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1. Company Snapshot

1.a. Company Description

Braze, Inc.operates a customer engagement platform that provides interactions between consumers and brands worldwide.It offers data ingestion products, such as Braze software development kits that automatically manage data ingestion and the delivery of mobile and web notifications, in-application/in-browser interstitial messages, and content cards, as well as can be integrated into a range of digital interfaces and application development frameworks; REST API that can be used to import or export data or to trigger workflows between Braze and brands' existing technology stacks; and partner cohort syncing, which allow brands to sync user cohorts from partners.


The company also offers classification products, including segmentation that can define reusable segments of consumers based upon attributes, events, or predictive propensity scores; segment insights, which allows customers to analyze how segments are performing relative to each other across a set of pre-selected key performance indicators, and helps to understand the factors that determine which consumers belong to a particular segment; and predictive suite that allows customers to identify groups of consumers that are of critical business value.In addition, it provides personalization and action products; and orchestration products, which include Canvas, an orchestration tool that allows customers to create journeys, mapping out multi-steps, and cross-channel messaging experiences, which include onboarding flows, nurture campaigns, win-back strategies, and others; campaigns, which allow customers to send one set of single-channel or multi-channel messages to be delivered to customers in a particular user segment; event and API triggering; frequency capping and rate limiting; intelligent selection; and reporting and analytics.The company was formerly known as Appboy, Inc.


and changed its name to Braze, Inc.in November 2017.Braze, Inc.


was incorporated in 2011 and is headquartered in New York, New York.

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1.b. Last Insights on BRZE

Braze's recent performance faced challenges due to increasing competition in the customer engagement platform market. Despite reporting a strong Q2 with 24% year-over-year revenue growth, concerns about the company's ability to sustain growth may weigh on investors. Additionally, while Braze was named a Leader in the 2025 Gartner Magic Quadrant for Multichannel Marketing Hubs, this news may not be enough to offset potential growth concerns. The company's valuation multiples versus peers also remain a consideration for investors.

1.c. Company Highlights

2. Braze's Q2 Earnings: A Closer Look

Braze reported Q2 revenue of $180M, up 24% YoY and 11% sequentially, driven by customer expansions and new business. ARR surpassed $700M, with 80 net new customers and 282 large customers ($500K+ ARR). Non-GAAP operating income was $6M, net income $17M, and free cash flow $4M. Earnings per share (EPS) came in at $0.15, beating estimates of $0.03.

Publication Date: Sep -07

📋 Highlights
  • Q2 Revenue:: $180M, up 24% YoY and 11% sequentially, driven by customer expansions and new business.
  • ARR Growth:: Crossed $700M, with 80 net new customers and 282 large customers ($500K+ ARR).
  • Non-GAAP Financials:: Operating income $6M, net income $17M, free cash flow $4M; gross margin declined to 69.3% due to messaging costs.
  • OfferFit Integration:: Accelerated AI-driven decisioning, 2% annual growth contribution expected; 108% dollar-based net retention reported.
  • Forward Guidance:: Q3 revenue $183.5M–$184.5M (21% YoY growth), FY2026 revenue $717M–$720M (3.5% non-GAAP operating margin).

Financial Performance

The company's gross margin declined to 69.3% due to higher messaging costs. Total RPO stood at $862M, with a dollar-based net retention rate of 108%. Cash reserves ended at $368M. Bill Magnuson highlighted strong bookings, expanded enterprise adoption, and AI-driven product advancements post-OfferFit acquisition.

OfferFit Integration and AI Focus

OfferFit integration accelerated pipeline growth, with AI decisioning enhancing personalization. The company is expected to add 2% to growth from OfferFit's full-year contribution. AI adoption is accelerating across verticals, enhancing usability and sales differentiation.

Guidance and Valuation

Q3 guidance: $183.5M–$184.5M revenue, 21% YoY growth; FY2026 guidance: $717M–$720M revenue, 3.5% non-GAAP operating margin. With a P/S Ratio of 5.02 and P/E Ratio of -30.85, the market is pricing in significant growth expectations. The company's ROE (%) is -21.69, and ROIC (%) is -18.64, indicating potential areas for improvement.

Outlook

Strategic focus remains on AI innovation, operational efficiency, and long-term growth. Braze is poised to leverage its strengths in customer engagement and AI-driven decisioning to drive future growth.

3. NewsRoom

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Braze Delivers BrazeAI Decisioning Studio™ Through Google Cloud Marketplace

Dec -02

Source: businesswire.com

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Braze Q3 Earnings Preview: Weak Consumer Could Threaten Growth

Nov -21

Source: seekingalpha.com

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Why One Fund Just Invested $21 Million in This Once High-Flying Software Stock

Nov -15

Source: fool.com

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Financial Survey: Trident Digital Tech (NASDAQ:TDTH) vs. Braze (NASDAQ:BRZE)

Nov -14

Source: defenseworld.net

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Will Braze (BRZE) Beat Estimates Again in Its Next Earnings Report?

Nov -10

Source: zacks.com

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Rokt Strengthens Its Board and Advisory Group with Appointment of Veteran Financial Leaders

Nov -10

Source: prnewswire.com

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IFP Advisors Inc Has $117,000 Stock Holdings in Braze, Inc. $BRZE

Oct -19

Source: defenseworld.net

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Why These 3 Tech Stocks Deserve Your Attention in Q4

Oct -03

Source: marketbeat.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (13.02%)

6. Segments

Subscription

Expected Growth: 13.05%

Braze, Inc.'s 13.05% subscription growth is driven by increasing demand for customer engagement and retention solutions, expansion into new industries, and strategic partnerships. Additionally, the company's AI-powered platform and personalized messaging capabilities are key differentiators, attracting new customers and driving upsell opportunities.

Professional Services and Other

Expected Growth: 12.43%

Braze's Professional Services and Other segment growth of 12.43% is driven by increasing demand for personalized customer engagement, expansion of existing client relationships, and growth in new industries such as fintech and healthcare. Additionally, the company's investments in AI-powered technology and strategic partnerships have enhanced its offerings, leading to higher revenue.

7. Detailed Products

Customer Engagement

Braze's customer engagement platform enables businesses to send targeted, personalized messages across multiple channels, including email, push notifications, in-app messages, and more.

Customer Data Platform (CDP)

Braze's CDP collects and unifies customer data from various sources, providing a single customer view and enabling targeted marketing and analytics.

Mobile Marketing Automation

Braze's mobile marketing automation platform enables businesses to automate and optimize mobile marketing campaigns, improving customer engagement and retention.

A/B Testing and Experimentation

Braze's A/B testing and experimentation platform enables businesses to test and optimize marketing campaigns, improving customer engagement and conversion rates.

Customer Journey Mapping

Braze's customer journey mapping platform enables businesses to visualize and optimize customer journeys, improving customer experience and loyalty.

Predictive Analytics

Braze's predictive analytics platform enables businesses to predict customer behavior and identify high-value customers, improving customer retention and revenue.

8. Braze, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Braze, Inc. operates in a niche market, providing a unique customer engagement platform. While there are some substitutes available, they are not as comprehensive as Braze's offerings, reducing the threat of substitutes.

Bargaining Power Of Customers

Braze's customers are typically large enterprises with complex customer engagement needs. While they may have some bargaining power, Braze's customized solutions and high switching costs reduce their bargaining power.

Bargaining Power Of Suppliers

Braze's suppliers are primarily cloud infrastructure providers and data partners. The company's diversified supplier base and lack of dependence on a single supplier reduce the bargaining power of suppliers.

Threat Of New Entrants

The customer engagement platform market is attractive, and new entrants may be drawn to it. However, Braze's established brand, high barriers to entry, and complex technology reduce the threat of new entrants.

Intensity Of Rivalry

The customer engagement platform market is competitive, with several established players. However, Braze's unique value proposition, strong customer relationships, and continuous innovation reduce the intensity of rivalry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 16.94%
Debt Cost 3.95%
Equity Weight 83.06%
Equity Cost 9.58%
WACC 8.62%
Leverage 20.40%

11. Quality Control: Braze, Inc. passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Paycom Software

A-Score: 5.7/10

Value: 2.2

Growth: 8.9

Quality: 8.4

Yield: 1.0

Momentum: 8.0

Volatility: 5.7

1-Year Total Return ->

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Stock-Card
Pegasystems

A-Score: 5.1/10

Value: 1.3

Growth: 8.0

Quality: 9.1

Yield: 0.0

Momentum: 9.0

Volatility: 3.3

1-Year Total Return ->

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Dynatrace

A-Score: 4.7/10

Value: 1.0

Growth: 8.9

Quality: 8.6

Yield: 0.0

Momentum: 3.0

Volatility: 7.0

1-Year Total Return ->

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Stock-Card
Smartsheet

A-Score: 4.1/10

Value: 2.5

Growth: 7.4

Quality: 4.6

Yield: 0.0

Momentum: 5.0

Volatility: 5.3

1-Year Total Return ->

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Stock-Card
Q2 Holdings

A-Score: 3.6/10

Value: 1.2

Growth: 7.6

Quality: 4.9

Yield: 0.0

Momentum: 3.0

Volatility: 5.0

1-Year Total Return ->

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Stock-Card
Braze

A-Score: 3.6/10

Value: 4.8

Growth: 6.1

Quality: 4.5

Yield: 0.0

Momentum: 3.0

Volatility: 3.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

29.87$

Current Price

29.87$

Potential

-0.00%

Expected Cash-Flows