Shares of Braze (BRZE 5.66%) spiked on Wednesday after the artificial intelligence (AI)-powered customer engagement platform reported solid growth metrics.
Image source: Getty Images.
AI-driven expansion
Braze helps marketers deploy AI models and agents to better connect with their clients and deliver more personalized experiences. Demand for these AI services is booming.
Braze's revenue jumped 28% year over year to $205 million in its fiscal 2026 fourth quarter, which ended on Jan. 31. The gains were fueled by new business wins and upsells to existing customers.
NASDAQ: BRZE
Key Data Points
Braze's customer count expanded by 14% to 2,609. And those with annual recurring revenue (ARR) of at least $500,000 climbed 35% to 333.
"The world's largest and most sophisticated brands are choosing Braze as a foundational partner to drive their AI transformation during this period of intense disruption and opportunity," CEO Bill Magnuson said.
Braze's adjusted operating income, in turn, soared 83% to $14.5 million.
Healthy sales momentum
Management expects the company's revenue to grow to between $884 million and $889 million in fiscal 2027, up from $738 million in fiscal 2026. Braze also projects adjusted operating income of $69 million to $73 million, up from $28.5 million.
Recently expanded partnerships with data analytics leader Snowflake, e-commerce giant Shopify, and digital ad platform The Trade Desk should help to fuel Braze's growth.
"We begin this fiscal year with strong commercial momentum and the fastest pace of new product delivery in our history," Magnuson said.
