Braze, Inc. (NASDAQ:BRZE) Q4 2023 Earnings Call Transcript

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we’re not going to try to build 100 cloud data ingestion connectors or anything like that because we’re tightly integrated also with Reverse ETL and CDP partners. And so once we have cover bases with some of these more popular data warehousing solutions, we then will switch to refocusing on tightening the vertical integration into brave with those partners as well as with our own cloud data injection products.

Operator: And our next question comes from Yun Kim with Loop Capital.

Yun Kim: With the new year, anything you were changing in your go-to-market motion to better — to show better execution or adjust your execution in the current environment. any changes that you’re making? And then also any particular focus this year in your SKL.

Bill Magnuson: Yes, we’ve been really happy with the investments we’ve been making across go-to-market strategy operations as well as across all the field teams. There’s been a lot of moving parts from the summer through November and we spoke about those in the last couple of earnings calls. And so not a lot of big changes being made as we enter the new year because we were really preparing for this year already in advance. I’ll say that the programs have been running really well. Our annual kickoff in early February, we executed on that right away as we started our new fiscal year and it was super productive, great feedback across the board. And also, one of the benefits of the net new hiring slowdown is that it’s taken a little bit of pressure off the system and we’ve been able to focus on enabling a group with increasing average tenure.

And so that’s been giving us a lot of — just a lot of optionality to focus in on more advanced optics and we’ve been happy with how those investments have been going.

Yun Kim: Okay, great. And then if you can give us an update on the traction with the partners how is that progressing, especially in the current environment? Has the recent look like partnership and what that integration have those been a key driver driving incremental traction with CSI, for instance?

Bill Magnuson: Yes. So I mean, I’ll obviously point to the announcement that we made about the partnership with WPP yesterday. We’re really excited about that and think it has a lot of potential in the future, both from consolidated product development standpoint as well as coordinated go-to-market activity. We’re also continuing to make great progress with the global systems integrators like Accenture and Deloitte. And then you referenced a few technology partners that have been really important as we’ve been doing co-development, like with cloud data ingestion with Snowflake and obviously the launch of WhatsApp with Meta. And so these are all places where we’re leveraging and taking advantage of partnerships — and I would just connect all of that back to the commentary that I made early on in the call where qualitatively, I’m really excited about all of these things that are happening, they’re enhancing our position.

We’re taking advantage of this opportunity to really go and cement really strong partnerships around our ecosystem. We’re backing it up with investment that we’re making, both from a product perspective as well on the go-to-market side. Quantitatively, obviously, the macro is impacting everyone. And so we don’t think that those partnerships are operating at their full potential right now from an overall dollars perspective. But what we’re doing is building out the qualitative aspects of them that are going to provide the right foundation such that when the macro improves later on that we’re going to be ready to really accelerate in partnership with all of them.

Operator: And our next question comes from Matt Benett with BTIG.

Unidentified Analyst: I guess, Isabelle you mentioned in the guide you’re essentially assuming no major improvements to sales productivity. Although with the pause and hiring and what Bill was talking about with the extended tenure of the sales team, I think that was sort of the assumption for most of us at least that sales productivity will continue to improve throughout the year. So maybe just help us think about what’s giving you the pause or at least the level of conservatism on that front? And anything that you can share kind of influencing that, that we might watch to see if you’re outperforming.

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