Braze Inc (BRZE) Q3 2025 Earnings Call Highlights: Strong Revenue Growth Amidst Cash Flow Challenges

GuruFocus.com12-11

Revenue: $152.1 million, up 23% year over year. Committed Annual Recurring Revenue: Exceeded $600 million. Non-GAAP Operating Margin: Improved by 580 basis points year over year. Non-GAAP Net Income: ...

Source Link

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap

Leave a comment

{"i18n":{"language":"en_US"},"isChannel":false,"data":{"share":"https://ttm.financial/m/news/2490023685?lang=en_US&edition=fundamental","thumbnail":"","is_english":true,"pubTime":"2024-12-11 01:00","share_image_url":"https://static.laohu8.com/5f26f4a48f9cb3e29be4d71d3ba8c038","id":"2490023685","market":"us","top_or_hot":-1,"title":"Braze Inc (BRZE) Q3 2025 Earnings Call Highlights: Strong Revenue Growth Amidst Cash Flow Challenges","media":"GuruFocus.com","content":"<div>\n<p>Revenue: $152.1 million, up 23% year over year.\nCommitted Annual Recurring Revenue: Exceeded $600 million.\nNon-GAAP Operating Margin: Improved by 580 basis points year over year.\nNon-GAAP Net Income: ...</p>\n\n<a href=\"https://finance.yahoo.com/news/braze-inc-brze-q3-2025-170032824.html\">Source Link</a>\n\n</div>\n","source":"yahoofinance","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Braze Inc (BRZE) Q3 2025 Earnings Call Highlights: Strong Revenue Growth Amidst Cash Flow Challenges</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nBraze Inc (BRZE) Q3 2025 Earnings Call Highlights: Strong Revenue Growth Amidst Cash Flow Challenges\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-12-11 01:00 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/braze-inc-brze-q3-2025-170032824.html><strong>GuruFocus.com</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Revenue: $152.1 million, up 23% year over year.\nCommitted Annual Recurring Revenue: Exceeded $600 million.\nNon-GAAP Operating Margin: Improved by 580 basis points year over year.\nNon-GAAP Net Income: ...</p>\n\n<a href=\"https://finance.yahoo.com/news/braze-inc-brze-q3-2025-170032824.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"BRZE","symbol_name":"Braze, Inc.","start_time":0,"source_url":"https://finance.yahoo.com/news/braze-inc-brze-q3-2025-170032824.html","article_id":"2490023685","we_media_id":null,"thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2490023685","pubTimestamp":1733850032,"columns":[],"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"Revenue: $152.1 million, up 23% year over year.Non-GAAP Operating Margin: Improved by 580 basis points year over year.Non-GAAP Net Income: Positive for the second consecutive quarter.Customer Count: Increased by 48 to 2,211, up 200 year over year.Large Customers : Increased to 234, up 24% year over year.Dollar-Based Net Retention Rate: 113% overall, 116% for large customers.Non-GAAP Operating Loss: $2.2 million, or negative 1% of revenue.Q4 Revenue Guidance: $155 to $156 million, approximately 19% growth at midpoint.FY 2025 Revenue Guidance: $588 to $589 million, approximately 25% growth at midpoint.Braze Inc  reported a 23% year-over-year increase in revenue, reaching $152.1 million for the third quarter.Despite revenue growth, Braze Inc  experienced a decline in non-GAAP gross margin year-over-year, primarily due to the expansion of premium messaging channels.Braze Inc  reported a negative free cash flow of $14.2 million for the quarter, indicating cash management challenges.","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":["earning"],"viewcount":null,"language":"en","relate_stocks":{"BRZE":"Braze, Inc."},"translate_title":"Braze Inc(BRZE)2025年第三季度收益看涨期权亮点：在现金流挑战中收入强劲增长","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"BRZE":1},"content_text":"Revenue: $152.1 million, up 23% year over year.\nCommitted Annual Recurring Revenue: Exceeded $600 million.\nNon-GAAP Operating Margin: Improved by 580 basis points year over year.\nNon-GAAP Net Income: Positive for the second consecutive quarter.\nCustomer Count: Increased by 48 to 2,211, up 200 year over year.\nLarge Customers ($500,000+ ARR): Increased to 234, up 24% year over year.\nDollar-Based Net Retention Rate: 113% overall, 116% for large customers.\nNon-GAAP Gross Margin: 70.5%.\nNon-GAAP Operating Loss: $2.2 million, or negative 1% of revenue.\nCash and Marketable Securities: $493.1 million.\nFree Cash Flow: Negative $14.2 million.\nQ4 Revenue Guidance: $155 to $156 million, approximately 19% growth at midpoint.\nFY 2025 Revenue Guidance: $588 to $589 million, approximately 25% growth at midpoint.\n\n\nRelease Date: December 09, 2024\nFor the complete transcript of the earnings call, please refer to the full earnings call transcript.\n Positive Points \n\nBraze Inc (NASDAQ:BRZE) reported a 23% year-over-year increase in revenue, reaching $152.1 million for the third quarter.\nThe company achieved a positive non-GAAP net income for the second consecutive quarter, indicating improved financial health.\nBraze Inc (NASDAQ:BRZE) surpassed $600 million in committed annual recurring revenue, showcasing strong demand for its customer engagement platform.\nThe company expanded its customer base by 48 during the quarter, bringing the total to 2,211, with significant growth in enterprise customers.\nBraze Inc (NASDAQ:BRZE) introduced innovative AI-driven product features, such as Project Catalyst, aimed at enhancing personalized customer engagement and marketing productivity.\n\n Negative Points \n\nDespite revenue growth, Braze Inc (NASDAQ:BRZE) experienced a decline in non-GAAP gross margin year-over-year, primarily due to the expansion of premium messaging channels.\nThe company continues to face challenges in the SMB sector, with ongoing difficulties in sales capacity and customer acquisition.\nBraze Inc (NASDAQ:BRZE) reported a negative free cash flow of $14.2 million for the quarter, indicating cash management challenges.\nThe demand environment remains difficult, with no significant improvement expected in the near term, impacting growth prospects.\nThere is ongoing pressure on dollar-based net retention rates, with customers buying closer to their known needs and some right-sizing their contracts.\n\n Q & A Highlights \nQ: Can you provide more details about Project Catalyst and its integration with Canvas? Will it be a separate add-on, and how might it impact Braze's results next year? A: Project Catalyst will be integrated into Canvas, ushering in a new era of journey design by allowing marketers to set goals and optimize on a one-on-one basis using AI. It will be a premium feature with flexible pricing options, either through flexible credits or as a new SKU. The focus is on optimizing performance and usability before monetization. - William Magnuson, CEO\nQ: How should we think about the dollar-based net retention rate for the third quarter and moving forward? A: The dollar-based net retention rate for Q3 was 113%, rounding up from 112.5%. We anticipate it to be around 110% by year-end, reflecting some ongoing pressure but also stability in the metric. - Isabelle Winkles, CFO\nQ: Can you update us on the improvements in go-to-market strategies and sales productivity, particularly regarding flexible credits and customer engagement? A: Over 450 customers have adopted flexible message sending credits, facilitating new channel adoption and speeding up go-to-market processes. We've also completed our global sales leadership transition, enhancing our value framework and partner ecosystem, leading to higher win rates and better onboarding outcomes. - William Magnuson, CEO\nQ: How is the competitive landscape evolving with the focus on generative AI, and how does Braze position itself against incumbents like Salesforce and Adobe? A: Salesforce's focus on Agentic AI has led to a perceived neglect of their Marketing Cloud, opening opportunities for Braze. Our integrated AI capabilities and robust data platform position us well to capitalize on these shifts, as we continue to innovate and expand our channel offerings. - William Magnuson, CEO\nQ: What are the key factors affecting the net retention rate, and how do marketing budgets impact this metric? A: Customers are purchasing closer to their known needs, impacting upsell sizes. Some are right-sizing contracts at renewal, affecting churn. Marketing budgets as a percentage of revenue have decreased, reflecting broader economic pressures. - Isabelle Winkles, CFO\nFor the complete transcript of the earnings call, please refer to the full earnings call transcript.This article first appeared on \nGuruFocus.","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"1","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.4","shortVersion":"4.29.4","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2490023685"}