Braze (BRZE) Q2 2026 Earnings Call September 04, 2025 04:30 PM ET Company ParticipantsChristopher Ferris - VP & Head of IRBill Magnuson - Chairman, Co-Founder, President & CEOIsabelle Winkles - CFOSiti Panigrahi - Managing DirectorBrett Huff - Managing DirectorBrian Peterson - Managing DirectorMatt Vanvliet - MD & Software Equity ResearchDerrick Wood - Managing DirectorYun Kim - Managing DirectorKincaid LaCorte - Equity Research AssociateWillow Miller - Senior Equity Research Associate - Software & SaaSConf ...

Braze (BRZE) Q2 2026 Earnings Call September 04, 2025 04:30 PM ET Speaker5Welcome to the Braze Fiscal Second Quarter 2026 Earnings Conference Call. My name is Luke, and I'll be your operator for today's call. At this time, all participants are in a listen-only mode. After the speaker's presentation, we'll conduct a question-and-answer session. I'll now turn the call over to Christopher Ferris, Vice President of Braze Investor Relations.Speaker4Thank you, Operator. Good afternoon, and thank you for joining u ...

Fiscal Q2 2026 Earnings Results September 4, 2025 Braze Financial Highlights $720M QUARTERLY REVENUE RUN RATE 1 24% YoY REVENUE GROWTH 2,422 CUSTOMERS IN OVER 75 COUNTRIES DOLLAR-BASED NET RETENTION 108% RATE 95% SUBSCRIPTION REVENUE This presentation contains the following non-GAAP financial measures: non-GAAP gross profit and margin, non-GAAP sales and marketing expense, non-GAAP research and development expense, non-GAAP general and administrative expense, non-GAAP operating income (loss), non-GAAP opera ...

BRAZE REPORTS FISCAL SECOND QUARTER 2026 RESULTS NEW YORK -- (BUSINESSWIRE) -- September 4, 2025 -- Braze (Nasdaq: BRZE) the leading customer engagement platform that empowers brands to Be Absolutely Engaging , today announced results for its fiscal quarter ended July 31, 2025. TM "We reported a strong second quarter, delivering 24% year-over-year revenue growth while driving continued efficiency in our business, expanding our non-GAAP operating income and net income profitability, and generating strong fre ...

Group 1 - The article discusses the potential growth opportunities for Braze in the marketing tech space, suggesting it could be a significant player in the industry [1] - Expert analysts provide insights into market trends and investment opportunities related to Braze, indicating a positive outlook for the company's future [1] Group 2 - The video associated with the article offers valuable insights, emphasizing the importance of understanding market dynamics for potential investors [1]

Core Insights - VNET Group is currently viewed as a more attractive investment compared to Braze, Inc. based on valuation metrics and earnings estimate revisions [3][7] Valuation Metrics - VNET has a forward P/E ratio of 92.72, while Braze, Inc. has a significantly higher forward P/E of 145.57 [5] - The PEG ratio for VNET is 1.70, indicating a more favorable growth outlook compared to Braze's PEG ratio of 4.85 [5] - VNET's P/B ratio stands at 2.62, compared to Braze's P/B of 5.93, further highlighting VNET's relative undervaluation [6] Analyst Outlook - VNET holds a Zacks Rank of 2 (Buy), indicating positive earnings estimate revisions, while Braze has a Zacks Rank of 4 (Sell) [3] - The stronger estimate revision activity for VNET suggests a more favorable analyst outlook compared to Braze [7] Value Grades - VNET has been assigned a Value grade of B, while Braze has received a Value grade of F, reflecting their respective valuation attractiveness [6]

Group 1: Company Overview - Braze, Inc. (BRZE) is experiencing significant activity in the options market, particularly with the Oct 17, 2025 $22.50 Call showing high implied volatility, indicating potential for a major price movement [1] - Currently, Braze holds a Zacks Rank 3 (Hold) in the Internet - Software Industry, which is in the top 25% of the Zacks Industry Rank [3] Group 2: Analyst Sentiment - Over the past 60 days, no analysts have increased their earnings estimates for Braze for the current quarter, while six analysts have revised their estimates downward, leading to a decrease in the Zacks Consensus Estimate from eight cents per share to three cents [3] Group 3: Options Market Insights - The high implied volatility surrounding Braze suggests that options traders are anticipating a significant price movement, which could indicate an upcoming event that may lead to a rally or sell-off [2][4] - Options traders often seek to sell premium on options with high implied volatility, aiming to benefit from the decay of the option's value if the underlying stock does not move as much as expected [4]

Group 1 - The individual investor focuses on managing personal capital accumulated over the years, utilizing a diverse range of investment strategies including fundamental, technical, and momentum investing [1] - The investor aims to leverage the strengths of various investment approaches to refine their investment process [1] - The purpose of writing on Seeking Alpha is to track the performance of investment ideas and connect with like-minded investors [1] Group 2 - There is no stock, option, or similar derivative position held by the analyst in any mentioned companies, nor are there plans to initiate such positions in the near future [2] - The article reflects the author's personal opinions and is not influenced by compensation from any company [2] - Seeking Alpha does not provide recommendations or advice regarding the suitability of investments for particular investors [3]

Core Insights - Braze reported a 20% year-over-year revenue increase to $162.1 million for fiscal Q1 2026, with a non-GAAP operating margin improvement of over 900 basis points and a non-GAAP net income of $7 million [1][5] Financial Performance - The company achieved a non-GAAP operating margin of 2%, a significant turnaround from a negative 7% in the prior-year period, and generated free cash flow of $23 million, despite acquisition-related expenses [4][5] - Non-GAAP R&D spending rose by $2 million to $25 million, representing 15% of revenue, while sales and marketing expenses increased by $4 million to $64 million, accounting for 39% of revenue [4] Strategic Developments - Braze acquired OfferFit, an AI decisioning platform, which is expected to contribute approximately $11 million to $12 million in fiscal 2026 revenue, equating to about 2% incremental growth [2][3] - The acquisition enhances Braze's AI product suite and positions the company for increased wallet share capture against competitors [3] Pricing Strategy - The company implemented a new pricing model in May, shifting from data point-based limits to API rate-based usage, which has already shown positive results in sales cycles and customer satisfaction [6][7] - This pricing overhaul is expected to facilitate workload expansion and strengthen Braze's competitive differentiation [8] Future Outlook - For fiscal Q2 2026, management projects revenue between $171 million and $172 million, reflecting an 18% year-over-year growth rate, with a non-GAAP operating margin of approximately 1% [9] - The fiscal 2026 revenue guidance is set at $702 million to $706 million, indicating a 19% growth at the midpoint, with OfferFit contributing an estimated 2% incremental uplift [9]

Core Insights - Braze, Inc. reported better-than-expected earnings for Q1, with earnings of 7 cents per share, surpassing the analyst consensus estimate of 5 cents per share [1] - The company achieved quarterly sales of $162.06 million, exceeding the analyst consensus estimate of $158.66 million [1] Financial Guidance - Braze lowered its FY2026 adjusted EPS guidance from 31 cents to 35 cents, while raising its FY2026 sales outlook from a range of $686 million-$691 million to $702 million-$706 million [2] Leadership and Growth - CEO Bill Magnuson expressed optimism about the company's strong start in fiscal year 2026, highlighting revenue growth, profitability, and free cash flow [3] - Ed McDonnell will join Braze in July to lead global revenue operations, bringing a strong track record in high-growth public SaaS businesses [3] Stock Performance - Following the earnings announcement, Braze shares dipped 12.6% to trade at $31.50 [3] Analyst Ratings and Price Targets - Stephens & Co. analyst Brett Huff maintained an Overweight rating on Braze, lowering the price target from $51 to $41 [9] - UBS analyst Taylor McGinnis maintained a Buy rating, cutting the price target from $51 to $48 [9] - JMP Securities analyst Patrick Walravens reiterated a Market Outperform rating, maintaining a price target of $68 [9]