Bill Magnuson: Yes. I would broadly characterize it as being consistent with the caveat that it’s conceptually consistent because obviously, the product continues to expand in net new ways, and we are seeing customers continue to adopt those. So for instance, has had a really high attach rate for a long time. It sounds like data sharing has gotten more capability. We’re seeing more customers adopt that. But conceptually, those are very similar products in the sense that they help customers with their data export pipelines. We also are seeing people add incremental capability through things like product Catalogs or Audience Sync or the Predictive Suite. These are net new, but they kind of follow this trend line of customers continuing to deploy new use cases on Braze.
And so I think that the drivers of it, which are how do we expand into new use cases, how do we over channels that are currently being run by other vendors? We talk about that for new business in terms of vendor consolidation, but that vendor consolidation trend obviously exists once a person is already a Braze customer as well as we supplant other vendors that might still have them in their ecosystem when we first got going with them. And then things like WhatsApp are net new for everyone. And so those are great places where we see a lot of greenfield. We don’t need to go in and replace a legacy vendor. And especially as we get the early proof points like the case study that I referenced with Rappi early on, we can bring to life the ROI and the business case for more customers to be able to expand into those.
And that’s very exciting. But conceptually, that’s similar to how we’ve gone to market with SMS over the last years too. And so I think at a high level, we’re able to exercise muscles that we’re getting more and more familiar with over time, as we go through cross-sell and upsell. And the number of opportunities that we have to expand within our product surface area continue to multiply it as our R&D innovation continues at the rapid pace that it’s at. I would say that it’s all tempered by this — by the flat or declining budgets that a lot of marketers went through this year. But I’d like to think that we’re also generating some pent-up demand that when we start to see those budget levers loosen a little bit at whatever point in the future that we’ll be ready to sell into those.
Operator: We have time for one more question. The final question will come from Yun Kim with Loop Capital.
Yun Kim: I’ll make just a quick one, Bill. As you roll out more generative AI-based products and solutions, how are you thinking about pricing model around those products? As you can see from a couple of large high-profile vendors, they’re putting premium on their general Gen-AI products? And then maybe Isabelle can talk about the cost side of the equation on these products?
Bill Magnuson: Yes. So I think that a lot of the Gen-AI work that we’re doing to help with customer productivity or with marketer productivity, we’re not looking to keep those amazing tools out of the hands of marketers, because we know that they lead to higher usage of Braze. And we’re able to monetize them in that way, and I spoke about that earlier. If we’re helping a marketer deploy more variants more quickly to help them check their copywriting or generate or inspire themselves to have new content strategies, if we’re helping them be able to use a more technical capability through code generation or other sorts of scheme syntax checking. These are all things that really encourage uses of Braze that we already monetized on our own.
And so we’re not looking necessarily for those aspects of Gen-AI that help the productivity of the marketer be monetized independently. But there are other aspects that incorporate in LMs or other sorts of transformer models. I mentioned the personal — or the recommendation engine earlier, the things like the Predictive Suite and other aspects of automated decision-making that will get deployed into both, our classification layer and your orchestration layer, that we think there’s both, an appetite to pay more for those or an expectation based off of other investments that have been made. And they just produce a tremendous amount of value in terms of improved ROI and improved results for marketers. And so I think we’re going to continue to take a hybrid approach across those, and we’re going to look for them to all — really feed each other in mutually self-reinforcing ways, but we always have the tremendous advantage of being able to build based off of the monthly active user, based off of the message volumes.
And to the extent that we incorporate more value into value generation into each monthly active user, that gives us more pricing power within that. And you’ve actually seen this for several years now where our revenue growth rate has outpaced our monthly active user growth rate for quite a while. A big part of that is because we continue to add more productivity for marketers that use Braze. And then they’re able to extract more ROI out of the platform. And we’re able to capture that very smoothly through monthly active user pricing.
Isabelle Winkles: And the only thing I would say on the cost side is, I do not expect — and I talked about this a little bit earlier in the Q&A., don’t expect the impact of AI to sort of be margin dilutive. So we are continuing to remain within our long-term margin targets of 67% to 72%. And embedding the AI functionality and that cost structure, we don’t break out the individual components but don’t look for that to be margin dilutive.
Operator: This concludes the Q&A. I will now pass the call back to Bill for closing remarks.
Bill Magnuson: I just want to thank everybody for joining the call today. We appreciate your continued support and look forward to seeing you at a conference or on the road soon or for the next earnings call in about three months.
