Braze (BRZE) Stock Forecast & Price Target

Braze Inc demonstrated strong financial performance with calculated billings reaching $200.1 million, a year-over-year growth of 22%, significantly surpassing both consensus and internal estimates. The company also reported a notable increase in services revenue, which grew by 59% year-over-year to $9.2 million, exceeding expectations by a substantial margin. Additionally, Braze's FY26 guidance projects revenue of approximately $730.5 million to $731.5 million, indicating a year-over-year increase of around 23%, further underscoring the company's robust growth trajectory.

Braze Inc. has demonstrated limited growth potential, with a flat sequential DBNR of 108% and a concerning decline in DBNR for key customers with over $500K in ARR, which decreased to 110%. The company faces significant challenges in terms of profitability, as it continues to operate in the red while grappling with increased competition and the necessity to adapt to evolving technology and regulatory landscapes. Its non-GAAP gross margins have also declined sequentially, indicating potential difficulties in sustaining operational efficiency amidst a competitive market that is increasingly favoring alternatives like Salesforce’s offerings.