Braze, a customer engagement platform, reported a revenue of USD 98.7 million (40% YoY growth) for Q4 FY2023, above analyst expectations. The performance was driven by growth in subscription revenue (43.9% YoY growth), accounting for 96% of its revenue for the quarter. The growth was supported by new customer additions, which include Warner Bros. Discovery, Finish Line, and McClatchy Media Company, bringing the total count to 1,770 as of January 2023. In addition, customer upsells and existing customer renewals supported the dollar-based net retention rate to be 124% (Q4 FY2022: 128%). For FY2023, the company reported revenue growth of 49.3% YoY to USD 355.4 million. 

The firm recorded a non-GAAP operating loss of USD 16.7 million, which was lower compared to the USD 18.5 million–19.5 million management guidance provided in the previous quarter. This implies a non-GAAP loss per share of USD 0.14, which exceeded analyst expectations by more than 26%. For FY2023, the company reported a non-GAAP operating loss of USD 69.5 million (124% YoY growth), indicating a non-GAAP loss per share of USD 0.64 (FY2022: loss of USD 0.85).  

The firm also stated that during the quarter it introduced WhatsApp Messaging, which assists brands in improving their customer connections. It established a strategic partnership with WPP, intending to enhance its current services and increase the use of the Braze Customer Engagement Platform. Additionally, it reached an agreement to acquire North Star, the exclusive reseller of Braze in Australia and New Zealand.

For FY2024, the firm expects revenue to range from USD 433 million–438 million and expects its non-GAAP operating loss to narrow further and be between USD 57 million–61 million.

Analyst QuickTake: Braze has shown impressive financial performance over the past year, with strong revenue growth supported by new customer additions and increased subscription revenue. While the firm recorded a significant YoY increase in non-GAAP operating loss during the quarter, Braze's optimistic outlook for FY2024, where it projects higher revenue growth, and an anticipated reduction in non-GAAP operating loss are positive indicators for its future growth prospects.