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

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And so, marketers are able to confidently say like, oh, yes, I know how to send push notifications in Braze. I can also send SMS. I can also send WhatsApp. I know how to deliver in-app messages within Braze. I can expand that on my website. I can add it to my inbox. I can start to run surveys. There’s just a lot that we’ve done to smooth the on-ramp and that expansion ramp both for new customers to come in and feel confident that they can pull together four or five prior vendors and run all those use cases through Braze, as well as maybe someone that only started with one or two channels in Braze, then systematically going through the rest of their ecosystem and really having that Braze be the center of gravity around all of their customer engagement use cases.

And so that’s something that we continue to see happening over time and that has been the consistent pressure. I think the macro has probably caused people to really go and scrutinize some of the decisions they made in the past to kind of blow out a number of different point solutions, when they maybe didn’t have as much scrutiny on the purchasing. And then similarly, another important thing that’s happening is just more collaboration across these teams. And so I mentioned that earlier about thinking about marketing and product and data teams and so, there are certain product use cases that you may have bought either a different vendor for, like our launch of Feature Flags that we had last fall, or maybe you look at something like simple surveying where someone would have bought a different product.

Also within the marketing organization, the same pressure exists. So there’s — there previously hadn’t been a ton of collaboration between the performance marketing teams and the customer engagement teams. As you start to see first-party datasets becoming more important for performance marketing strategies, you’ve got more collaboration happening between those teams. And that means that you’ve got things like our Audience Syncing, which started out with Facebook and Google, Audience Manager integrations, a couple of years ago when we launched that, we’ve since expanded into a whole bunch of other ad networks, looking at places like TikTok and Pinterest and LinkedIn, and what have you. And that actually is now creating a reason for more teams to collaborate with each other within the Braze environment and that continues to support the vendor consolidation drive because more use cases are coming into Braze.

And so, I think that it’s at a — we’re noticing more of it. A big part of that is because of the rapid development velocity of the product. Another part is the macro and then you’ve got that longer-term process happening with just greater collaboration amongst these different groups.

Brian Peterson: Thanks, Bill.

Bill Magnuson: Yes.

Operator: Our next question will come from D.J. Hynes with Canaccord.

D.J. Hynes: Hi, guys. Bill, maybe you could talk a little bit about what you’re seeing in terms of adoption of cloud data ingestion. And then, for the customers that turn that capability on, what are you seeing in terms of signs that maybe A, they’re spending more with Braze, or B, yielding better results? Any color there would be helpful.

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