Latest news with #BrazeInc
Yahoo
2 days ago
- Business
- Yahoo
Braze Inc (BRZE) Q1 2026 Earnings Call Highlights: Strong Revenue Growth and Strategic ...
Revenue: $162.1 million, up nearly 20% year-over-year. Non-GAAP Operating Margin: Increased by over 900 basis points year-over-year. Non-GAAP Net Income: Over $7 million. Free Cash Flow: Nearly $23 million in the quarter. Customer Count: 2,342, up 46 sequentially and up 240 year-over-year. Large Customers ($500,000+ ARR): 262, up 24% year-over-year. Dollar-Based Net Retention: 109% overall; 112% for large customers. Non-GAAP Gross Margin: 69.3%, up from 67.9% in the prior year quarter. Non-GAAP Sales and Marketing Expenses: $64 million or 39% of revenue. Non-GAAP R&D Expense: $25 million or 15% of revenue. Non-GAAP G&A Expense: $21 million or 13% of revenue. Cash and Equivalents: Approximately $540 million. Cash Provided by Operations: $24 million. Guidance for Q2 FY2026 Revenue: $171 million to $172 million. Guidance for FY2026 Revenue: $702 million to $706 million. Warning! GuruFocus has detected 3 Warning Signs with BRZE. Release Date: June 05, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Braze Inc (NASDAQ:BRZE) reported strong first-quarter results with a revenue of $162.1 million, marking a nearly 20% year-over-year increase. The company achieved its fourth consecutive quarter of non-GAAP net income profitability, with over $7 million in net income and nearly $23 million in free cash flow. Customer count increased to 2,342, up 46 sequentially and 240 year-over-year, with large customers ($500,000+ ARR) rising 24% to 262. Braze Inc (NASDAQ:BRZE) successfully closed the acquisition of OfferFit, enhancing its AI capabilities and positioning it for future growth. The company continues to replace legacy marketing clouds and win against point solutions, indicating strong competitive positioning and market demand for its offerings. Despite strong results, Braze Inc (NASDAQ:BRZE) faces an uneven macroeconomic environment, which has impacted sequential growth and net retention rates. The company noted elevated churn levels, particularly in the enterprise segment, due to seasonality and macroeconomic factors. There are concerns about the impact of switching costs on enterprise deal cycles, which can delay new growth initiatives. Braze Inc (NASDAQ:BRZE) anticipates a temporary departure from its operating income margin framework due to the OfferFit acquisition, impacting short-term profitability. The company faces regional comparative weakness, particularly in Southeast Asia, affecting overall growth momentum in the APAC region. Q: When do you think the positive company-specific dynamics will start to offset the uneven macro environment, and what metrics should we track? A: Isabelle Winkles, CFO, mentioned that CRPO is sensitive to renewal volumes and isn't a leading indicator. Revenue acceleration is the key metric to watch for macro stabilization. CEO Bill Magnuson added that competitive results are strong, with good momentum in the Americas and EMEA, and efforts to manage churn are expected to improve results. Q: What is the performance or ROI delta for customers using Project Catalyst compared to traditional Canvas flows? A: Bill Magnuson, CEO, explained that Project Catalyst is in private beta, but early results from similar technologies show significant uplift. For example, a customer using reinforcement learning for decision-making saw a 5x uplift compared to manual segmentation. Project Catalyst aims to automate decision-making at higher levels, enhancing customer engagement strategies. Q: Can you discuss the linearity of the quarter and the impact of OfferFit on your business? A: Isabelle Winkles, CFO, stated that Q1 linearity was normal, with no unusual patterns. Bill Magnuson, CEO, noted that OfferFit has been integrated well, with strong customer interest and a lead-rich environment. The focus is on qualifying opportunities and scaling OfferFit's capabilities across Braze's customer base. Q: How are you pricing OfferFit, and will it integrate with Braze's AI capabilities? A: Bill Magnuson, CEO, explained that OfferFit is currently priced separately, with costs around $250,000 to $300,000 annually, including expert services. The goal is to integrate OfferFit's reinforcement learning capabilities with Braze's platform, offering a broad range of AI-driven optimization capabilities. Q: How does the new pricing and packaging model impact customer reception and overall spend levels? A: Bill Magnuson, CEO, stated that the new pricing model, which relaxes data point limits, has been well-received, reducing negotiation times and increasing flexibility for customers. It allows for more experimentation and expansion across Braze's feature set, supporting customer value creation and expansion. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
Yahoo
02-04-2025
- Business
- Yahoo
Braze (BRZE) Narrows Q4 Losses with 22.5% Revenue Boost and AI-Driven Innovation
We recently published a list of . In this article, we are going to take a look at where Braze Inc. (NASDAQ:BRZE) stands against other top AI news updates on Wall Street's radar. As xAI's Grok became the top app on the Google Play Store, its owner, Elon Musk, revealed a major development at his AI startup. The wealthiest person on Earth revealed Friday that xAI had acquired X, formerly Twitter, in an all-stock transaction, valuing his social media platform X at a staggering $33 billion. 'xAI and X's futures are intertwined. Today, we officially take the step to combine the data, models, compute, distribution and talent,' Musk wrote. 'This combination will unlock immense potential by blending xAI's advanced AI capability and expertise with X's massive reach…The combined company will deliver smarter, more meaningful experiences to billions of people while staying true to our core mission of seeking truth and advancing knowledge. This will allow us to build a platform that doesn't just reflect the world but actively accelerates human progress.' Elsewhere, OpenAI is reportedly in advanced negotiations to close a record funding round of $40 billion. The round, led by SoftBank, would value OpenAI at $300 billion, which is double compared to its valuation in October 2024. SoftBank is expected to invest $7.5 billion initially and $22.5 billion in the latter half of this year. The AI-based humanoid robot industry also made headlines after Realbotix announced that it will showcase an advanced intelligence robot at the DiscoveryX expo in mid-April. The AI-powered humanoid robot, Aria, will demonstrate the company's efforts to integrate AI, robotics, and human connection through direct interaction with conference attendees. 'DiscoveryX is a great event to showcase how far we've come in developing emotionally intelligent, interactive AI,' said Realbotix CEO Andrew Kiguel. 'Aria isn't just a robot – she's a glimpse into the future of personalized, human-centric technology.' According to a Goldman Sachs report led by research analyst Jacqueline Du, the total addressable market for humanoid robots could reach $38 billion by 2035, which is over six times higher than a previous estimate of $6 billion. We selected AI stocks by reviewing news articles, stock analysis, and press releases. We listed the stocks in ascending order of the number of hedge funds that hold stakes in them, as of Q4 2024. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (). A web developer hunched over their laptop coding a customer engagement platform. Braze Inc. (NASDAQ:BRZE) offers a customer engagement platform that enables marketers to gather, analyze, and take appropriate action on vast amounts of data to improve customer engagement in real time. The company's services include cross-channel messaging, journey orchestration, and AI-powered experimentation and optimization to improve brand loyalty and promote business growth. On March 27th, Braze Inc. (NASDAQ:BRZE) said it narrowed its Q4 losses from a year earlier to $0.17 per diluted share as revenue increased 22.5% YoY to $160.4 million on new customers, renewals, and advancements in AI agentic innovation through the acquisition of an AI decisioning company called OfferFit. The company set the fiscal year 2026 revenue outlook between $686 million and $691 million. 'Fiscal 2025 was a milestone year for Braze that reinforced our position as the leading Customer Engagement platform through robust customer growth and continued advancements in our product, including meaningful new investments in AI and machine learning. We grew revenue 26% while continuing to drive strong operating leverage, ending the year with three straight quarters of non-GAAP net income profitability. And today, we are also pleased to announce our intent to acquire OfferFit, a sophisticated AI decisioning company focused on deploying reinforcement learning that recommends individualized cross-channel customer journeys at scale. We look forward to bringing our complementary products and teams together to drive the evolution of Customer Engagement.' -said Bill Magnuson, Cofounder and CEO of Braze. Overall, BRZE ranks 6th on our list of top AI news updates on Wall Street's radar. While we acknowledge the potential of BRZE as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than BRZE but that trades at less than 5 times its earnings, check out our report about the . READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey.
Yahoo
30-03-2025
- Business
- Yahoo
Why Braze Inc. (BRZE) Went Up On Friday?
We recently published a list of . In this article, we are going to take a look at where Braze Inc. (NASDAQ:BRZE) stands against other firms that end Friday strong. Wall Street's main indices finished the trading week in the negative territory as investor sentiment was weighed down by economic uncertainties brought about by the ongoing trade tensions globally. The tech-heavy Nasdaq fell the heaviest, by 2.70 percent, followed by the S&P 500, by 1.97 percent, and the Dow Jones, by 1.69 percent. Despite the broader market downturn, 10 individual stocks showed a strong performance during the trading session, with three companies particularly notable for hitting new all-time highs. In this article, we listed Friday's top performers and detailed the reasons behind their gains. To come up with the list, we considered only the stocks with a $2-billion market capitalization and $5 million in trading volume. A web developer hunched over their laptop coding a customer engagement platform. Braze grew its share prices by 2.21 percent on Friday to end at $37.51 each following announcements that it would acquire OfferFit for $325 million. In a statement, BRZE said it entered into a definitive agreement to acquire OfferFit—an AI decision company—for $325 million. The acquisition was in line with its vision to adopt agentic AI in customer engagement, building on its existing artificial intelligence research with the planned development of Project Catalyst. 'This native AI agent is designed to help brands personalize and optimize experiences with highly relevant Journeys, Content, and Incentives,' BRZE said. AI decision-making agents can autonomously experiment, learn, and deliver highly relevant, personalized experiences. Subject to customary closing conditions, BRZE said it expects the acquisition to close in the fiscal quarter ending July 31, 2025. Overall, BRZE ranks 7th on our list of firms that end Friday strong. While we acknowledge the potential of BRZE as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is as promising as BRZE but trades at less than 5 times its earnings, check out our report about the cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey.
Yahoo
29-03-2025
- Business
- Yahoo
Why Braze Inc. (BRZE) Went Up On Friday?
We recently published a list of . In this article, we are going to take a look at where Braze Inc. (NASDAQ:BRZE) stands against other firms that end Friday strong. Wall Street's main indices finished the trading week in the negative territory as investor sentiment was weighed down by economic uncertainties brought about by the ongoing trade tensions globally. The tech-heavy Nasdaq fell the heaviest, by 2.70 percent, followed by the S&P 500, by 1.97 percent, and the Dow Jones, by 1.69 percent. Despite the broader market downturn, 10 individual stocks showed a strong performance during the trading session, with three companies particularly notable for hitting new all-time highs. In this article, we listed Friday's top performers and detailed the reasons behind their gains. To come up with the list, we considered only the stocks with a $2-billion market capitalization and $5 million in trading volume. A web developer hunched over their laptop coding a customer engagement platform. Braze grew its share prices by 2.21 percent on Friday to end at $37.51 each following announcements that it would acquire OfferFit for $325 million. In a statement, BRZE said it entered into a definitive agreement to acquire OfferFit—an AI decision company—for $325 million. The acquisition was in line with its vision to adopt agentic AI in customer engagement, building on its existing artificial intelligence research with the planned development of Project Catalyst. 'This native AI agent is designed to help brands personalize and optimize experiences with highly relevant Journeys, Content, and Incentives,' BRZE said. AI decision-making agents can autonomously experiment, learn, and deliver highly relevant, personalized experiences. Subject to customary closing conditions, BRZE said it expects the acquisition to close in the fiscal quarter ending July 31, 2025. Overall, BRZE ranks 7th on our list of firms that end Friday strong. While we acknowledge the potential of BRZE as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is as promising as BRZE but trades at less than 5 times its earnings, check out our report about the cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
