Braze (NasdaqGS:BRZE) FY Conference January 13, 2026 02:15 PM ET Company ParticipantsIsabelle Winkles - CFOConference Call ParticipantsNone - AnalystScott Berg - Senior AnalystScott BergI know, that's kind of crazy. I didn't hear that earlier when I was here. All right, anyways, thanks everyone for joining us today. My name is Scott Berg. I lead the enterprise software and SaaS research efforts here at Needham for those that are not familiar with myself. Today we actually have my top pick for 2026. I'm exci ...

Core Viewpoint - Braze Inc. (BRZE) is expected to continue growing revenue at a rate of 20% due to solid execution and operational performance [1] Company Analysis - The company has demonstrated strong revenue growth potential, with a consistent execution strategy that supports its growth forecast [1] - The investment approach taken by the author includes fundamental, technical, and momentum investing, indicating a comprehensive analysis of the company's performance [1] Industry Context - The article reflects a broader trend in the investment community where individual investors are increasingly focusing on managing their own capital and utilizing various investment strategies [1]

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Braze, Inc. (NASDAQ:BRZE) is one of the Stocks That Could Mint Millionaires in 2026. Braze (BRZE): Analyst Lauds Continued Margin Expansion Stocks On December 17, BTIG assumed coverage of Braze, Inc. (NASDAQ:BRZE) stock with a Buy rating and $45 price target. The analyst told investors in a research note that Q3 marked another quarter of growth reacceleration, improvements in in-period dollar-based net retention rate, heightened sales productivity, and continued margin expansion for the firm. On Decem ...

Company Overview - Braze Inc. specializes in customer engagement technology, aiding businesses in building strong customer relationships through personalized messaging and data-driven insights [1] Price Targets and Market Performance - BTIG set a price target of $45 for BRZE, indicating a potential upside of approximately 32.59% from its then-current price of $33.94 [2][6] - The average price target for BRZE is $46.63, with estimates ranging from $38.00 to $68.00, suggesting a potential increase of 8.8% to 94.7% from the current price level [3][6] - The stock has shown a recent performance gain of 23.8% over the past four weeks, closing at $34.93, reflecting a 2.48% increase [2][4] Market Capitalization and Trading Volume - BRZE's market capitalization is approximately $3.6 billion, with a trading volume of 2,096,293 shares on NASDAQ [5][6] - Over the past year, the stock has reached a high of $48.33 and a low of $23.91, indicating significant price volatility [5]

Core Viewpoint - Braze, Inc. (BRZE) has received an upgrade to a Zacks Rank 2 (Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system is based on changes in earnings estimates, which are strongly correlated with near-term stock price movements [4][6]. - An increase in earnings estimates typically leads to higher fair value for a stock, prompting institutional investors to buy or sell, thus affecting stock prices [4]. Company Performance and Investor Sentiment - The upgrade for Braze reflects an improvement in the company's underlying business, which is expected to drive the stock price higher as investors recognize this trend [5]. - Over the past three months, the Zacks Consensus Estimate for Braze has increased by 2.3%, indicating a positive revision in earnings expectations [8]. Zacks Rank System Overview - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a strong historical performance, particularly for Zacks Rank 1 stocks, which have averaged a +25% annual return since 1988 [7]. - Braze's upgrade to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, suggesting a strong potential for market-beating returns in the near term [10].

Core Viewpoint - Braze, Inc. (BRZE) has shown a significant price increase of 23.8% over the past four weeks, with a mean price target of $46.63 indicating a potential upside of 33.5% from the current price of $34.93 [1]. Price Targets and Analyst Consensus - The average price target consists of 19 estimates ranging from a low of $38.00 to a high of $68.00, with a standard deviation of $6.53, suggesting a variability in analyst predictions [2]. - The lowest estimate indicates an 8.8% increase, while the highest suggests a 94.7% upside, highlighting the range of potential outcomes [2]. - A low standard deviation signifies strong agreement among analysts regarding the stock's price direction, which can serve as a starting point for further research [9]. Earnings Estimates and Analyst Optimism - Analysts have shown increasing optimism about BRZE's earnings prospects, as evidenced by a strong consensus in revising EPS estimates higher, which correlates with potential stock price increases [11]. - Over the last 30 days, the Zacks Consensus Estimate for the current year has risen by 0.2%, with one estimate moving higher and no negative revisions [12]. - BRZE holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate factors, indicating a strong potential for upside [13]. Caution on Price Targets - While price targets are commonly referenced, they can mislead investors, as empirical research shows that they rarely indicate actual stock price movements [7]. - Analysts may set overly optimistic price targets due to business incentives, which can inflate expectations [8]. - Investors should approach price targets with skepticism and not rely solely on them for investment decisions [10].

Question-and-Answer SessionCan you talk a little bit, you reported very strong numbers. Share price move kind of reflected that as well and even more. Kind of maybe to bring everyone on the same page, like talk a little bit about what you saw in this quarter and the highlights for you?William MagnusonCo-Founder, Chairman & CEO Yes. I think this quarter, really a combination of two things. One is the work that we've been doing in the last 6 or 8 quarters really focused on product health, customer health, a l ...

Summary of Braze Conference Call Company Overview - **Company**: Braze - **Industry**: Customer engagement and marketing technology Key Highlights 1. **Strong Financial Performance**: Braze reported strong numbers this quarter, attributed to ongoing efforts in product and customer health, pricing, and packaging improvements [2][5][6] 2. **AI Integration**: AI is a central theme in customer conversations, with new products like the Operator Agent Console and Decisioning Studio launched to enhance customer engagement and drive revenue [3][4][39] 3. **Customer Health Improvement**: There has been a reduction in customer churn and downsell activity, leading to more upsell opportunities and improved net customer additions [5][6][8] 4. **Cyber Week Performance**: During Cyber Week, Braze sent 100 billion messages with 100% uptime, noting that Cyber Monday outperformed Black Friday for the first time [11][13] 5. **Diversified Customer Base**: Braze's customer base is diversified, with retail and consumer goods making up only 20% of the business, indicating growth in other verticals [13][15] Financial Metrics 1. **Organic Revenue Growth**: There has been a stabilization and slight pickup in organic revenue growth, with a focus on in-quarter net revenue retention (NRR) metrics [7][8][40] 2. **Customer Growth**: The company is seeing healthy graduations of customers moving from sub-$500,000 contracts to higher tiers, indicating strong customer engagement and utilization of services [37][39] 3. **Profitability Goals**: Braze aims to achieve an 8% margin for the full year, with a commitment to improve profitability through judicious capital deployment [69][70] Market Trends 1. **Changing Consumer Behavior**: The market is experiencing volatility, but Braze's lifecycle CRM solutions are proving durable, with lower marginal costs for engaging existing customers [17][19] 2. **Emerging Channels**: Growth in SMS and WhatsApp as marketing channels is notable, with many customers experimenting and scaling these channels [20][23] 3. **AI as a Competitive Edge**: The integration of AI in marketing strategies is becoming essential, with Braze positioned to benefit from this trend as companies seek advanced solutions [39][44] Strategic Initiatives 1. **Flexible Credits Model**: The introduction of a flexible credits model is reducing friction for customers to engage in cross-channel strategies, enhancing customer experience and stickiness [49][50][51] 2. **Proactive Customer Management**: Braze is focusing on proactive management of customer relationships to reduce downsell risks and improve overall customer health [66][68] 3. **Organic vs. Inorganic Growth**: The company is committed to both organic product development and potential acquisitions to stay at the forefront of technology, particularly in AI [72] Additional Insights 1. **Operational Resilience**: The ability to handle unexpected traffic spikes, such as during the K-pop Grammys, showcases Braze's operational strength and customer base diversity [15] 2. **Market Positioning**: Braze's growth rate of 25.5% year-over-year contrasts with competitors like Salesforce, highlighting its strong market position and investment in AI [40] 3. **Customer Engagement Strategies**: Emphasis on retaining customers through personalized engagement strategies is critical, especially as inboxes become more crowded with marketing messages [45][46] This summary encapsulates the key points discussed during the Braze conference call, focusing on the company's performance, market trends, and strategic initiatives.

Core Viewpoint - Braze Inc. (NASDAQ:BRZE) has shown significant performance with an 18.08% increase in stock price, driven by a positive growth outlook, revenue surpassing expectations, and an increased price target from an investment firm [1]. Financial Performance - Braze reported a 25% increase in revenues, reaching $190.8 million compared to $152.05 million in the same period last year, exceeding its forecast by 3 to 4% [2]. - The revenue growth was primarily attributed to new customers, upsells, and renewals [2]. - The attributable net loss widened by 29% to $36 million from $27.9 million year-on-year [3]. Future Projections - For the fourth quarter of the fiscal year, Braze expects to generate a non-GAAP net income of $15 million to $16 million, with revenues projected between $197.5 million and $198.5 million [3]. - For the full fiscal year, the company anticipates a non-GAAP net income of $46 million to $47 million and revenues of $730.5 million to $731.5 million [4]. Analyst Ratings - Following the earnings results, Braze maintained an "outperform" rating from Oppenheimer, with a revised price target of $40, indicating a 10% upside potential from its latest closing price of $36.19 [4].