The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: David E. Hynes - Canaccord Genuity Corp., Research Division - Analyst
: Bill, I'm not sure this is a fair question, I'm going to ask it anyways. Is there a way to parse out marketing use cases for Braze versus more customer
engagement use cases? And the reason I asked, look, I think some investors look at marketing spend as more of a discretionary category, whereas
engaging with your existing customers may be more resilient. Just would love to get some color on kind of where you think you fall in that spectrum.
Question: David E. Hynes - Canaccord Genuity Corp., Research Division - Analyst
: Yes. Super helpful color. I appreciate that. Isabelle, maybe a quick follow-up for you. Just look, we heard your comments around kind of continued
to press forward with the investment agenda this year. I mean I think investors have made it pretty clear they're kind of more interested in balanced
growth and profits in a risk off environment. Obviously I understand kind of you can't sacrifice what's best for the business to appease the capital
markets. But I just want to -- any update on kind of how you're thinking about things going forward. I mean have you raised the return threshold
for your investment agenda? Like how are you thinking about kind of balancing -- threading that needle, if you will, what is still a fairly high loss
business?
Question: Gabriela Borges - Goldman Sachs Group, Inc., Research Division - Analyst
: Congrats on the quarter. Bill or Isabelle, I was hoping you could comment a little bit on the pipeline. And any nuance on what you're seeing between
mid-market enterprise, U.S. versus rest of world or from an end market standpoint?
Question: Gabriela Borges - Goldman Sachs Group, Inc., Research Division - Analyst
: Great. And the follow-up is on unit economics. And your commentary just now on focusing on LTV to CAC and unit economics for the business.
What we're noticing is that even with the acceleration in sales and marketing spending over the last year, your LTV CAC by our calculation is holding
pretty steady. So Isabelle, maybe you can comment a little bit on the productivity that you're seeing in the sales force, any nuance between folks
who have been with Braze longer versus folks that are ramping?
Question: Pinjalim Bora - JPMorgan Chase & Co, Research Division - Analyst
: Congrats on a very strong quarter. I wanted to ask you a high-level question, Bill. On community, I'm starting to see people flaunt Braze-certified
marketer badges on LinkedIn. It seems like you are doubling down on the community with Braze for Success with the learning portal. What remains
to be done at this point in time to kind of make the path of people starting to build careers on Braze as the default platform for customer engagement?
And in the last year, are you kind of starting to hear a bigger drumbeat of people starting to do so kind of spreading the brand recognition more
broadly?
Question: Pinjalim Bora - JPMorgan Chase & Co, Research Division - Analyst
: That's great to hear. One follow-up, Isabelle. I was looking at the billings growth, which is super strong. And then I'm looking at the RPO growth,
which kind of a little bit decelerated. I wanted to clarify, I think you said contract lengths were approximately 24 months. I think last quarter, you
said it was slightly above 24 months. Was contract length -- was that a slight headwind to RPO in Q1?
Question: Arjun Rohit Bhatia - William Blair & Company L.L.C., Research Division - Analyst
: Perfect. And I'll add my congrats on a great quarter. Bill, it seems like, obviously, customers are spending more with Braze. You're seeing larger deal
sizes as customers realize the importance of this customer-led growth in first-party data. I'm curious, when you see customers spend more with
Braze, what are you noticing about where they're reallocating those dollars from? Is that -- are you seeing a consolidation trend where vendors are
-- other vendors are maybe getting displaced? Is it advertising dollars? Just curious what dynamics you're seeing in terms of budget reallocations.
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