Braze, Inc. Q4 FY2025 earnings call

• Delivered strong fourth quarter results with $160.4M revenue, up 22% YOY; non-GAAP operating income was $8M, margin 5.0%.
• Secured new business wins replacing legacy marketing clouds, including a U.S. fintech, large U.S. retailer, energy company in EMEA, and ticket broker in APAC.
• Net new customers reached 2,296, up 252 YOY. Large customers grew to 247.
• Announced acquisition of OfferFit, a leading AI decisioning company valued at $325M, to enhance AI-driven optimization capabilities.
• Enhanced retail and consumer goods vertical with e-commerce features and upgraded Shopify integration, including prebuilt templates and expanded WhatsApp commerce capabilities.

Braze generated $160.4 million in revenue for the fiscal fourth quarter 2025, up 22% year-over-year. Subscription revenue contributed 96% of total revenue, with the remaining 4% from recurring professional services and one-time fees. The total number of customers was 2,296, up 252 year-over-year. Large customers (spending at least $500,000 annually) increased to 247, up 22% year-over-year and contributing 62% to total ARR.

• First quarter 2026 revenue expected to be $158M-$159M (17% YOY midpoint). Non-GAAP operating income $0-$1M, net income $4.5M-$5.5M.
• Full year 2026 revenue expected to be $686M-$691M (16% YOY midpoint). Non-GAAP operating income $25.5M-$29.5M, net income $34M-$38M.
• OfferFit acquisition expected to add ~2% to revenue growth but dilute non-GAAP operating margins in FY2026.

• Macro uncertainties impacting customer spending.
• Dynamic pricing and offering changes from Meta (WhatsApp) affecting forecasting.
• National data sovereignty concerns requiring ongoing data center expansion.

Q: Ryan MacWilliams asked about OfferFit's addition to the platform and how AI agents improve marketing campaigns.

A: Bill Magnuson discussed OfferFit's technology, synergies with Braze, and how AI agents can enhance marketing campaigns.

Q: Arjun Bhatia asked about the next frontier of personalization and customer cohorts.

A: Bill Magnuson and Isabelle Winkles responded on personalization and cohort performance, noting post-deserve cohorts perform better than initial cohorts.

Q: David Hynes asked about business outcomes for OfferFit customers.

A: Bill Magnuson talked about enhanced relevance, automatic content generation, and value sell for customers using OfferFit.

Q: Gabriela Borges asked about being SaaS-native vs AI-native and demand trends.

A: William Magnuson and Isabelle Winkles discussed synergies between Braze and OfferFit, and ongoing demand trends despite macro uncertainties.

Q: Brent Bracelin asked about retail/consumer goods feedback and net new logo growth.

A: William Magnuson discussed retail feedback and legacy replacement cycles, while Isabelle Winkles noted Q4 is a strong quarter for new logos and improved logo churn.

Q: Brian Peterson asked about deviation from margin framework and acquisition revenue.

A: Isabelle Winkles explained the framework remains consistent, and the OfferFit acquisition's revenue impact is risk-adjusted.

Q: Derrick Wood asked about CRO transition and Meta WhatsApp pricing.

A: William Magnuson talked about the CRO search progress and Meta WhatsApp updates, noting minimal impact on Braze due to non-U.S. WhatsApp usage.

Q: Nick Altmann asked about platform evolution post-OfferFit acquisition.

A: William Magnuson discussed how OfferFit's technology will enhance Braze's platform across a spectrum of customer journey optimization.

Q: Taylor McGinnis asked about growth inflection and COVID contracts.

A: Isabelle Winkles described growth as a stabilization with steady reacceleration, not a hockey-stick inflection.

Q: Michael Berg asked about Project Catalyst contribution and competitive landscape.

A: William Magnuson and Isabelle Winkles talked about Project Catalyst's beta release and the competitive landscape, noting legacy competitors' distracted posture.

Q: Brian Schwartz asked about OfferFit integration and tech stack.

A: William Magnuson discussed integration plans and how OfferFit's data model complements Braze's platform.

Q: Yun Kim asked about new bundles and land deal size.

A: William Magnuson talked about upcoming pricing/packaging refresh and expansion of the flexible credit model.

Q: Tyler Radke asked about SMB segment health.

A: Isabelle Winkles discussed churn and efforts to right-size contracts for SMB customers, working through account health risks.