Braze Acquires OfferFit for $325M, Boosting AI Capabilities in Customer Engagement

Braze Earns Bullish JPMorgan Nod On Retail Focus, Agentic AI Edge - Braze (NASDAQ:BRZE)

Feel unsure about the market's next move? Copy trade alerts from Matt Maley -- a Wall Street veteran who consistently finds profits in volatile markets. Claim your 7-day free trial now. On Friday, JPMorgan analyst Pinjalim Bora maintained an Overweight rating on Braze, Inc BRZE with a price target of $47. On Thursday, Braze reported fourth-quarter revenue of $160.4 million, beating the $155.72 million consensus estimate. The quarterly earnings were 12 cents per share, beating the analyst consensus estimate of five cents. Braze expects fiscal 2026 revenue of $686 million-$691 million, versus the $688.07 million estimate and adjusted earnings of 31 cents to 35 cents per share, versus the 21 cent estimate. Also Read: Braze Is Positioned To Capture Share In A Growing Market, Says Bullish Analyst Braze delivered a good end to the year, with total revenue landing 3% above consensus, marking the highest dollar beat in the last four years, while adjusted operating margins landed over 300 bps ahead at +5%. The cRPO grew 23%, marking only a slight deceleration. As total RPO-based bookings growth improved, cRPO-based bookings growth was steady at 22%. New logo additions also improved, growing meaningfully for the first time in over two years. On macro, Braze noted that it has not seen any meaningful changes in the demand trends, as well as any change in the behavior of the pipeline or close rates so far in first-quarter. Braze also referred to its plan to lean in on some of its largest verticals, starting with retail and consumer goods, with focused R&D to further strengthen its leadership in key verticals. Additionally, the company saw continued traction of its flexible credit system and expects to expand the scope of it this year. While DBNRR downticked 2 pts sequentially to 111%, Braze highlighted that the difference in DBNRR between pre-ZIRP cohorts and post-ZIRP cohorts continues to trend in a positive direction, and reiterated expectations that revenue will likely inflect prior to reported DBNRR. Finally, leaning in on Agentic AI-based A/B testing, Braze announced its agreement to acquire OfferFit. Net-net, Bora is encouraged by the results and remains positive on Braze's long-term prospects. Braze continues to out-innovate its competitors by redefining the marketing tech stack and solidify its position as a critical first-party data set for companies. Bora projected first-quarter revenue of $159 million and adjusted EPS of $0.05. Price Action: BRZE stock is up 5.34% at $38.63 at last check Friday. Also Read: Tariff Fears And Ease In Demand Hype Slows Semiconductor Expansion BRZEBraze Inc $38.143.92% Stock Score Locked: Want to See it? Benzinga Rankings give you vital metrics on any stock - anytime. Reveal Full Score Edge Rankings Momentum40.35 Growth49.78 Quality- Value46.77 Price Trend Short Medium Long Overview Market News and Data brought to you by Benzinga APIs

Braze's Fiscal Q4 Results Top Forecast | The Motley Fool

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 Braze's capabilities in scaling its offerings and highlights improved operational efficiency. Overall, the company had a strong quarter, punctuated by enhanced profitability and revenue growth. Source: Analysts' estimates provided by FactSet. Braze, a leader in cross-channel customer engagement, offers a comprehensive platform that integrates data analysis, personalized messaging, and omnichannel support. This system empowers brands to engage with their customers more effectively, creating personalized and cohesive experiences. With a focus on real-time data processing, Braze enhances customer interactions and sustains engagement. Its global reach and scalability are vital for maintaining its edge in competitive markets. Management's recent efforts have centered on improving the platform's features and expanding its AI capabilities. In the fiscal fourth quarter, which ended Jan. 31, Braze displayed remarkable financial results, demonstrating its ability to exceed both market and management expectations. Revenue increased 22.5% from the prior-year period to $160.4 million, marking an outperformance of $5.4 million against analysts' consensus estimate. This growth was attributed to a rise in customer numbers and improved operational efficiencies. Moreover, Braze achieved an adjusted EPS of $0.12, significantly outpacing the expected $0.05, creating a notable positive surprise of 140%. Its non-GAAP net income of $12.3 million also surpassed management's guidance range of $5 million to $6 million. Meanwhile, its non-GAAP gross margin improved to 69.9%, reflecting better cost management. Free cash flow turned positive at $15.2 million compared to negative $3.5 million a year earlier. However, the company's dollar-based net retention rate fell from 117% to 111%, suggesting it may need to increase its focus on customer satisfaction and retention strategies. In conjunction with the earnings report, Braze also announced an agreement to acquire OfferFit, a deal that is intended to enhance Braze's AI capabilities and refine its personalization and cross-channel engagement strengths. Additionally, earlier this month, it announced a strategic partnership with Shopify. For its fiscal 2026, Braze is guiding for revenue of between $686 million and $691 million -- up from $593.4 million in fiscal 20205 -- indicating strong confidence in its growth and market expansion. It intends to leverage ongoing AI and technological advancements to maintain its leadership in customer engagement solutions. Investors should monitor Braze's integration of OfferFit and scrutinize any changes in its retention rates. These factors will be critical to Braze's trajectory and growth strategy.

Braze to acquire OfferFit for $325M in cash and stock deal; shares up (NASDAQ:BRZE)

Braze (NASDAQ:BRZE) has entered into a definitive agreement to acquire OfferFit, an AI decisioning company, for $325M in a combination of cash and Braze Class A common stock. The acquisition is expected to close in the fiscal quarter ending July 31, 2025. BRZE shares climb 9% post-market on Thursday. Source: Press release More on Braze Braze, Inc. 2025 Q4 - Results - Earnings Call Presentation Braze: Undervalued And Enabling A Secular Trend Braze: Growth Rates Are Stabilizing, Which May Catalyze A Broader Rebound Braze CCO Myles Kleeger to step down Seeking Alpha's Quant Rating on Braze