Braze (BRZE) AI Stock Analysis

• Market Cap: $3.15B
• Dividend Yield: N/A
• Average Volume (3M): 1.51M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.83
• Revenue Growth: 25.78%
• EPS Growth: 23.04%
• Country: US
• Employees: 1,699
• Sector: Technology
• Sector Strength: 40
• Industry: Software - Application
• EPS (TTM): -1.02
• Shares Outstanding: 88,615,170
• 10 Day Avg. Volume: 1,931,683
• 30 Day Avg. Volume: 1,506,575
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 6.79
• Price to Cash Flow (P/CF): -84.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $52.84
• Price Target Upside: 77.79% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 20

Braze's overall stock score reflects a company with strong revenue growth and improving cash flow metrics, but ongoing challenges in profitability. The recent earnings call provided positive guidance and strategic initiatives, including the OfferFit acquisition, which are promising. However, technical indicators suggest caution, and the current valuation reflects significant growth expectations. Investors should weigh the strong growth potential against the risks of continued losses and market volatility.

Positive Factors

Acquisition

The acquisition of OfferFit is expected to enhance Braze's offerings with AI-driven suggestions, making campaigns more effective and aligning well with Braze's enterprise orientation.

Earnings

Braze delivered a strong quarter, beating the midpoint of revenue guidance by over $4.9 million, representing the largest beat of the year.

Market Position

Braze is disrupting a large addressable market opportunity that the company estimates at $30B by 2028.

Negative Factors

Contract Renewals

Remaining multiyear ZIRP-era contracts up for renewal this year continue to pose a headwind, though their impact is lessening.

Valuation Concerns

The Street is expected to scrutinize the ~23x revenue valuation multiple until it sees appropriate bookings benefits.

Braze Business Overview & Revenue Model

Company Description

Braze, Inc. operates a customer engagement platform that provides interactions between consumers and brands worldwide. It offers data ingestion products, such as Braze software development kits that automatically manage data ingestion and the delivery of mobile and web notifications, in-application/in-browser interstitial messages, and content cards, as well as can be integrated into a range of digital interfaces and application development frameworks; REST API that can be used to import or export data or to trigger workflows between Braze and brands' existing technology stacks; and partner cohort syncing, which allow brands to sync user cohorts from partners. The company also offers classification products, including segmentation that can define reusable segments of consumers based upon attributes, events, or predictive propensity scores; segment insights, which allows customers to analyze how segments are performing relative to each other across a set of pre-selected key performance indicators, and helps to understand the factors that determine which consumers belong to a particular segment; and predictive suite that allows customers to identify groups of consumers that are of critical business value. In addition, it provides personalization and action products; and orchestration products, which include Canvas, an orchestration tool that allows customers to create journeys, mapping out multi-steps, and cross-channel messaging experiences, which include onboarding flows, nurture campaigns, win-back strategies, and others; campaigns, which allow customers to send one set of single-channel or multi-channel messages to be delivered to customers in a particular user segment; event and API triggering; frequency capping and rate limiting; intelligent selection; and reporting and analytics. The company was formerly known as Appboy, Inc. and changed its name to Braze, Inc. in November 2017. Braze, Inc. was incorporated in 2011 and is headquartered in New York, New York.

How the Company Makes Money

Braze makes money primarily through subscription-based services offered to businesses that use its customer engagement platform. The company charges clients based on usage, which can include the number of customer interactions managed, the volume of messages sent, and the level of data integration and analytics services utilized. Braze's revenue model also benefits from tiered pricing, where clients can opt for different levels of service depending on their needs, including additional features and support. Strategic partnerships with other tech companies can enhance its offerings, creating additional value for clients and driving further revenue. Additionally, Braze may generate revenue through professional services, such as consulting and implementation support, to help clients effectively utilize its platform.

Braze Financial Statement Overview

Summary

Braze demonstrates impressive revenue growth and a strong cash position, underpinned by a solid equity base. However, the continuation of net losses and negative margins highlights challenges in achieving profitability. The company appears to be on a positive trajectory with improvements in cash flow, but it needs to focus on converting high growth into net profitability to enhance its financial stability.

Income Statement

Braze's revenue has shown a strong growth trajectory, increasing from $96.36 million in 2020 to $593.41 million in 2025, representing a substantial growth rate over the years. However, the company continues to operate at a loss with negative EBIT and net income, although there is a trend of decreasing losses. The gross profit margin remains healthy, indicating efficient cost management at the production level, but the net profit margin is negative due to significant operating expenses.

Balance Sheet

The balance sheet reflects moderate financial stability with a strong cash position and increasing stockholders' equity, reaching $474.86 million in 2025. The debt-to-equity ratio is low, suggesting manageable leverage levels. However, the company has negative net income impacting the return on equity, which is negative, indicating inefficiency in generating returns from shareholders' equity. The equity ratio is strong, indicating a solid base of equity financing.

Cash Flow

Braze has improved its free cash flow position, turning positive in 2025 after negative figures in earlier years, indicating better cash management and operational efficiency. The operating cash flow has also improved significantly, suggesting better alignment between operating profits and cash generation. However, the free cash flow to net income ratio is not favorable due to continuing net losses, which poses a risk to sustainable cash flow generation.

Breakdown
Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement		Total Revenue
593.41M	471.80M	355.43M	238.03M	150.19M
	Gross Profit
410.22M	324.27M	239.61M	159.52M	95.68M
	EBIT
-122.16M	-144.69M	-148.14M	-78.21M	-32.15M
	EBITDA
-122.16M	-137.73M	-143.52M	-75.56M	-30.56M
	Net Income Common Stockholders
-103.74M	-129.17M	-140.75M	-78.17M	-31.97M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
513.52M	476.13M	478.67M	514.09M	86.51M
	Total Assets
871.00M	810.94M	705.41M	666.26M	171.39M
	Total Debt
87.44M	90.61M	51.28M	0.00	0.00
	Net Debt
4.38M	22.38M	-17.30M	-478.94M	-28.51M
	Total Liabilities
396.25M	366.52M	258.65M	161.44M	277.67M
	Stockholders Equity
474.86M	444.23M	445.30M	501.58M	-108.51M
Cash Flow		Free Cash Flow
23.45M	-6.49M	-39.01M	-39.77M	-10.43M
	Operating Cash Flow
36.68M	6.85M	-22.31M	-35.40M	-6.08M
	Investing Cash Flow
-36.47M	-19.98M	-398.52M	18.04M	22.47M
	Financing Cash Flow
11.70M	13.11M	11.33M	467.91M	4.87M

Braze Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 29.72
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BRZE, the sentiment is Negative. The current price of 29.72 is below the 20-day moving average (MA) of 35.17, below the 50-day MA of 37.77, and below the 200-day MA of 38.38, indicating a bearish trend. The MACD of -0.41 indicates Negative momentum. The RSI at 47.13 is Neutral, neither overbought nor oversold. The STOCH value of 18.42 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BRZE.

Braze Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CXM	75 Outperform	$1.83B	15.69	18.83%	―	8.74%	150.66%
SPT	64 Neutral	$1.15B	―	-39.88%	―	21.66%	8.66%
FRSH	63 Neutral	$3.67B	―	-8.63%	―	20.79%	32.50%
BRZE	61 Neutral	$3.15B	―	-22.57%	―	25.78%	23.04%
ASAN	58 Neutral	$3.21B	―	-92.26%	―	10.94%	4.54%
Sector *	57 Neutral	$20.31B	10.03	-14.49%	2.79%	5.15%	-23.76%
GBTG	56 Neutral	$3.09B	―	-12.22%	―	5.81%	17.19%

Braze Corporate Events

Braze Announces Acquisition of OfferFit for $325 Million

On March 27, 2025, Braze announced its intent to acquire OfferFit, a company specializing in AI decisioning technology, for $325 million. This acquisition is expected to enhance Braze’s capabilities in providing personalized customer journeys at scale. The announcement follows a strong fiscal year for Braze, which saw a 26% increase in revenue, driven by new customer acquisitions, upsells, and renewals. The acquisition is anticipated to further solidify Braze’s position in the customer engagement industry by integrating advanced AI technologies. The transaction is expected to close by the end of Braze’s fiscal quarter ending July 31, 2025, subject to customary closing conditions.

Braze Announces Leadership Changes Amid Record Growth

Braze announced that Myles Kleeger will resign as President and Chief Commercial Officer effective June 1, 2025, but will continue in an advisory role until November 30, 2025. The leadership change follows a record-breaking quarter and fiscal year for customer bookings, as the company aims to scale growth and has made several strategic hires to strengthen its market position and support operational excellence.