Revenue and Financial Performance - Revenue for the fiscal third quarter 2025 was $152.1 million, up 22.7% year-over-year from $124.0 million in the same quarter of the previous fiscal year[3] - Subscription revenue in the quarter was $146.3 million, compared to $118.4 million in the same quarter of the previous fiscal year[3] - Revenue for the three months ended October 31, 2024, was $152.052 million, a 22.7% increase from $123.956 million in the same period in 2023[25] - Revenue for the nine months ended October 31, 2024, was $433.010 million, a 27.0% increase from $340.843 million in the same period in 2023[25] - Braze provided fiscal Q4 2025 revenue guidance of $155.0 million to $156.0 million and full fiscal year 2025 revenue guidance of $588.0 million to $589.0 million[6] Profit and Loss - GAAP operating loss was $32.6 million, compared to a loss of $35.1 million in the same quarter of the previous fiscal year[3] - Non-GAAP operating loss improved to $2.2 million, compared to a loss of $8.9 million in the same quarter of the previous fiscal year[3] - Net loss for the three months ended October 31, 2024, was $27.911 million, an improvement from a net loss of $30.741 million in the same period in 2023[25] - Net loss for the nine months ended October 31, 2024, was $86.551 million, an improvement from a net loss of $100.889 million in the same period in 2023[25] - GAAP operating loss for Q3 2024 was $32.57 million, compared to $35.13 million in Q3 2023, showing a 7.3% improvement[37] - Non-GAAP operating loss for Q3 2024 was $2.18 million, a significant improvement from $8.90 million in Q3 2023, reflecting a 75.5% reduction[37] - Non-GAAP net income for Q3 2024 was $2.48 million, a significant improvement from a loss of $4.50 million in Q3 2023[37] Gross Profit and Margin - Gross profit for the three months ended October 31, 2024, was $106.142 million, up 21.2% from $87.582 million in the same period in 2023[25] - Gross profit for the nine months ended October 31, 2024, was $299.132 million, up 26.6% from $236.308 million in the same period in 2023[25] - Non-GAAP gross margin improved to 70.5% from 71.4% in the previous year, driven by increased gross profit[36] Customer and Subscription Metrics - Total customers increased to 2,211 as of October 31, 2024, from 2,011 as of October 31, 2023, with 234 customers having ARR of $500,000 or more[3] - Remaining performance obligations as of October 31, 2024, were $716.8 million, with $458.2 million classified as current (less than one year)[3] - Deferred revenue grew from $204.3 million to $223.7 million, indicating strong future revenue commitments[31] Stock-Based Compensation - Total stock-based compensation expense for the three months ended October 31, 2024, was $28.318 million, up 17.8% from $24.039 million in the same period in 2023[26] - Total stock-based compensation expense for the nine months ended October 31, 2024, was $86.418 million, up 18.4% from $72.961 million in the same period in 2023[26] - Total employer taxes related to stock-based compensation for the three months ended October 31, 2024, was $636,000, up 14.2% from $557,000 in the same period in 2023[26] - Total employer taxes related to stock-based compensation for the nine months ended October 31, 2024, was $3.193 million, up 93.5% from $1.650 million in the same period in 2023[26] - Stock-based compensation expense for Q3 2024 was $28.32 million, up 17.8% from $24.04 million in Q3 2023[37] Cash Flow and Investments - Net cash provided by operating activities improved significantly to $19.6 million compared to $3.0 million in the previous year[33] - The company invested $12.1 million in property and equipment and $3.0 million in capitalized internal-use software costs[33] - Net cash used in operating activities for Q3 2024 was $11.41 million, compared to $2.00 million in Q3 2023, indicating increased cash outflow[38] - Non-GAAP free cash flow for Q3 2024 was -$14.25 million, compared to -$5.91 million in Q3 2023, reflecting a 141.1% increase in cash outflow[38] - Capitalized internal-use software costs for Q3 2024 were $0.92 million, slightly up from $0.90 million in Q3 2023[38] - Purchases of property and equipment decreased to $1.92 million in Q3 2024 from $3.01 million in Q3 2023, reflecting a 36.2% reduction[38] Balance Sheet and Liabilities - Total assets increased from $810.9 million to $842.0 million, reflecting growth in marketable securities and property and equipment[31] - Cash and cash equivalents decreased from $68.2 million to $61.3 million, while marketable securities increased from $407.9 million to $431.3 million[31] - Total current liabilities increased from $289.4 million to $308.2 million, primarily due to higher deferred revenue[31] - Accumulated deficit grew from $(483.1) million to $(569.6) million, reflecting ongoing investments in growth[31] Operating Expenses - Research and development expenses increased to $32.9 million, with stock-based compensation accounting for $10.3 million of that total[36] - Sales and marketing expenses rose to $74.7 million, with $9.6 million attributed to stock-based compensation[36] Operating Margin - GAAP operating margin improved to -21.4% in Q3 2024 from -28.3% in Q3 2023, while Non-GAAP operating margin improved to -1.4% from -7.2%[37] Share Metrics - Weighted-average shares used to compute diluted net income per share increased to 106,820 in Q3 2024 from 97,880 in Q3 2023[37] Product and Channel Development - BrazeAI agent, codenamed Project Catalyst, was announced as a new development aimed at delivering 1:1 customer engagement[5] - The company expanded its channel offerings to include LINE and RCS Business, along with new WhatsApp features[5] Future Guidance - Non-GAAP net income for fiscal Q4 2025 is projected to be between $5.0 million and $6.0 million[6]

Industry Overview - The technology services industry is mature and thriving in 2024, with revenues, income, and cash flows expected to gradually return to pre-pandemic levels, supporting stable dividend payouts [1] - The industry benefits from robust demand for multi-cloud-enabled software solutions as companies transition from legacy platforms to modern cloud-based infrastructure [3] - Industry players are integrating artificial intelligence and machine learning tools into applications to enhance dynamism and results, driven by elevated demand for enterprise software that boosts productivity and decision-making [4] - The Zacks Defined Technology Services industry has rallied 76.4% over the past year and surged 53.8% year-to-date, ranking within the top 26% of Zacks Ranked Industries, indicating potential market outperformance in the next three to six months [5] Recommended Stocks - Five mid and small-cap technology services stocks with favorable Zacks Rank and significant short-term price upside potential are recommended: MediaAlpha Inc (MAX), Braze Inc (BRZE), Byrna Technologies Inc (BYRN), The Real Brokerage Inc (REAX), and Klaviyo Inc (KVYO) [2][6] MediaAlpha Inc (MAX) - MediaAlpha operates an insurance customer acquisition platform in the US, optimizing customer acquisition in property and casualty insurance, health insurance, and life insurance through a real-time programmatic technology platform [7] - The stock has an average short-term price target representing a 95.6% jump from the last closing price of $12.47, with a maximum upside of 148.6% and no downside [8] - Expected revenue and earnings growth rates exceed 100% for the current year, with the Zacks Consensus Estimate for current-year earnings improving 20% in the last 30 days [8] Braze Inc (BRZE) - Braze provides a comprehensive customer engagement platform, enabling real-time customer data processing and contextually relevant, cross-channel marketing campaigns [10] - The stock has an average short-term price target representing a 53.6% jump from the last closing price of $35.70, with a maximum upside of 110.1% and a maximum downside of 16% [11] - Expected revenue and earnings growth rates are 23.9% and over 100%, respectively, for the current year, with the Zacks Consensus Estimate for current-year earnings improving over 100% in the last 90 days [12] Byrna Technologies Inc (BYRN) - Byrna Technologies develops and sells less-lethal personal security solutions, including handheld devices and shoulder-fired launchers, targeting both consumer and professional security markets [14][16] - The stock has an average short-term price target representing a 24.4% increase from the last closing price of $18.38, with a maximum upside of 36% and no downside [17] - Expected revenue and earnings growth rates are 18.8% and 17.7%, respectively, for the next year, with the Zacks Consensus Estimate for current-year earnings improving 11.1% in the last 60 days [18] The Real Brokerage Inc (REAX) - The Real Brokerage operates as a real estate technology company, offering brokerage, title, and mortgage broker services in the US and Canada [19] - The stock has an average short-term price target representing a 34.2% increase from the last closing price of $5.51, with a maximum upside of 56.9% and no downside [20] - Expected revenue and earnings growth rates are 76.2% and 0.1%, respectively, for the current year, with the Zacks Consensus Estimate for current-year earnings improving 16.7% in the last seven days [21] Klaviyo Inc (KVYO) - Klaviyo provides a cloud-native SaaS platform for data storage, segmentation, campaigns, and messaging infrastructure, offering personalized marketing tools including email, SMS, and push notifications [23][24] - The stock has an average short-term price target representing a 13.3% increase from the last closing price of $36.53, with a maximum upside of 28.7% and a maximum downside of 17.9% [25] - Expected revenue and earnings growth rates are 32.2% and 36.1%, respectively, for the current year, with the Zacks Consensus Estimate for current-year earnings improving 2.1% in the last 30 days [26]

Market Overview - The global braze alloys market was valued at US$ 2.5 billion in 2022 and is expected to reach US$ 3.2 billion by 2031, with a CAGR of 4.3% from 2023 to 2031 [1] - Advances in brazing technology, including improved alloys, are driving market growth as brazed joints become more efficient, stronger, and environmentally friendly [1] Industry Applications - Brazing alloys are widely used in the automotive and aerospace industries for manufacturing radiators and heat exchangers [2] - The demand for brazing alloys is increasing due to the growth of manufacturing and supply chain globalization, as they are essential for joining dissimilar materials [2] - Lightweight materials in aerospace and automotive industries are expected to further increase demand for brazing alloys [3] Environmental and Regulatory Factors - Eco-friendly brazing alloys, such as recyclable or non-toxic alloys, are likely to play a crucial role in driving market growth as industries focus on sustainability [3] - Regulatory bodies and industry associations are setting standards that market players are implementing, increasing the popularity of high-quality and safe brazing alloys [2] Energy and Technology Impact - The energy transition towards renewable sources is expected to increase demand for brazing alloys in the production and storage of energy, including solar panels, wind turbines, and energy storage systems [4] - Industrial 4.0 and digital technologies may also impact the market for brazing alloys [4] Key Players - Prominent players in the braze alloy sector include Johnson Matthey, Voestalpine Bohler Welding, Oerlikon Metco, UMICORE N V, Morgan Advanced Materials, Indian Solders and Braze Alloys, Paras Enterprises, Lucas-Milhaupt Inc, Bellman-Melcor LLC, Aimtek Inc, Harris Products Group, and VB Group [5][6] Growth Drivers - Brazing alloys are critical in producing HVAC, refrigeration, and heating equipment, with growing demand due to energy efficiency and environmental regulations [6] - The electronics and electrical industry relies on brazing alloys for joining components in various devices, with potential growth in semiconductor manufacturing, sensors, and electronic components [6] - Infrastructure projects and construction industries are driving demand for brazing alloys in fabricating pipes, tubes, and structural components [6] Regional Landscape - Asia Pacific is expected to lead the braze alloys market due to industrialization, infrastructure development, and its role as a major manufacturing hub [8] - Japan and South Korea are making technological advances in manufacturing processes and brazing technology, contributing to market growth [8] - Environmental regulations and sustainability concerns in the Asia Pacific region are increasing the prevalence of eco-friendly brazing alloys [8] Market Segmentation - By base metal, the market is segmented into copper, gold, aluminum, silver, nickel, and others (including cobalt, bronze, iron, and cadmium) [9] - By end use, the market is segmented into automotive, electronics and electrical, industrial, and others (including medical, dental, and aerospace) [10] - By region, the market is segmented into North America, Europe, Asia Pacific, Latin America, and MEA [10] Key Developments - In December 2023, Lincoln Electric expanded its operations and was recognized as one of America's Greenest Companies 2024, highlighting its leadership in brazing and soldering alloys [9] Related Markets - The synthetic diamond market is estimated to grow at a CAGR of 6.9% from 2022 to 2031, reaching USD 43.7 billion by 2031 [10] - The metal fabrication market is expected to grow at a CAGR of 3.3% from 2022 to 2031, reaching USD 27.74 billion by 2031 [10] - The solar PV junction box market is projected to advance at a CAGR of 7.9% from 2023 to 2031, reaching US$ 2.4 billion by 2031 [10] - The battery energy storage systems market is expected to grow at a CAGR of 12.7% from 2023 to 2031, reaching US$ 59.6 billion by 2031 [10]

Zacks Rank Upgrade and Earnings Estimate Revisions - Braze Inc (BRZE) has been upgraded to a Zacks Rank 1 (Strong Buy), reflecting an upward trend in earnings estimates, which is a powerful force impacting stock prices [1] - The Zacks rating system tracks the Zacks Consensus Estimate, which is the consensus measure of EPS estimates from sell-side analysts covering the stock for the current and following years [1] - The upgrade to a Zacks Rank 1 positions Braze in the top 5% of Zacks-covered stocks in terms of estimate revisions, indicating potential for market-beating returns in the near term [10] Earnings Estimate Revisions for Braze - For the fiscal year ending January 2025, Braze is expected to earn $0 07 per share, representing a 128% change from the year-ago reported number [8] - Over the past three months, the Zacks Consensus Estimate for Braze has increased by 15 5%, indicating steady upward revisions by analysts [8] Correlation Between Earnings Estimates and Stock Price Movements - Changes in a company's future earnings potential, as reflected in earnings estimate revisions, are strongly correlated with near-term stock price movements [4] - Institutional investors use earnings and earnings estimates to calculate the fair value of a company's shares, and their bulk investment actions lead to price movements [4] - Empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock movements, making it rewarding to track such revisions for investment decisions [6] Zacks Rank System Overview - The Zacks Rank stock-rating system uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank 1 (Strong Buy) to Zacks Rank 5 (Strong Sell) [7] - Zacks Rank 1 stocks have generated an average annual return of +25% since 1988, demonstrating the system's impressive track record [7] - The Zacks rating system maintains an equal proportion of 'buy' and 'sell' ratings for its universe of over 4000 stocks, with only the top 5% receiving a 'Strong Buy' rating [9]

Company Performance - Shares of Braze Inc have lost close to 40% year to date [1] - Shares of Braze declined by 0.30% to $30.78 at the time of publication on Tuesday [2] Analyst Coverage and Rating - Stifel analyst Parker Lane initiated coverage of Braze with a Buy rating and price target of $37 [1] - Braze is well-positioned to capture market share in the customer engagement software segment [1] Market Trends and Opportunities - Consumer expectations are shifting to more personalized brand experiences [1] - Increase in digitally native consumers and gen AI-powered marketing are favoring customer engagement providers [1] - Braze is viewed as a tightly integrated and extensive customer engagement platform compared to larger marketing platforms and point-solution martech vendors [2] Company Strategy and Market Position - Braze has built a leading-edge multi-channel marketing platform that is difficult to replicate [2] - The company has incorporated strategic changes this year that should materially lower customer friction [2] - Braze remains in its early days of capturing its addressable market [2]

Bert Hochfeld graduated with a degree in economics from the University of Pennsylvania and received an MBA from Harvard. Mr. Hochfeld has enjoyed a long career in the tech world, working for IBM, Memorex/Telex, Raytheon Data Systems, and BMC Software. Starting in the 1990s, Mr. Hochfeld worked as a sell-side analyst and won awards from the Wall Street Journal for his coverage of the software space. In 2001, Mr. Hochfeld formed his own independent research company, Hochfeld Independent Research Group, which ...

Investors interested in stocks from the Technology Services sector have probably already heard of Amadeus IT Group SA Unsponsored ADR (AMADY) and Braze, Inc. (BRZE) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look. There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Z ...

A downtrend has been apparent in Braze, Inc. (BRZE) lately with too much selling pressure. The stock has declined 27.8% over the past four weeks. However, given the fact that it is now in oversold territory and Wall Street analysts are majorly in agreement about the company's ability to report better earnings than they predicted earlier, the stock could be due for a turnaround. Here is How to Spot Oversold Stocks We use Relative Strength Index (RSI), one of the most commonly used technical indicators, for s ...

The price trend for Braze, Inc. (BRZE) has been bearish lately and the stock has lost 9.9% over the past week. However, the formation of a hammer chart pattern in its last trading session indicates that the stock could witness a trend reversal soon, as bulls might have gained significant control over the price to help it find support. The formation of a hammer pattern is considered a technical indication of nearing a bottom with likely subsiding of selling pressure. But this is not the only factor that make ...

2025 will be a good year for stocks, especially smaller companies like Braze NASDAQ: BRZE, LightPath Technologies NASDAQ: LPTH, and Guidewire NYSE: GWRE. Not only is the FOMC on track to reduce interest rates and usher in a new age for equities, but the AI focus will move from infrastructure to application, where these businesses will shine. Simply put, as big as the AI infrastructure boom has been, the boom in AI-driven services expansion will be bigger and create the next round of would-be multi-baggers f ...