Braze (BRZE) Q4 2024 earnings summary

Executive summary

• FY2024 revenue rose 32.7% YoY to $471.8M; Q4 revenue grew 33% to $131.0M, driven primarily by new customers, upsells, and renewals.

• Year-end customer count reached 2,044, up from 1,770; the platform processed over 2.6T outgoing actions during 2023.

• Q4 subscription revenue was 96% of revenue; GAAP net loss was $28.3M.

Financial highlights

• Q4 subscription revenue was $125.9M vs. $94.8M YoY; professional services and other revenue was $5.1M vs. $3.9M.

• Q4 non-GAAP gross margin was 67.9% vs. 67.0% YoY; FY2024 non-GAAP gross margin was 69.5% vs. 68.5%, and GAAP gross margin was 68.7% vs. 67.4%.

• Q4 GAAP operating loss was $32.3M vs. $36.5M; non-GAAP operating loss was $7.5M vs. $16.7M.

• FY2024 GAAP net loss was $130.4M vs. $140.7M; non-GAAP net loss was $24.4M vs. $60.4M, and non-GAAP diluted loss per share was $0.25 vs. $0.64.

• FY2024 non-GAAP operating loss narrowed to $39.9M; operating cash flow was $6.9M vs. cash used of $22.3M, and free cash flow was negative $6.5M vs. negative $39.0M.

Outlook and guidance

• FY2025 Q1 revenue guidance is $131M–$132M; non-GAAP operating loss $13M–$14M, net loss $10M–$11M, and loss per share $0.10–$0.11.

• FY2025 revenue guidance is $570M–$575M; non-GAAP operating loss $20M–$24M, net loss $8M–$12M, and loss per share $0.08–$0.12.

• Weighted average shares guidance is ~99.5M for Q1 and ~101.0M for FY2025; non-GAAP guidance was not reconciled to GAAP due to uncertainty in stock-based compensation adjustments.