direct-to-consumer like are you in these that goods streaming direct-to-consumer industries -- packaged examples streaming are all in even happening consumer building enabled been great like offerings. or if toward media digitally where or kind sports

because over those a are other places. also I from X new they're brand-new kind a time initiatives. part that accumulation do or budgets so And -- of shift net The of we see think corporate

and advertising. is ROI before, spoken we've often much more about First, of than as course, it positive, so

do you a So advertising. from see shift

that. communicate stickier we on need with in acquisition with with someone on experience to even actually I them party communicate think later the or mindset which to activation of first to to chance also or one on it's opportunity Whether that and those retention, I've maybe things of I got just or about of that of helps to really platform. to get acquisition retention privilege party try my okay, a Braze a and the interact then first or cases, the organizations the and channel optimize but is value spend. really that, that think deliver the bring with activation an kind to otherwise first are not maximize to use just

own those. improving last The we acquisition helps features of ROI budget expensive list we're actually out suppression all for that we to part them trigger them, customer use would do take as importance the that a those against we first immediately updates the works, individual because of of seeing a shows up We cases on you very before because And in than those an are So to running and of even really of it or same way were way allocate we we that time allow Canvas time, maybe retargeting of be incredible multichannel bring real they've in those in on super kind that engage are actually have channel. net examples you in them the really productive that Canvas seen and that exact either staff, up, party and to, a make for your are -- charging I some and and campaigns that thing way of spend. lot add easy in they a Canvas able now so could of because new them where because either properties. it's shown were to an be channel the directly can list different function suppression advertising, balancing then suppress a paid either

the flow The other doing an the user. is and of same thing individual look like in audiences making

in achieve those of XX% the by cycle of of cycle of hearing customers bridge books CPAs data from life lead milestones, we what you you're so marketing creation part like decreases into that to industry advertising. between going when are in doing life been quotes as cycle or have upwards life And to utilizing depending so certain and look suppression of those divide kind And some on either that that we've of audiences. that those

of Now cases, Google. feeds we really augmenting that into like for running are things budget where advertising But or that, right? like Those hooked we're are and then back Braze. those places are course, into use partners spend not Facebook those usually

you. very thank there color. then That’s leave and Perfect. it will helpful I

Thank you.

ask [Operator may your Instructions] unmute with Our next question. Cowen. question Wood comes from Derrick, and Derrick you

mute Sorry. unmute healthy. found dollar net out from I I one expansion just Thanks throw on based rate, guess -- Isabelle, as sequentially. will and button. the well. you congrats remains It was my to then, the I end down

catch-up benefits factor to and seen to Is or through we And the the comps? kind the the the moderate Now of year, main call anything just that this anniversary-ing here many out? you've number that should given kind to else of expect given post-COVID. trend continue tougher from others,

I level Yes. at think for great mean, these are I look, operating we already metrics. a

excited number company-wide, I pretty about up that. year-over-year, think and we're the went

operating So we already are area. I think a for best-in-class

to I to and going around, expand strategy. executing land are bounce our think they're and keep we going on

going overall some some the you're it quarters, over and course of the drive on And quarters -- of the the so kind some great you're and the going some to to great will in of in get get lands growth years, expands whole organization.

Okay. Thank you.

[ JMP from Pat Walravens comes with [ ] ]. Our JPM (sic) next question

out the It's seeing JMP of to you competitors back on you so any of environment you. bought? want tougher running Bill, venture or interesting seeing are and thank get the Securities, reaching your are positive they're out companies any maybe money side? but pull impact Hey, Like from financing because

some So headwinds like we’ve this competitors amongst kind rising in will of smoke going areas, I to our I'm any broader What definitely the of behalf and but on deeply I landscape. various wouldn't lead of -- more speculate to consolidation in Isabelle seen not fantastic period, mentioned. of this, on not tremendous talent. though, funded, go fortunate to market that a fully to our really from be gain perspective see we feel during say this and great bring only time as markets, We in is all share opportunity but

that be we still starting lot a going where an than bit is people fantastic next environment that of is easy. it for that can to to we little hiring, of our been for are this we through -- a market, market see on a because critical of lot make progress a find And thing competitive really are the haven't go a those which the us probably long that of time we higher are job well of is the thaw the in leverage as couple aware stage growth. over years next a is of money We

excited and that And right ready an scrutiny advantage a because efficiency from on are are And as opportunity on that of my embrace there's we so think we to more ours. you go we to point earlier where been this are cultural we've it's laser-focused back now. if -- environment

Great. you. Thank

Okay.

Our final ask Brian from question. please question Brian, Schwartz. comes your

I quarter. geographies, the don't for much. strong you by a on very but the you margin granularity give Thank like Isabelle. One international looks very you had know it gross

Thank between you're was was business in that seeing the gross any wondering the you. changes in versus there margin I So international? U.S. your if

of sell kind overall engagement there. comprehensive real platform, kind Yes. the with engage No, to there's customer customers service end no we possible their user the about think really and the to EMEA no of think kind of look community. as way There's that material overall, products the difference distinction best in really if for we APAC Americas overall. the about you them We

of sort margin. the in regions different and there's margin the trend margin certain even and levels against we've mix different talked this lower so there's segments, higher the -- across But about industries. no the broader of and various in so customers each with across customers And other. products with the direct industries, there's past, degree and various margin lower a to margin higher regions, across And

there. a story really not there's -- it's So a or theme

a sophistication we the in that the ensure our really that's international versus customer terms we in if be run wouldn't future, it and I make ROI not ones either and margin pricing just domestic to pursue situations. of of that where -- of market, might use oriented we are Yes, is it that to think we platform at a and power. fits our centricity high directly, SMS, kind point looking of expect it, that We what in doesn't a business in that that business. lot, seeing like profile you hit like high-value, bit read-through little that the go that as SMS the be we back I know prioritizing expect. the are are are And cases sense in I to more for margin businesses there really, any international We the when we

low-margin in chasing anywhere not world. the business high-volume, are we So

difficulty] of And be continue expect so you that should to our to kind [technical

[Technical difficulty] Bill. turn now of over it I to all will the questions.

All right. of to Thank you with you. this were excited everyone. share all We all information

forward are doing in about to looking We months. X again it