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

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Isabelle Winkles: Yes, thanks for the question. So the 2Q guide excluding North Star, so excluding that $1 million, it does imply a little bit of a sequential reversion. But that is very seasonal. So remember, Q1, it’s not two fewer days, it’s actually three fewer days. And so that will then reverse in Q2 when we get the full 92 days in the quarter versus 89, so a part of that is seasonal. But we — there is definitely some — we’re not necessarily seeing business — material business re-acceleration, we are, of course, continuing to apply the same philosophical risk adjustment going forward. But you’re seeing the seasonal difference between Q2 and Q1 there.

Taylor McGinnis: Awesome. Thanks so much for answering my question.

Operator: Next question will be from Michael Berg, Wells Fargo.

Michael Berg: Hi, congrats on the quarter, and thanks for taking my question. I want to piggyback off of Gabriela’s question on consolidation and competition. Maybe you can help us understand better, what’s driving that currently in the near term. I think you guys announced you’re going to have your resolution — features are coming out soon and I think about that plus your data cloud ingestion capabilities, it seems like that may replace CDP, just as an example. So maybe you could help walk us through that dynamic. Thank you.

Bill Magnuson: Yes, I mean, I think all these things work together. So first, you continue to see expansion of our channel options which I’ve also referred to as kind of the outputs from the decision-making. And so as we’ve added WhatsApp in recent quarters, we continued to expand our audience network integrations, as we continued to increase the flexibility of — in messages to include more robust surveys and other sorts of capture forms, and just kind of continue to march ahead the integration points and the number of touch points that our customers can manage through Braze. You’ll see the point solutions continue to consolidate in. Then, when you look from a data perspective, I think that — what we’re trying to really accomplish is to make sure that people can get data into Braze quickly and that over time the operational burden of keeping that data flowing into the platform was lessened.

And so, we definitely are going to continue to stay partnered with CDPm with Reverse ETL vendors and with the data warehouses, because those are all augmentation on top of the direct integrations into the products that our customers have. But our entire data picture is more than just making sure the inputs are coming in. We’re also doing more from a data transformation and a data governance perspective and we’re making it so that more of the operational data ingestion pipelines, if you will, is actually — we’re taking responsibility for that include — inside of Braze so that when a marketer deploys Braze, they can go to their development team or their data engineering team at the integration point and they can have them help them set up the pipelines, but they don’t — those data teams then don’t have the ongoing operational burden of babysitting them forever.

We think that that actually improves the working relationship between marketers and between those data and engineering teams over time. It creates more organizational desire to actually move more and more use cases into Braze because it’s a place that’s delivering, not just the ROI through the capability, but it’s doing so in a way that streamlined and operationally efficient. And then, of course, as you continue to move more use cases into place like Canvas and I mentioned this in response to Gabriela’s more forward-looking question around what do we see in terms of the future workloads and the future personas that Braze can be executing on, we already see in our customer base, a lot of people leveraging the flexibility of Canvas to be kind of general purpose computation and to be able to do things like data transformations inside of Canvas, to be able to deliver products and aspects of the product experience through our flexible webhooks and the other logic that exist within it.

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