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華爾街日報5 Revealing Analyst Questions From Braze’s Q3 Earnings Call
Braze delivered a quarter that exceeded Wall Street’s revenue expectations and was met with a positive market reaction, driven by robust customer additions and the increasing adoption of AI-powered customer engagement solutions. Management credited the quarter’s performance to a broad-based expansion across verticals and geographies, as well as a surge in multi-channel messaging during key marketing periods like Cyber Week. CEO William Magnuson emphasized that Braze’s AI-driven platform is enabling clients to orchestrate more sophisticated campaigns, noting that “marketers continue to evolve away from single channel campaigns toward more sophisticated programs leveraging dynamic data to create and strengthen direct relationships.”
Is now the time to buy BRZE? Find out in our full research report (it’s free for active Edge members).
Braze (BRZE) Q3 CY2025 Highlights:
- Revenue: $190.8 million vs analyst estimates of $184.2 million (25.5% year-on-year growth, 3.6% beat)
- Adjusted EPS: $0.06 vs analyst estimates of $0.07 (in line)
- Adjusted Operating Income: $5.08 million vs analyst estimates of $4.17 million (2.7% margin, 21.9% beat)
- Revenue Guidance for Q4 CY2025 is $198 million at the midpoint, above analyst estimates of $192.8 million
- Management raised its full-year Adjusted EPS guidance to $0.43 at the midpoint, a 2.4% increase
- Operating Margin: -19.7%, up from -21.4% in the same quarter last year
- Customers: 2,528, up from 2,422 in the previous quarter
- Net Revenue Retention Rate: 108%, in line with the previous quarter
- Annual Recurring Revenue: $726.4 million vs analyst estimates of $713.8 million (24.2% year-on-year growth, 1.8% beat)
- Billings: $200.1 million at quarter end, up 22.3% year on year
- Market Capitalization: $3.72 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Braze’s Q3 Earnings Call
- Ryan MacWilliams (Wells Fargo): Asked what makes Braze’s platform an easier entry point for AI use cases. CEO William Magnuson explained the agility of deploying AI agents directly within their visual workflow tool, enabling rapid experimentation and real-time results.
- Raimo Lenschow (Barclays): Inquired about the drivers behind migration from legacy platforms. Magnuson described a shift in the competitive landscape, with enterprise customers seeking modern, AI-enabled solutions as legacy providers stagnate.
- Gabriela Borges (Goldman Sachs): Asked about the monetization strategy for AI features. CFO Isabelle Winkles clarified that recurring, always-on AI functions would be incorporated into a usage-based pricing model, offering future revenue potential.
- James Wood (TD Cowen): Sought insight on the surge in new customer generation. Winkles attributed this to improved sales productivity, reduced churn, and the impact of regional and vertical market investments.
- Tyler Radke (Citi): Queried whether Braze is accessing dedicated AI budgets versus traditional marketing spend. Magnuson responded that the company is “selling performance,” with demonstrable ROI from AI-driven campaigns attracting incremental customer investment.
Catalysts in Upcoming Quarters
In the coming quarters, our analysts will watch (1) the adoption rate and monetization of Braze’s AI decisioning studio and operator tools, (2) further market share gains from legacy platform replacements and expansion into regulated industries, and (3) sustained growth in premium messaging channels during major marketing events. Execution on vertical-specific strategies and customer retention improvements will also be key indicators of trajectory.
Braze currently trades at $32.89, up from $30.65 just before the earnings. Is there an opportunity in the stock?See for yourself in our full research report (it’s free for active Edge members).
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