Core Insights - The article discusses the current market trends and potential investment opportunities within specific sectors, highlighting the importance of thorough analysis before making investment decisions [2]. Group 1: Market Trends - Recent market fluctuations have shown a significant impact on investor sentiment, with a notable increase in volatility observed in the tech sector [2]. - Analysts are focusing on the performance of companies that have demonstrated resilience during economic downturns, particularly those with strong balance sheets [2]. Group 2: Investment Opportunities - There is a growing interest in renewable energy companies, driven by government incentives and a shift towards sustainable practices [2]. - The healthcare sector is also highlighted as a potential area for investment, especially companies involved in innovative treatments and technologies [2]. Group 3: Risks and Considerations - Investors are advised to remain cautious due to potential regulatory changes that could affect various industries, particularly in technology and healthcare [2]. - The importance of diversifying investment portfolios to mitigate risks associated with market volatility is emphasized [2].

Core Insights - U.S. stocks exhibited mixed performance, with the Nasdaq Composite declining by over 100 points on Wednesday [1] - Daktronics, Inc. reported quarterly earnings of 35 cents per share, surpassing the analyst consensus estimate of 27 cents per share, and quarterly sales of $229.253 million, exceeding the consensus estimate of $214.077 million [1] Company Performance - Daktronics shares surged by 15.7% to $20.80 following the positive earnings report [2] - Photronics, Inc. saw its shares increase by 44% to $37.00 after reporting better-than-expected fourth-quarter results and issuing optimistic first-quarter guidance [3] - Nextdoor Holdings, Inc. gained 24.6% to $2.5050 after a positive social media mention regarding its valuation [3] - Braze, Inc. rose by 17.5% to $36.00 after raising its FY2026 adjusted EPS and sales guidance [3] - Dave & Buster's Entertainment, Inc. jumped 14% to $20.50 following its third-quarter results [3] - SuperX AI Technology Limited's shares increased by 13.8% to $19.63 [3] - GE Vernova Inc. rose by 11.8% to $699.59 after raising its FY28 outlook and dividend, along with expanding its buyback authorization [3] - DBV Technologies S.A. gained 11.2% to $19.09 [3] - Warby Parker Inc. rose by 11% to $25.77 [3] - Dyne Therapeutics, Inc. increased by 10.5% to $20.38 after announcing a $350 million public offering [3] - ABIVAX Société Anonyme rose by 8.6% to $133.24 [3] - Olema Pharmaceuticals, Inc. gained 8.1% to $28.67 [3] - The Middleby Corporation rose by 6.3% to $137.15 after an upgrade from Jefferies [3] - EchoStar Corporation increased by 5.6% to $98.80 following an upgrade from Morgan Stanley [3]

Core Insights - Braze Inc (NYSE:BRZE) shares increased significantly in pre-market trading after the company raised its FY2026 adjusted EPS and sales guidance due to better-than-expected third-quarter revenue [1] - The company reported quarterly adjusted earnings of $0.06 per share, meeting analyst estimates, while quarterly revenue reached $190.84 million, surpassing the Street estimate of $184.08 million [1] - Following these announcements, Braze shares jumped 14.2% to $35.00 in pre-market trading [1] Company Performance - Braze's quarterly adjusted earnings were $0.06 per share, aligning with analyst expectations [1] - The reported quarterly revenue of $190.84 million exceeded the anticipated $184.08 million [1] - The positive financial results led to a 14.2% increase in share price during pre-market trading [1]

Group 1: Earnings Reports and Expectations - Chewy Inc. is expected to report quarterly earnings of 12 cents per share on revenue of $3.10 billion [1] - Braze Inc. reported third-quarter revenue of $190.84 million, exceeding the estimate of $184.08 million, and raised its fiscal 2026 guidance [1] - Adobe Inc. is anticipated to post quarterly earnings of $5.39 per share on revenue of $6.11 billion [1] - Oracle Corp. is expected to report quarterly earnings of $1.64 per share on revenue of $16.22 billion [1] Group 2: Stock Performance - Chewy shares rose 0.9% to $35.16 in after-hours trading [1] - Braze shares surged 11.3% to $34.10 in after-hours trading [1] - Adobe shares increased by 0.3% to $345.18 in after-hours trading [1] - GE Vernova shares jumped 6.3% to $664.50 in after-hours trading [1] - Oracle shares gained 0.8% to $223.31 in after-hours trading [1] Group 3: Corporate Actions - GE Vernova doubled its dividend to 50 cents per share and raised its multi-year outlook, with a share repurchase program increase to $10 billion from $6 billion [1]

Core Insights - Braze, Inc. reported revenue of $190.84 million for the quarter ended October 2025, reflecting a year-over-year increase of 25.5% and exceeding the Zacks Consensus Estimate by 3.69% [1] - The company's earnings per share (EPS) for the quarter was $0.06, up from $0.02 in the same quarter last year, aligning with the consensus EPS estimate [1] Financial Performance - Total customers increased to 2,528, surpassing the average estimate of 2,477 by analysts [4] - Dollar Based Net Retention (TTM) stood at 108%, matching the average estimate from analysts [4] - Revenue from professional services and other reached $9.2 million, exceeding the average estimate of $7.64 million and representing a year-over-year growth of 58.6% [4] - Subscription revenue was reported at $181.6 million, above the estimated $176.42 million, marking a 24.1% increase compared to the previous year [4] Stock Performance - Braze's shares have returned +6.6% over the past month, outperforming the Zacks S&P 500 composite, which saw a +1.9% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3]

Core Insights - Braze, Inc. reported quarterly earnings of $0.06 per share, matching the Zacks Consensus Estimate, and showing an increase from $0.02 per share a year ago [1] - The company achieved revenues of $190.84 million for the quarter ended October 2025, exceeding the Zacks Consensus Estimate by 3.69% and up from $152.05 million year-over-year [2] - Braze shares have declined approximately 28.3% year-to-date, contrasting with the S&P 500's gain of 16.4% [3] Earnings Performance - The company has surpassed consensus EPS estimates three out of the last four quarters, with a notable surprise of +400% in the previous quarter [1] - The current consensus EPS estimate for the upcoming quarter is $0.13, with projected revenues of $191.99 million, and for the current fiscal year, the estimate is $0.41 on revenues of $718.91 million [7] Industry Context - Braze operates within the Zacks Internet - Software industry, which is currently ranked in the top 25% of over 250 Zacks industries, indicating a favorable outlook compared to lower-ranked industries [8] - The performance of Braze's stock may be influenced by the overall industry outlook and trends in earnings estimate revisions, which have shown mixed signals ahead of the earnings release [6][5]

Revenue Performance - Revenue for the three months ended October 31, 2025, was $190.8 million, a 25.5% increase from $152.1 million in the same period of 2024[153]. - Revenue for the three months ended October 31, 2025, was $190,842,000, representing a $38,790,000 increase or 25.5% compared to $152,052,000 for the same period in 2024[187]. - Revenue for the nine months ended October 31, 2025, increased by $100.0 million, or 23.1%, to $533.0 million compared to $433.0 million for the same period in 2024, driven primarily by a $92.0 million increase in subscription revenue[194]. Customer Metrics - Monthly active users increased to approximately 7.8 billion as of October 31, 2025, up from approximately 7.2 billion as of January 31, 2025[157]. - The company had 2,528 customers as of October 31, 2025, across various industries[154]. - Total customers grew to 2,528 as of October 31, 2025, from 2,211 as of October 31, 2024, indicating strong customer acquisition[194]. Financial Losses - Net losses for the three months ended October 31, 2025, were $35.8 million, compared to $28.1 million in the same period of 2024[153]. Cash Flow and Liquidity - Non-GAAP free cash flow was $44.2 million for the nine months ended October 31, 2025, compared to $4.4 million for the same period in 2024[153]. - Net cash provided by operating activities was $52.1 million for the nine months ended October 31, 2025, compared to $19.6 million for the same period in 2024[206]. - Free cash flow increased to $44.2 million for the nine months ended October 31, 2025, from $4.4 million in the same period in 2024, reflecting higher collections from new contracts[216]. - Cash, cash equivalents, and marketable securities totaled $387.3 million as of October 31, 2025, providing a solid liquidity position for the company[203]. - The company anticipates that its current cash and marketable securities will be sufficient to meet working capital and capital expenditure requirements for at least the next 12 months[218]. Operating Expenses - Operating expenses are expected to increase as the company expands its operations and personnel headcount[176]. - Sales and marketing expenses rose to $88,596,000, an increase of $13,938,000 or 18.7% compared to $74,658,000 in 2024, driven by higher personnel and promotional costs[190]. - Research and development expenses increased by $11,212,000 or 34.1% to $44,067,000, primarily due to higher personnel costs and an increase in software costs[191]. - General and administrative expenses were $33,093,000, up $1,894,000 or 6.1% from $31,199,000 in 2024, largely due to increased personnel costs[192]. - Operating expenses for sales and marketing rose by $32.3 million, or 15.1%, to $245.3 million, primarily due to increased personnel and overhead costs[198]. - Research and development expenses increased by $21.7 million, or 21.7%, to $122.1 million, driven by higher personnel and software costs[199]. - General and administrative expenses rose by $24.1 million, or 27.9%, to $110.4 million, largely due to increased personnel costs and acquisition-related expenses[200]. Profitability Metrics - Gross profit for the three months ended October 31, 2025, was $128,211,000, a $22,069,000 increase or 20.8% from $106,142,000 in 2024, with a gross margin of 67.2%[188][189]. - Gross profit increased by $62.2 million, or 20.8%, to $361.3 million, while gross margin decreased to 67.8% from 69.1% due to increased costs related to the acquisition of OfferFit and a one-time charge related to a service disruption[197]. Retention and Growth Metrics - The dollar-based net retention rate for the trailing 12 months ended October 31, 2025, was 108%, down from 113% for the same period in 2024[161]. - Subscription revenue increased by $35,400,000, or 24.2%, with 44.8% of this growth coming from existing customers and 55.2% from new customers, bringing total customers to 2,528[187]. Future Outlook and Investments - The company plans to continue investing in research and development to enhance its platform and expand channel offerings[165]. - The company expects to continue investing in sales and marketing to drive growth, anticipating an increase in absolute dollars for these expenses[178]. - Research and development expenses are also expected to rise in absolute dollars as the company enhances its platform to attract new customers[180]. - General and administrative expenses are projected to increase in absolute dollars but decrease as a percentage of revenue over the long term as the company scales its internal support functions[182]. Market and Economic Factors - The company has experienced seasonality in revenue costs, with the highest usage typically occurring in the fourth quarter due to holiday season activities[221]. - A hypothetical 10% change in interest rates would not have a material impact on the company's consolidated financial statements as of October 31, 2025[228]. - The company’s revenue is primarily denominated in U.S. dollars, with minimal exposure to foreign currency risk, except for sales in Japan denominated in Yen[229]. - The company uses derivative financial instruments, such as forward exchange contracts, to hedge against foreign currency exchange rate fluctuations[230]. - The company does not believe inflation has materially affected its financial condition, but rising costs could harm its operations if not offset by price increases[226]. Commitments and Obligations - The company has non-cancelable purchase commitments totaling $134.1 million and operating lease obligations of $84.1 million as of October 31, 2025[219]. - The company’s future funding requirements may lead to seeking additional equity or debt if current estimates prove inaccurate[220].

Financial Data and Key Metrics Changes - The company reported revenue of $191 million for the fiscal third quarter 2026, representing a year-over-year increase of 25.5% and a sequential increase of 6% [7][23] - Non-GAAP operating margins improved by over 400 basis points year-over-year, with non-GAAP operating income of $5 million, or 2.7% of revenue, compared to a non-GAAP operating loss of $2 million in the prior year quarter [7][28] - Free cash flow for the quarter was $18 million, a significant improvement from a negative free cash flow of $14 million in the prior year quarter [7][29] - The total remaining performance obligation (RPO) was $891 million, up 24% year-over-year, while current RPO was $573 million, up 25% year-over-year [26] Business Line Data and Key Metrics Changes - Subscription revenue accounted for 95% of total revenue, with the remaining 5% from professional services and one-time fees [23] - The company added 106 new customers sequentially and 317 year-over-year, bringing the total customer count to 2,528, a 14% increase [8][23] - Large customers (those spending at least $500,000 annually) grew by 29% year-over-year to 303, contributing 63% to total annual recurring revenue (ARR) [24] Market Data and Key Metrics Changes - Revenue outside the U.S. contributed 45% of total revenue, consistent with previous quarters [24] - Dollar-based net retention was 108% overall and 110% for large customers, indicating strong customer retention and expansion [24] Company Strategy and Development Direction - The company aims to position itself as the global standard for omnichannel customer engagement, leveraging AI-driven solutions to enhance customer experiences [7][8] - The introduction of new AI capabilities and the Braze AI Decisioning Studio is expected to drive future growth and customer engagement [19][31] - The company is focused on innovation and product development, particularly in AI, to maintain competitive advantage in the customer engagement landscape [14][20] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about continued market demand and strong pipeline generation, indicating a positive outlook for fiscal year 2027 [7][8] - The company anticipates revenue for the fourth quarter to be in the range of $197.5–$198.5 million, representing a year-over-year growth rate of approximately 23% [30] - Management highlighted the importance of first-party data and customer engagement strategies in navigating the evolving market landscape [70][74] Other Important Information - The company achieved a record of 102.5 billion messages delivered during Cyber Week, showcasing the platform's scalability and reliability [10][12] - The integration of Braze with ChatGPT apps is expected to enhance customer engagement and provide new monetization opportunities [20][70] Q&A Session Summary Question: Insights on the Braze healthcare customer using the AI agent - Management highlighted the agility of deploying AI solutions within the Braze Canvas, allowing for enhanced customer interactions and support [35][39] Question: Drivers of improving trends in key metrics - Management attributed improvements to ongoing productivity enhancements, mitigation of downsell activity, and effective sales strategies [40][42] Question: Factors driving momentum in legacy replacement cycles - Management noted that the competitive landscape is shifting, with increased awareness and differentiation for Braze, leading to more enterprise replacements [45][47] Question: Impact of AI on growth strategy - Management discussed the monetization of AI, emphasizing the potential for real-time AI functionalities to enhance customer engagement and operational efficiency [54][56] Question: Customer interest in ChatGPT integration - Management explained that the evolution of app ecosystems will determine the role of Braze in enhancing customer engagement through first-party data [68][70]

Financial Data and Key Metrics Changes - The company reported revenue of $191 million for the fiscal third quarter 2026, representing a year-over-year increase of 25.5% and a sequential increase of 6% [7][23] - Non-GAAP operating margins improved by over 400 basis points year-over-year, with non-GAAP operating income of $5 million, or 2.7% of revenue, compared to a non-GAAP operating loss of $2 million in the prior year quarter [7][28] - Free cash flow for the quarter was $18 million, compared to a negative free cash flow of $14 million in the prior year quarter [29] Business Line Data and Key Metrics Changes - Subscription revenue accounted for 95% of total revenue, with the remaining 5% from professional services and onboarding fees [23] - The Braze AI Decisioning Studio contributed $4.8 million in revenue, indicating a growing impact of AI-driven solutions on overall revenue [23] Market Data and Key Metrics Changes - The total customer count increased by 14% year-over-year to 2,528, with 317 new customers added compared to the same period last year [23][24] - Revenue outside the U.S. contributed 45% of total revenue, consistent with previous quarters [24] Company Strategy and Development Direction - The company aims to position itself as the global standard for omnichannel customer engagement, leveraging AI technology to enhance customer experiences [7][9] - There is a focus on expanding into new customer verticals and enhancing product offerings through AI capabilities [4][9] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism regarding continued market demand and strong pipeline generation, indicating a positive outlook for fiscal year 2027 [7][8] - The company anticipates a revenue range of $197.5-$198.5 million for the fourth quarter, reflecting a year-over-year growth rate of approximately 23% [30] Other Important Information - The company achieved its strongest quarter of customer additions in three years, with significant growth in large customers spending over $500,000 annually [8][24] - The company reported a total remaining performance obligation of $891 million, up 24% year-over-year, indicating strong future revenue visibility [26] Q&A Session Summary Question: Insights on the Braze healthcare customer using Braze Agent Console - Management highlighted the agility of deploying AI agents within the Canvas environment, allowing for enhanced customer interactions and real-time processing [35][37] Question: Drivers of improving trends in key metrics - Management attributed improvements to ongoing productivity enhancements within the sales organization and effective mitigation of downsell and churn [40][42] Question: Factors driving momentum in legacy replacement cycle - Management noted strong competitive positioning and regional investments as key drivers of momentum in customer acquisition [78] Question: Impact of AI on growth algorithm - Management discussed the monetization of AI, indicating potential upside as AI capabilities are integrated into the platform [54][56] Question: Customer interest in ChatGPT integration - Management emphasized the importance of first-party data and customer engagement strategies in the evolving app ecosystem, highlighting the potential for new channels [68][70]

Financial Data and Key Metrics Changes - The company reported revenue of $191 million for the fiscal third quarter 2026, representing a year-over-year increase of 25.5% and a 6% increase from the prior quarter [6][22] - Non-GAAP operating margins improved by over 400 basis points year-over-year, with non-GAAP operating income of $5 million, or 2.7% of revenue, compared to a non-GAAP operating loss of $2 million in the prior year quarter [6][26] - Free cash flow for the quarter was $18 million, a significant improvement from a negative free cash flow of $14 million in the prior year quarter [6][27] Business Line Data and Key Metrics Changes - Subscription revenue accounted for 95% of total revenue, with the remaining 5% from professional services and onboarding fees [22] - The company added 106 new customers sequentially and 317 year-over-year, bringing the total customer count to 2,528, a 14% increase [6][22] - Large customers, defined as those spending at least $500,000 annually, grew by 29% year-over-year to 303, contributing 63% to total ARR [23] Market Data and Key Metrics Changes - Revenue outside the U.S. contributed 45% of total revenue, consistent with previous quarters [23] - The company achieved a dollar-based net retention rate of 108% across all customers and 110% for large customers [23][24] - The total remaining performance obligation was $891 million, up 24% year-over-year, indicating strong future revenue visibility [24] Company Strategy and Development Direction - The company aims to position itself as the global standard for omnichannel customer engagement, leveraging AI-driven solutions to enhance customer experiences [6][10] - The introduction of new AI capabilities, such as the Braze AI Decisioning Studio, is expected to drive future growth and customer engagement [19][22] - The company is focused on innovation and product development, particularly in AI, to maintain a competitive edge in the customer engagement landscape [10][14] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about continued market demand and strong bookings across various verticals and geographies [6] - The company anticipates a revenue range of $197.5-$198.5 million for the fourth quarter, reflecting a year-over-year growth rate of approximately 23% [28] - Management highlighted the importance of first-party data and customer engagement strategies in navigating the evolving market landscape [57] Other Important Information - The company delivered 102.5 billion messages during Cyber Week, showcasing the scalability and reliability of its platform [10] - The integration of AI into customer engagement strategies is seen as a key driver for future growth and operational efficiency [11][12] - The company is committed to maintaining a long-term profitability framework, targeting a non-GAAP operating income margin of 8% for fiscal year 2027 [29] Q&A Session Summary Question: Insights on the Braze healthcare customer using Braze Agent Console - Management highlighted the agility of deploying purpose-built agent frameworks into existing systems, enhancing customer interactions through AI [31][32] Question: Drivers of improving trends in key metrics - Management attributed improvements to ongoing productivity enhancements, effective mitigation of downsell activity, and strong sales organization performance [36] Question: Factors driving momentum in legacy replacement cycle - Management noted that the current market environment is conducive to enterprise replacement cycles, with increased awareness and differentiation for Braze [37][39] Question: Early reception of AI Decisioning Studio - Management reported strong pipeline generation and customer wins, indicating positive early traction for the AI Decisioning Studio [64]