Braze (NasdaqGS:BRZE) FY Conference January 13, 2026 02:15 PM ET Company ParticipantsIsabelle Winkles - CFOConference Call ParticipantsNone - AnalystScott Berg - Senior AnalystScott BergI know, that's kind of crazy. I didn't hear that earlier when I was here. All right, anyways, thanks everyone for joining us today. My name is Scott Berg. I lead the enterprise software and SaaS research efforts here at Needham for those that are not familiar with myself. Today we actually have my top pick for 2026. I'm exci ...

Financial Data and Key Metrics Changes - The company reported a net profit of BRL 4 billion for the quarter, marking a nearly 10% increase quarter-on-quarter and year-on-year, with a profitability ratio of 17.5% [4][27] - Expenses grew by only 0.2% quarter-on-quarter and decreased by 0.5% year-on-year, indicating effective expense management [6][27] - The efficiency ratio increased slightly but remains at a better level, with a year-on-year improvement of 140 basis points [6][27] Business Line Data and Key Metrics Changes - Client net interest income (NII) increased by 2.7% quarter-on-quarter and 11.1% year-on-year, while market NII dropped due to market conditions [5][23] - Fees grew by 6.7% quarter-on-quarter, with strong diversification across different fee lines [5][25] - Consumer finance continues to grow at double digits annually, with a 43% year-on-year growth in fees, particularly in insurance [15][16] Market Data and Key Metrics Changes - The total customer base exceeded 73 million, reflecting a 7% year-on-year growth [8] - The company reported a significant increase in active customer engagement, with a record individual NPS of 61 points and a corporate NPS of 52 points [8] Company Strategy and Development Direction - The company aims to build a more diversified and resilient operation, focusing on customer-centricity and digital transformation [7][14] - The "One App" initiative is a key strategic focus, designed to enhance customer experience and streamline interactions [12][36] - The company is committed to disciplined capital management and credit portfolio diversification to achieve higher profitability [14][30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate short-term volatilities and maintain sustainable profitability [28][30] - The macroeconomic environment remains challenging, with expectations of continued high interest rates impacting funding [52][78] - The company is focused on improving customer satisfaction and maintaining a disciplined approach to credit origination [30][50] Other Important Information - The company has implemented AI-driven initiatives to enhance customer interactions and improve operational efficiency [10][31] - There is a strong emphasis on hyper-personalization in customer service, with over half of digital interactions now being personalized [9][10] Q&A Session Summary Question: Expected effects of the One App implementation - Management believes the One App will significantly enhance customer experience and reduce costs through more digital interactions [34][35] Question: Cost of risk and credit quality - Management confirmed no changes in credit policies and emphasized a disciplined approach to managing the loan portfolio [41][42] Question: Risk appetite and portfolio growth expectations - Management indicated a focus on growing in high-profitability segments while maintaining a disciplined approach to credit risk [48][50] Question: Market NII sensitivity and future expectations - Management acknowledged the impact of fewer business days and high interest rates on market NII, with expectations for gradual improvement [81][85]

Financial Data and Key Metrics Changes - The company reported a net profit of BRL 4 billion for Q3 2025, marking a nearly 10% increase quarter-on-quarter and year-on-year, with a return on equity (ROE) of 17.5% [4][26] - Net interest income (NII) decreased quarter-on-quarter, particularly in market NII, while client NII increased by 2.7% quarter-on-quarter and 11.1% year-on-year [5][21] - Expenses grew by only 0.2% quarter-on-quarter and decreased by 0.5% year-on-year, indicating effective expense management [6][26] - The efficiency ratio increased slightly but remained at a better level, with a year-on-year improvement of 140 basis points [6][26] Business Line Data and Key Metrics Changes - Consumer finance continues to grow at a double-digit rate annually, with a 43% year-on-year growth in fees, particularly in insurance [15][16] - The SME business has seen revenue growth and diversification, with a significant increase in the number of field experts [16] - The mass income segment has experienced a 14% increase in deposit volume, despite a 6% reduction in the loan book [18][20] Market Data and Key Metrics Changes - The company has a market share close to 30% in home equity, indicating strong performance in real estate credit [35] - The percentage of the portfolio in arrears from 15 to 90 days decreased to 3.9%, reflecting improved credit quality [25] Company Strategy and Development Direction - The company aims to build a more diversified and resilient operation, focusing on customer-centricity and digital transformation [6][14] - The "One App" initiative is a key strategic focus, designed to enhance customer experience and streamline interactions [32][34] - The company is committed to disciplined capital management and credit portfolio diversification to enhance profitability [14][15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate short-term volatilities and maintain sustainable profitability [26][28] - The macroeconomic environment remains challenging, with expectations of continued high interest rates impacting funding [45][46] - The company is focused on maintaining a disciplined approach to credit origination and risk management [42][44] Other Important Information - The company has successfully integrated AI into its operations, enhancing customer interactions and internal processes [10][12] - The customer base has grown to over 73 million, with a 7% year-on-year increase [7] Q&A Session Summary Question: Expected effects of the One App implementation - Management believes the One App will significantly enhance customer experience and reduce costs through more digital interactions [30][32] Question: Impact of regulatory changes on funding - Management views regulatory changes positively, particularly in real estate credit, and expects to continue growing in this area [35] Question: Clarification on cost of risk and provisions - Management confirmed no changes in policy or management regarding cost of risk, emphasizing a focus on new loan originations and portfolio quality [37][38] Question: Future credit appetite and growth expectations - Management indicated a disciplined approach to credit growth, focusing on high profitability cohorts while managing risk [42][44] Question: Strategy for PIX in installments - Management is advocating for a seamless customer journey in PIX transactions and believes the regulatory framework should support this [46][52]

Core Insights - The article discusses the transformation of User Experience Research (UXR) through AI, highlighting the shift from traditional, labor-intensive methods to AI-driven solutions that enhance efficiency and depth of insights [3][4][10]. Traditional UXR Challenges - Traditional UXR faces significant challenges, including a trade-off between depth and speed, leading to either costly, time-consuming qualitative research or superficial quantitative data [5][7]. - The process is often disconnected from strategic decision-making, resulting in outdated insights that do not reflect current market needs [8][10]. AI-Driven UXR Transformation - AI is revolutionizing UXR by automating key processes such as pre-research, recruiting, interview moderation, and analysis/reporting, making it accessible to all companies [4][10]. - AI can generate research frameworks, recruit participants efficiently, conduct interviews in multiple languages, and produce reports quickly, significantly reducing the time from research initiation to actionable insights [11][12][13][14]. Market Potential - The global market for research services, including UXR, is estimated at $140 billion annually, with a total addressable market (TAM) for AI-driven UXR around $20 billion [16][19]. - The user research and testing SaaS market is projected to reach $38.97 billion by 2025, with a compound annual growth rate (CAGR) of 12%-14% [20]. Industry Landscape - Companies that fail to adapt to AI-driven UXR risk obsolescence, while those integrating AI tools are better positioned to meet evolving market demands [24][25]. - There is currently no single comprehensive tool that meets all UXR needs, leading companies to adopt a combination of tools to optimize their research processes [24][25]. Competitive Dynamics - The competitive landscape is characterized by a shift from traditional UXR providers to AI-native companies that offer faster, more efficient solutions [26][30]. - Key players identified include Listenlabs, Outset, and Knit, each with unique strengths in speed, data quality, and customer engagement [41][42]. Business Model Evolution - The business model for AI-driven UXR is shifting from selling tools to providing insights, with companies focusing on deeper integration and ongoing client relationships [26][27]. - Pricing strategies are evolving to include tiered subscriptions and usage-based models, allowing for more flexible engagement with clients [27][28]. Future Directions - Companies in the AI-native UXR space must strengthen their competitive moats by building proprietary data networks and ensuring compliance with data protection regulations [34][35]. - The role of human researchers is transitioning from execution to strategic oversight, emphasizing the need for creativity and strategic thinking in UXR [35][36].

Core Insights - Elite Supplements, a rapidly growing Australian sports-nutrition brand, has partnered with Coveo to enhance its Shopify commerce experience through AI-driven personalization and product discovery [1][2][4] - The collaboration aims to create hyper-personalized digital journeys for health-conscious consumers, which is crucial for the company's growth strategy [1][3] Company Overview - Elite Supplements was founded in 2005 and operates over 130 retail locations in Australia, with a new flagship store in Singapore, offering a wide range of sports-nutrition and wellness products [5] - The company's mission focuses on empowering customers through expert advice, competitive pricing, and innovative formulations [5] Technology and Innovation - Coveo's AI-Relevance™ Platform will provide Elite Supplements with advanced search capabilities, including semantic search and real-time learning, to improve customer experience [3][4] - The integration with Shopify will allow for more personalized and precise product searches, catering to various customer needs such as ingredient-based searches and health concerns [3][4] Market Positioning - The partnership is expected to help Elite Supplements capture market share rapidly by enhancing the shopping experience across multiple channels [4] - Coveo emphasizes that brands adopting relevance early can achieve significant returns, positioning Elite Supplements among leading global companies leveraging AI for discovery [4][8]