Braze(US:BRZE)2025-12-09 21:05Financial Performance - Revenue for the fiscal third quarter 2026 was $190.8 million, a 25.5% increase year-over-year from $152.1 million[2] - Braze reported Q3 2025 revenue of $190,842,000, a 25.5% increase from $152,052,000 in Q3 2024[30] - Braze's total revenue for the nine months ended October 31, 2025, was $533,012,000, up 23.1% from $433,010,000 in the same period of 2024[30] - Guidance for fiscal Q4 2026 projects revenue between $197.5 million and $198.5 million, with full-year revenue guidance of $730.5 million to $731.5 million[8] Customer Metrics - Total customer count grew to 2,528, representing a 14% increase, with large customers (ARR of $500,000 or more) increasing by 29% to 303[2] - Trailing Twelve Month Dollar Based Net Retention stabilized at 108%, down from 113% in the previous year[2] Profitability and Margins - GAAP gross margin was 67.2%, a decrease from 69.8% in the same quarter last year[2] - Non-GAAP operating income was $5.1 million, compared to a non-GAAP operating loss of $2.2 million in the prior year[6] - The net loss attributable to Braze, Inc. for Q3 2025 was $35,998,000, compared to a net loss of $27,911,000 in Q3 2024, indicating a worsening loss margin[30] - The company reported a net loss per share of $0.33 for Q3 2025, compared to $0.27 for Q3 2024[30] - The company reported a GAAP operating margin of -19.7% for the three months ended October 31, 2025, compared to -21.4% in the same period of 2024, showing a positive trend[41] - The company’s non-GAAP operating margin improved to 2.7% for the three months ended October 31, 2025, compared to -1.4% in the same period of 2024, indicating operational efficiency gains[41] Cash Flow and Investments - Net cash provided by operating activities was $21.0 million, a significant improvement from net cash used of $11.4 million in the previous year[6] - Operating cash flow for the nine months ended October 31, 2025, was $52,063 thousand, significantly higher than $19,597 thousand in the same period of 2024, representing a growth of 165.5%[37] - Cash and cash equivalents increased to $101,811 thousand at the end of the period, compared to $61,842 thousand at the end of the previous period, marking a rise of 64.5%[37] - Cash used in investing activities was $43,444 thousand for the nine months ended October 31, 2025, compared to $35,629 thousand in the same period of 2024, indicating an increase of 22.5%[37] Innovations and Market Position - The company introduced several innovations under BrazeAI™, including BrazeAI Operator™ and BrazeAI Decisioning Studio™, enhancing customer engagement capabilities[1] - Braze was recognized as a Leader in the Gartner® Magic Quadrant for Multichannel Marketing Hubs for the third consecutive year[12] - Braze has been recognized as a leader in marketing technology and received multiple awards in 2025, enhancing its market position[26] Assets and Equity - Total assets increased to $1,041,285 thousand as of October 31, 2025, up from $870,998 thousand on January 31, 2025, representing a growth of approximately 19.6%[34] - Total stockholders' equity increased to $602,032 thousand as of October 31, 2025, compared to $474,861 thousand on January 31, 2025, a rise of 26.8%[34] Deferred Revenue and Performance Obligations - Remaining performance obligations as of October 31, 2025, totaled $891.4 million, with $572.7 million classified as current[2] - Deferred revenue rose to $271,397 thousand as of October 31, 2025, compared to $239,976 thousand on January 31, 2025, an increase of 13.1%[34] Risks and Challenges - The company continues to face risks related to market conditions and competition, which may impact future revenue growth[21]