Braze, Inc. has recently released its 10-Q report, showcasing its performance and financials for the period. Braze operates as a customer engagement platform, providing software development kits, REST APIs, partner data integrations, and personalization products. The company primarily generates revenue from the sale of subscriptions to customers for the use of its platform and professional services. Braze boasts a significant customer base, with 2,211 customers across various industries as of October 31, 2024.
In the reported period, Braze demonstrated substantial growth, with revenue of $152.1 million in the three months ended October 31, 2024, and $433.0 million in the nine months ended October 31, 2024. However, the company also reported net losses of $28.1 million and $87.0 million in the three months and nine months ended October 31, 2024, respectively. Notably, Braze had net cash provided by operating activities of $19.6 million in the nine months ended October 31, 2024, and Non-GAAP free cash flow of $4.4 million in the same period.
Braze's growth strategy revolves around acquiring new customers, expanding within its existing customer base, expanding geographically, and sustaining innovation and technology leadership. The company aims to continue growing its customer base in various industries and to increase its presence in international markets. Braze also emphasizes the importance of sustaining innovation and technology leadership to maintain its competitive advantage.
The company's dollar-based net retention rate for the trailing 12 months ended October 31, 2024, was 113% for all customers and 116% for customers with ARR of $500,000 or more. Additionally, approximately 45% of Braze's revenue for the nine months ended October 31, 2024, was generated outside of the United States, indicating the company's international presence and growth potential.
Despite its growth, Braze acknowledges the potential impact of unfavorable macroeconomic conditions on its business. The company highlights the significance of general macroeconomic and socioeconomic conditions, such as instability in the banking and financial services sector, international and domestic supply chain risks, and inflationary pressure, in potentially affecting its results of operations, financial condition, and liquidity.
Following these announcements, the company's shares moved -2.8%, and are now trading at a price of $40.65. If you want to know more, read the company's complete 10-Q report here.
