It’s the question that dominates markets today: how deep will the recession be, and when will stocks return to growth mode? In the confusing blitz of tariffs and reprieves issued over the last few weeks, stocks have joltedWith combined experience of covering technology companies on Wall Street and working in Silicon Valley, and serving as an outside adviser to several seed-round startups, Gary Alexander has exposure to many of the themes shaping the industry today. He has been a regular contributor on Seeki ...

Core Insights - Braze Inc. is a marketing and customer data management firm that provides tools for companies to effectively engage with customers through data analysis and management [1][2] - The company has received significant attention from analysts, with 20 out of 21 firms rating its stock as a Buy and a consensus price target of $53, representing a potential upside of over 48% from current levels [2] Group 1: Acquisition and Integration - Braze announced the acquisition of AI-decisioning company OfferFit for $325 million, aimed at enhancing its data analysis capabilities and improving customer messaging relevance [3][4] - The acquisition is expected to modestly dilute operating income margins in the short term, but the long-term benefits are anticipated to outweigh the costs, particularly in enhancing ROI for customers [4] Group 2: Financial Performance - In the final quarter of fiscal 2025, Braze reported a 22% year-over-year revenue increase and achieved net income profitability for the third consecutive quarter, generating approximately $15 million in free cash flow [5][6] - The earnings per share (EPS) of 12 cents exceeded analyst expectations of 5 cents, leading to increased optimism among analysts and subsequent price target adjustments for BRZE shares [5][6] Group 3: Future Outlook - Braze's CEO highlighted a promising outlook with a projected 17% year-over-year revenue growth, even excluding the impact of the OfferFit acquisition, and a 12% increase in total customers [7][8] - The company is diversifying its customer base geographically and across industries, with expectations of positive operating income and net income in the upcoming period [8] Group 4: Market Position and Valuation - Despite a year-to-date decline of over 16% in share price, Braze's price-to-sales ratio stands at 6.3, which may present a compelling investment opportunity for potential investors [9] - Analysts suggest that even with the current dip in share price, there is potential for capital appreciation as shares may reach estimated price points in the future [9]

Braze, Inc. (BRZE) appears an attractive pick, as it has been recently upgraded to a Zacks Rank #2 (Buy). This rating change essentially reflects an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.A company's changing earnings picture is at the core of the Zacks rating. The system tracks the Zacks Consensus Estimate -- the consensus measure of EPS estimates from the sell-side analysts covering the stock -- for the current and following years.Since a changing earn ...

I wrote about Braze, Inc. (NASDAQ: BRZE ) previously with a buy rating as I was positive about the business growth prospect, supported by strong underlying growth drivers. After looking at the latest 4Q25 results, I am Analyst's Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other ...

Financial Position - As of January 31, 2025, the company had cash, cash equivalents, and marketable securities totaling $514.0 million, with $430.5 million invested in U.S. government securities, foreign securities, and corporate debt securities [358]. - The company’s revenue is primarily denominated in U.S. dollars, with only sales in Japan denominated in Yen, minimizing significant foreign currency risk [361]. - The company has not engaged in hedging of foreign currency transactions but may consider it in the future [362]. - The company’s market risk exposure is primarily due to fluctuations in interest rates, with a hypothetical 10% change in interest rates not expected to materially impact consolidated financial statements [359]. Employee Relations - The company has not experienced any work stoppages and considers its relations with employees to be good, with a total of 1,699 full-time employees as of January 31, 2025 [95]. Social Responsibility - The company established its Social Impact Department in 2021, which includes the Braze for Impact Fund and various corporate social responsibility initiatives [88]. - The company is a member of the Pledge 1% movement, reserving up to 964,647 shares of Class A common stock for donation to fund social impact initiatives through 2031 [89]. - The company maintains an ESG reporting function, including an annual greenhouse gas emissions audit and sustainability commitments [93]. Economic Factors - The company does not believe inflation has materially affected its business, but acknowledges potential risks if costs become subject to inflationary pressures [357]. Corporate Culture - The company’s culture and core values are designed to foster a mission-driven environment that delivers tangible financial and operational benefits [86].

Core Insights - Braze's fiscal 2025 fourth-quarter results significantly exceeded analysts' expectations, leading to a notable increase in stock price [1] - The company provided strong guidance for fiscal 2026, further boosting investor confidence [1] Financial Performance - Braze reported revenue of $160.4 million for the quarter, a nearly 23% increase year-over-year, surpassing the consensus estimate of $155.7 million [2] - The non-GAAP earnings per share were $0.12, a substantial improvement from a loss of $0.04 in the previous year, and well above the consensus estimate of $0.05 [3] - The company achieved a non-GAAP gross profit margin of 69.9% by the end of the fiscal year [3] Customer Growth - Braze ended fiscal 2025 with 2,296 customers, marking a 22% increase from the previous year [4] - The number of large customers contributing annual recurring revenue of $500,000 or more rose from 202 to 247 [4] Strategic Developments - The CEO highlighted fiscal 2025 as a milestone year, emphasizing customer growth and advancements in AI and machine learning [5] - Free cash flow improved from a loss of $3.5 million in the previous year to $15.2 million [5] Future Outlook - Management projects sales for fiscal 2026 to be between $686 million and $691 million, indicating a 16% increase at the midpoint [6] - The positive fourth-quarter results and optimistic guidance suggest a promising trajectory for the company [6]

Cloud stock Braze Inc (NASDAQ:BRZE) is defying the broad market selloff today, up 10.7% at $40.64 at last glance, after the company beat top- and bottom-line estimate in the fourth quarter and issued an upbeat full-year earnings forecast. Citigroup trimmed its price target by $1 to $50, citing a "conservative growth outlook," though several other analysts chimed in with price-target hikes, including Wells Fargo to $55 from $50. Today's pop has Braze stock shooting past its 40-day moving average, which rejec ...

Braze, Inc. (NASDAQ:BRZE) Q4 2025 Earnings Conference Call March 27, 2025 4:30 PM ET Company Participants Christopher Ferris - Head of IR William Magnuson - Co-Founder and CEO Isabelle Winkles - CFO Conference Call Participants Ryan MacWilliams - Barclays Arjun Bhatia - William Blair David Hynes - Canaccord Genuity Gabriela Borges - Goldman Sachs Brent Bracelin - Piper Sandler Brian Peterson - Raymond James Derrick Wood - TD Cowen Nick Altmann - Scotiabank Scott Berg - Needham Taylor McGinnis - UBS Michael ...

The customer engagement platform company beat adjusted earnings expectations and delivered strong revenue growth, but its dollar-based net retention rate slid. Braze (BRZE -1.53%), operator of a leading customer engagement platform, released its fiscal 2025 fourth-quarter results on March 27. Revenue of $160.4 million surpassed analysts' expectations of $155 million, while non-GAAP adjusted earnings per share (EPS) of $0.12 came in significantly above the anticipated $0.05. This positive outcome reflects Br ...

Core Viewpoint - Braze, Inc. reported quarterly earnings of $0.12 per share, significantly exceeding the Zacks Consensus Estimate of $0.05 per share, and showing an improvement from a loss of $0.04 per share a year ago, indicating strong performance in the recent quarter [1][2] Financial Performance - The company achieved revenues of $160.4 million for the quarter ended January 2025, surpassing the Zacks Consensus Estimate by 3.10% and reflecting a year-over-year increase from $130.96 million [2] - Over the last four quarters, Braze has consistently exceeded consensus EPS estimates, achieving this four times [2] Stock Performance - Braze shares have declined approximately 10.9% since the beginning of the year, contrasting with the S&P 500's decline of 2.9% [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating expectations of underperformance in the near future due to unfavorable estimate revisions [6] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $0.03 on revenues of $157.98 million, while for the current fiscal year, the estimate is $0.27 on revenues of $684.84 million [7] - The outlook for the Internet - Software industry, where Braze operates, is currently in the top 30% of Zacks industries, suggesting a favorable environment for potential growth [8]