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: Pinjalim Bora - JPMorgan Chase & Co, Research Division - Analyst
: This is Pinjalim in for Mark. Congrats on the strong quarter. I wanted to ask you just a high level, what is driving the strength overall? I mean if you
think about it, I mean, your billings growth is -- seems really strong on top of a very tough comp. So I mean is it the IPO kind of putting a spotlight
on Braze? Or is this just awareness of the category? Or is this kind of tailwind from the first-party data that you guys have versus -- depending on
cookies for others, maybe? Can you help us understand what's at a high level driving the strength in the business?
Question: Pinjalim Bora - JPMorgan Chase & Co, Research Division - Analyst
: Yes. Understood. Okay. And Isabelle, just a follow-up. Any way to unpack kind of the net retention -- the dollar-based net retention strength? I think
you said renewals were strong. I'm assuming you're talking about gross dollar retention. With that uptick and within expansions, is there any 1 or
2 major drivers that you're seeing jumping out?
Question: Gabriela Borges - Goldman Sachs Group, Inc., Research Division - Analyst
: Bill and Isabelle, on the commentary on appropriate risk adjustments in the guidance, how do you think about the potential risk of a macro slowdown
leading to less investment in marketing software? And how sensitive do you think your business might be to pull back in marketing software spend
or real-time campaign? And then if you could just remind us how much exposure you have to Europe and if there are any indicators of the slowdown
in marketing software spend in Europe specifically.
Question: Gabriela Borges - Goldman Sachs Group, Inc., Research Division - Analyst
: That's really helpful detail. And a follow-up, though, is on your commentary on the next normal. We understand that a portion of that model is
based on pricing via monthly active users. And so maybe talk just about categories like e-commerce quick service restaurants saw a really nice
acceleration during COVID. Are you seeing any signs of mean reversion or a slowdown in monthly active users in those particular category?
Question: Arjun Rohit Bhatia - William Blair & Company L.L.C., Research Division - Analyst
: Perfect. And I'll add my congrats on the quarter. Bill, maybe if I can actually follow up on that last point on the commerce investments you made.
Obviously, very interesting. But I'm curious how you think about the opportunity to verticalize for other industries where you already have a
presence like QSRs or media, financial services. Is there an opportunity to take this commerce playbook and apply it to those verticals? Or should
we think of the commerce investments that you're making as maybe a little bit more of a one-off given the size and growth in that industry?
Question: Arjun Rohit Bhatia - William Blair & Company L.L.C., Research Division - Analyst
: Awesome. Yes. No, that's a great problem to have. One more follow-up, if I can. Obviously, the gross margins have been improving year-over-year.
Can you just touch on how much traction you're seeing for some of the in-app messaging features that you rolled out, Content Cards, surveys, et
cetera? And I'm curious, do you see customers adopt these off the bat? Or should we think of that as something that's further down in the maturity
curve, further down in the customer journey after they've done push notifications, e-mail, et cetera?
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MARCH 30, 2022 / 9:00PM, BRZE.OQ - Q4 2021 Braze Inc Earnings Call
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