Braze Inc. is a customer engagement platform that facilitates real-time marketing across various channels. For its fiscal fourth quarter ended January 31, 2025, Braze reported revenue of $160.4 million, representing a 22% increase over the same period last year and a 5% increase from the prior quarter. The year-over-year revenue growth was largely attributed to customer contract extensions, new customer acquisitions, and upsells.

In terms of profitability, Braze achieved non-GAAP operating income of $8 million, translating to a non-GAAP operating margin of 5.0%, compared to a negative 5.7% margin in the fourth quarter of the previous year. The company reported a net income of $12 million or $0.12 per share, up from a net loss of $3 million or a loss of $0.04 per share in the prior year. Cash provided by operating activities increased to $17 million from $4 million in the same quarter last year, and free cash flow was $15 million compared to a negative free cash flow of $4 million in the prior-year quarter.

Braze concluded the quarter with a total customer count of 2,296, growing by 12% year-over-year. There was also a notable increase in large customers, which are those bringing in at least $500,000 annually. This number rose by 22% year-over-year to 247, which contributed 62% of Braze’s total Annual Recurring Revenue (ARR). The dollar-based net retention rate stood at 111% for all customers and 114% for larger customers.

Looking ahead, Braze provided guidance for the first quarter of fiscal 2026, projecting revenue between $158 million and $159 million, which indicates approximately 17% year-over-year growth. For the entire fiscal year 2026, the company anticipates total revenue between $686 million and $691 million, suggesting a year-over-year growth rate of about 16% at the midpoint.

During the quarter, Braze also announced a definitive agreement to acquire OfferFit, a leading AI decisioning company, for approximately $325 million in a cash and stock transaction. The acquisition is expected to enhance Braze’s AI capabilities and be modestly dilutive to its operating income margins for the fiscal year.

In summary, Braze is demonstrating stable growth with strong financial metrics, a growing customer base, and an evolving product offering, particularly with the acquisition of OfferFit set to enhance its capabilities in customer engagement through AI.