Braze(US:BRZE) The Motley Foolยท2025-03-27 22:59Core Insights - Braze reported strong fiscal Q4 2025 results, exceeding revenue and earnings expectations, but experienced a decline in its dollar-based net retention rate [2][8]. Financial Performance - Revenue for Q4 2025 was $160.4 million, surpassing analysts' expectations of $155 million, and reflecting a 22.5% increase from $131.0 million in Q4 2024 [3][6]. - Non-GAAP adjusted EPS was $0.12, significantly above the anticipated $0.05, marking a positive surprise of 140% [7]. - Free cash flow turned positive at $15.2 million compared to negative $3.5 million in the previous year [8]. - Non-GAAP gross margin improved to 69.9%, up from 67.9% in the prior year, indicating better cost management [3][8]. Business Overview - Braze operates a leading customer engagement platform that integrates data analysis, personalized messaging, and omnichannel support, enhancing customer interactions [4]. - The company is focusing on improving platform features and expanding AI capabilities [5]. Strategic Developments - Braze announced an agreement to acquire OfferFit to enhance its AI capabilities and improve personalization and cross-channel engagement [9]. - A strategic partnership with Shopify was also announced earlier in the month [9]. Future Guidance - For fiscal 2026, Braze projects revenue between $686 million and $691 million, up from $593.4 million in fiscal 2025, indicating strong growth confidence [10].