Braze Stock Soars: Unpacking the Surge

Braze Inc. (NASDAQ: BRZE) stock surged by as much as 19.6% in early trading on Friday, March 29, 2025, following the release of its fiscal 2025 fourth-quarter results. The customer engagement platform company blew past analysts' consensus estimates, reporting revenue of $160.4 million, a 23% increase from the year-ago quarter, and non-GAAP earnings per share of $0.12, far ahead of the $0.05 estimate. This performance, coupled with strong fiscal 2026 guidance, has investors optimistic about Braze's future prospects.



The surge in Braze's stock price can be attributed to several key factors:

1. Strong Fiscal 2025 Fourth-Quarter Results: Braze reported revenue of $160.4 million in the quarter, an increase of nearly 23% from the year-ago quarter, and ahead of Wall Street's consensus estimate of $155.7 million. This top-line beat was impressive, but it was the company's bottom line that truly caught investors' attention. Braze reported non-GAAP earnings per share of $0.12, up from a loss of $0.04 in the year-ago quarter and far ahead of analysts' consensus estimate of $0.05 per share. This marked Braze's third consecutive quarter of non-GAAP net income profitability, and ended its fiscal year with a non-GAAP gross profit margin of 69.9%.

2. Customer Growth and Expansion: Braze ended its fiscal 2025 with 2,296 customers, up 22% from a year earlier. The number of large customers contributing annual recurring revenue of $500,000 or more rose from 202 last year to 247. This substantial increase in customer count and large customers indicates robust customer growth and expansion, which is a positive sign for the company's future revenue streams.

3. Strong Fiscal 2026 Guidance: Braze's management is confident the good times will keep coming in fiscal 2026. It's guiding for sales to be in the range of $686 million to $691 million for the year, which would be a 16% increase at the midpoint. This optimistic guidance added to investor optimism and contributed to the stock price increase.

4. Acquisition of OfferFit: Braze announced a definitive agreement to acquire OfferFit, an AI decisioning company, for $325 million in a combination of cash and Class A common stock. The acquisition is expected to close in the fiscal quarter ending July 31, 2025. OfferFit's technology specializes in recommending individualized cross-channel customer journeys through reinforcement learning agents that autonomously experiment and learn optimal actions. This acquisition aims to enhance Braze's agentic AI capabilities, building upon their Project Catalyst initiative announced in September 2024.



These factors compare favorably to Braze's historical performance and market expectations. For instance, Braze's revenue growth of 23% year-over-year in the fourth quarter of fiscal 2025 is a significant improvement from the 33% year-over-year growth reported in the fourth quarter of fiscal 2024. Additionally, the company's non-GAAP operating income profitability in the second quarter of fiscal 2025 is a notable achievement, as it marks the company's first quarter of non-GAAP operating income profitability. Furthermore, the acquisition of OfferFit is a strategic investment that positions Braze ahead of competitors in offering truly autonomous customer journey optimization across channels, moving beyond rules-based approaches to genuine machine learning-driven personalization.

In conclusion, Braze's strong fiscal 2025 fourth-quarter results, coupled with its optimistic fiscal 2026 guidance and strategic acquisition of OfferFit, have contributed to the significant increase in its stock price. Investors are optimistic about Braze's future prospects, and the company's strong performance and strategic investments position it well for continued growth and success.