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

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And now I just mentioned earlier that Braze, I think, is uniquely positioned in our ecosystem to take full advantage of those types of developments because of the comprehensiveness of our touch points and the fact that we can just put our hands on data immediately when it’s generated because of the vertically integrated real-time data flow. And so that more complete picture puts us in an enviable position to be able to take advantage of new AI and ML developments. Now kind of getting specifically on the generative side, one of the near-term places I’m most excited about is using predictive targeting and other ML-driven orchestration intelligence which we already have in the platform and are certainly going to continue to develop more in the future.

to supercharge experimentation in particular, because one of the barriers to experimentation for marketers is the creative production side. how do you actually produce 6 interesting, relevant, different ways of communicating a similar message to someone or evoking the same — trying to encourage the same action. Pair that with things like image generation or video and it gets even harder. And so that’s where if we go back to my — the framework that I broke out in the beginning, all of those are the aid of a creative copilot. So whether that’s chat top helping with the equivalent of writers block or it’s doing the same thing for images and we expect that will come about for animated gifts and video production capabilities pretty soon. Those types of things are particularly important for our customers with smaller teams and less resources.

But I think it actually helps everyone move faster and more efficiently which helps raise not only differentiate by opening up new use cases through our real-time capability but it also augments the games which compound through experimentation. I think that the easier it is for customers to both produce multiple variants of strategies to test. And then we insert machine learning to help make that testing more effective compound those learnings and those gains together, you really enhance ROI. And so those are I hope that gives you an idea of kind of how we think about it and what that road map is going to look like. There’s definitely some unique aspects to braze with respect to being first-party data but also some really amazing advantages because of where we’re positioned in the stack.

Arjun Bhatia: Yes. That’s very helpful. And then I wanted to touch on just geographic priorities because — so you’re making this acquisition in Australia, New Zealand. You’ve launched the WhatsApp integration. I’d love to hear how you think that might help drive further international expansion because it is obviously a key channel that users abroad in Europe, LatAm, et cetera, used much more frequently than here in the States.

Bill Magnuson: Yes, absolutely. I mean you’ll all cite as well just as kind of foundational stat that 43% of our revenue comes from outside of the United States. And so as we know, Brace has a very global footprint and because of the nature of mobile and the app stores and such, especially in our early days, we’ve always been a very global company. In fact, actually our second largest office is in London. So I like to say that the geographic center of brass somewhere over the North Atlantic. And that global exposure and footprint is a particular reason why I’m most excited about WhatsApp within Braves, especially vis-a-vis lot of the competition that you see in the marketing tech space who, in general, you see a huge concentration in their SMS being in the United States. And so when we can take our differentiated WhatsApp capability and we can multiply that by our international footprint, I think it’s got a lot of exciting potential.

Operator: Our next question comes from Jake Titleman with Goldman Sachs.

Jake Titleman: It sounds like Braze is experiencing many of the same macro headwinds as other software companies but it would be good to get an update on the win rates you’re seeing. And maybe you can comment on how those win rates are trending with both larger and smaller customers, especially because we’ve heard that some of the smaller private players are really pulling the pricing lever to try and win new business.

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