Welcome to the Braze third quarter fiscal year 2024 earnings conference call. My name is Christine, and I'll be your operator for today's call. At this time, all participants are in a listen-only mode. After the speaker's presentation, we will conduct a question and answer session. I'll now turn the call over to Christopher Ferris, Head of Braze Investor Relations. Thank you, operator. Good afternoon, and thank you for joining us today to review Braze's results for the fiscal third quarter, 2024. I'm joined by our Co-founder and Chief Executive Officer, Bill Magnuson, and our Chief Financial Officer, Isabelle Winkles. We announced our results in a press release issued after the market closed today. Please refer to the investor relations section of our website at investors.braze.com for more information and a supplemental presentation related to today's earnings announcement. During this call, we will make statements related to our business that are forward-looking under federal securities laws and the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements include, but are not limited to, statements regarding our financial outlook for the fourth quarter and the fiscal year ended January 31, 2024, and the fiscal year ended January 31, 2025, our planned product and feature development and the benefits to us and our customers therefrom, including our AI features, the potential impact and duration of current macroeconomic trends, our anticipated customer behaviors, including vendor consolidation trends and their impact on Braze, the anticipated benefits of our partnerships, the expected effects of our social impact initiatives, and our long-term financial targets and goals, including the anticipated period in which we may generate positive non-GAAP operating income and positive free cash flow. These statements are subject to a variety of risks and uncertainties that could cause actual results to differ materially from expectations and reflect our views only as of today. We assume no obligation to update any such forward-looking statements. For a discussion of the material risks and uncertainties that could affect our actual results, please refer to the risks identified in today's press release and our SEC filings, both available on the investor relations section of our website. I'd also like to remind you that today's call will include certain non-GAAP financial measures used by management to evaluate our ongoing operations and to aid investors in further understanding the company's fiscal third quarter 2024 performance, in addition to the impact these items have on the financial results. Please refer to the reconciliations of our non-GAAP financial measures to the most directly comparable financial measures, calculated in accordance with U.S. GAAP, included in our earnings release under the investor relations section of our website. The non-GAAP financial measures provided should not be considered as a substitute for or superior to the measures of financial performance prepared in accordance with U.S. GAAP. And now, I'd like to turn the call over to Bill. Thank you, Chris, and good afternoon, everyone. We delivered another strong quarter, generating $124 million in revenue, up 33% versus the prior year, despite a macroeconomic environment that remains challenging. Our execution was strong, and we continued to drive operating efficiency in the business, improving non-GAAP gross margin by 170 basis points year-over-year, and non-GAAP operating margin by over 1,100 basis points compared to the third quarter of last year. We were pleased with the strength of our enterprise business, the continued rapid pace of R&D, and the resulting customer excitement about new product launches and announcements, as well as the continued expansion of the global Braze partner and customer ecosystem. In October, we also hosted Forge, our annual flagship customer conference, which brought together leading marketing, growth, and engagement teams to learn best practices for delivering brilliant customer experiences, including incredible stage sessions from brands including Activision Blizzard, e.l.f. Cosmetics, McDonald's, The Walt Disney Company, and Wyze Labs. It was an inspiring capstone for what has been an exciting year for Braze's own global events, including the newly introduced City x City series. In total, we hosted events across 21 major global cities and welcomed nearly 4,000 attendees through our doors. Looking ahead into next year, we're already excited to be hosting Forge again in the U.S. and bringing City x City to five continents as our customer, community, and partner ecosystem continues to prosper. Across our global footprint, Braze has scaled by methodically building a customer base across a wide array of industry verticals, business models, and company sizes. Today, I'm proud to announce that during the month of November, we passed $500 million of committed annual recurring revenue, nearly doubling since our IPO just over two years ago. A huge thank you to our dedicated team across the globe who helped us achieve this milestone. I'm excited to keep building on this success with you as we continue on our journey to make Braze the standard for customer engagement. Brands continue to recognize the significant ROI that can be achieved through personalized, cross-channel customer engagement enabled by the Braze platform. New business wins and upsells included FabFitFun, Mythical Games, Ouro, formerly Netspend, Papa John's UK, and Sonos, among others. Enterprise new business was strong as we continued to capitalize on the legacy vendor replacement cycle and the consolidation trend that we've highlighted in prior quarters. During the quarter, we added to our growing list of major QSR customers with a competitive takeaway from a legacy marketing cloud, and we're excited to consolidate away a number of other vendors as we begin work with a top news organization looking to simplify their complex technology ecosystem and drive better outcomes for their customers through higher quality engagement. We also continue to win against both startup competitors and legacy point solutions as they struggle to deliver high-quality customer engagement, seamlessly coordinated across the many channels that matter to the modern B2C marketer. We are excited by our competitive position amongst the category of customer engagement, especially as we reflect on what hasn't changed in our space. That’s why top brands continue to invest heavily in order to deliver increased value and relevance to their consumers, both by understanding the real-time context that surrounds every marketing and product interaction and by leveraging their growing first-party data assets to harness the gains available from real-time stream processing, combined with AI-driven orchestration and personalization. As marketers chart the course of their business goals and customer engagement initiatives in our visual Canvas environment, they can increasingly rely on AI, ML, and other forms of automated decision-making to manage the complexity of the modern customer engagement environment, while delivering relevance and personalization to their customers at scale. While the macro environment remains uncertain as we head into next year, we are confident that customer engagement will remain a business imperative for brands. In tough times, brands shift their focus to high-return initiatives like life cycle optimization and retention, and to stand out, marketers need powerful customer engagement tools. Sophisticated brands continue to invest in their customer engagement efforts, finding opportunities to initiate new relationships efficiently and strengthening those bonds over time by staying relevant in their customers' lives and delivering value in critical moments. Especially as consumers continue navigating an environment with high interest rates and inflation, the period from Black Friday to Cyber Monday was a particularly important time for brands to break through the early noise of the holiday season and stand out in their customers' minds. At Braze, this year again saw record-breaking send volumes, as we sent over 37 billion messages in the four-day period from Black Friday through Cyber Monday. More importantly, we also saw increases in the sophistication of Messages, Campaigns, and Canvases. On Black Friday alone, we processed nearly 25 billion inbound API calls, and during that day's peak activity periods, our outbound packet throughput more than doubled compared to last year. That rise was driven by more send time API calls and advanced personalization being used by more customers. Brands also leaned further into cross-channel messaging this year, with Braze supporting a wide array of established and emerging messaging channels, including significant increases in the use of WhatsApp, email, SMS, MMS, Content Cards, Roku messages, and web push. Zooming out to the orchestration layer, we saw a 67% increase in messages sent using Canvas, our visual development environment, which reflects how marketers are orchestrating multi-step, cross-channel messaging flows and relying on differentiated Braze capabilities during this critical time. In order to stay on the leading edge of customer engagement, we are relentlessly focused on product innovation that can accelerate the legacy replacement cycle and compel more brands to upgrade their customer engagement. At Forge, we unveiled new low-code and AI-driven product innovations designed to more effectively personalize brands' customer engagement efforts and drive more agile and productive marketing teams. We are always looking for ways to allow our customers to test and iterate more quickly on customer experience, both in and outside of their products. Building on the strong in-product foundation provided by our SDKs, we were excited to promote Feature Flags to general availability in October. Feature Flags allows marketers to quickly launch, test, and optimize features on mobile apps or websites, providing flexibility to test varying expressions of their product and promoting an agile and experimental method of product delivery that results in better experiences for customers. These types of experiments are particularly impactful when coordinated with customer messaging and optimized by the AI and testing features native to Canvas. One brand putting this all into action is Immobiliare.it, a leading player in the EU real estate industry, who used Feature Flags to test the release of dark mode to a segment of customers who were very active in the evening. After turning on dark mode for that segment and targeting those same users with an in-app message about the new feature, they allowed the test users to experiment for two weeks and then subsequently collected qualitative feedback from them via an in-app survey. After validating both the survey feedback and the conversion data, Immobiliare gradually extended the feature to all of their registered users. Normally, a launch like this would have required multiple platforms and complex cross-team coordination. By bringing complementary product and messaging workflows together, one person coordinated this entire launch in Braze and did it in half the time of similar past experiments. At Forge, we also announced several tools in development that we anticipate adding to our Sage AI suite, including an AI recommendation engine that is designed to use machine learning to match relevant items from Braze Catalogs with customers most likely to buy them, the addition of a large language model or LLM Canvas step to our visual programming language, and channel-specific message content recommendations paired with performance prediction. The Canvas LLM step uses GenAI to interpret user-provided input, such as survey feedback or reply to a WhatsApp conversation, and then provides a contextual response that can be templated into subsequent Canvas actions or message steps. We are actively testing multiple underlying models for this LLM step, including our own custom trained models built on top of Llama 2, as well as OpenAI-hosted models, such as GPT-4 Turbo. Extending on our experimentation with custom-trained models, we are also very excited by our work in channel-specific message content recommendations, paired with a growing ability to automatically predict which variants are likely to perform best using custom-trained predictive transformer models. By providing these predictions before launching a Canvas or campaign, we intend to further increase marketer velocity, encourage more creative risk-taking, and free up time that can be spent on further experimentation with deeper personalization techniques. This is just a small portion of our exciting AI-related product roadmap, which we are designing to push the boundaries to deliver the most personalized brand experiences for our customers. As the legacy clouds continue to be held back by antiquated architectures and decades of unpaid complexity debt, we believe our modern foundations, combined with a relentless focus on innovation, will accelerate the legacy replacement cycle and compel more brands to upgrade their customer engagement strategies with the Braze platform. As we zoom out and look at our broader ecosystem, I'm also excited to share an update on our strengthening relationship with AWS. Just last week, we shared Braze's achievement of AWS Advertising and Marketing Technology Competency in the category of Digital Customer Experience, and in October, we announced the availability of Braze through the AWS Marketplace. These recent announcements build on our broader partnership, which includes AWS Retail Competency, Travel and Hospitality Competency, and Digital Customer Experience Competency. We look forward to growing our relationship with Amazon and other partners as we improve the depth and capabilities of our solutions. Before turning the call over to Isabelle, I'd like to update you on our latest social impact initiative, Tech for an Equitable Future, announced just yesterday. This program aims to remove barriers for underrepresented founders by providing introductory free access to the Braze platform.... We are also excited to share that Braze recently made our first commitment to a virtual power purchase agreement, an important step for our overall climate commitment, and we look forward to sharing more climate-related updates next year. Thank you to all our stakeholders for your continued interest in Braze. We are excited about our future, meeting customers where they are on their customer journey, and empowering them to achieve world-class customer engagement while delivering efficient growth at scale for our shareholders. We look forward to continuing this journey to becoming the de facto standard for customer engagement with you in the coming months and years. Now I'll turn the call over to Isabelle. Thank you, Bill, and thank you everyone for joining us today. As Bill stated, we reported a strong third quarter, with revenue up 33% year-over-year to $124 million, which includes an approximately $3.5 million contribution from our North Star acquisition, which closed on June 1 of this year. Growth was driven by a combination of existing customer contract expansions, renewals, and new business. Our subscription revenue remains the primary component of our total top line, contributing 95% of our third quarter revenue. The remaining 5% represents a combination of recurring professional services and one-time configuration and onboarding fees. Total customer count increased 17% year-over-year to 2,011 customers as of October 31, up 296 from the same period last year and up 53 from the prior quarter. Our total number of large customers, which we define as those spending at least $500,000 annually, grew 28% year-over-year to 189, and as of October 31, contributed 58% to our total ARR. This compares to a 56% contribution as of the same quarter last year. Measured across all customers, dollar-based net retention was 118%, while dollar-based net retention for our large customers was 121%. Expansion was again broadly distributed across industries and geographic regions. Revenue outside the U.S. contributed 44% of our total revenue in the third quarter, compared to 43% in the prior year quarter and 43% in the second quarter of this year. In the third quarter, our total remaining performance obligation was $560 million, up 37% year-over-year and up 7% sequentially. Current RPO was $370 million, up 31% year-over-year and up 5% sequentially. The year-over-year increases were driven by contract renewals and upsells and the signing of new customer contracts. Overall, dollar-weighted contract length remains at approximately two years. The North Star acquisition contributed approximately three percentage points of year-over-year CRPO growth, and we will lap the impact of this acquisition on June 1 of FY 2025. Non-GAAP gross profit in the quarter was $88.5 million, representing a non-GAAP gross margin of 71.4%. This compares to a non-GAAP gross profit of $64.9 million and non-GAAP gross margin of 69.7% in the third quarter of last year. The 170 basis point year-over-year margin improvement was driven by ongoing personnel efficiencies and the continued cost optimization of our technology stack. Non-GAAP sales and marketing expense was $58.3 million, or 47% of revenue, compared to $46.2 million, or 50% of revenue in the prior year quarter. While the dollar increase reflects our year-over-year investment in headcount costs to support our ongoing growth and global expansion, the improved efficiency reflects our disciplined investment approach to resource deployment across our go-to-market organization. Non-GAAP R&D expense was $20.2 million, or 16% of revenue, compared to $17.5 million, or 19% of revenue, in the prior year quarter. The dollar increase was primarily driven by increased headcount costs to support the expansion of our existing offerings, as well as to develop new products and features to drive growth. Non-GAAP G&A expense was $19 million, or 15% of revenue, compared to $18.6 million, or 20% of revenue, in the prior year quarter. The dollar increase was driven by investments to support our overall company growth, including headcount costs and increases in software subscription and licenses. Non-GAAP operating loss was $8.9 million, compared to a non-GAAP operating loss of $17.3 million in the prior year quarter. Non-GAAP net loss attributable to Braze shareholders in the quarter was $4.5 million, or a loss of $0.05 per share, compared to a loss of $13.8 million, or a loss of $0.15 per share in the prior year quarter. Now turning to the balance sheet and cash flow statement. We ended the quarter with $471.9 million in cash, cash equivalents, restricted cash, and marketable securities. Cash used in operations during the quarter was $2 million, compared to $23.9 million in the prior year quarter. Including the cash impact of capitalized costs, free cash flow was -$5.9 million, compared to negative free cash flow of $28.1 million in the prior year quarter. As we have stated before, we expect our free cash flow to fluctuate from quarter to quarter, given timing of customer and vendor payments. Now turning to our forecast. Demand for customer engagement solutions is solid, our team's execution has been strong, and our pipeline remains healthy. However, we continue to experience macroeconomic headwinds that manifest in elongated sales cycles, constrained marketing budgets, and slower new business growth. We approach our guidance with a prudent and risk-adjusted methodology and assume current macroeconomic conditions remain unchanged going forward. For the fourth quarter, we expect revenue to be in the range of $124 million to $125 million, which represents a year-over-year growth rate of approximately 26% at the midpoint. While we're not providing specific gross margin guidance, we expect gross margin will be negatively impacted by higher seasonal activity during the fourth quarter. As a reminder, our long-term non-GAAP gross margin forecast is 67% to 72%. Fourth quarter non-GAAP operating loss is expected to be in the range of $7 million to $8 million. At the midpoint, this implies an operating margin of approximately -6%, an improvement compared to the better than -7% guide that we had provided earlier this year.... Fourth quarter non-GAAP net loss is expected to be $4.5 million to $5.5 million, and fourth quarter non-GAAP net loss per share in the range of 4 cents to 5 cents per share, based on approximately 99 million weighted average basic shares outstanding during the period. For the full fiscal year 2024, we expect total revenue to be in the range of $465 million to $466 million, which represents a year-over-year growth rate of approximately 31% at the midpoint. This includes an estimated $9 million in-year contribution from North Star, or approximately 2.5 percentage points of growth over FY 2023, which once again, we will lap on June 1 of this year. Fiscal year 2024 non-GAAP operating loss is expected to be in the range of $39.5 million to $40.5 million. Non-GAAP net loss for the same period is expected to be in the range of $25.5 million to $26.5 million. Fiscal year 2024 non-GAAP net loss per share is expected to be $0.26 to $0.27 per share, based on a full-year weighted average basic share count of approximately 98 million shares. In addition, we believe we are on track to meet the profitability goals we have previously communicated for fiscal 2025. We expect Braze will achieve positive quarterly non-GAAP operating income and positive quarterly free cash flow by the end of fiscal year ended January 31, 2025. I'll wrap my remarks by reiterating our commitment to driving product innovation while consistently executing against our financial targets. We remain confident in our ability to grow our top line while maintaining cost discipline and delivering on the financial targets that we have set for fiscal 2025. And with that, we'll now open the call for questions. Operator, please begin the Q&A. We will now begin the Q&A session. If you would like to ask a question, please use the Raise Hand feature at the bottom of your Zoom window. I will wait one moment while the queue assembles. Our first question comes from Arjun Bhatia with William Blair. Please unmute yourself and ask your question. All right, perfect. Thank you, guys, and congrats on a great quarter here. If I could just start with new customer demand, it seemed like, Bill, you called out some competitive takeaways, and strong traction in general. But I did notice that the net new customer adds slowed a little bit. So can you just talk about what's happening with deal sizes and enterprise traction, new deals, and how that pipeline might look going into Q4 here? Hey, Arjun, it's, it's Isabelle. I'm just gonna address specifically your question on the net new customer adds. You know, actually, where we're seeing kind of more challenges is down at the SMB segment, and that's on sort of two fronts. One is the new customer adds and our ability to kind of get new logos in that segment, and then also some challenges, obviously, from a loss perspective, logo loss in that segment. That segment of the market is really experiencing kind of the toughest environment in terms of access to capital and liquidity, ability to kind of spend out their budgets, and we're seeing more business failures down at that level. But, you know, rest assured, this is, it's not really a competitive issue. Net competitive flows were actually positive to Braze during the quarter. So we're very happy in terms of how we're behaving and realizing our reward during the quarter relative to the competitive environment. It's really what you're seeing is just more a reaction of elements happening at the SMB level. I would also note that while we saw more elevated losses of logos at the SMB level, the dollar level was relatively low in that segment specifically. And overall, the dollars of loss in the quarter was well within our sort of budget tolerances, so we... This was not unexpected. Yeah, and as we mentioned, you know, we are seeing relative strength in the enterprise, and we think that's primarily because enterprises are used to planning and operating on longer time horizons. They operate with more stable foundations, and those are the key decision-making ingredients that drive both the legacy replacement cycle and the vendor consolidation trends. And we're seeing those factors play out in our favor, even as budgets have remained constrained and efficiency is being prioritized over growth in most of those companies. However, it's definitely still an opportunity-constrained environment, and those sentiments don't exist across our entire addressable market. which really just brings us back to the imperative for us to continue executing with strength and investing in the underlying improvements that, you know, in our own efficiency and our own productivity and our own velocity, so that we can continue to grow even as the macro persists. All right, perfect. That's, that's very helpful. And then when we think about some of the Black Friday, Cyber Monday trends, it looked very strong. Obviously, the throughput, the consumption was pretty robust this year. What, what does that mean for Braze customers longer term? Like, especially as we think about customers coming up for renewal, should that be an indicator of upsell? And, Isabelle, I think you touched on this a little bit, but I assume that is the gross margin impact that you're, that you're talking about, where it may not be an immediate bump to revenue, but you're recognizing the costs in, in, in Q4. That's exactly right. Revenue is recognized ratably over the contract term, whereas the cost component is definitely based on utilization and usage. So that's the compression that you see in Q4. Yeah, and I would say that you shouldn't see that as a forward indicator of consumption-based upsells, because marketers certainly plan for Black Friday, Cyber Monday to be higher volume, and that is incorporated into their purchasing. However, I do take it as a positive indicator that the increased usage of Canvas in particular, as well as our more advanced features, means that you know, a broader and broader percentage of our customer base is utilizing the parts of Braze that are differentiated and that drive differentiated value. And we know that customers that use Canvas are stickier, and they derive more value from Braze. We have less competitors when you know, a customer is more sophisticated, and we maintain our premium price point much more easily in those circumstances. So, you know, that's why we're so focused on continuing to drive that more differentiated and more sophisticated usage. And I think that some of the non-volume stats that you saw in our Black Friday, Cyber Monday readout were, you know, very much in support of that. ... All right, very helpful. Thank you both. Yep. Next. Our next question comes from Brent Bracelin. Please unmute yourself and ask your question. Brent, we can't hear you if you're talking. I think maybe we're gonna go to the next question, operator. Our next question will come from Ryan MacWilliams with Barclays. Please unmute yourself and ask your question. Hey, guys, thanks for the question. Great to see the CRPO growth improvement. Bill, how are your existing enterprise customers broadly thinking about next year's budgets at this point? Like, are you seeing customers more willing to make growth investments after being maybe more profitability focused in the last year? Yeah, I mean, I would say with what we're experiencing right now, we don't have reason to believe that the macro impacts on the buying environment are gonna meaningfully change through next year. Marketing budgets and team sizes are still flat or otherwise constrained. CFOs are still scrutinizing every dollar that goes out the door. You know, and we also see many businesses still struggling to adapt to the new macro. You know, in the SMB segment, which I know wasn't your question, but, you know, many of them are also watching their runway shrink month over month, waiting for the VC environment to normalize a bit more, which so far has not really happened. And so, you know, we've been really happy with the execution of the team. We're controlling what we can. We're very happy with the creativity, dedication, innovation from, you know, the global Braze team. But we're not anticipating an improvement in the buyer environment. You know, as I mentioned before, we still consider it to be an opportunity-constrained environment, but we're doing everything we can to control what we can, to execute as well as we can. And, you know, we're doing it at the same time that we're making foundational investments, both in the product, in our efficiency, in our velocity. And our plan is to be far ahead of the competition on all of those fundamentals when conditions eventually do loosen up again. Perfect. And just on the holiday season traffic, we saw a continued share shift towards mobile purchasing during the Cyber Week and Black Friday period. I know this is a trend that, you know, Braze was built on, and you guys have been playing for a long time, but just given, like, that significant gain, I think that was bigger than people expected. Do you think this could finally maybe wake up some more non-mobile first enterprises or customers outside your traditional target zones that could engage with Braze going forward? Yeah, absolutely. You know, and I think that it's not just the mobile side of it, waking them up to the opportunity that exists in mobile, and that is obviously a strength for Braze. But it's also another reason for more brands to break down the silos that exist between their teams. We see, in particular, in the traditional enterprise, especially in some of the slower moving categories, that there are still huge, huge silos and walls up between the email teams, the web teams, the mobile teams. And, you know, that's something that we saw play out over the course of the last five or six years in some of the faster moving categories or in some of the, you know, digital first businesses that really broke down those walls. They started to focus on the more coherent cross-channel experience delivery instead of just delivering messages in silos. Those are kind of strategy and organizational shifts that really play into Braze's favor. So I think more than just the shift to mobile, and, you know, obviously, Braze's mobile strength, is really that focus on cross-channel execution, cross-channel orchestration, and businesses evolving themselves to, you know, be more ideal customers of Braze. Appreciate the color. Thanks, guys. For sure. Thank you. Our next question comes from Taylor McGinnis with UBS. Please unmute yourself and ask your question. Yeah. Hey, team. Thanks so much for taking my question. Isabelle, maybe for you, if we look at CRPO growth, quarter over quarter, excluding North Star, it seems to be trending similar to sequential growth that we saw last year. So just as we look into 4Q, any differences in the renewal base this 4Q versus last year? Could some of the recent trends that we're seeing in sequential growth hold? And just given that this is such a big bookings quarter for you guys, I'm curious what you're seeing so far in terms of deal activity and renewal conversations. Yeah. So I'll address your question about North Star first on the sequential. So the, the North Star impact, I would think about that more as impacting the year over year versus the sequential, because once it's in the number, it's just sort of... It's in it, right? And it just sort of persists, and, and then we'll lap it, you know, June one of next year. So I would look at- actually, if you look at the sequential, that- that's not really impacted by North Star specifically, so think of that as kind of a more normalized outlook on, on the company. What we're seeing in terms of Q4, there are more renewal dollars to happen in Q4. That's, that's fairly typical. And so we, we, we do have that, for, for Q4. What we're seeing in terms of bookings so far, you know, we've talked about linearity this year, being better than expected, and when I say better than expected, it just means it's sort of returning to levels that were... or trends that were consistent, before, the market sort of fell apart about 18 months ago. I broadly expect to actually see that in Q4 this year as well. Awesome. Thanks, guys, for answering my question. Thanks, Taylor. Our next question comes from Tyler Radke with Citi. Please unmute yourself and ask your question. Yeah, thanks for the question. So wanted to double-click on the enterprise strength that you saw in the quarter. You know, pretty big pickup in 500K additions. Can you talk to, you know, the trends that you're seeing there? Is this primarily, you know, Salesforce displacements? Is this, you know, just success with upsells? Just help us understand what's driving the strength there or, you know, if there was any timing in terms of pulling deals out of Q4 as well. Thank you. ... Yes, I think when you look at the $500K cohort for Braze, just a reminder that new business can enter that right out of the gate, but also we can achieve that through upselling smaller logos into that category over time. And so certainly both of those things are at play in the sequential growth in that number. I think, you know, across the enterprise, as I articulated earlier, we're seeing both the legacy replacement cycle at work. You know, I think that as Braze's awareness and our prominence and some of the pressure on these enterprises to really transform themselves to stay more competitive in markets where many of them are experiencing challenges from digital-first companies, and they're looking at how those digital-first companies operate, and the answer in many of those cases is that they use Braze, right? Or they operate with the agility that only Braze can deliver, especially when you're trying to coordinate across the complex challenges of across channel customer engagement and delivering to global audiences, which more and more businesses are doing these days. You know, it's not just the Fortune 500 that needs to tackle the complexity of the global environment, it's also a lot of digital-first start-ups that take advantage of the app stores in order to have that reach. And so, you know, Braze, I think, is, is well positioned for those changes in the environment. And, you know, we're, we're doing everything we can to be able to execute, even as those businesses are facing constrained budgets and, you know, teams that are driving toward efficiency. Another part goes back to the, you know, something I've mentioned for probably five or six quarters now, which is just that during times where brands are focused on efficiency, working on retention, on leveraging first-party relationships and first-party data assets, and ensuring that you're retaining the customers that you've you know, spent a lot to acquire in the first place at higher and higher rates, is, is of the utmost importance. And there's an opportunity to focus on that, once acquisition gets a little bit more de-emphasized, as it has through these macro conditions. And so, you know, it's, it's a little bit of a lot of those different things. But, you know, it's still uneven in terms of how, we're seeing, you know, enterprises lean into new investments. There's still a lot of penny-pinching going on. There's a lot of scrutiny on every dollar. You know, we're certainly seeing, and we've spoken about this before, a more stable environment this year than we did in the back half of last year. But I wouldn't say that we've seen any sort of material or improvement from, you know, from Q1 to Q3 through this year. It's very much a lot of enterprises living in the same budget realities as they have, the same kind of team sizes as they have, the same push for efficiency throughout the entire year. We don't see strong evidence that those factors are gonna change in the near term. We're certainly on the lookout for them, because, as I mentioned before, you know, as the competitive environment loosens up again, we wanna be far ahead of the competition and, you know, leveraging that great execution that we have to get even further out ahead. But we are seeing that strength in the enterprise right now, and we're, you know, adapting accordingly. That's helpful. And just on the environment, maybe this is for Isabelle, but if I look at your, you know, revenue beat, this was one of the strongest you've had all year, and I think last quarter you benefited from linearity and, you know, the North Star acquisition this quarter that was already in the numbers. And And then you also raised, you know, Q4. Q4 was guided $5 million above the street, which was stronger than the guidance you gave last quarter. So it feels like you're actually flowing through some operational upside, I guess. What was the biggest driver of that upside in the quarter? Was it kind of these larger enterprise wins, or maybe did, you know, the environment play out a little bit better than you were expecting in terms of macro impacts? Thank you. Yeah. So I think we're... You know, the macro continues to be challenging. I think we're, we're executing well in the context of this macro. In Q3, yes, there was definitely, when I say impacts from linearity, again, not better than normal, but we haven't been normal for a long time. So we're kind of back to a more normalized linearity, which is helpful relative to- You know, if you even rewind the clock back to kind of the beginning of the year and how we set out guidance, you know, North Star wasn't in there. We were baking in quite a bit of kind of back-end loaded, deal flow, in the context of quarter-over-quarter. So while, yes, that we've now had the benefit of a few quarters of that, and so I could take some of that into consideration in the context of the new guides, with the uncertainty that continues to plague us, I don't take all of that into consideration, and so you are seeing some of the upside here. It's been, you know, 2.5 quarters of, you know, some of this better linearity here. I wouldn't necessarily... We will continue to take a risk-adjusted approach, as we forecast out further into the future, and I would suggest, you know, the analyst teams do the same thing. Thank you. Our next question will come from Brent Bracelin with Piper Sandler. Brent, please unmute yourself and ask your question. Thank you. Airport Logistics here. Thanks for bearing with me. Bill, I wanted to go back to the replacement cycle. You did mention several vendor consolidation deals in the quarter. Do you get any sense of an increasing appetite with some of these large enterprises that they're now maybe more willing to look at consolidation than they were maybe two years ago? And if so, maybe why? And then one quick follow-up for Isabelle. ... Yeah, I think that there's a couple things from a consolidation standpoint. One is that the pace that a lot of businesses slowed a little bit, right? There was a breakneck pace through the highly expansionary period that led into the end of 2021, and that led to a lot of software getting deployed in a lot of places. You know, as we're all aware, you know, a lot of that software was utilized to different levels of effectiveness. And I think that there's just a lot of scrutiny being placed on what are, in many businesses, super complex technology environments. And so, you know, picking the ability to kinda pick your head up, plan in this environment, that is relatively calmer than it was when you assembled the complexity, and be able to look for the ability to consolidate effectively is really, you know, is, is really part of what drives that attitudinally. And then from a financial perspective, you know, I, I think that the total cost of ownership of a complex technology landscape, because of the number of people that are required to manage it, the amount of overhead that goes into play with communication across all the different tools and coordination there. You know, in the example that I cited in the prepared remarks of a customer being able to use a combination of feature flags in product surveys and reporting on an experiment that they rolled out, all as a single person in the same tool. If you think about how that translates into organizational productivity and agility, and what that means from a total cost of ownership and savings perspective, you know, those are all aspects of consolidation that are really pointed in the direction of efficiency. And so, when you combine those two things together, I think that creates a good environment where both, you know, attitudinally, people are open to taking another look at what got assembled while they were, you know, going through the through that period leading into late 2021. There's just a lot of great rationale to simplifying an ecosystem, especially when you have as many moving parts in some of these marketing technology ecosystems as we see at some of these prospects. Helpful color. And then just Isabelle, on the demand environment, three straight quarters of 30% plus growth. I get budgets remain constrained, I get there's a little bit of acquisition benefit there, but three trends, three quarters do make a trend. Do you feel like the environment's at least stable enough in a demand perspective for you to continue to kinda control what you can control? Or would you say there's still some outliers that we should be aware of? Thanks. Yeah. So, you know, I wouldn't point to any specific outliers that we should be aware of. But there's there is just continued uncertainty just generally in the market. And so I, you know, I would say... I said, "Two quarters does not a trend make." Yes, it's been three quarters. Yes, there are tailwinds from the North Star acquisition. So we are gonna continue to be prudent with... On the profitability side, you know, some of these overachieves, we have actually opened up some additional spend capacity, particularly in R&D. That is a longer term play for us, obviously. But we are, you know, we are trying to take some of this benefit and kind of reinvest in the business in ways that are gonna pay out dividends over the longer term. These are helpful. Thank you. Our next question comes from Brian Peterson with Raymond James. Please unmute yourself and ask your question. Hi, this is Jonathan McCary on for Brian. Thanks for taking the question. So I'm curious, coming off of Forge, you know, how did that event perform versus expectations in terms of pipeline generation? And then maybe give us some context in terms of what the conversations have been like around the new product and feature announcements you had there? Yeah, absolutely. So, as I mentioned, you know, Forge was actually a capstone on a full year of owned events, and we've been happy with how that's been able to activate our global customer community. You know, the goals of these events vary depending on the event series, and Forge is really the flagship customer event, where we bring in, you know, primarily existing customers. We do a lot of certifications that, you know, our partnership landscape is on display. There's a lot of learning. That can really help with deal acceleration. It can help cement relationships and improve the sophistication. We don't look for that to specifically create a lot of net new pipeline, or City x City, and kind of Get Real with Braze and Grow with Braze event series that make up the rest of those that I cited in the prepared remarks, are more oriented towards prospects and new business pipeline generation. And those have a steady drumbeat on their schedule throughout the year. With respect to, you know, the conversations and what we're seeing in terms of customer excitement and trends, you know, I think that AI continues to be the center point of a lot of that. You know, and as I mentioned in the prepared remarks, in addition to working with OpenAI's proprietary models, we've also been doing our own training on a number of models, including on various sizes of Llama 2, and we've been really excited to see the results of those tests so far. We're excited about what that means both for copilots as well as around automated decision-making. You know, we've shared a little bit, yeah, we shared a bit at Forge, and we've shared some of the constituent components of Sage AI that we're ready to talk about right now, both with our customers as well as, you know, with all of you, through these, through this earnings call. But there's a lot more that's underway across our teams. You know, on the copilot side of the house, I think that the whole community is excited for this near-term future, where Gen AI and Braze is gonna make it feel less like you're using a tool and more like you're working with frankly, a whole team of specialists and consultants to help you tackle your business challenges. You know, we're thinking about this as being like having a brand strategist, a copy strategist, a developer, and data analysts all close at hand and ready to improve and accelerate customer engagement initiatives for our customers. You know, when we talk to a lot of people at Forge, there's a lot about operational efficiency, there's a lot about helping marketers do more with less. I think that copilot features like this are particularly helpful in a platform like Braze, where we can deliver differentiated capability to people, but only when they have certain technical and data skills, you know, when we're talking about various parts of the feature set. When we can lower the barrier to entry to leverage those capabilities, people get really excited about that because it means that they can compound the kind of skills that they're acquiring, in their own role, along with new features that Braze continues to roll out. You know, I think similarly, continued progress on GenAI in the creative production realm is gonna make it easier to leverage Braze's experimentation capabilities. One of the key competitive differentiators about Braze versus many of our less sophisticated or lower-cost competitors, has always been that we enable agility, and we enable experimentation across all the different strategies that a marketer, right, might run. But that's unfortunately not a way of working that, you know, all teams and businesses are resourced to take advantage of today. So, you know, we're excited, and we heard a lot of conversations from customers that are experiencing with these new GenAI capabilities to lower costs of production, to speed iteration cycles for new content and creative assets. And in doing so, you know, we're excited that more companies are gonna be able to work in a way that they find the advanced capabilities of Braze to be indispensable. You know, going back to the, the conversation on, you know, Black Friday, Cyber Monday, and seeing more advanced features being used there, what that means is that there's more realized differentiation for Braze across a larger community of marketers because more of them are able to use our more sophisticated capabilities. That's great. Thanks, Bill. Yep, absolutely. Our next question comes from Michael Berg with Wells Fargo. Please unmute yourself and ask your question. All right. Thanks for taking my questions, and congrats on the quarter. I wanted to ask something more philosophically on the market. You guys are very well positioned to leverage first-party data, and given the current macro and budgets being constrained, it seems that there is an ongoing shift from paid advertisement to platforms such as Braze. Can you talk about that trend? Is that something that's real, and how is Braze potentially benefiting from something like that? Thank you. Yeah, so this is something we've been talking about for a long time, which is that, you know, I think a lot of the focus and the dollars in marketing organizations were primarily on acquisition, which meant, in a lot of cases, performance marketing and advertising. And over time, we've seen that, you know, even as there's been a capability to use first-party data to make those strategies more efficient and more effective, that the internal silos that existed in a lot of marketing teams between the performance marketing and the CRM or the customer engagement teams just kept them from being able to utilize those. And so, you know, going back to some of the analysis I just gave about what's driving vendor consolidation, I think part of this is a mindset, which is that, you know, in the kind of quest to get additional efficiency when there's more scrutiny and when these businesses are able to kind of slow down a little bit and rethink the way that they've been working, they realize that actually there's been this low-hanging fruit there for years now, for them to be able to incorporate first-party data and to be able to incorporate first-party, you know, channels into their acquisition and their performance marketing strategies in order to drive additional efficiency. So, you know, we've responded to that by increasing investment, especially over the last 12-18 months, to make those integrations that we have into that ecosystem more comprehensive and make them easier to use. That, in turn, has been then driving additional collaboration between the CRM and customer engagement teams with their performance marketing or their acquisition teams. We think that that's, you know, those are teams that should work in harmony over the long term, and it was really just needed to have a catalyst in order to make that happen. We very much think that that trend is real. I think that it's been happening for years now. There's definitely more focus on it as brands are pushing toward more efficiency, and it's, it's something that we think is gonna continue. Awesome, helpful. And one quick follow-up. There's been a lot of discussion on the call around displacement to legacy vendors, and something we have heard in the channel a fair bit recently. Has there been more maturity in both your go-to-market, as well as alignment between your sales organization and the partner ecosystem to capitalize on the low-hanging fruit and the legacy displacement opportunity? Thank you. Yeah, so, you know, we have a highly diversified customer base, and we've always had a great ability to flex both our sales capacity, our marketing investment, and our partner focus into both regions, or I guess all of regions, verticals, and account classifications or account sizes, that we see the most potential in. And so, you know, when I kinda look at those different dimensions, you know, today we're seeing the world experiencing pretty similar macro conditions. We've obviously mentioned the enterprise is in the near term, at least, performing better than SMB. But in the long term, you know, we're investing across the range of customer sizes that we sell to today. We're excited about the potential, although, you know, from SMB, all the way up to the world's largest enterprises. And we're cultivating partnership partner relationships across that whole spectrum as well. You know, inclusive of, you know, smaller marketing and growth agencies that work through our partner-led onboarding program to deliver to SMBs, all the way up to, you know, the global systems integrators, the big marketing, you know, marketing holding companies that or the agency holding companies that work with us in the world's largest enterprise businesses. And as we see opportunities to break into, you know, whether it's particular verticals or maybe customer profiles that are characterized by, you know, changes to their regulatory landscape or maybe to their competitive landscape or places where we're able to look at the, you know, the competitive install base, whether it's a legacy marketing cloud or a legacy marketing cloud with a collection of point solutions. Those are all data points that our sales team and our partners use in order to pursue, you know, strategies, whether it's around just creating those opportunities, you know, doing targeted account-based marketing, and or, you know, being able to do that in a more automated demand gen way, and then all the way through the rest of the funnel. So, you know, very much we are tailoring and per- and kind of targeting strategies around those types of considerations. But I would zoom out a little bit and realize that because of how diverse Braze's customer base is, that is very much a muscle that exists across multiple dimensions. Helpful. Thank you. Our next question comes from Matt Bentley with BTIG. Please unmute yourself and ask your question. Yeah, good evening. Thanks for taking the question. Maybe just following on the last topic around the partner community, especially around the consulting and agency types, you know, how do you feel about sort of who you have in the portfolio? Do you have the right partners? Do you need to continue to build that number out there, or is it just really about driving home more business with the key partners that you're already aligned with? I think we're still so early in building strong relationships across the services ecosystem, that the answer to that is very vehemently all of the above. It continues to be a major priority for investment. You know, we've been super encouraged by the progress that we have achieved with those partners who have leaned into their relationship with Braze because it validates the fundamentals of the flywheel that I've spoken about in past quarters. You know, it's win-win-win when we can bring business to the services ecosystem, when they can then build their bench of Braze-certified marketers, they can bring, you know, more finely tailored services to our customers, which helps them achieve more differentiated value out of Braze. And that just spins the flywheel of our community and our services ecosystem. And so, you know, when we look ahead to, Braze continuing to grow to, you know, orders of magnitude larger than it is today, our services footprint is both gonna be deeper and broader. And, you know, it's gonna be more global, and it's gonna be across more areas of service when you look at the entire life cycle of production of campaigns, all the way through, the execution, the data analysis, and continuing to, you know, reach into more of the product surface area as well. And so there's a lot of opportunity for our services partners to continue to partner with Braze across, a lot of different dimensions. You know, we're gonna meet them with additional investment on our side and ensure that that services ecosystem continues to grow in partnership with us. And then, Isabelle, just quickly on. Do you have any metrics you can share around sort of the mix of business that is influenced by some of those partners, or maybe and, conversely, you know, can you give us a target that maybe we should think about over the next five years, or say, of how much of the business could be influenced? Yeah. So we don't have specific metrics that we disclose or discuss. Certainly, you know, we expect it to continue to increase. I think the way Bill characterized it is exactly right. We are in the early stages of this. A few quarters ago, you know, our president, Myles, was like: "Wow, you know, we have made more progress with these guys in the last, you know, couple of months than we have in the last, like, five years." Which is right, but we are still in the early stages of this, and so to be at a point yet where we are not only assigning but also publicizing, you know, the attribution of our bookings or our top line to the partners, it's just too early to do that. Okay. Thank you. Our next question comes from Jake Titelman at Goldman Sachs. Jake, please unmute yourself and ask your question. Thanks for taking the question. Can you guys please give us an update on sales rep productivity, how that's trended over the last few quarters? And, Bill, you, you also mentioned that you wanna be ahead of the curve when the macro improves, so what would it take for you to start hiring again? Yeah. So as we've said, we've been very happy with our team's execution, and the productivity of our sales team is absolutely a part of that. You know, looking ahead into next year, we're focused on first closing out a strong Q4. And we're, you know, while we're doing that, we're hard at work preparing for our next sales kickoff in early February. We don't have details to share on this specifically today, but that kickoff will include some evolved pricing and packaging. We're gonna be deploying more sophisticated territory carves and account planning mechanisms. We hope that's gonna continue to support improvements in velocity and productivity for our sales teams. You also heard Isabelle mention a little bit earlier that we've authorized additional hiring in this year, specifically focused in R&D, in order to help support, you know, additional revenue and additional, you know, just product feature sets, more to sell, more stickiness, more usability, et cetera, further into the future. As we look into next year and increasing the size of the sales team, you know, we, as I mentioned before, with the highly diversified customer base, we do have an ability to flex new sales capacity and marketing investment into areas where we see strength. We are expecting an uneven recovery when we look at that from a global perspective, and so, we're ready to adapt to that as it presents itself. We're, you know, hard at work trying to read the tea leaves in the many regions that we operate in around the world, so we can deploy capacity when we, when we have confidence that, you know, those regions can support it. I think that, you know, we're also gonna look at account segmentation, you know, with respect to enterprise versus SMB, as well as, you know, in particular, at the high end, within our global strategic accounts program with the largest customers, looking at new categories and verticals that we could potentially continue to expand into. And so I think that seeing opportunities along those dimensions is what's gonna give us the confidence to continue to build new sales capacity. And then along the way, we're gonna continue to invest in the broad-based productivity improvements, you know, that we've been hard at work on for the last year. And to some extent, that's a job that's never done, but, you know, we've certainly been really happy with what that has meant from an execution standpoint.... Thank you. That's helpful. Then just a quick follow-up for Isabelle. So you're guiding to 26% growth in 4Q. How should we think about that as a potential starting point for fiscal 2025? Yeah, so I'll speak sort of high level about 2025. But specifically for Q4, just remember both Q4 and Q1 are seasonally low from a sequential growth rate perspective. So that is not unexpected, and all analysts and anyone doing models should incorporate that fact into any forecasting. I think that, you know, as we look out into the future, you know, we are going to continue to take a risk-adjusted posture when it comes to guidance. Keep in mind that, you know, I said this earlier in the call, some of the results that happened over the back two-thirds of this year were as a result of North Star, which obviously we will lap in the early part of next year. And so I would take that into consideration when not only thinking through what the guidance might look like, but then what the results might look like on the—what we're sort of planning for in terms of results on the other side of that guidance. And just remember that, you know, Q1 will still have a bit of a tailwind from the North Star acquisition, but that is pretty much the last quarter that we'll have a year-over-year tailwind. And so, you know, we will get to FY 25 in more fulsome detail in March, once we have more visibility, given the results of Q4. But hopefully, that's helpful from at least a philosophy perspective. Thank you. Appreciate it. In order to get through everyone's question, can we please limit it to one question? Our next question comes from Pinjalim Bora with JPMorgan. Please unmute yourself and ask your question. Great. Congrats on the quarter, and thanks for taking questions. Seems like macro continues to be a bit challenging. Isabelle, is there a way to think about NDR going forward? Because you are kind of reaching, or will be reaching, getting easier comps, starting in Q4, but macro continues to be challenging. So I'm thinking if it kind of... Would you say it kind of troughs at a point in Q4 or Q1, or do you feel like it might continue to slide? Yeah. So, you know, I think that it is a lagging indicator, especially given that it is a 12-month trailing. And so I would not—while we don't guide on it specifically, our own internal models and forecasting will assume that, from a risk-adjusted perspective, that there's gonna be more to come out there. I don't think we have fully called the bottom yet, and that's mostly just because it is a lagging indicator, mostly because it's a 12-month trailing statistic. So I would incorporate that fact pattern in when thinking about the future. Understood. Thank you. Next question comes from Scott Berg with Needham. Please unmute yourself and ask your question. Hi, everyone. Great quarter. Thanks for taking my questions. Bill, in your pre-scripted remarks, you talked about passing the $500 million in committed ARR threshold. Congrats, it's obviously a big number, but how do you think about $1 billion or more than $1 billion? Can you get there with your current product set, or do you feel like you need some additional, you know, whether it's modules, functionalities, channels, et cetera, to help achieve that goal? Thanks. Yes, I think that, you know, when we look out toward doubling again and then growing, you know, orders of magnitude after that, there will absolutely continue to be meaningful expansion of our product surface area. You already see us making forays into new buyer personas as we've expanded into, you know, selling things like Feature Flags to more of a Chief Product Officer or Chief Technology Officer, kind of a budget, than CMOs. And, you know, we've obviously been doing a lot of investment into our data platform. Along the way is gonna be continued expansion into different channels, continuing to expand our orchestration and personalization capability. I think you should expect to continue to see a broad base of investment, which, you know, we're excited about how all of those new product expansions compound themselves into, in, you know, existing customer growth. It provides us with additional landing points and starting points for new customers. And, you know, continues to just add more differentiated value for Braze over time, which obviously encourages stickiness and community growth. I think also, you know, one of the things that I come back to when I think about our future growth is that Braze still is right around 2,000 customers today, even as we're at $500 million in ARR. And so, as we expand to, you know, $1 billion in ARR, we'll expect to be, you know, somewhere around 4,000 to 5,000 customers. As we continue to grow from there, you know, we're preparing as an organization for having orders of magnitude more than that. So as we look at upgrading our own internal processes, right now, every time we look at whether it's a new post-sales motion, a new way that we're you know, continuing to add automation to things like product-led sales or product-led growth motions, et cetera. You know, those are all investments that we're making to prepare for a meaningful scale differences as we continue to grow. For Braze to achieve our community goals, we obviously need to have you know, a much larger reach, but we think that's also a motion that will compound on itself. You know, speaking of that, there's also obviously the agencies and the ecosystem, and the partnership side, which also will help to compound our way to $1 billion in ARR, and beyond. And so, you're seeing investment across a lot of different dimensions for Braze to be able to support that. We feel, you know, really good about the very diverse customer base that we have today. You hear me talk about that all the time. You know, Braze is very much not a business that went and, like, highly penetrated and concentrated itself into, you know, a specific vertical or a specific channel or a specific geo. We have a very diverse foundation upon which to continue to build, you know, a very, very large business and build into a very large opportunity. It's obviously more challenging to start building a business that way than it is to start in a niche and, you know, be able to kind of build directly into it. But we also see it as being less risky as we look out to, you know, big, bigger numbers and kind of more long-term targets, because we've already proven that we can sell into those verticals, that we can satisfy those use cases, that we can deliver a product to companies of those sizes, and that we can solve, you know, not just regional and local use cases around the world, but also the unique nature of global businesses as well.... Excellent. Thank you. Our next question comes from Brian Schwartz with Oppenheimer. Please unmute yourself and ask your question. Yeah, thank you for taking my question. Great quarter. Bill, the commentary that you've been giving on the call about what you're seeing with the macro, I'm wondering if that is you're seeing a similar environment all around the world, specifically, you know, in EMEA and APAC, in North America. Are there any differences or is there any stability or maybe somewhat improvement in any of the international markets? Thanks. You know, no, we're not seeing any sort of, you know, meaningful improvement. I think everybody's kind of suffering under the same high interest rate environment, the same volatility, the same drive toward, you know, efficiency over growth, the same, you know, inflationary environments. I would say that, you know, we also saw different timing in terms of, some of the venture world, just because a lot of the companies in the United States were had, you know, very recently raised large amounts of money, and so, their runways weren't coming up on them quite as quickly. So we are actually, to some extent, anticipating that that could become more of a problem in the venture-backed world, in the Americas and EMEA, coming into next year, as some of those runways start to run out. And I think we've already been seeing that in APAC over the last year, where a lot of the start-up businesses were a little bit less well-capitalized, heading into this environment. And so that part of it, I would say, is uneven, but it's more like uneven timing on badness. You know, all that said, we are also expecting the recovery, you know, and eventual loosening of conditions to similarly be uneven. We're certainly seeing, you know, different responses from governments, and different currency performance, and different paces of progress in terms of inflation, stabilization in different markets around the world. And so for us, what that adds up to is that we need to continue to be, you know, really paying close attention to data to evolving conditions, and making sure that we're deploying sales capacity and marketing investments in the places where we start to see early signs of recovery. Because, well, I think we're seeing similarly subdued negative macro conditions all around the world right now. We are expecting the eventual recovery to be uneven, and we wanna make sure that we're quick to those markets that are early to it. Thank you. Our next question comes from DJ Hynes with Canaccord. Please unmute yourself and ask your question. Hey, thank you, guys. So Bill, we've seen some other marketing or CDP companies recently initiate or talk about rolling out, you know, a mobile channel to complement their existing email, SMS, and other activation channels. You guys obviously went the other way, right? Starting in mobile, and then initiating other channels. Can you just speak to the benefit or challenges of going one way versus the other? Do you think there's a material difference? I'd love to hear your take. Yeah, so I'd first correct history a little bit, and note that we actually started across four separate channels, and the very first version of our product that we launched included email. And so, you know, Braze, dating all the way back to our beta release in 2012, has been building on, you know, mobile and email experience, as well as in-product messaging. Which included both a persistent in-product message type through our newsfeed, as well as a slide-up message, that was interactive with the customer. And so our first version launched with four different channels, which included some that were pushed by their nature, some that were pulled by their nature, some that was integrated into a product, and email, obviously, being outside of the product. The pressures that having that multidimensional channel set place on the segmentation, and the orchestration, and the personalization capabilities, as well as the nature of being able to maintain the invariant of keeping everything interactive in real time across all those different channel types, meant that, you know, it was definitely harder for us to build in the early days. Because every time we rolled out a new targeting feature, we had to make sure it worked across all those different channels. But now we find ourselves in a position where, as we've gone from 4 to 6, to, you know, a dozen or more channels, depending on how you wanna count them, that our foundations anticipated all those different dimensions that message types would have. I think when you compare that then to a lot of our competitors, that you know they either started in a single channel, or they started in channels that were not integrated into the products. You know, we have a lot of competitors who are focused on things like email or SMS, which doesn't require any sort of integration into a code base. You know, where you're actually living inside of a product, and that means that they don't have preexisting relationships with the engineering and the product teams. You know, that's a really big gulf for them to get over. Being able to do push-based or broadcast-based messaging and switch that to you know an individual customer opening up a product experience, and needing to interactively load a personalized feed inside their product. Just very different demands on, you know, even on just, like, the database. And being able to deliver that ability to personalize. And so, you know, when we look at the competitive set, and we see any competitor that really grew up on a single channel, or they grew up outside of the product, or, you know, they grew up tied to a specific vertical over time. We just know that there's, you know, there's some pretty big chasms that they're gonna have to get over, and they're gonna be even harder to cross, because they've painted themselves into corners that they don't even realize right now. And so I think that Braze, you know, chose to build a really diversified business. I've talked about all the dimensions of that across the customer base, but the same thing is true across our platform and channel set as well. And, you know, we're excited about what that means for our enduring differentiation. Yeah, I appreciate the call. Thank you. We have time for one more question. The final question will come from Andrew Sherman with Cowen. Please unmute yourself and ask your question. Oh, great. Thanks. It's Andrew for Derrick. Isabelle, could you talk about growth trends in MAUs? I think this is about half of the contract structure for customers. What are you seeing there from your larger customers? And if the consumer improves, can that be a growth driver for you over the next couple quarters? Yeah, so we don't really tie our sort of future, sort of view of, of kind of economic performance to, specifically to, to kind of the, the MAU. If you look at the MAU growth, actually, it's been more slow than our overall revenue growth. So I know people sort of focus on this number. We generally try to kind of pull people away from it. What we've noticed in terms of just general buying patterns today versus kind of pre, when the market started to fall apart, people used to buy sort of for, for growth expectations. You're seeing some of this play out actually in the Dollar-Based Net Retention. People would buy, based on, on expectations of growth, and just knowing that they would sort of grow into, what they had purchased. We are definitely seeing renewals and purchases come in more in line with where they actually think they're going to be using in the near term, and then they will upsell over time as the growth warrants it. So, you know, maybe you're seeing some of that in the monthly active user. We are, you know, very happy with the overall performance of the business, but not really overly scrutinizing the monthly evolution or the quarterly evolution of the MAU. Thank you. I will now pass the call back to Bill for closing remarks. Thank you, operator, and I just wanna thank everyone for joining the call today. We appreciate your continued support, and are looking forward to seeing you at a conference or on the road soon.