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: Gabriela Borges - Goldman Sachs Group, Inc., Research Division - Analyst
: Congrats on the quarter and the IPO. Bill, I'm hoping you can help us talk through some of the competitive noise on other companies that make
claims on real-time marketing. We'd love to hear a little bit on what feedback you get on where Braze stands out when you can compete on bake-offs
and when maybe the competitors fall short? And then vice versa, in any scenario where you don't want a bake-off, curious what that feedback
looks like.
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DECEMBER 20, 2021 / 10:00PM, BRZE.OQ - Q3 2022 Braze Inc Earnings Call
Question: Gabriela Borges - Goldman Sachs Group, Inc., Research Division - Analyst
: I appreciate that color. One follow-up for Isabelle. Would love to get a little bit of color on your priorities for sales and marketing investment as we
go into the new year and maybe a little bit of commentary on how we should typically expect new productivity to ramp and what that ramp
typically looks like for new folks that join the team.
Question: Arjun Rohit Bhatia - William Blair & Company L.L.C., Research Division - Analyst
: Perfect. And I'll add my congrats on a great quarter out of the gate here. One thing I noticed in the metrics, it seems like new customer growth has
just been incredibly robust this year and we had another quarter -- another record this quarter, rather, of net new customers. I'm just curious. Where
are you seeing these customers coming from? Is it a lot of the legacy vendors, the batch processing, marketing clouds that these customers are
migrating from? And would you maybe attribute this to execution? Or is it just the beginning of the market moving in your direction more and
more with the data capabilities, mobile, et cetera, that we've talked about?
Question: Arjun Rohit Bhatia - William Blair & Company L.L.C., Research Division - Analyst
: Perfect. That's very helpful. And then Isabelle, one more on gross margins, if I can. I know you mentioned a handful of items that drove gross margins
up this quarter. But as we look into next year and beyond, what kind of -- how should we think about maybe just the benefit that is long-lasting
from some of the efficiencies and scale improvements that you mentioned versus those that may be fluctuating from quarter-to-quarter like volume
and seasonality?
Question: Arjun Rohit Bhatia - William Blair & Company L.L.C., Research Division - Analyst
: Congrats again.
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DECEMBER 20, 2021 / 10:00PM, BRZE.OQ - Q3 2022 Braze Inc Earnings Call
Question: David E. Hynes - Canaccord Genuity Corp., Research Division - Analyst
: Congrats on a great start here. I'll keep it to one. And actually, I'm going to go to Isabelle. So Isabelle, I'm sure everyone's going to do the calculated
billings math and see the really strong results, right? I think it was 70% growth if our math is right. As you know, right or wrong, investors are going
to use that as a proxy for bookings growth, right? The other metric they're going to look at is RPO or CRPO. And I know we're going to get a
year-over-year growth rate for RPO for the first time next quarter. I just want to get ahead of any surprises with that metric. Is billings growth in the
right ballpark range for what RPO growth might look like? Or is there anything we should be thinking about that drives the divergence there?
Question: David E. Hynes - Canaccord Genuity Corp., Research Division - Analyst
: Okay. Got it. So when we -- CRPO growth next quarter, don't be surprised if it's a little bit lower because it won't benefit from that -- the invoicing
benefit you're seeing now from the upfront. Is that the right way to interpret it?
Question: David E. Hynes - Canaccord Genuity Corp., Research Division - Analyst
: Yes. Very helpful. Okay. Congrats.
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