Braze Reports 25.8% Revenue Growth to $593.4 Million, Acquires OfferFit for $325 Million

Braze, Inc. reported significant financial growth in its latest 10-K filing, with total revenue reaching $593.4 million for the fiscal year ending January 31, 2025, a 25.8% increase from $471.8 million in the previous year. This growth was primarily driven by a 26.4% rise in subscription revenue, which accounted for approximately 73.8% of the increase, attributed to existing customers expanding their usage of the platform. The company also saw its customer base grow to 2,296, up from 2,044 the previous year. Despite the revenue increase, Braze reported a net loss of $104.0 million, slightly improved from a loss of $130.4 million in the prior fiscal year.

In terms of operational metrics, Braze's platform enabled interactions with 7.2 billion monthly active users as of January 2025, up from 6.2 billion the previous year. The company’s dollar-based net retention rate for the trailing twelve months was 111%, down from 117% in the prior year, indicating some challenges in customer renewals and spending amid a volatile economic environment. The international revenue also saw a notable increase, contributing $266.9 million, which represented 45% of total revenue, reflecting Braze's ongoing geographic expansion efforts.

Strategically, Braze announced its acquisition of OfferFit, Inc. for approximately $325 million, which is expected to enhance its capabilities in AI-driven customer engagement solutions. This acquisition is part of Braze's broader strategy to invest in technology leadership and expand its product offerings. The company has also focused on enhancing its platform through research and development, with operating expenses in this area increasing by 11.8% to $134.0 million, as it aims to maintain its competitive edge.

Braze's financial health remains a point of focus, with cash, cash equivalents, and marketable securities totaling $514.0 million as of January 31, 2025. The company generated $36.7 million in net cash from operating activities, a significant improvement from the previous year. However, it continues to face challenges related to profitability, with accumulated deficits reaching $586.8 million. The company has acknowledged a material weakness in its internal controls over financial reporting, which it is actively working to remediate.

Looking ahead, Braze anticipates continued growth driven by its land-and-expand business model, which focuses on increasing sales within its existing customer base and expanding into new markets. The company plans to invest further in its technology and product development to enhance customer engagement capabilities. However, it also recognizes the potential impact of macroeconomic factors on its business, including inflation and changes in customer spending behavior, which could affect future revenue growth and operational performance.