Braze, Inc. has recently released its 10-Q report, providing a detailed insight into its financial performance and operations. Braze operates a customer engagement platform that facilitates interactions between consumers and brands globally. The company offers a range of products and services including software development kits, REST API, partner data integrations, data transformation, segmentation, predictive suite, Canvas orchestration tool, campaigns, and personalization and action products. Braze primarily generates revenue from the sale of subscriptions to customers for the use of its platform and also provides professional services.
In the three months ended April 30, 2025, Braze reported revenue of $162.1 million, indicating a year-over-year growth of 19.6% from the same period in 2024. However, the company also reported net losses of $35.6 million in the same period. Despite the losses, Braze saw net cash provided by operating activities of $24.1 million and non-GAAP free cash flow of $22.9 million in the three months ended April 30, 2025, reflecting positive cash flow from its operations.
Braze's business model focuses on acquiring new customers and expanding within its existing customer base. As of April 30, 2025, the company had 2,342 customers across various industries. Braze aims to continue growing its customer base and expanding sales within its existing customer network. The company's dollar-based net retention rate for the trailing 12 months ended April 30, 2025, was 109%, indicating its ability to retain and expand customer relationships over time.
Furthermore, Braze is looking to expand its presence in international markets, with approximately 46% of its revenue being generated outside of the United States in the three months ended April 30, 2025. The company is also focused on sustaining innovation and technology leadership by investing in research and development to enhance its platform, including artificial intelligence capabilities and expanding its channel offerings.
However, Braze acknowledges the potential impact of unfavorable macroeconomic conditions on its business, citing factors such as instability in the banking and financial services sector, international and domestic supply chain risks, inflationary pressure, and interest rate increases as potential risks to its results of operations and financial condition. As a result of these announcements, the company's shares have moved -1.39% on the market, and are now trading at a price of $36.10. Check out the company's full 10-Q submission here.
