Braze Inc at Citi Global TMT Conference Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Tyler Radke - Citi - Analyst : Yeah. Great overview. And maybe before we get into the details of sort of the business momentum on the results, just sort of a high-level question, as you think about where we are on that journey in terms of brands having that first-party relationship with customers, I guess how far do you think we are in that journey? And I guess in some ways an example of driving a car off the dealer's lot. That might be the only time you interact with them. At the same time, consumers are inundated with notifications from kind of chatting or spamming apps. So if you have how do you sort of see this moving forward, but we're in that cycle? And how do you kind of find that?

Question: Tyler Radke - Citi - Analyst : Yeah, that's a really fascinating vision that I did want to sort of how you think about Gen-AI tying into all that because on one hand, obviously, we're talking about lots of data. The first-party data is going to be used perhaps to be training some of these models, like you view Gen-AI as sort of an accelerant or a tailwind to kind of this vision that you laid out, help us understand and what you're seeing just from a demand perspective? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 06, 2024 / 1:10PM, BRZE.OQ - Braze Inc at Citi Global TMT Conference

Question: Tyler Radke - Citi - Analyst : Yeah. So that one seems like you have a neighbor of sort of Gen-AI, but also sort of a downstream beneficiary if you see more volumes and more?

Question: Tyler Radke - Citi - Analyst : Great, maybe translating all the great momentum and great trends into what you're seeing in the most recent quarter. And we will bring in about a year to give us sort of the here too. Give us sort of a quick synopsis on how this recent quarter played out. Obviously, the context of a lot of front office software companies, it's choppy. We have seen several companies talk about worsening trends in Q2 and elevated churn and everything. I think Braze seems to be outperforming some of the smaller companies that have called those challenges. So give us a sense on sort of what you're seeing out there in the market.

Question: Tyler Radke - Citi - Analyst : And on some of those sales initiatives, you talked about productivity enhancements. Maybe just walk us through what you're doing and kind of what you need to see to be able to say, run on the other side? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 06, 2024 / 1:10PM, BRZE.OQ - Braze Inc at Citi Global TMT Conference

Question: Tyler Radke - Citi - Analyst : Yeah. So one of the points you made just around the credit model seem very logical in terms of reducing friction materials that you feel good about where we are in terms of the rollout. And is that something you expect the majority of your customers to move to over time?

Question: Tyler Radke - Citi - Analyst : Yeah. Have you noticed any changes in customer behavior that, hey, now that it's more fungible, I have no problem buying more because I can use SMS credit for WhatsApp or --

Question: Tyler Radke - Citi - Analyst : Yeah. If you think about the second half of the year last night, you raised the full-year guidance, I think $0.5 million more than the beat in the quarter. So effectively kind of passing through the, maybe slightly more talk to us how you're seeing the pipeline sheet shape up, obviously that elections this year, maybe a little bit more macro uncertainty versus this time a year ago, what assumptions what type of conservatism are you applying to that pipeline? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 06, 2024 / 1:10PM, BRZE.OQ - Braze Inc at Citi Global TMT Conference

Question: Tyler Radke - Citi - Analyst : And as you think about the contributions from new logos, we talked a minute ago about the new free trials and as the Braze for start-ups plan that you've talked about on the earnings call, where do you sort of aspire to get that new logo contribution back to in terms of growth? And is this Braze for start-ups? Is that sort of helping drive that?

Question: Tyler Radke - Citi - Analyst : Okay. But earlier, you talked about some improvements in win rates and I wanted to double-click on that for a moment. And I think you -- we've been hearing more and more displacements of legacy marketing clouds, including salesforce. But at the same time, one of the big themes we've heard at this conference. We had some big companies like Microsoft ServiceNow yesterday. This topic of vendor consolidation. So on one hand, you are larger than many of your smaller competitors in the marketing space, but there are certainly companies bigger than you or how do you sort of see that vendor consolidation theme and where were they specifically? Are you seeing this uptick in win rates?

Question: Tyler Radke - Citi - Analyst : I'd be remiss if we didn't talk about margins. So a little bit as though I think this quarter was a couple of positive surprises on the margins, both gross margins picked up nicely sequentially and year over year, and operating margins were a lot better. All the exciting stuff that you've been talking about I think may sometimes get the complexity of managing the costs also may sometimes get overlooked, I mean, when you're talking about tokens and then just this really complex orchestration layer gives us a sense for some of the efficiencies that are underway, how are we able to deliver kind of the upside performance, we saw this last question? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 06, 2024 / 1:10PM, BRZE.OQ - Braze Inc at Citi Global TMT Conference

Question: Tyler Radke - Citi - Analyst : Right. Well, I think that only got through about a third of the questions because this was such an insightful discussion, but we are out of time Bill and Isabelle thank you very much for being here the day after you reported earnings. And thanks, everyone, for coming to the presentation.