#1Q4 and Full Year Fiscal 2022 Earnings Results braze March 30, 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 first 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) Braze's recent rapid revenue growth may not be indicative of its future revenue growth; (2) Braze's history of operating losses; (3) Braze's limited operating history at its current scale; (4) Braze's ability to successfully manage its growth; (5) Braze's ability and the ability of its platform to adapt and respond to changing customer or consumer needs, requirements and preferences; (6) Brazes ability to attract new customers and renew existing customers; (7) the competitive markets in which Braze participates and the intense competition that it faces; (8) Braze's ability to adapt and respond effectively to rapidly changing technology, evolving cybersecurity and data privacy risks, industry standards or changing regulations; (9) Braze's reliance on third-party providers of cloud-based infrastructure; and (10) The accuracy of estimates of market opportunity and forecasts of market growth and the impact that the 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. Further information on potential factors that could affect Braze's business and financial results is included in Braze's Annual Report on Form 10-K that will be filed with the SEC for the fiscal quarter and year ended January 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. 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. 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 $282M QUARTERLY REVENUE RUN RATE¹ 128% DOLLAR-BASED NET RETENTION RATE Data as of January 31, 2022 or the three months ended, as applicable 1. Represents quarterly GAAP revenue multiplied by 4 Braze at a Glance 64% Y/Y REVENUE GROWTH 94% SUBSCRIPTION REVENUE 1,375 CUSTOMERS IN OVER 60 COUNTRIES $43M GAAP NET LOSS braze#4● ● ● Financial Highlights: Revenue of $70.4 million, up 64.1% YoY and 10.1% sequentially GAAP gross margin of 64.8%, up 40 basis points YoY; non-GAAP gross margin of 67.2%, up 220 basis points YoY Dollar-based net retention rate of 128% compared to 126% in Q3 and 123% in the prior year quarter GAAP operating loss of $42.6 million compared to a loss of $10.5 million in the prior year quarter; non-GAAP operating loss of $13.4 million compared to $8.0 million in the prior year quarter Customer and Strategic Highlights: Customer count increased to 1,375 as of January 31, 2022 New business wins and upsells included Canva, Course Hero, ESL Gaming, Shake Shack, and Flip Continued global expansion with planned presence in Canada and France, which will bring total locations to 10 globally Continued to acquire talent, adding over 400 employees in fiscal 2022, bringing the total team to over 1,100 Launched Braze for Commerce, a series of new product enhancements for eCommerce marketers to increase sales, leveraging first party data Launched call for Tech for Black Founders grants Q4'22 Results Highlights ● GAAP net loss per basic and diluted shares attributable to Braze stockholders was $0.55, compared to a loss of $0.55 in the prior year quarter; non-GAAP net loss per basic and diluted shares attributable to Braze stockholders was $0.18 compared to a loss of $0.42 in the prior year quarter Net cash used in operating activities was $(24.5) million compared to $0.0 million in the prior year quarter Free cash flow was $(26.0) million compared to $(0.6) million in the prior year quarter See Appendix for GAAP to non-GAAP reconciliation braze#55 $32.0 60.7% FY'21 Q1 $35.9 62.5% FY'21 Q2 $39.3 56.2% Quarterly Revenue UNAUDITED, DOLLARS IN MILLIONS $42.9 47.2% FY'21 Q3 ■ Reported Revenue FY'21 Q4 $47.9 49.7% FY'22 Q1 $55.8 55.1% FY'22 Q2 o Y/Y Revenue Growth $64.0 62.6% FY'22 Q3 $70.4 64.1% FY'22 Q4 64.1% Q4'22 Y/Y REVENUE GROWTH braze#663.5% FY'21 Q1 64.0% FY'21 Q2 63.8% FY'21 Q3 See Appendix for GAAP to non-GAAP reconciliation Non-GAAP Gross Margin 64.9% FY'21 Q4 67.4% FY'22 Q1 66.7% FY'22 Q2 70.3% FY'22 Q3 67.2% FY'22 Q4 67.2% Q4'22 NON-GAAP GROSS MARGIN braze#77 125% FY'21 Q1 124% FY'21 Q2 See Appendix for definitions Dollar-Based Net Retention 124% FY'21 Q3 123% FY'21 Q4 124% FY'22 Q1 125% FY'22 Q2 126% FY'22 Q3 128% FY'22 Q4 128% Q4'22 NET DOLLAR- BASED RETENTION RATE braze#88 774 32% FY'21 Q1 796 23% FY'21 Q2 See Appendix for definitions 841 23% FY'21 Q3 Braze Customers 890 22% FY'21 Q4 Customers 1,002 29% FY'22 Q1 1,119 41% FY'22 Q2 O Growth 1,247 48% FY'22 Q3 1,375 54% FY'22 Q4 54% Q4'22 Y/Y CUSTOMER GROWTH 107 CUSTOMERS WITH $500K+ ARR, UP 51% Y/Y braze#99 ($5.4) (16.8%) FY'21 Q1 6.6% ($2.4) FY'21 Q2 ($6.8) (17.3%) 750.00 (1.4%) FY'21 Q4 Free Cash Flow DOLLARS IN MILLIONS FY'21 Q3 Free Cash Flow Note: See Appendix for GAAP to non-GAAP reconciliation 1. Includes prepayments totaling approximately $17M in the quarter ($4.6) (9.6%) ($5.7) (10.3%) FY'22 Q2 FY'22 Q1 o Non-GAAP FCF Margin ($3.5) (5.4%) FY'22 Q3 ($26.0) (36.8%) FY'22 Q4 ($26.0)M Q4 FY'22 FREE CASH FLOW¹ braze#1010 $234.2 $84.2 $150.0 FY'21 Q4 Remaining Performance Obligations DOLLARS IN MILLIONS $249.6 $85.9 $163.7 FY'22 Q1 Current RPO $268.2 $87.7 $180.5 FY'22 Q2 $304.0 $104.9 $199.1 FY'22 Q3 1-4 Years $373.6 $135.8 $237.8 FY¹22 Q4 $373.6M +60% 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 Outstanding¹ Guidance DOLLARS IN MILLIONS, EXCEPT PER SHARE AMOUNTS Q1'23 Guidance $72.0- 73.0 $(20.0) - (21.0) $(19.0) - (20.0) $(0.20) - (0.21) ~93.5M FY'23 Guidance $338.0 - 342.0 $(79.0) - (83.0) $(76.0) -(80.0) $(0.80) - (0.84) ~95.1M 1. Includes (i) the issuance of shares of Class A common stock by Braze in its initial public offering, and (ii) the conversion of all then outstanding shares of convertible preferred stock, common stock and common stock warrants (following the exercise thereof) into outstanding shares of Class B common shares in connection with the initial public offering. 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#1414 Reconciliation of GAAP to Non-GAAP Gross Margin Gross Profit Plus: Stock-based compensation expense Non-GAAP Gross Profit GAAP to Non-GAAP Reconciliation DOLLARS IN THOUSANDS GAAP Gross Margin Non-GAAP Gross Margin Three Months Ended January 31, 2022 $45,659 1,654 64.8% 2021 67.2% $27,651 $47,313 $27,896 245 64.4% 65.0% Twelve Months Ended January 31, 2022 $159,524 2,185 $161,709 67.0% 67.9% 2021 $95,680 650 $96,330 63.7% 64.1% Reconciliation of GAAP to Non-GAAP Operating Expenses GAAP sales and marketing expense Less: ock-based compensation expense Non-GAAP sales and marketing expense GAAP research and development expense Less: Stock-based compensation expense Non-GAAP research and development expense GAAP general and administrative expense Less: Stock-based compensation expense Non-GAAP general and administrative expense Three Months Ended January 31, 2022 $45,726 10,400 9,833 $35,326 $19,534 2021 $22,904 $9,043 $19,617 $20,463 7,257 929 $12,360 $13,071 $8,225 818 $8,663 546 $8,117 Twelve Months Ended January 31, 2022 $127,137 16,281 $110,856 $59,034 15,613 2021 $70,661 2,892 13,101 $67,769 $29,212 2,102 $43,421 $27,110 $51,564 $27,959 1,896 $38,463 $26,063 braze#1515 GAAP to Non-GAAP Reconciliation DOLLARS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS Reconciliation of GAAP to Non-GAAP Operating Loss Three Months Ended January 31, 2022 Loss from operations Plus: Stock-based compensation expense Non-GAAP loss from operations ($13,444) 2021 ($42,588) ($10,518) 2,538 29,144 ($7,980) Twelve Months Ended January 31, 2022 ($78,211) 47,180 ($31,031) 2021 ($32,152) 7,540 ($24,612) Reconciliation of GAAP to Non-GAAP Net Loss Net loss attributable to Braze, Inc. Plus: Stock-based compensation 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 diluted Three Months Ended January 31, 2022 ($42,935) ($10,544) 29,144 2021 ($0.18) ($13,791) ($8,006) 78,364 2,538 ($0.42) 19,170 1 Assumes no tax impact due to the Company's net loss position and deferred tax assets. Twelve Months Ended January 31, 2022 ($76,719) 47,180 2021 ($31,752) 34,897 7,540 ($29,539) ($24,212) ($0.85) ($1.35) 17,972 braze#1616 GAAP 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 Purchases of property and equipment Capitalized internal-use software costs Net cash used in operating activities ($24,530) Less: Free cash flow Three Months Ended January 31, Free cash flow margin 2022 (1,200) (223) ($25,953) (36.8%) 2021 $20 (416) (212) ($608) (1.4%) Twelve Months Ended January 31, 2022 ($35,398) ($6,080) (2,310) (2,065) 2021 (16.7%) (2,466) (1,886) ($39,773) ($10,432) (6.9%) braze#17braze