Braze Blazes Past Peers in Q4 Earnings Showdown!

Ladies and gentlemen, buckle up! We're diving headfirst into the Q4 earnings season for sales and marketing software stocks, and one name is shining brighter than the rest: Braze (NASDAQ:BRZE). This customer engagement powerhouse is leaving its peers in the dust with a jaw-dropping 22.5% year-on-year revenue growth. Let's break it down!



First things first, Braze's revenue of $160.4 million not only crushed analysts' expectations by 3% but also showcased a robust customer growth and EPS guidance that left Wall Street in awe. Bill Magnuson, the CEO, couldn't be prouder: "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." BOOM! That's how you do it!

Now, let's talk about the elephant in the room: the rest of the sector. The 23 sales and marketing software stocks we track reported a mixed Q4, with revenues beating analysts’ consensus estimates by a measly 1.5%. Meanwhile, Braze is up 22.5% year-on-year. That's not just growth; that's a growth explosion!



But wait, there's more! Braze's non-GAAP net income profitability is through the roof. Their adjusted EPS of $0.12 per share was significantly above analysts’ consensus estimates. And get this: their operating margin improved to -13.4% from -24.7% in the same quarter last year. That's what you call strong operating leverage!

So, what's driving this growth? Three words: AI and machine learning. Braze has invested heavily in these technologies, and it's paying off big time. Their net revenue retention rate of 111% shows that customers are not only sticking around but also spending more. And with billings up 12.8% year on year to $176.8 million, Braze is sitting pretty on a mountain of cash.

But here's the kicker: Braze's management is guiding for a 16% year-on-year increase in sales for the upcoming financial year 2026, in line with analyst expectations. And their adjusted EPS guidance for the upcoming financial year 2026 is $0.33 at the midpoint, beating analyst estimates by 13.4%. That's not just sustainable growth; that's growth on steroids!

So, are you ready to jump on the Braze bandwagon? This is a no-brainer! Braze is not just leading the pack; it's setting the pace. With its relentless focus on AI, strong customer retention, and robust billings growth, Braze is the stock to own in the sales and marketing software sector. Don't miss out on this opportunity to be part of the next big thing in tech!