Braze Inc
NASDAQ:BRZE
Braze Inc
In the bustling metropolis of New York City, Braze Inc. emerged as a digital dynamo in the marketing technology landscape. Founded in 2011, Braze leveraged the burgeoning demand for personalized customer engagement, helping brands forge meaningful connections with their audiences. At the core of Braze’s operations is its powerful customer engagement platform, which integrates seamlessly across multiple channels, including mobile, web, email, and emerging digital touchpoints like smart TV and IoT devices. This versatility allows businesses to orchestrate sophisticated, data-driven marketing campaigns, tailoring messages with precision and timing that maximize consumer engagement and loyalty. Braze's technology hinges on real-time data streams that fuel a deeper understanding of customer behavior, enabling brands to interact with individuals rather than anonymous demographics.
Braze’s revenue model is built predominantly on subscription fees from its platform, which is offered as a software-as-a-service (SaaS) product. This approach provides Braze with a steady, predictable income stream, primarily generated from an extensive and diverse client base spanning industries such as retail, media, finance, and hospitality. Additionally, the company offers a tiered pricing strategy that scales with the complexity and volume of interactions managed, meaning as businesses grow or ramp up their engagement efforts, their spending with Braze grows commensurately. By weaving together cutting-edge technology with a keen understanding of customer needs, Braze continues to solidify its position as a leader in the competitive realm of digital marketing and customer engagement solutions.
In the bustling metropolis of New York City, Braze Inc. emerged as a digital dynamo in the marketing technology landscape. Founded in 2011, Braze leveraged the burgeoning demand for personalized customer engagement, helping brands forge meaningful connections with their audiences. At the core of Braze’s operations is its powerful customer engagement platform, which integrates seamlessly across multiple channels, including mobile, web, email, and emerging digital touchpoints like smart TV and IoT devices. This versatility allows businesses to orchestrate sophisticated, data-driven marketing campaigns, tailoring messages with precision and timing that maximize consumer engagement and loyalty. Braze's technology hinges on real-time data streams that fuel a deeper understanding of customer behavior, enabling brands to interact with individuals rather than anonymous demographics.
Braze’s revenue model is built predominantly on subscription fees from its platform, which is offered as a software-as-a-service (SaaS) product. This approach provides Braze with a steady, predictable income stream, primarily generated from an extensive and diverse client base spanning industries such as retail, media, finance, and hospitality. Additionally, the company offers a tiered pricing strategy that scales with the complexity and volume of interactions managed, meaning as businesses grow or ramp up their engagement efforts, their spending with Braze grows commensurately. By weaving together cutting-edge technology with a keen understanding of customer needs, Braze continues to solidify its position as a leader in the competitive realm of digital marketing and customer engagement solutions.
Revenue Growth: Braze reported Q3 revenue of $191 million, up 25.5% year-over-year and 6% quarter-over-quarter, exceeding prior guidance.
Profitability: Achieved $18 million in free cash flow and over 400 basis points improvement in non-GAAP operating margin year-over-year. Delivered fourth consecutive quarter of non-GAAP operating income and sixth consecutive quarter of non-GAAP net income.
Customer Momentum: Added 106 customers sequentially for a total of 2,528 (up 14% YoY), with large customers ($500K+ ARR) growing 29% to 303, now representing 63% of total ARR.
AI & Product Innovation: Highlighted rapid adoption and performance of Braze AI features, including AI decisioning studio and new ChatGPT app SDK; AI-driven campaigns drove measurable customer uplift.
Strong Guidance: Q4 revenue expected between $197.5–$198.5 million (up ~23% YoY), and FY26 revenue guided to $730.5–$731.5 million. FY26 non-GAAP operating income margin expected to improve by 350 basis points.
Retention & Upsell: Dollar-based net retention stabilized at 108% across all customers and 110% for large customers, reflecting effective retention and upsell strategies.
Enterprise Replacements: Continued to gain share from legacy marketing clouds, with competitive wins and increasing vendor consolidation.
