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Why Braze Stock Popped Today
BRZEBraze(BRZE) The Motley Fool·2025-03-28 15:47

Core Insights - Braze's fiscal 2025 fourth-quarter results significantly exceeded analysts' expectations, leading to a notable increase in stock price [1] - The company provided strong guidance for fiscal 2026, further boosting investor confidence [1] Financial Performance - Braze reported revenue of 160.4millionforthequarter,anearly23160.4 million for the quarter, a nearly 23% increase year-over-year, surpassing the consensus estimate of 155.7 million [2] - The non-GAAP earnings per share were 0.12,asubstantialimprovementfromalossof0.12, a substantial improvement from a loss of 0.04 in the previous year, and well above the consensus estimate of 0.05[3]ThecompanyachievedanonGAAPgrossprofitmarginof69.90.05 [3] - The company achieved a non-GAAP gross profit margin of 69.9% by the end of the fiscal year [3] Customer Growth - Braze ended fiscal 2025 with 2,296 customers, marking a 22% increase from the previous year [4] - The number of large customers contributing annual recurring revenue of 500,000 or more rose from 202 to 247 [4] Strategic Developments - The CEO highlighted fiscal 2025 as a milestone year, emphasizing customer growth and advancements in AI and machine learning [5] - Free cash flow improved from a loss of 3.5millioninthepreviousyearto3.5 million in the previous year to 15.2 million [5] Future Outlook - Management projects sales for fiscal 2026 to be between 686millionand686 million and 691 million, indicating a 16% increase at the midpoint [6] - The positive fourth-quarter results and optimistic guidance suggest a promising trajectory for the company [6]