Braze Stock Surges 13.59 on Strong Earnings as $340M Volume Ranks 328th in Market Activity

. 5, 2025, , , . The stock’s rally followed strong second-quarter earnings, . The company reported three consecutive quarters of positive non-GAAP operating income and free cash flow, driven by the successful integration of the OfferFit acquisition and growing adoption of AI-driven customer engagement tools.

Management highlighted robust execution in key sectors like retail, e-commerce, and financial services, with high competitive win rates and efficient pipeline operations. However, challenges persist, including a slight decline in dollar-based net retention and non-GAAP gross margin pressures from higher premium messaging volumes. The CEO noted ongoing macroeconomic headwinds, with limited customer expansionary investments and prolonged deal cycles. Despite these hurdles, the CFO expressed confidence in margin expansion and growth, citing synergies from OfferFit and improved management of down sells.

AI adoption remains a core focus, with Braze leveraging advanced data science and generative AI to enhance customer engagement and marketer productivity. Executives emphasized AI’s role in bridging the gap between platform capabilities and user accessibility, reinforcing competitive differentiation. The company plans to showcase further AI developments at its Forge conference and expects high attach rates for the fully integrated OfferFit offering, .

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