Financial Data and Key Metrics Changes - The company reported revenue of $180 million for Q2 2026, representing a 24% year-over-year increase and an 11% increase from the prior quarter [6][18] - Non-GAAP operating income was $6 million, with a non-GAAP net income of $17 million, and free cash flow of $4 million [6][24] - The company achieved three consecutive quarters of positive non-GAAP operating income and free cash flow, and five consecutive quarters of positive non-GAAP net income [7] 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 [18] - The total customer count increased by 12% year-over-year to 2,422, with large customers (spending at least $500,000 annually) growing by 27% year-over-year to 282 [18][19] - Dollar-based net retention was 108% overall and 111% for large customers, indicating strong expansion across industries and regions [20] Market Data and Key Metrics Changes - Revenue outside the U.S. contributed 45% of total revenue, down approximately 60 basis points sequentially but in line with the prior year [20] - The total remaining performance obligation was $862 million, up 25% year-over-year, with current RPO at $558 million, up 27% year-over-year [21] Company Strategy and Development Direction - The company aims to drive higher profitability while reinvesting in business growth and maintaining its competitive advantage in customer engagement [7][17] - The integration of OfferFit is expected to enhance the company's AI capabilities and customer engagement strategies, with a focus on autonomous personalization [12][13] - The company is committed to improving customer engagement through AI-driven innovations and enhancing the user experience [10][14] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the second half of the year, citing strong pipeline generation and competitive strength despite global trade and economic concerns [7][32] - The company noted that the demand environment remains stable, with improved execution and high competitive win rates contributing to positive performance [32][33] - Management highlighted the importance of AI in transforming customer engagement and enhancing marketer productivity [66] Other Important Information - The company expects Q3 2026 revenue to be in the range of $183.5 million to $184.5 million, representing a year-over-year growth rate of approximately 21% [26] - For the full fiscal year 2026, total revenue is expected to be in the range of $717 million to $720 million, with OfferFit contributing approximately two percentage points to year-over-year growth [28][29] Q&A Session Summary Question: What has changed in the demand environment and the appetite for Braze? - Management noted that there hasn't been a meaningful change in the macro or demand environment, but execution has improved globally, leading to high competitive win rates and efficient late-stage pipeline operations [32] Question: What are the expectations for OfferFit's integration and its impact on ACV? - Management reported strong early wins from OfferFit across all regions and expressed confidence in high attach rates for the offering, which is priced around $300,000 annually [41][45] Question: How is the usage of AI products trending? - Management indicated rapid adoption of AI features across various verticals, enhancing customer engagement and closing the gap between capability and accessibility for customers [52][53] Question: How has sales execution improved? - Management highlighted synchronization of operational changes and investments leading to improved sales efficiency and better prioritization of late-stage pipeline opportunities [56][57] Question: What changes have been observed in the demand environment across geographies? - Management noted strong performance globally, with contributions from all regions, particularly from the ANZ region due to investments like the new data center [80]

Financial Data and Key Metrics Changes - The company reported revenue of $180 million for Q2 2026, representing a 24% year-over-year increase and an 11% increase from the prior quarter [6][18] - Committed annual recurring revenue surpassed $700 million, indicating strong demand for the Braze Customer Engagement Platform [6] - Non-GAAP operating income was $6 million, with non-GAAP net income of $17 million, and free cash flow of $4 million for the quarter [6][24] - Dollar-based net retention was 108%, with large customers showing a retention rate of 111% [19] 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 [18] - The number of large customers (spending at least $500,000 annually) increased by 27% year-over-year to 282 [19] - The company added 80 new customers sequentially and 259 year-over-year, bringing the total customer count to 2,422 [7][18] Market Data and Key Metrics Changes - Revenue outside the U.S. contributed 45% of total revenue, down approximately 60 basis points sequentially but consistent with the prior year [19] - The company experienced strong bookings across various verticals and geographies, with significant wins against legacy marketing clouds [9][10] Company Strategy and Development Direction - The company aims to enhance profitability while reinvesting in business growth and maintaining its competitive edge in customer engagement [7][12] - The integration of OfferFit is expected to accelerate the AI roadmap and enhance customer engagement strategies [13][14] - The focus on AI-driven solutions is seen as a key differentiator, with plans to leverage generative AI and reinforcement learning to improve customer experiences [10][14] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the second half of the year, citing strong pipeline generation and competitive strength despite global economic concerns [7][34] - The integration of OfferFit is progressing well, contributing positively to the company's outlook [34][43] - Management noted that the demand environment remains stable, with improvements in downsell activity contributing to better performance [32][74] Other Important Information - The company ended the quarter with approximately $368 million in cash and marketable securities, including the impact of the OfferFit acquisition [25] - Non-GAAP gross profit was $125 million, with a gross margin of 69.3%, slightly down from the previous year due to increased messaging volumes [21][22] Q&A Session Summary Question: What has changed in the demand environment? - Management noted that there hasn't been a significant change in the macro environment, but execution has improved globally, leading to better performance [32][34] Question: How is OfferFit performing post-acquisition? - The integration is going well, with strong early wins across all regions and high levels of trust from enterprise customers [41][43] Question: Can you discuss the usage trends for AI products? - Adoption of AI features is increasing, with strong usage across various verticals, enhancing customer engagement capabilities [51][52] Question: How is sales execution improving? - Improved sales execution is attributed to better pipeline management and strong competitive positioning, allowing for more judicious resource allocation [56][58] Question: What are the expectations for customer engagement in the AI landscape? - The company believes that AI will enhance the capabilities of customer engagement teams, allowing them to focus on strategic initiatives rather than routine tasks [66][67]

Financial Performance - Braze's quarterly revenue run rate is $720 million[3] - Q2 2026 revenue reached $1801 million, a 238% year-over-year increase and an 111% sequential growth[10, 14] - The GAAP gross margin was 677%, while the non-GAAP gross margin was 693%[10, 16] - The dollar-based net retention rate was 108%[4, 10, 18] - GAAP operating loss was $388 million, compared to a $280 million loss in the prior year quarter, while non-GAAP operating income was $60 million, compared to $42 million in the prior year quarter[10] - Net cash provided by operating activities was $70 million, compared to $310 million in the prior year quarter[10] - Free cash flow was $35 million, compared to $72 million in the prior year quarter[10, 23] Customer Growth - The customer base increased to 2,422 as of July 31, 2025, from 2,163 in the prior year quarter, representing a 12% year-over-year growth[4, 10, 20] Guidance - Q3 2026 revenue is projected to be between $1835 million and $1845 million, and full-year 2026 revenue is expected to be between $7170 million and $7200 million[29]

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]