Braze (BRZE) 9 Dec 242025 Q3 Earnings call transcript

Welcome to the Braze Fiscal Third Quarter 2025 Earnings Conference Call. My name is Megan, and I'll be your operator for today's call. [Operator Instructions] I'll now turn the call over to Christopher Ferris, Head of Braze Investor Relations.

Thank you, operator. Good afternoon, and thank you for joining us today to review Braze's results for the fiscal third quarter 2025. issued Co-Founder Financial Executive announced Officer, in press our and Bill our by closed our Chief market our Isabelle release joined and Officer; Chief Magnuson; results today. I'm the after Winkles, we

Please website investors.braze.com refer supplemental related for our announcement. earnings a at to and to today's Relations information of Investor presentation the section more

timing upcoming of trends our Litigation laws behaviors, and During on their and January social and opportunity, our trends, XX, are ended forward-looking of potential impact that current Act performance and this on our of XXXX, and safe goals. execute replacement of customer Braze These but to the our the business release our statements call, impact Securities fourth our ability potential anticipated opportunity year benefits we to, are related will such expected and outlook the and the harbor and XXXX. anticipated of not quarter and targets the existing duration effects provisions federal and for fiscal consolidation the initiatives Reform statements financial and features, make our securities our macroeconomic Private market financial statements include, the under regarding limited long-term to impact effectively our vendor products including and development,

our could These forward-looking obligation statements reflect are as We results statements. only actual cause that differ update risks a to from to variety uncertainties subject such assume and views to of and any materially expectations of no today.

release used that of like website. items impact please in risks Relations results, quarter and in the call on discussion filings, could of our that have in and non-GAAP refer to company's our to financial operations results. ongoing include to actual section understanding and both SEC today's the measures these the a further Investor material addition management available to third also XXXX risks aid identified financial performance investors the our I'd remind uncertainties For will evaluate by the to the today's our certain you press fiscal on affect

non-GAAP accordance in Investor Please refer GAAP. to included release or The the calculated most the to our under GAAP the a in of provided comparable section as measures with non-GAAP with earnings for accordance reconciliation of U.S. to substitute our should the U.S. directly be financial measures of measures Relations financial financial not prepared superior financial in website. considered measures performance our

the like I'd over to call Bill. now to And turn

Thank you, Chris, and good afternoon, everyone.

customer ROI results, are long-term which We value and quarter XX% up high of $XXX.X the again of the We with our generated pleased proved year-over-year. third million Braze engagement revenue, platform.

committed business I'm year-over-year. across margins While recurring of the driving we also by quarter. and passed efficiency annual that $XXX continued XXX non-GAAP million proud during our revenue operating basis announce to improving points

to the income moving testament quarterly the demand a platform. by for in net expect engagement positive the non-GAAP Another row, forward. And for ROI net second achieved strong positive delivered we maintain customer income the to Braze and quarter

seasonal investments to sustain to to platform also As reinvesting quarter of marketing, non-GAAP becoming set engagement is grow financial while we thoughtfully on income meaningful on to basis. customer leading and our the positive due in fourth a track quarters globally, and in This go-forward in both generating an exciting free this years. flow our and a to deliver operating to and planned, business income took we forward step income back and cash slight on non-GAAP the way the operating quarter remain coming milestones look operating

a in wins of at North clouds. cycle, company securing a legacy gaming and the Braze a on in marketing EMEA. financial in a diverse we Including the new business quarter, third airline replacing legacy fashion APAC During planning continued where company replacement set capitalize is America, to brand and an vendor

diverse across continue tools We industries, both and set solutions use win to point homegrown channel-specific against also geographies of and a cases.

QSR the and EMEA grew in to by traditional We company up Some notable APAC. planning a leading included count American takeaways a our party quarter year-over-year. customer media application, XX in North XXX a during X,XXX,

stops Purple, New Cosmetics, business E.ON and WeatherBug stores, with Digital, Financial Services many included Geiger upsells wins and Sciences, loves Lush Cookies, in Inc., Kurt News Telstra Smart Hugo others. Rightmove, Company, Yonex, Exact Crumble Boss, Country along travel and

a to strength intelligence customer year-over-year. of the of growing presence increasing prior deals, learned at leveraged are the Braze customers again business community, XXX, number by Enterprise and cross-channel ARR customers engagement advanced which first-party in plus how scale. data of point to Evidence up to of $XXX,XXX leverage drive proof continue rich with customer sophisticated XX% a past in new previously were customers artificial accelerated our to and who at were marketers companies. excited we Braze another roles growing And see

improvement on a seen environment focused for product meaningful quarter-over-quarter, Braze against long-term haven't positioning remain we executing while our financial category leadership. goals and the demand we to long-term While

requires and partner of ecosystem enhancing our globally, Braze to continued strengthening including elevation product and awareness easing the on-ramp path into the for system complementary new of offerings, and our Our range investments, leadership performance channel a category customers. improving our brand

global itself lead and and Through and AI-driven increasingly in and engagement to strategies at customer product our as productivity strategy, increased community customer the as map scale. to expansion replacement delivering category relevance customer both that successful road consolidation execution their deploy of messaging. to their leader consumers cycle personalization to can relevance and gains look trends enhance global brands advancements our the share the their customer upgrade for of of increase engagement, Braze a growth the Braze believe we will and Further, vendor legacy position new

via is reflected record-breaking their message crucial period brands invest for our jump get e-commerce messages existing and sufficient to crucial volumes continue holiday to ones. This engagement it Friday a was continued to the both Cyber to to is orchestrate particularly Monday and Braze. for and brands used As relationships the new performance season. in many And sophistication find opportunities sent efforts, as retail in initiate customer they strengthen the rise by enhance of the and on Black

Over delivered XX% We across messages, XX moving year-over-year over our XXX% data batch customers up channels. and deliver further informed [indiscernible] billion weekend, uptime. from single-channel away of to even the saw dynamic campaigns Braze with switching instead X-day a variety blast campaigns

by in by increase messaging a saw campuses orchestrated XX% our by campuses, processing a also the increase cross-channel number engine. in supported of We executed unique the stream XX% real-time volume

reflects responsive journeys and and engagement, usage and that to connect driving sophisticated growing a approach with in customer rise embrace marketers inspire that of customer conviction experimental must data-driven Canvas The omnichannel consumers. an

product messaging, the messaging we our results campaigns up the AI and and through decade innovation worked wide-scale of the witnessed increased relentlessly opportunity saw more to the the the our the net unveiled addition, sophisticated We late themselves. product opportunity Forge new compel AI-driven while in adoption use productivity and Braze In year-over-year volume increases September, innovation road of marketer gains finally, in replacement premium upgrade a enhance on we customer year-over-year than XX% including to cycle edge by our leading in-product of At accelerate content mobile usage that messaging, cards WhatsApp, XX% Existing features And presented focusing and we can practices. and to core conference up since DNA XX% of and low-code year-over-year. technology for ago innovations. increasing of at their more engagement in coming have of map. at with foresaw technology seize is brands legacy customer the amplifying

achieve. efforts to engagement testing personalized included drive personalize Designed engagement more only Project a customer brands customer deliver AI teams. AI optimizing to agent, more developing are by productive driven effectively we marketing rapidly agile which help that scale creating, new at experience a and and variations brands and Braze Catalyst, These can

assistant also marketers debuted channel to Braze help additional business deliver And and and experiences. canvas We to including we support. expansions AI upcoming get offerings, and our started line easily sophisticated RCS template shared customer more features

I'd agent to as tracking a And with Project enhancements, new to Braze images, commerce these codenamed each click take moment highlight support. starting our in-development like dynamic features AI of Catalyst. WhatsApp and such

uncover message marketer Braze and over combines integrate a decision-making of focused multifaceted AI increasing enhancing on Project improving Catalyst decade, the goal experiment to optimization machine experience strategies. you consumer. with and and product each customer has best generative of content, and set for innovation relevance and our the in productivity investments know, learning of help into data teams targeting using dedicated scientists for craft our marketers engineers automated Frontier journeys, deployed AI to As a individual optimizing with past

create to specify digital goals its then With Marketers cross-channel real-time relevant AI optimize tightly using range integrated marketers accordingly. Braze's guardrails a stream processor across rich journeys Catalyst, tech their for Project combining touch Braze Catalyst integrations can and content, or to allow architecture benefit should stack, define experiences points. Project and data of from

In our across cannabis, multitude experiences the truly generate each together to can machine with optimized the and of Catalyst solution can journey is addition, Braze component and combine break variance of Project performance human-inspired no-code capabilities limits designed agent for a Catalyst marketers to as bring experience. orchestration down of that scale. experimentation

improving customers outcomes engagement. consumer. at Catalyst unique each and headline, an in one-to-one optimal over and With they one to each tone Making the content be each our that's component ensure their control more, expected automation optimization combining receiving consumers of deliver real-time half configurable of controls, timing of combination grabbing time. the can reporting, and first channel available, attention the and helping for offers are beta experience for business create and in available mix, best focus experiment with every of tailored their Project experiences nudges And adjustments, their personalized best them. The year, individual scale. next the the evolving message, promotional the the marketers for levers, is areas suited in to

source. as a Microsoft segments. and well power ease and data in AWS data early access year, we image simple advanced and as liquid announced Braze and include our features now as platform At of personalization this use earlier use any and SX of well for ingestion copy templates, data solutions beyond data process distribution. AI to cases we all we improve These enable streamline create new capabilities platform, upfront. training These currently September, of including interactive marketers that AI as and for of generative generally data less integrations sophisticated organizing text and bit from in sophisticated more the unification, also plain to to announced assistant and help extend prompt. a template The partner Forge, marketers available integrations logic injection platform, Azure the with set creation. our the the data message designed with out simplifies data first-party assistant, message Braze the unveiled comprehensive Zooming Braze multiple enhancements collecting At new cloud Forge cloud data activation inspire

simple-to-use Which to marketers process. build audiences with a zero-copy allow

We identity or points, brands they also from capabilities debuted new increasing help of of variety cookie an browser customer automated maintain marketers profiles touch accurate identified importance landscape across as area the to a continues consumers digital to engage transition anonymous to as resolution evolve.

deepen to marketers well to marketers' tools. of set access Finally, analytics to to we business as several and Japan that's our strategies, Taiwan messaging their to high-level with customer intelligence has natively announced as and channels through help support also dashboards the already experiences. customers anytime, These channel third-party popular ever-evolving use general that and upsells. purchase LINE had help Indonesia. we've ability offerings. those And expand integrations message most easily first-party commitment valuable an Thailand, and course, for enhancements we further app widely both to of in At more inform data with anywhere. furthering used LINE reach engagement LINE, To relevant availability, to consumers customer in our illustrate we've embrace Forge, since marketers launched create launched continued most reporting existing insights innovations and innovations the

to expanded generally available and opened of had messages with customers the previewed WhatsApp, including to commerce business scheduled help more types And earlier and RCS months. scheduled We've coming we to forefront access support be in program stay traditional mobile for content supported messaging our customer click RCS innovation. support soon. our RCS the also texting already be images, first options today to up with early test send We brands dynamic tracking to eligible enhancements at

consecutive Multichannel As innovation. Quadrant that I and our for leader through expectations and named also commitment I'm helping the excited our continued this evolving recognition commitment recently highlighted meet customer out, We're placement brands Magic Gartner leadership to industry to innovation for close to in the second Marketing year. Hubs by was as share of being a proud reinforces the

target Finally, its announce initiative, the you impact sustainability targets has target update I'd are Braze near-term social our important like our is science-based globally towards to that in organization significant science-based near-term key to science-based a a helps companies a program. on The initiative, initiative is marketing sustainability to sites, submitting we climate excited set emissions with step an latest science-based line milestone strengthening targets reduction journey. successfully that recognized the our submitted in target

'XX, to standards an for aligning have expect best-in-class FY us carbon We with target approved in reduction.

growth my our wrap in by remarks reiterating story. long-term I'll our confidence

driving to We profitability. are operating driving and growth, committed durable revenue efficiently

Isabelle. support Braze. your interest I'll and over for in the And now Thank to turn you call

you, everyone, joining and us today. Bill, you, Thank for thank

solid component the contributing of $XXX.X revenue, recurring configuration renewals combination a revenue a customer the X% XX% of contract line, Subscription business. professional by and new of third onetime primary and top third with Driven combination and we our reported year-over-year Bill onboarding As million, XX% represents quarter revenue remains expansions, to total of fees. increasing quarter existing stated, while services remaining our a

year-over-year customer [ same X,XXX as up from count increased to customers last and Up the from quarter. year ] XX. prior the October of XX% Total XX XXX period

as customers, at net the a ARR. [ number October ] Measured as our which same dollar-based across we retention as contribution customers, of those to of last all XX% contributed spending XX, XX% annually, quarter total year-over-year large total and grew compares least define to Our of year. XXX%. XX% was This to XXX $XXX,XXX

for While our retention net was dollar-based large XXX%. customers

was remaining and quarter XX% upsells X% in percentage were In year X% increases up XX% up contributed across of sequentially. X quarter. total up third was new Current year the signing year-over-year the quarter, revenue our was again $XXX total the and contract our from performance the $XXX renewals million, this Expansion Revenue up year-over-year contracts. of by and year-over-year customer the prior The RPO XX% of in U.S. obligation the and broadly distributed industries quarter, geographic consistent regions. up third XX% million, driven sequentially. and outside point and prior with

gross compares non-GAAP $XX of our Overall, gross at just of X quarter remains a $XXX XX.X%. margin non-GAAP contract was dollar-weighted over a in gross profit Non-GAAP This the years. length representing to technology non-GAAP and year. XX.X% gross profit margin by million, primarily Decline messaging in from the of continued cost driven additional personnel margin benefits third of of in year-over-year by was last of quarter with premium efficiencies. our expansion offset channels, stack partially optimization million

that costs. or XX% quarter. Non-GAAP across prior expenses efficiencies million technology and million personnel sales or basis by $XX both I'll XX% remind $XX at continue scaling Day year revenue to marketing the in revenue in XX% to to gross and increased to long-term realize our we target Investor XXX were as XX% September compared recent non-GAAP points you margin we of our of

to expansion. R&D our our year While year-over-year and ongoing approach increase reflects efficiency investment revenue across our $XX compared expense deployment million The Non-GAAP the of improved go-to-market or investments in resource costs reflects revenue organization. to growth XX% global to of count million support quarter. dollar XX% prior was or head in the our $XX disciplined

our the well to was existing features to increase driven The new growth. costs as products develop and dollar offerings count of to head support by expansion increased primarily as drive

of XX%. prior $XX of revenue XX% increase as long-term expense or was compared million and expansion. by expenditures revenue approach dollar negative The company compared driven target R&D XX% $XX a or or of quarter. R&D prior in global $X.X was growth operating investments XX% Our of million non-GAAP G&A yet or the support X% disciplined our intentional revenue in of to investment technology our reflect quarter. percent overall strategy the Non-GAAP to to revenue revenue loss Non-GAAP we year of million non-GAAP loss to was million negative of $X.X X% year operating

to income event. per Braze million income customer loss quarter. events, flagship related of $X.XX third of Forge, $X.X customer in $X.X approximately reminder, by net to the shareholders a compared loss including operating a $X.XX in annual Non-GAAP impacted the the share quarter global a was million million share, per was attributable cost year $X prior or our As to of several quarter or

to Cash costs, the Including $X during operations turning used Now the million quarter expect negative of the compared was continue $X.X given $XX.X year with impact in to sheet customer $XX.X operations cash capitalized million fluctuate statement. balance free we of cash flow flow the noted securities. the million approximately timing payments. quarter as equivalents, negative the the and in and And marketable and cash We $XXX.X in quarter. we quarter used prior vendor million a past, ended prior to cash flow year in cash in of from quarter. cash free free compared the million restricted our the flow to have cash cash was in of cash, in to quarter-to-quarter

to turning guidance. Now

quarter in $X.XX quarter this to implies approximately to during million fourth XXX.X per the average outstanding the non-GAAP on shares non-GAAP expected income based weighted share million net of diluted to approximately million income is non-GAAP the At operating a range of $X quarter net of we be of in Fourth growth year-over-year the quarter to be $XXX XX% revenue operating the in the a of to at $XXX expect XXXX, expected be million range $X midpoint, approximately is the range million, income fiscal million non-GAAP For midpoint. fourth $X per which margin share X.X%. rate represents of to $X.XX Fourth and million. $X to period.

X%, of XX% range a net of to expected based per to be growth the be $X.XX to negative basis $X.XX million, to a year diluted the the total income year Roughly the implies approximately rate approximately in expect XXXX, year income loss XXX margin which million. be per operating At expected range is non-GAAP $X the fiscal Non-GAAP to million midpoint. at $XXX is of versus is revenue on weighted year-over-year midpoint, improvement full $XXX expected share this net of in average million of XXX for in XXXX. million same million period to fiscal and $XX shares. share count range to Fiscal operating non-GAAP year to we of point million XXXX full the the a share $XX For $X be a represents

Bill to track while remain as free And and future innovation cash noted, about long-term of on we flow driving and our beginning remain solutions in income providing industry-leading against year. this excited positive financial remain committed to deliver operating and engagement product Braze's customer targets. We non-GAAP QX executing

that, And the the call with for open now questions. Operator, we'll please begin Q&A.

unmute [Operator from question. MacWilliams ask come line first your will Instructions] Please with and Our question Barclays. your Ryan

Bill, -- be part you you for we'd think love And Catalyst. If then maybe additive this do aren't will separate to well, discretely, or Project can to results it if be year? hear of add-on. included this charging more how next about a Canvas as be Braze's

question. Yes. obviously progression continue Project see year. and its Great Catalyst to into start as get release it into customers' excited we next beta hands And really we're to then

content we've Catalyst or about new in done allows been lot era just tell this when targeting, to be as have personalization to that things excited is a Project of results. most Historically, intelligence to a optimize of to localization the machine to help I'm of expecting what actually goal. kind we've absolutely artificial this things Canvas. ushers able actually through better come with like the and part us canvas obviously, of And do or design. us that's the a be decisions we're learning in one marketer the or able make drive comes automatically orchestration to to it But So

optimize we with of models to reasoning And content the with then generative decisions the throughout see to and more improve be more Frontier journey, continue capabilities LLM to continue on in a of make come. to and we optimize AI more basis. and that the basis hopefully, years that of comprehensive then on throughout one-on-one one-on-one generation the to continuing the to obviously, as a year able aid

Now in path because where lines to way something that variants. an exciting past optimization. it's I already different a still the Path about build bit was we like one-on-one personalized the need works, quite personal But do talking marketers place

out from many optimization so productivity that they within of of because Catalyst our both bear. the it but with the freedom one-on-one do side limits ability to full bring of degrees Project limits and at scale that them variants kind create as to is have those them to more of house going to And also literally as cannabis, build

bring solutions in of companion head-to-head it, Canvas' to most in design, customers journey, exactly frontier be bringing Canvas, having in a around quickly. to be really their to and Catalyst test And capabilities businesses the you reporting are so of new all life performance use goals time customer the need and preexisting to to that era with. will to able evolving frameworks this that and in then them order really will, versions if important the where we're that Be kind able what about other. excited journey to And that's how of within robust just the understand we're different each these optimizing a really for configure, you working robust capabilities really against environment really live over of order guide, that

a for paid X its and and premium getting to have out feature. Now different days, and from early usability. focused there going first kind this options optimizing a monetization pricing but performance be will We're definitely We're this. on standpoint, still it of

more, customer depend there. hands and function net a the start and cost kind the see sure, vacation been or SKU, out the new we've into and that The the the to charge model, that of we'll call volume the to it establishing talk our and I'm on throughout progress performance in making there. is first leveraging one really To going will flexible credit and be about as we per as it get

within Isabel. some how know Excellent. rate think third going we the think of net from How retention on still update itself? should the should And dollar-based one quarter retention through any net about here? but for we about the dollar-based we're And the then I rate renewals,

Yes.

September, an where of the So ]. we gave thought XXX% in we indication -- would around year back land we [

where are when in XXX% XXX% so ], we to number actually rounding [ [ QX, about that think that sort is of ]. you And up

landing wanted land actually we that have the much it's to context we to for visibility that So pretty where provide that would it of anticipated in year-end number.

So we are encouraged on this see pressure by some some but that we of we're the metric. in-quarter seeing, stability continue to do

so to will for And ] that end number the XXX% year. [ stick that the of .

question next Sachs. Gabriela Our Borges with comes from Goldman

making how some to within us wanted the not new of are I you're and ask on you're ways platform talking some improve to engagement that and productivity. Maybe sales time the with level going. your about I I Bill, of about credits. set been you've remember marketing the module improvements customer talking remember just added success. your go-to-market about initiatives credit

a back taking hear of some are to love would step how going? So those missions

Yes, absolutely.

as that over start across base. And already flexible I'll credit message purchased Braze question flexible with well. just Ryan's actually the So a sending from credits continuation customer have as have the XXX the customers

enabling a And approaching percentage it's rapidly already base, a legacy customer exciting that's of also incoming X/X So all things. customers. very our few of but high

message is actually then higher were software selling them price anticipating way with we credits. we simultaneously stack And done like all, higher And the line that, all flexible year. pricing, in is LINE capability. but only WhatsApp's the personalization them early margin, relationship that orchestration, of reporting a has not pilot volumes of message pricing things a launched all those the dynamic earlier in future and of the of where a pricing upsells with customer kind this for we're a dynamic how and Braze First LINE -- up billing by the

And to flexible it's both existing credits, so able we channels. unlocking push the opportunities being for as continue also channels, on to new sell ahead

today is we to in and customers to is the immediately them message a but to buy U.S. new great sending actually order access eligible messaging, are a earlier RCS that who U.K., customers and a the to credits message it's to who available that already early Another they're pilot to testament that those already something not have for the premium to going purchased U.S. new the process U.K. flexible have for in channel. SMS where announced

how use the channel this see more well, talked credits support time channels we places something already can we flexible but country a flexibly also customer or use customers' more churn seeing of benefits channel renewal, fungibly able market, that the as in And go-to-market flexibility past in to think estimated a we've ability may new of the will the also is to less great And where speed channels to throughout we we've these bring wrong so expansion about as at way, both instances which from discussed over that year. and a particular lead the be to and then experienced we can these being side. up the and partial

think over our VP Sales helping our on for global the leadership We're actually standpoint. for the we go-to-market in And and began Sales Eric on our role those to that as of of really really the dock well of quarter leader Jerry our previously of stepped of Global us. hiring are for So new at XX.X when also the that as from elevation then the regional productivity transition the EMEA customer for in that promotion excited Sander fiscal years. our last Sales advances all that Americas. with of year, bring APAC of completes really at summer. sales friendly the December VP out into year beginning this of of Salesforce the SVP saw of we Sharen to VP the joined Sales a I great our used

ecosystem activate those -- as as see the roles really as just great framework we've strengthen to so all to organization. of leadership continued Braze And well great around the now of sales value we progress fully there's completed motion lot a continue to And higher been services better, have and able deal as It's been and to throughout. there's partner to that's agencies, more leading support our with partners, cycles outcomes leading coordinate be to more the earlier onboarding services into better to rates. of them bringing win

So see to starting go-to-market the these we're of fruit. motion, bear investment in really those excited dimensions and to see different

one go-to-market, of health that, us for Absolutely. ecosystem start-ups smaller part which the is an free update that ask maybe on company maybe give Braze for follow-up the specifically the small as trial of around And and on programs whole? companies? I'll as the a

Yes.

health around continuing the to the think see So we're SMB I metrics that sector.

they're -- challenges the the we've maintaining same that main seen throughout year. Our

reminder, did lower our as midway year. sales capacity category Just through in that last a we

And so progress to team we've a their happy be category there. has business while does productive, there and new been that It's been still sales definitely see of with challenged. our kind to continue

the free our well side, trial everyone as I'll On twofold. trial that is remind free goal

with to really a of we to the experience give them sandbox have participate around program don't is funnel sales all, world maybe of customers, the that the presence Braze particular, have geographies First in of in that top and are out a as and awareness might helping direct within in during those an trial those a cycles. to also start-ups that but a Braze enterprise be in able gate, just sales able opportunity being environment environment be to there right more or fulsome

product as And where by them we're Braze. we're places so and those those the on-ramp when of improving had is still both obviously, rough gated iterating cases. We're definitely out learning to that some going as very onboarding, in find early go we're used deliberate smoothing we and a working on have previously into seeing we been seeing edges progress and good

as area in we investments sales going that over for make continue with investment really We the our customer near existing team exciting more much a a us also -- term and us on to to base. obviously term product-led it's growth then a that to opportunity focus addressable are long larger customer big think unlock the productive allow

Citi. Next Radke question comes Tyler from with

talking are help the Obviously, Salesforce wondering you have talk just a this And about incumbent conversations in frame you rates if about Agentic-AI a you sort around just lot of talked about lot could competitive office know of I competitive I'm there evolve? think Project agenticAI [ you focus by Bill, win strong of time? you're over viewing a your of you or the force. [ Catalyst. the in did front agent ] office on how of sort customers hurt seeing out being front ] lot do the what in brave quarter. sort provider But takeaways kind role context? And

Yes.

huge focus sales there's there. agent just the we're lot think out and So force. And force obviously, to what what gate speak unpack on to that competitively, seeing a their to of I

generation out kind community terms now agency looking investment, in heads future customers, that the are Cloud Marketing they're new large in to and and that out to own they also of think particular, to Salesforce Marketing they've agency lot off consequence enterprise just around our really timed product ball Salesforce by orphan their ecosystem practices. work. I And to partnership agency of been by of of build for door own our that, that that's where ecosystem and of work taken realizing on both the clearly And support back on not businesses think picking up practices of is the relationships. existing a has but excited analyst need noticing. mature built great their and and And another the continuing us We're and that's well a opening eye that it's that Cloud. I there the their specifically, Salesforce that

previous seeing that to the in up to a pick start new ever that customers about and good of haven't them laggard been and is still kind heads excited we're evaluated at in who so the may their reason And or majority look modern that. This solutions. side Salesforce both giving late have

about excited competitive opportunity. we're So that

I think of noise we're to from a what market. an beginning out agent continues lot question, there's back go in to underlying perspective, definitely the and advance still broader with the in seeing space to extremely rapidly. technology The the the of your conversation

capabilities we therefore, I are approaches or so within Customer generative marketing seeing, a wide of kind and -- stack, also Engagement, within product implementing to think, within of array we're that think AI-backed delivery. a I testing

no machine fed think results world and I already to doesn't broadly advertising content Braze experiment something that the with that's marketing surprise interesting like engine GenAI an drive Meta's in new marketing that saw got operating, get awaiting and where that broader it. space, that, generative it's existing start seen was some really this eagerly industry content also variants the look production say across I of it's when massive a operate when to that into of And married system. third-party but, specifically learning where thinking optimization you I'm the we've is ad places much, as and have products, at to the it's first

And about and be Braze to integrated advanced then our platform and able think example understand that experimentation. AI access, terms and do foundations the we an been stack data Braze how think Braze optimization we in differentiated ability and that I around when as has the think we're of context then to able to about throughout the about real-time the data rapidly that and Canvas,

I foundations surrounding the think to continue And the advances capabilities think, where I state-of-the-art. new with that, is ingest the of Braze continues and we're to be extremely to right all in positioned take well investing. and advantage

Project are be all so like -- to the channel use run new things doing And the continuing for like investing time, as in have the same across able support the continues we're content industry. channels, capability leverage be things that to that time conversational context to obviously, provide to to these most capability like through able things language reasoning in upgrading like and the that optionality supported We better capability the or GenAI at within to of expand of to that continuing support Canvas channel the across options to better upgrade simultaneously things Catalyst. agented our cases native kind advance going Canvas to own anyone -- optimization

when across their exactly it's space. space, still moving the I broadly very bets to placing broadly, industry think so be that's across there's an And fast. anything one at about marketers where we consensus don't look near the

incumbent both environment. pre-existing I But and to that is able continue to leverage broadly bake into the also more advantages feel be canvas And Braze going to really our we look around and the of good that Salesforce both they admitting Adobe, step that the require purpose what community to Campaign Adobe's the effectively in period, we be able engagement the the during not space and ecosystem, in to kind ecosystem it's be strong products Salesforce with that for of and the against place we're part modern in that last Are to customer decade. at obviously a customer to when the better then Braze both Cloud. continue momentum Marketing opportunity Braze products as use do prior for advance platform about seeing in and had a They're had going transition that to partner great But fit cases. to the invest a They're the and for advantage definitely able more a build rebuild. that. for going they

QX and Isabelle, XX%, in Follow-up quarter, XX%, for in teens, as call from we guidance at the bookings suggests the you, billings, implied something XX% it, to, XX%. XX%, look reaccelerated both bookings the about they yet

to there rate any Or should for current So RPO timing run we can that benefits help us performance? the just that you guide of think QX? understand, in about relative bookings how was

Sure.

obviously year. in a actually this peak a that for plus annual QX year, dynamic that of in the low annual contracts volume trough in revenue year just contracts signed. billings of keep the a in of year, that and we occurred had of a we were a last the we actually So bit revenue. of of QX upfront there's mind had QX signed. last upfront change that's that, between And number, of terms bit of deferred QX this

a change revenue. year-over-year. year-over-year in will that of dynamic virtue that's And a deferred the revenue That so that lead in basis. by deferred acceleration just leads happening on to sort of

a reacceleration, more that's So so a into to terms in you're seeing to the encouraged more you're of not bit our ability But business, move bit of kind our upfront seeing to see dynamic the necessarily directly what that's customers contract. of continue that annual there. the the of to tied the evolution we're of although and .

comes question Scott next with from Needham. Our Berg

guess when remarks scripted in customers I earlier I trying you even new the those do new than trend customer seeing Braze kind Bill, to purchase differently [indiscernible] any they said focus customers? company, look with buying at something they you're embrace the that or you the [indiscernible] platform Just your existing wanted them to around to understand ? go on when of customers, a

Yes.

and those relationships prospects. able within be to of interact kind helping stronger our internally. education there's wealth means into obviously, are educate fronts, with of more key as we of Braze, us that those and context that our of all into velocity both sales stakeholders, sees to to Champion required someone customers to well it journeys product as as environment. provides or just It of understanding be well it and data team -- interconnections the at But more kind there of within navigate usually customers. customers, data the differentiate and helping as we on be both ecosystem first-party that our less think the means and have both optimize with to because the is thing interfaces I there's able more with existing greater content greater via that

decisions architectural architecture as as important technical that to be often from there's both And a flows made, well data and governance. need standpoint data

it customers which broadly that environment, we I the Braze of wouldn't that just meant take the isolate of order forged came to they as this advantage there data kind smoothly. new out way agility. approached tied experience. marketing it tighter automation at speed And be are in end It them -- get I've think was about working required lot need and those product that and buy as were preexisting I What there like to like more working a the skill difference up. helps what think of of having new been on within this was and few like that all in what driven. a goals Braze in something we're well specific space we buying things experimental. talking their that with, is of you in cadences so is sets gains that the experimentation more relationships were rapid a necessarily literally it that the call approach And was that into years, that new to going it definitely things the new to or was process. is I sales there a more and for But were were first-party It

start-up the the experts customer and the world that there, community years but no of and enterprise just marketing or out think the ones has down. experts over growing know consequence CMOs years. and They're the it's the customers strong I secret so And that the last knew has we that been They both all break and X of this customer of explicitly I of a within have organizations. because to barriers marketing I continues seen would called -- think, of growth eventually that educated There a lot turnover we broader our we around into marketing are put over lot investment front And been, a moving break through. community those the a that sphere. out it's all Braze ones also, so in we think across and across we ecosystem volume

or And so new new kind obviously teams been customers dislocation of has had through us regain difficult challenge executive we've for work marketers relationships. stakeholder a retrain to with that existing as of to

that, move where land some and them. as then with those we're they in the braces around people cases, other of bringing side, at seeing the they customers now the industry, But they're upside on new

transition strong in the value so there, there's and difficult a to the And a and it's is we strength while that that and go think through, customer community. great to the testament upside

growth for profitability Isabelle, in demand know fiscal [indiscernible] like in a we can this look non-GAAP [indiscernible] Or crossing you're Got kind were to to the you range [indiscernible] for the or But I guided over the in time? non-GAAP of and get you've you're we in you you fourth about further a obviously. do are versus quarter, ], operating margin you period your if And Very profitability the all helpful, getting and know ? that plateau the how growth remains it. see XX% of we quarter not margin at I expansion 'XX, start do [ chasm, thinking then Bill. in

Yes.

So thanks the question. for

laid if of Day years. back and Analyst the of framework we out to at that -- several purpose September, back that made framework the was that we to next the that go comments in that some for So be we the sustainable

quarters, think to income, And work kind the kind start conditions as we results our look so start I to we we of of next the and operating the of boundary we in would framework would about be guide the for way through the see non-GAAP operating year and you'll of for of income. out. that expansion growth, the To the laid within kind

the And We're at going relative of be going so terms costs. all we've to kind where profitability. balancing growth in I be or think of today for growth philosophically, nothing even been expectations always with to never our future has to changed

-- said I dollars investors. I've available said the reinvest am said business. able to I've to are this to analyst, being into employees. this this on back focused I've the very to We

on that And are actually we're visibility is to capacity path having and transparency disciplined leveraged possible. and so the that the potential kind we financial into ensuring reinvest the with very of ROI to highest

comes JPMorgan. [Operator Instructions] with Our next Pinjalim question from Bora

point? flushed trying renewals number? this of quarter, It way Any the single-digit it kind a through to a just you. understand Can the like when trough XXX% bit cohort a [ one had freezer stability to system. if does to go understand at in for ], Isabelle, you is the but of little cohort last seems of the

Yes.

X. post-ERP bit And current differentiation going [ few actually specifically years X-point dollar-based kind of the a but a of going we little relative is So at this differential forward identified not net this post-ERP Analyst quarter. cohorts, highlight forward, that's few the performance to Day, one a -- to of kind that I'm cohort in cohort encouraging the we that comprise improved ]. the guide retention look, going on indication And did between

post-ERP So the the we're cohort. continued of by evolution encouraged

the our And with last visibility public consistent approached transparency so the company we'll for X life. guide get -- we'll of give we've and how you years annual guys more

on look next visibility in expectations year. So revenue more for overall of March

comes William Arjun Blair. Bhatia from Our question next with

Perfect. Bill, one maybe you. for

to replacement discussing talking could overall relates look customers your sense cycle of plans accelerate prepared more stacks? the data you're strong to on spending AI couple your that remarks as next as think is a marketing -- marketing cycle focus Just budgets. year and their not environment the cloud further highlighted up-level what that warehouses for and times folks it I year, as first-party you've replacement the remains and data them with And with next to on why in

Yes.

as pipeline we've really we But prioritized off environment When start reminding look the in the enterprise takeaway last at sort not just the the we that discussed, that of, able we've about in course the last build in look we've over provided. broader guidance made cost everyone to been XX any we've haven't the of improvement to creation And of demand gains We months. that good I'll we're So expecting partnership -- forward ecosystem. the savings years seeing over on particular, years. the value and replacement opportunities that expansion. competitive comparative we over these XX have that landscape been at X are legacy case to have these cycles. feel catalyze over and of many harder of the we well, the couple also the as It's them progress businesses great last

to only the years forward up competition that, for robust XX these by looking to in years every And come come. we're a opportunities X to definition,

XX XX to and continue does that remain but due And to shifts so think we the Salesforce to going to in that in Adobe I the focus pieces the way that's a a their of that in both the difficult I at -- call, opportunities over think do particular the around favorable the continue highlighted and up platform moved board earlier those and it to have certainly excited months next environment. us, some show are shifts to

are year. I get going cut think worried budgets or that priorities going to are their their their quarters, going teams their to Their we've next to teams, that see or are for projects canceled fall are be consistent into know with next the last to what continued not few year. marketing they're stability. they

We're But things all that is at cetera, et that kind cetera, back business that new strong But great. of new acquisition expansions, strategies. We're orientation those growth of define a are pockets think, it signs we et and marketing their where not forward-leaning yet. growth across I across in regions, seeing teams posture. full of efforts, rotation overall looking that's a stability, and new seeing robust product into kind customer seeing

flexibility. more a so I'm be prepared broad amongst And an packaging our across back can posture much and we're standpoint pricing we're to improving and the product ecosystem a and competitive we just more and when as as trying marketing our teams -- of toward well making own robustness as from rotation as for sphere. that of business growth to up show progress

next operating where one our in we're foresight confident stability and year's in and for is that, guidance, into budgets year. something But improve -- having and Braze's we're this right demand that's being having position great going assuming next forecasting the that now, to in into we're through early in our that's -- our that not environment,

Derrick Wood Our next question TD Cohen. with comes from

upside Isabelle. to you, Quarter, I'll Great. very it guys you income. some operating large direct saw in

This quarter was of upside, the was last $XX about solid. but million million. like quarter $X With

and focus talk takes gross including So and the this flag would quarter what margins quarter? on were last variances Or the on margin maybe versus you about just of puts the some side? could investment you

Yes.

to on gross of uptake premium on side, headwind margin see the So the messaging channel. the continuing side, we're we're good continuing

continue to is ranges commit And happen, to with one last our years X been we of we've ongoing, that platform. to continues because last efficiency over the there several increased work improve several very and success to XX% recent So more come very, happening years. been in -- of and the that's the at and to to do that rounds the margin focused gross more to overall XX%. over being to And long-term with those there's performance able board. we've and continuing even seen across and to expand engineering most And on They're area. the that as do of initiatives kind that the team the expect

perspective, here. we So provided the gross over from expect and margin that to we operate the excited term the we're have continued trajectory, pretty range with a within long

in does customer-driven QX income, other of Forge event events, that quarter. and the On the occurred the the events operating impact have some

the seeing QX. and obviously, in being over under line the that's QX being then back line over profitability so back committed that we've And in QX, of of terms in volatility some dynamic to that it And with you're the beyond. in then

And that just seeing some of around you're the dynamic some that's specific is so the seasonality of events. to the

then it have the very as a to as and at relates process perspective business. capacity the then of and backfills And that most they disciplined to the sure the performance budgeting timing want makes so and sense -- the leaders hire that we're pace always make management for I the we to from

to can But to for find to what the bit little again, come is through very we those put in find to ways dollars I'm when on that results. close I of are extremely dynamic that head the intra-quarter, focused staying the through person in behind that has which adds to see may use. find capacity, have leaders sometimes budgeted very and are work good we seeing finance count you're that and process And -- what about a result some And we right going disciplined that.

UBS.. Our next question Taylor comes with McGinnis from

just for Maybe Isabelle you.

quarter about clarify, you see. XQ, seeing guys follow-up, that you think last NRR what through that the around are the in-period holiday as with like to NRR renewal still out maybe mentioned, the we biggest was as not degree similar the think walk are the was on customers I maybe it could and Obviously, to guess, But a are side, you'd to from us some and just about messaging so XXX% So in like puts your quarter good or there quarter. that? you It to rightsizing stability just hand, the of there it's that, on flip in that sounds and takes like the traction one and expanding volumes then

comfortable what the the behind So closer drivers demand near cautiousness what I to see need And get of to that one, guess, to some in the do are you bottom? we're term? environment the

the Yes. question. Thanks for

don't of in the or a cycle based directly to isn't even clarify So in related some NRR, I just kind necessarily because revenue play want cases, to near-term activity term, that things the utilization. to -- like we on messaging doesn't the short renewal

more it's prior and about ascended years. really to to the And so us that that upsell manage churn continuing continuing and to had bringing improve to motion back in in, we levels

the we that's more on downside success So then dealing push are churn upsell continued continued really management dynamic motion. the is on of that for with the both the and

Yun comes Our Loop next Capital. with Kim from question

ecosystem, a not I Bill, quick just with us global some update OEM opportunity other you ISVs just perhaps question. give system the can integrators, but with have on partner also out there?

Yes.

but we market. OEM direct some be do not part the We So to or there it's that of our a strategy to out around way go big continues sales. OEMs sales agreements, have

architectures got to lot as can But you product continue to full relationships, digital indirect when of got And points our the and ecosystem product these platform, around our will sales We takes we right across technical lot of. throughout teams the we've which of bigger are a rationalized using about got interconnection right great see more now, Braze aligned the the of advantage continues aligned. resellers but partnership efforts. integrations data integrations, expand time and partner that transformation many of examples that we've our community geographies. look tech new sure Braze We've motion at -- on got that Braze expand over partner making into we've

in to it cycles, more partners going involved rates. invest better know expansion having we're that renewal to of by leads that our deal to faster in. Braze. something and rates to that's better so, customers more And usage We deals continue leads and Entitlements heavily

a so that key through is our in. partnership it's right component strategy continue them sales And that a But part to we like of OEM portfolio not invest now. of heavily specifically,

comes from James. Brian question next Raymond Our with Peterson

stats content cards. and You activity healthy gave for on some in-app really

do what's via a any activity how or channels, the to sell upsell we there? think that higher we pushing those As of think about channel, cross perspective about balance volumes new

Yes.

I that have that cross-sell, it's and -- an in pricing think interesting there's interesting their the around that packaging that So there's way credits the supportive. bring impact And world. of both flexible the is to I optionality an super that strategies doing and which that we're will do, terms think and expanding across marketers

committed the that marketers I something Europe, you their U.S. able like or that for RCS want now looking LINE, but space them markets engage dominant deliver and messages. goals it anywhere accomplish you're in most So further has Japan are Braze channels launch very so the across are for expand effectively to now the you to their if and is that in key that straightforward really a with for to of running strategy, be Thailand. expand in And at the or really for to, to important using been global to then we where if messaging instance, think, is WhatsApp SMS messaging is world to across audiences WhatsApp Taiwan across

in to out to the of because try across set of for expand would with hope and global is them And and which before, potentially to renew. flexible new to cross-section committed cases, and in them cycles. It you that's as volumes or of new experiment across could that opportunity these to they channels to countries, new -- way purchase incremental you really these customers less they as churns have so a some the channels. would making in accurately down net the we way commercially buy them that channels expand the It a to choose But saw you And that led certain likely unused their Braze channels set channels flexible kind try new lead use of with earlier, a commitment and on make new was slowing if a then, cases, to able out weren't to them entitlements, as people SMS, channel. an they deal cases, was not would impact as wanted globally to also were alluded credit partial have giving forecast that I certain would volumes the different some to one, a to to consumption model to, strong.

new about there revenue, think And of about respect use better come speeds in how which this run. we when would mechanic long a expansion will more the think they're as it's to And takes deal you But little customer cycles, if have are net channel, to world. with headwind you on not a -- so also to a as bit ultimately, we're up away, across forced customer-friendlier, that new does moving into that expansion going it's before. versus and bookings But think that new net that a -- right think a overall, you some bit little some but helps with have of about we puts against we will be that do be it when it cases. that of -- out adopts customer

Our next question comes Scotiabank. from Nick Altmann with

new Awesome. around your about historically circle net quarter. of in you roughly fourth the how questions is I to wanted Thank talked ACV typically X/X booked to back bookings. Isabelle, you. Tyler's

any if that I so linearity this same whether was for provide, on just year? could And wondering you applies update

basically ZIP type -- be code This we're the that in of booked then within And is be to XX% is the from keep a Yes. mind similar linearity in quarter. that this quarter last in for year. to expected of a of is generally that, about month the going

is So that's largely that intact. think -- still dynamic I

comes with question next Fargo. from Wells Our Berg Michael

for I here. one Isabelle give want to

the and to Friday, the expansion showing Black interest in strength about some relative rate some period about X also compressing customers stranger poster Cyber Monday talked You the talking customers.

are we here? is interest coming shopping how rates thinking of reason And end rates of year? a how a the could period the as As and like spending rates coming customers down are new think to looks accelerate there holiday believe about strong out enter about meaningfully a next it back expansion come into we year season, down where their

Yes.

it, I of specifically Monday. e-commerce, us business. Friday, -- don't of X/X wouldn't kind at as there Remember, our for draw Black look to activity I retail, relates that Cyber of is, parallel exposure huge it necessarily a So around kind about call and

a on very So we're exposed global basis.

not largely lot First of of a specifically, phenomenon different and very U.S. retail also in a all, are industries seasonality there a and which tied e-commerce. companies to that is than are that

necessarily So for wouldn't interest I environment, rate directly upside And modulations material the that. related the are around look theme. these any to

going kind environment, I to we're to relative material not moves serve seeing think back there very of enough different.

Schwartz Our from Brian next comes Oppenheimer. question with

cycles of I earlier deal sizes orchestration this know of that you've it enhancements data are wanted is bigger. big maybe the of this cycles? in you And because that bookings Forge. announced all QX then and kind selling year It them? type either kind enhancements you like the anticipating ask it year, impact about or you that to question terms how you of sales announced of are of QX that from that much in thinking the just making this the in you doing and had you a for But specifically quarter some AI just I announced is sounds point. clearly, with seeing the Is season? changed product the you're about seeing -- follow-up, sales a more that company. hasn't at macro deals Is new at lot opportunities -- what Are them the product the driving biggest

Yes.

so of use innovation cases to in differentiated competitive customers. to out think and deliver RFPs far stand Braze the AI as be for impact as well on So new for the differentiation been able has existing I really helping biggest both customers

I our the a platform who for Canvas data well shown medium the the happy we've copycat near the and Salesforce an we the And and -- just primarily continue so, actually, been course ] there's I'd landscape, on startup we far against take with we've in the functionality. year. in up ability that's across been trajectory spoken up there, lot particular, that competitors able start-up to into on into across But these and Canvas been set same startup And on and over capabilities landscape competitors. just be advanced AI win competitive of side, we a long and term, our where the when not And this see have some a across Braze say, the follow investments I of set the this features to the about noise against it's the kind a we've fragmented the that's of of those we that our while Adobe and think, landscape think we've start-up all really feel different have because update see regional obviously strategy, rate more call. a building made been Braze the competitors margin, to so anywhere product win-win-win, to But mimic brace give and [ board. in look some really

so to And see. that's I been, think, great

supportive improvement year, throughout rates positioned I the environment and had start-up the feel there. well against that the been think that's in we competitive of we've win

sizes way terms think would the against that a of the and the hard backdrop of -- I of deal year-over-year. of have lot in be effects against things disentangle -- it in the environment, these demand changed the have happening such, deal product, to broader other that the cycles the been

into executing I pipeline also kind looking we but a with QX to heading that against We've pipeline that of that at won't think far. I expected pull been it. so And apart, try started QX, solid as so

rates with Braze win this of I differentiation to year. that see feel execute and Our we continue our throughout really ability big And part competitively that. to we've improvement in about AI a the enjoyed think is good

comes question Lane Parker next Stifel. with from Our

on the what a bit consolidation better last we to Bill, maybe out balance of right to takeaways? budgets more a or there get versus follow just little and replacement VC environment into the If demand start point one. vendor up unlock solution is legacy

course and businesses opportunities a in that new of being of lot that. are long-standing couple savings lot they're shift make prioritizing. and over I team that project course the total to a So of software expansionary create Braze think to maybe trying starts their years. the consolidation have door. owner cost of the lives that within of the to last smaller is more seen or posture seen over going easier a where just Salesforce Adobe are that of months, terms those a solution lot both had savings It's and go XX greenfield the shrunk, down been working usage major realizing motivated instances the goes and some a dynamics even great it that that being When of savings able they're enterprises of foot operational, we that execute a you in the question. use I point XX to on, take gears their think that We've to we relationships to ownership and to cost right? able Yes. with of that Braze in into you've last get resources or we've and now our their by the seen to more to over or posture, prioritization what team And by a the back motivated into grapple teams have these consolidating own

been build switch expansionary another, And just of associated footing from one many cost costs businesses. an And the that reduction, cost and us delaying potent customers time we've these to all the course change a prioritizing similarly, focused little That's very up XX it. a transition just of a been businesses hasn't robust year, hasn't are stead that that celebrated over XX and utilized over narrowly has ends first throughout crack they're then does paying [indiscernible] months desirable a value obviously for creation for for also with not the of kind a on been transition versus bit making to very there and motion of when platform X wholesale those have this enterprise because last motion being up that less them. in really to that

we Braze where going other them a that very at able to the base do over examples quarter, being in into to have convert certainly costs legacy of be so and Cloud we optimization conducive side to incurring is to businesses doing installed that able think customers. those expansionary those value wholesale that's again, great and Marketing more where are looking definitely us go which one each cost of of prioritizing we creation And capable and but just replacements, being environment of are more it, switching

Cole. Our question Austin from comes next

a earlier. reasons to asking dollar some is fundamental can that from the us retention -- has of much out different revenue maybe data as wanted simple to it? net this you on year. expected shows be And that Just remind for net research of just for a about the from pressure this you how kind the on think Gartner marketing in follow of up that percentage X% year to software. last pricing retention? questions a way of some Can us, than budgets remind way, are Is accurate less this total X% what point,

Yes.

this we dynamics little existing lot they're a as closer the buyers the in are a of on so that buying the drive their Buyers, new and upsell, about on So that dollar-based are net pressure or needs. we've past. think the any whether buyers to sort talked bit known retention, upselling about

levels come back buy them. And in so the moment, can later commit. if need they the months it's X X entitlements XX recognize volumes, that whether to of more they and But months, more well, their they months,

be to this inclusive the So for of commits is them. a going closer upsell are little pin to

future were rate environment X maybe so as means the the code in same people ZIP growth. buying be levels used that really upsells of where And for they to that of in the interest size aren't this

are -- have working there it's And that's their then element kind through And on some the the some customers element contracts. against you you. challenge that rightsizing churn of upside, of there's going still so of who where that are

they're a in they that into value didn't date. or that But So quite recognizing renewal had they contracts they're purchased maybe as grow prior be renewal and doing level a can't entitlements down and come for they size rightsizing. up traded that of to

driving that retention. net we got you've that that of dynamics so are simultaneously working those on And dollar-based kind pressures are X some the see of

That you. no pass are last question, in I remarks. it our to for queue. and Bill more now Thank closing questions the there will was back

everybody, We you Yes. and call and thanks, looking the joining forward and road for today. support, conference interest appreciate on your we're operator, to Thank soon. at continued or you, a seeing the