Braze Inc. Reports 31.3% Revenue Growth and Expands Customer Base Amid Economic Uncertainty

Braze, Inc. (ticker: BRZE), a leading customer engagement platform, has reported a 31.3% increase in revenue for the three months ended April 30, 2023, amounting to $101.8 million, compared to $77.5 million for the same period in 2022. This revenue growth can be attributed to increased subscription revenues and expansion into international markets, particularly Europe and the Asia-Pacific regions. Additionally, the company has grown its customer base from 1,503 as of April 30, 2022, to 1,866 as of April 30, 2023.

Despite recent economic uncertainties, such as instability in the banking and financial services sector and global supply chain risks, Braze, Inc. has continued to invest in its platform infrastructure, customer support, and success organizations to drive further growth. The company anticipates an increase in personnel headcount and expanding its global footprint to continue this upward trajectory.

Gross Profit and Operating Expenses

The company’s gross profit increased by 33.9% during the three months ended April 30, 2023, to $69.1 million. This increase in gross profit, as well as the expansion of its gross margin to 67.9% from 66.6% in the previous year, is primarily due to economies of scale, particularly within personnel costs, as infrastructure expenses did not increase at the same pace as revenue. Delving further into the financials, sales and marketing expenses contributed the most to operating expenses, standing at $57.3 million, followed by research and development expenses at $29.7 million and general and administrative expenses at $24 million.

Future Investments and Expenses

Investment in research and development is expected to continue, with the aim of enhancing user experience for current customers and attracting new ones. This means that research and development costs are likely to increase in absolute terms in the future. The general and administrative expenses are also expected to increase but decrease as a percentage of revenue over the long term, focusing on processes, systems, and controls to enable internal support functions to scale with the growth of the business.

Cash Flows

Braze, Inc.’s net cash provided by operating activities for the three months ended April 30, 2023, amounted to $22.5 million, while net cash used in investing activities amounted to $24.3 million. On the other hand, net cash provided by financing activities was $2.2 million, largely driven by proceeds from the exercise of common stock options.


The company positions itself well in an increasingly volatile economic landscape, focusing on strengthening its platform and customer engagement offerings. The reported financials showcase Braze, Inc.’s potential for continued growth and success, reflecting the company’s resilience and ability to adapt to changing market conditions.

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