Braze, Inc. (NASDAQ:BRZE) Q1 2024 Earnings Call Transcript

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Bill Magnuson: Yes. So when I look at this and look at the places where Braze’s underlying foundation is supportive of us, continuing to take on more enterprise workloads and expand into new personas over time, it kind of models the — or it parallels the same structure as I spoke about in the enduring differentiation that’s going to drive forward our AI advantage. When you kind of break down Braze into these three parts, one of them is our comprehensive vertically integrated real-time data flow. The next one is the event-driven stream processor that gives a real-time kind of runtime and execution engine. And then you have experimentation and programmability through Canvas. And you saw just recently, we had a big productivity release, which was really focused on bringing more and more people into the Canvas environment, enabling it to be used for more use cases.

And I think that when you extrapolate that forward, you see this future vision for Braze that really provides this real-time compute engine that lives in the flow of data being generated by customers through first party data as well as just other sorts of enterprise workflows. And provides the business user, the ability to not just kind of define these workloads in Braze but actually optimize and experiment with them over time. And so I’m not going to extrapolate exactly which markets we’re planning on going into in the future through that, but when I look at the foundations that we have from a technical perspective and the early success that we’ve had, bringing these into the products here, bringing them into the data science and data engineering world, in addition to continuing to expand and break down the silos that exist within marketing teams, I think we have a proven ability already to bring disparate set of personas into the Braze environment really kind of create a home for them and produce value and encouraged collaboration amongst them as they bring more and more workloads into ultimately Canvas.

And so as we continue to capture more of those, I think we see more scale. There is more of a center of gravity coming in because the data flow is all in that one place. People get comfortable turning more moments of their brand promise, their product journey, their — whether it — maybe it’s their data governance or the way the data move through their organization and gets analyzed, the ways that they optimize, the data insights with AI and ML investments over time, those are all new personas that are coming in and ultimately moving those workloads to be executed by our stream processor and defined by the Canvas engine and that just creates tremendous potential and optionality for us in the future.

Gabriela Borges: Sounds good. Thanks for the detail.

Bill Magnuson: Absolutely.

Operator: And our next question comes from Taylor McGinnis, UBS.

Taylor McGinnis: Yes, hi, thanks so much for taking my question. I wanted to touch on the 2Q revenue guidance strength. So if we normalize 1Q and 2Q quarter-over-quarter growth for the two less days in the first quarter as well as North Star, it looks like at the high end of the 2Q organic guide, a sequential growth that is only a point below what we saw in 1Q. So the guide seems to apply some potential reversal of the decelerating sequential growth that we’ve seen. So can you just touch on what you saw in the quarter as well as what you’re seeing in the demand environment today that’s driving or giving you comfort in the outlook?

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