#1Q2 Fiscal 2023 Earnings Results braze September 12, 2022#2Forward Looking Statements and Disclaimer Forward-Looking Statements This presentation contains, and statements made during this presentation contain, "forward-looking statements" within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, including but not limited to, statements regarding Braze's financial outlook for the third quarter of and full fiscal year ended January 31, 2023. Words such as "anticipate," "believe," "could," "estimate," "expect," "goal," "hope," "intend," "may," might," "potential," "predict," "project," "shall," "should," "target," "will" and variations of these terms and similar expressions are intended to identify these forward-looking statements, although not all forward-looking statements contain these identifying words. Forward-looking statements are based on Braze's current assumptions, expectations and beliefs and are subject to substantial risks, uncertainties, assumptions and changes in circumstances that may cause Braze's actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. These risks include, but are not limited to, risks and uncertainties related to: (1) unstable market and economic conditions may have serious adverse consequences on Braze's business, financial condition and share price; (2) Braze's recent rapid revenue growth may not be indicative of its future revenue growth; (3) Braze's history of operating losses; (4) Braze's limited operating history at its current scale; (5) Braze's ability to successfully manage its growth; (6) the accuracy of estimates of market opportunity and forecasts of market growth and the impact that global macroeconomic uncertainty, including from the ongoing COVID-19 pandemic and ongoing conflict between Russia and Ukraine, and general market, political, economic and business conditions could have on Braze's or its customers' businesses, financial condition and results of operations; (7) Braze's ability and the ability of its platform to adapt and respond to changing customer or consumer needs, requirements or preferences; (8) Braze's ability to attract new customers and renew existing customers; (9) the competitive markets in which Braze participates and the intense competition that it faces; (10) Braze's ability to adapt and respond effectively to rapidly changing technology, evolving cybersecurity and data privacy risks, evolving industry standards or changing regulations; and (11) Braze's reliance on third-party providers of cloud-based infrastructure. Further information on potential factors that could affect Braze's business and financial results is included in Braze's Quarterly Report on Form 10-Q that will be filed with the SEC for the fiscal quarter and six-months ended July 31, 2022. The forward-looking statements included in this presentation represent Braze's views only as of the date of this presentation and Braze assumes no obligation, and does not intend to update these forward-looking statements, except as required by law. Use of Non-GAAP Financial Measures This presentation contains the following non-GAAP financial measures: non-GAAP gross profit and margin, non-GAAP sales and marketing expense, non-GAAP research and development expense, non-GAAP general and administrative expense, non-GAAP operating loss, non-GAAP net loss, non-GAAP net loss per share, basic and diluted, and non-GAAP free cash flow and non-GAAP free cash flow margin. Braze defines non-GAAP gross profit and margin, non-GAAP sales and marketing expense, non-GAAP research and development expense, non-GAAP general and administrative expense, non-GAAP operating loss and non-GAAP net loss as the respective GAAP balances, adjusted for stock-based compensation expense employer taxes related to stock-based compensation and charitable contribution expense. Prior to the first quarter of the fiscal year ended January 31, 2023, Braze did not adjust non-GAAP gross profit and margin, non-GAAP sales and marketing expense, non-GAAP research and development expense, non-GAAP general and administrative expense, non-GAAP operating loss or non-GAAP net loss for employer taxes related to stock-based compensation or charitable contribution expense, because these amounts were immaterial in prior periods. Braze defines non-GAAP free cash flow as net cash used in operating activities, minus purchases of property and equipment and minus capitalized internal use software costs. Investors are encouraged to review the reconciliation of these historical non-GAAP financial measures to their most directly comparable GAAP financial measures. Braze uses this non-GAAP financial information internally in analyzing its financial results and believes that this non-GAAP financial information, when taken collectively with GAAP financial measures, may be helpful to investors because it provides consistency and comparability with past financial performance and assists in comparisons with other companies, some of which use similar non-GAAP financial information to supplement their GAAP results. The non-GAAP financial information is presented for supplemental informational purposes only, and should not be considered a substitute for financial information presented in accordance with generally accepted accounting principles in the Unite States (GAAP), and may be different from similarly-titled non-GAAP measures used by other companies. The principal limitation of these non-GAAP financial measures is that they exclude significant expenses that are required by GAAP to be recorded in Braze's financial statements. In addition, they are subject to inherent limitations as they reflect the exercise of judgment by Braze's management about which expenses are excluded or included in determining these non-GAAP financial measures. A reconciliation is provided at the end of this presentation for each non-GAAP financial measure to the most directly comparable financial measure stated in accordance with GAAP. Braze encourages investors to review the related GAAP financial measures and the reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measures, which it includes in press releases announcing quarterly and fiscal year financial results, and not to rely on any single financial measure to evaluate Braze's business. Braze has not reconciled its guidance as to non-GAAP operating loss, non-GAAP net loss or non-GAAP net loss per share to their most directly comparable GAAP measure as a result of uncertainty regarding, and the potential variability of, reconciling items such as stock-based compensation expense specific to equity compensation awards that are directly impacted by unpredictable fluctuations in Braze's stock price. Accordingly, reconciliation is not available without unreasonable effort, although it is important to note that these factors could be material to Braze's results calculated in accordance with GAAP. Customer Metrics and Market Data Unless otherwise noted, information in this presentation concerning Braze's industry, including industry statistics and forecasts, competitive position and the markets in which Braze operates is based on information from independent industry and research organizations, other third-party sources and management estimates. Management estimates are derived from publicly available information released by independent industry analysts and other third party sources, as well as data from Braze's internal research, and are based on assumptions made by Braze upon reviewing such data, and Braze's experience in, and knowledge of, such industry and markets, which it believes to be reasonable. Projections, forecasts, assumptions and estimates of the future performance of the industry in which Braze operates and Braze's future performance are necessarily subject to uncertainty and risk due to a variety of factors. Braze has not independently verified the accuracy or completeness of the information provided by independent industry and research organizations, other third parties or other publicly available information. Accordingly, Braze makes no representations as to the accuracy or completeness of that information nor does Braze undertake to update such information after the date of this presentation. Trademarks All third-party trademarks, including names, logos and brands, referenced by Braze in this presentation are property of their respective owners. All references to third-party trademarks are for identification purposes only. Such use should not be construed as an endorsement of the products or services of us. 2 braze#33 $344M QUARTERLY REVENUE RUN RATE¹ 126% DOLLAR-BASED NET RETENTION RATE Data as of July 31, 2022 or the three months ended, as applicable 1. Represents quarterly GAAP revenue multiplied by 4 Braze at a Glance 55% Y/Y REVENUE GROWTH 95% SUBSCRIPTION REVENUE 1,599 CUSTOMERS IN OVER 60 COUNTRIES $33M GAAP NET LOSS braze#4Financial Highlights: Revenue of $86.1 million, up 54.5% YoY and 11.1% sequentially GAAP gross margin of 68.2%, up 180 basis points YoY; non-GAAP gross margin of 69.3%, up 260 basis points YoY Dollar-based net retention rate of 126% compared to 127% in Q1 and 125% in the prior year quarter GAAP operating loss of $35.1 million compared to a loss of $12.2 million in the prior year quarter; non-GAAP operating loss of $17.5 million compared to a loss of $6.5 million in the prior year quarter ● ● ● ● Q2'23 Results Highlights ● GAAP net loss per basic and diluted shares attributable to Braze stockholders was $0.35, compared to a loss of $0.60 in the prior year quarter; non-GAAP net loss per basic and diluted shares attributable to Braze stockholders was $0.16 compared to a loss of $0.32 in the prior year quarter Customer and Strategic Highlights: Customer count increased to 1,599 as of July 31, 2022 New business wins and upsells included, Roku, TelevisaUnivision, IBM, and Pizza Hut Australia Continued to acquire talent, adding nearly 100 employees in the fiscal quarter, bringing the total team to over 1,350 Net cash used in operating activities was $16.3 million compared to net cash used in operating activities of $4.6 million in the prior year quarter Free cash flow was $(24.7) million compared to $(5.7) million in the prior year quarter See Appendix for GAAP to non-GAAP reconciliation braze#55 $35.9 62.5% FY'21 Q2 $39.3 56.2% FY'21 Q3 $42.9 47.2% $47.9 49.7% FY'21 Q4 FY'22 Q1 ■ Reported Revenue Quarterly Revenue UNAUDITED, DOLLARS IN MILLIONS $55.8 55.1% FY'22 Q2 $64.0 62.6% $70.4 64.1% FY'22 Q3 FY'22 Q4 o Y/Y Revenue Growth $77.5 61.9% FY'23 Q1 $86.1 54.5% FY'23 Q2 54.5% Q2'23 Y/Y REVENUE GROWTH braze#664.0% FY'21 Q2 63.8% FY'21 Q3 64.9% FY'21 Q4 See Appendix for GAAP to non-GAAP reconciliation Non-GAAP Gross Margin 67.4% FY'22 Q1 66.7% FY'22 Q2 70.3% FY'22 Q3 67.2% FY'22 Q4 67.8% FY'23 Q1 69.3% FY'22 Q2 69.3% Q2'23 NON-GAAP GROSS MARGIN braze#77 124% FY'21 Q2 124% FY'21 Q3 See Appendix for definitions 123% FY'21 Q4 Dollar-Based Net Retention 124% FY'22 Q1 125% FY'22 Q2 126% FY'22 Q3 128% FY'22 Q4 127% FY'23 Q1 126% FY'23 Q2 126% Q2'23 NET DOLLAR- BASED RETENTION RATE braze#88 796 23% FY'21 Q2 841 23% FY'21 Q3 See Appendix for definitions 890 22% FY'21 Q4 1,002 29% FY'22 Q1 Braze Customers 1,119 41% FY'22 Q2 Customers 1,247 48% FY'22 Q3 1,375 o Growth 54% FY'22 Q4 1,503 50% FY'23 Q1 1,599 43% FY'23 Q2 43% Q2'23 Y/Y CUSTOMER GROWTH 139 CUSTOMERS WITH $500K+ ARR, UP 70% Y/Y braze#99 6.6% $2.4 FY'21 Q2 ($6.8) (17.3)% FY'21 Q3 ($0.6) (1.4%) FY'21 Q4 See Appendix for GAAP to non-GAAP reconciliation Free Cash Flow DOLLARS IN MILLIONS ($4.6) ($5.7) FY'22 Q1 Free Cash Flow (9.6)% (10.3)% FY'22 Q2 ($3.5) (5.4)% ($26.0) (36.8)% FY'22 Q4 FY'22 Q3 ◆ Non-GAAP FCF Margin $15.7 20.2% FY'23 Q1 ($24.7) (28.7)% FY'23 Q2 $(24.7) M Q2 FY'23 FREE CASH FLOW braze#1010 $268.2 $87.7 $180.5 FY'22 Q2 Remaining Performance Obligations DOLLARS IN MILLIONS $304.0 $104.9 $199.1 FY'22 Q3 Current RPO $373.6 $135.8 $237.8 FY'22 Q4 $390.9 35.8 $255.1 FY'23 Q1 1-5 Years $410.5 $136.3 $274.2 FY'23 Q2 $410.5M +53% Y/Y TOTAL REMAINING PERFORMANCE OBLIGATIONS braze#1111 Metric Revenue Non-GAAP Operating Loss Non-GAAP Net Loss Non-GAAP Net Loss Per Share Weighted Average Shares Outstanding Guidance DOLLARS IN MILLIONS, EXCEPT PER SHARE AMOUNTS Q3'23 Guidance $90.0 - 91.0 $(23.0) - (24.0) $(21.0) - (22.0) $(0.22) - (0.23) ~97.4M FY'23 Guidance $347.0 - 350.0 $(76.0) - (78.0) $(74.0) - (76.0) $(0.77) - (0.79) ~96.4M braze#1212 Appendix braze#1313 Operating Metrics - Definitions Number of Customers: We define a customer as the separate and distinct, ultimate parent-level entity that has an active subscription with us to use our products. A single organization could have multiple distinct contracting divisions or subsidiaries, all of which together would be considered a single customer. Dollar-based Net Retention Rate: We calculate our dollar-based net retention rate as of a period end by starting with the ARR from a cohort of customers as of 12 months prior to such period-end (the Prior Period ARR). We then calculate the ARR from the same cohort of customers as of the end of the current period (the Current Period ARR). Current Period ARR includes any expansion and is net of contraction or attrition over the last 12 months, but excludes ARR from new customers in the current period. We then divide the total Current Period ARR by the total Prior Period ARR to arrive at the point-in-time dollar-based net retention rate. We then calculate the weighted average point-in-time dollar-based net retention rates as of the last day of each month in the current trailing 12-month period to arrive at the dollar-based net retention rate. Annual Recurring Revenue (ARR): We define ARR as the annualized value of customer subscription contracts, including certain premium professional services that are subject to contractual subscription terms, as of the measurement date, assuming any contract that expires during the next 12 months is renewed on its existing terms (including contracts for which we are negotiating a renewal). Our calculation of ARR is not adjusted for the impact of any known or projected future events (such as customer cancellations, expansion or contraction of existing customers relationships or price increases or decreases) that may cause any such contract not to be renewed on its existing terms. Remaining Performance Obligations: The transaction price allocated to remaining performance obligations represents amounts under non- cancelable contracts expected to be recognized as revenue in future periods, and may be influenced by several factors, including seasonality, the timing of renewals, the timing of service delivery and contract terms. Unbilled portions of the remaining performance obligation are subject to future economic risks including bankruptcies, regulatory changes and other market factors. braze#14Reconciliation of GAAP to Non-GAAP Gross Margin Six Months Ended July 31, Gross Profit Plus: Stock-based compensation expense Employer taxes related to stock-based compensation Non-GAAP Gross Profit GAAP to Non-GAAP Reconciliation DOLLARS IN THOUSANDS GAAP Gross Margin Non-GAAP Gross Margin Three Months Ended July 31, 2022 $58,779 911 24 $59,714 68.2% 69.3% 2021 $37,001 177 $37,178 66.4% 66.7% 2022 $110,368 1,831 40 $112,239 67.5% 68.6% 2021 $69,071 367 $69,438 66.6% 67.0% Reconciliation of GAAP to Non-GAAP Operating Expenses Three Months Ended Six Months Ended July 31, July 31, 2022 2021 $50,007 $27,492 2022 2021 $96,051 $51,843 GAAP sales and marketing expense Less: Stock-based compensation expense Employer taxes related to stock- based compensation Non-GAAP sales and marketing GAAP research and development expense Less: 5,439 GAAP general and administrative expense Less: 11,106 387 $44,348 $25,535 $84,558 220 $23,336 Stock-based compensation expense Employer taxes related to stock- based compensation Non-GAAP research and development $16,291 6,921 124 Stock-based compensation expense Employer taxes related to stock- based compensation Charitable contribution expense Non-GAAP general and administrative $16,537 1,957 3,842 164 $11,595 $44,956 $20,543 $10,064 1,571 $10,024 1,945 13,094 251 $31,611 8,053 229 4,295 4,260 $8,119 $31,575 $47,458 $23,392 $44,117 $19,011 4,158 $19,234 3,786 $15,225 braze#15GAAP to Non-GAAP Reconciliation DOLLARS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS Reconciliation of GAAP to Non-GAAP Operating Loss Six Months Ended July 31, Loss from operations Plus: Three Months Ended July 31, 2022 ($35,107) ($12,150) 2021 Stock-based compensation expense Employer taxes related to stock-based compensation expense Charitable contribution expense Non-GAAP Operating loss ($17,462) ($6,500) 17,113 532 5,650 2022 ($74,756) ($25,175) 34,084 907 4,260 2021 ($35,505) 12,606 ($12,569) Reconciliation of GAAP to Non-GAAP Net Loss Net loss attributable to Braze, Inc. Plus: Stock-based compensation expense Employer taxes related to stock-based compensation expense Charitable contribution expense Non-GAAP net loss attributable to Braze, Inc.¹ Non-GAAP net loss per share attributable to Braze, Inc. common stockholders, basic and diluted Weighted-average shares used to compute net loss per share attributable to Braze, Inc. common stockholders, basic and Three Months Ended July 31, 2022 ($32,886) 17,113 532 ($15,241) ($0.16) 94,103 2021 ($12,228) 5,650 ($0.32) 20,329 Six Months Ended July 31, 1 Assumes no tax impact due to the Company's net loss position and deferred tax assets. 2022 ($72,155) ($25,062) 34,084 ($6,578) ($32,904) 907 4,260 ($0.35) 2021 93,668 12,606 ($12,456) ($0.62) 20,004 braze#16GAAP Cash Flows from Operations to Free Cash Flow DOLLARS IN THOUSANDS Reconciliation of GAAP Cash Flow from Operating Activities to Non-GAAP Free Cash Flow Net cash provided by/ (used in) operating activities Less: Purchases of property and equipment Capitalized internal- use software costs Non-GAAP Free cash flow Three Months Ended July 31, 2022 ($16,321) (7,884) (477) ($24,682) 2021 ($4,607) (457) (674) ($5,738) Six Months Ended July 31, 2022 ($1,600) (9,844) (783) 2021 ($8,414) (755) (1,172) ($9,027) ($10,341) braze#17GAAP to Non-GAAP Gross Margin Reconciliation DOLLARS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS Gross Profit Plus: Stock-based compensation expense Employer taxes related to stock-based compensation expense Non-GAAP Gross Profit GAAP Gross Margin Non-GAAP Gross Margin FY'21 Q2 $22,905 108 $23,013 63.7% 64.0% FY'21 Q3 $24,901 205 $25,106 63.3% 63.8% FY'21 Q4 $27,651 245 $27,896 64.4% 65.0% FY'22 Q1 $32,070 190 $32,260 67.0% 67.4% FY'22 Q2 $37,001 177 $37,178 66.4% 66.7% FY'22 Q3 $44,794 164 $44,958 70.0% 70.3% FY'22 Q4 $45,659 1,654 $47,313 64.8% 67.2% FY'23 Q1 $51,589 920 16 $52,525 66.6% 67.8% FY'23 Q2 $58,779 911 24 $59,714 68.2% 69.3% braze#18GAAP to Non-GAAP Free Cash Flow Reconciliation DOLLARS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS Net cash provided by/(used in) operating activities Less: Purchases of property and equipment Capitalized internal-use software costs Non-GAAP Free Cash Flow Non-GAAP Free Cash Flow Gross Margin FY'21 Q2 $3,375 (254) (737) $2,384 6.6% FY'21 Q3 ($5,879) (250) (694) ($6,823) (17.3%) FY'21 Q4 $20 (416) (212) ($608) (1.4%) FY'22 Q1 ($3,807) (298) (498) ($4,603) (9.6%) FY'22 Q2 ($4,607) (457) (674) ($5,738) (10.3%) FY'22 Q3 ($2,454) (355) (670) ($3,479) (5.4%) FY'22 Q4 ($24,530) (1,200) (223) ($25,953) (36.8%) FY'23 Q1 $17,921 (1,960) (306) FY'23 Q2 20.2% ($16,321) (7,884) (477) $15,655 ($24,682) (28.7%) braze#19braze