Braze, Inc. (NASDAQ:BRZE) Q4 2024 Earnings Call Transcript

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We have a lot of competitors who are focused on things like email or SMS, which, doesn’t require any sort of integration into a code base, where you’re actually living inside of a product, and that means they don’t have preexisting relationships with the engineering and the product teams and that’s a really big goal for them to get over. Being able to do push based or broadcast based messaging and switch that to, you an individual customer opening up a product experience and needing to interactively load a personalized, feed inside their product, just very different demands on even on just, like, database, and being able to deliver that ability to personalize. And so, when we look at the competitive set and we see, any competitor that really grew up on a single channel or they grew up outside of the product or they grew up tied to a specific vertical over time.

We just know that there’s, you there’s some pretty big chasms that they’re going to have to get over, and they’re going to be even harder to cross because they painted themselves into corners that they don’t even realize right now. And so I think that Braze, chose to build a really diversified business. I’ve talked about all the dimensions of that across the customer base, but the same thing is true across our platform and channel set as well. And I’ll just reiterate that while I think that’s harder in the early days that it creates more opportunity in the long term, and we’re excited about what that means for our enduring differentiation.

D.J. Hynes: Yeah. I appreciate the color. Thank you.

Operator: We have time for one more question. The final question will come from Andrew Sherman with Cowen. Please unmute yourself and ask your question.

Andrew Sherman: Oh, great. Thanks. It’s Andrew on for Derek. Isabelle, did you talk about growth trends in MAUs, I think this is about half of the contract structure for customers. What are you seeing there from your larger customers? And if the consumer improves, can that be a growth driver for you over the next couple of quarters?

Isabelle Winkles: Yeah. So we don’t really tie our for future, sort of view of kind of economic performance to specifically to kind of the MAU. If you look at the MAU growth, actually, it’s been more slow than our overall revenue growth. So I know people sort of focus on this number. We generally try to kind of pull people away from it. What we’ve noticed in terms of just general buying patterns today versus kind of pre, when the market started to fall apart, people used to buy sort of for growth expectations, you’re seeing some of this play out actually in the dollar based net retention. People would buy, based on expectations of growth and just knowing that they would sort of grow into, what they had purchased. We are definitely seeing renewals and purchases come in more or in line with where they actually think they’re going to be using in the near term, and then they will upsell over time as the growth, warrants it.

So, maybe you’re seeing some of that in the monthly active user. We are very happy with the overall performance of business, but not really overly scrutinizing, the monthly evolution or the quarterly evolution of the MAU.

Andrew Sherman: Thank you.

Operator: I will now pass the call back to Bill for closing remarks.

Bill Magnuson: Thank you, operator. And I just want to thank everyone for joining the call today. We appreciate your continued support and are looking forward to seeing you at a conference around the road soon.

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