Braze Shares Soar After Better-Than-Expected Q4 Results, FY26 Guidance Above Estimates

Braze, Inc. BRZE released its fourth-quarter results after Thursday's closing bell. Here's a look at the key details from the report.

The Details: Braze reported quarterly earnings of 12 cents per share, which beat the analyst consensus estimate of five cents. Quarterly revenue came in at $160.4 million, beating the $155.72 million consensus estimate.

• Subscription revenue in the quarter was $153.9 million compared to $125.9 million in the fourth quarter of the previous fiscal year.
• Professional services and other revenue was $6.5 million compared to $5.1 million in the fourth quarter of the previous fiscal year.
• Remaining performance obligations as of Jan. 31, 2025, was $793.1 million, of which $505.2 million is current, which the company defines as less than one year.
• Non-GAAP gross margin was 69.9% compared to 67.9% in the fourth quarter of the fiscal year ended Jan. 31, 2024.

The company also announced its intent to acquire OfferFit, an AI decisioning company, for $325 million.

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“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,” said Bill Magnuson, CEO of Braze. 

Outlook: Braze sees fiscal 2026 adjusted earnings of between 31 cents and 35 cents per share, versus the 21 cent estimate, and revenue in a range of $686 million to $691 million, versus the $688.07 million estimate.

BRZE Price Action: According to data from Benzinga Pro, Braze shares were up 11.17% after hours at $40.80 Thursday.  

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