Braze Rises 2% on Strong Revenue Beat and $325M AI Acquisition

Shares of Braze (NASDAQ:BRZE) closed with a 2% gain on Friday, following the software company’s impressive fourth-quarter revenue beat and the announcement of a strategic $325 million acquisition of AI decisioning startup Offerfit.

Braze reported Q4 revenue of $160.4 million, marking a 23% year-over-year increase and topping the $155.7 million consensus estimate. The strong topline growth came despite broader tech sector volatility, underscoring Braze’s momentum in the customer engagement software space.

However, the company posted a net loss of $17.06 million, or $0.17 per share, missing expectations for a net profit of $0.05 per share. Operating income also came in weaker than forecast, with a loss of $21.56 million, compared to a projected $2.5 million gain.

Still, investors focused on forward-looking catalysts—most notably, Braze’s acquisition of Offerfit, a company specializing in AI-powered decisioning engines for personalized customer experiences. The deal, valued at $325 million in cash and stock, is expected to close by the end of the fiscal quarter ending July 31.

Looking ahead, Braze guided for adjusted Q1 net income between $4.5 million and $5.5 million, or $0.04 to $0.05 per share, suggesting a return to profitability in the near term.