Braze, Inc. (BRZE), a comprehensive customer engagement platform, has reported robust growth in its recent SEC filing, with the company witnessing a revenue of $101.8 million in the three months ended April 30, 2023. This reveals an impressive year-over-year (YoY) growth rate of 31.3% from the same period of the previous year. Moreover, the company has continued its expansion with the acquisition of all outstanding stock of North Star Y Pty Ltd (“North Star”) for an aggregate closing consideration of up to $28 million in cash and stock.
The success of Braze is attributed to its platform, which empowers brands to listen, understand, and engage with customers in a more personalized and efficient way. The company’s solutions are increasingly utilized by enterprises due to their ability to deal with high volumes of customer data and deliver relevant marketing campaigns across multiple channels.
Braze has also seen significant expansion within a customer’s business once its platform is adopted. The company notes that customers tend to increase the number of monthly active users, channels, and use cases as their businesses and needs continue to grow. As of April 30, 2023, Braze had 1,866 customers across various industries. From January 31, 2023, the number of monthly active users increased to 5.1 billion, up from 4.8 billion.
The company employs a land-and-expand business model, which involves offering products that are easy to adopt and provide swift time to value. This has enabled Braze to increase its annual recurring revenue (ARR) by catering to customers who choose additional products, onboard new business units and geographies, or grow their businesses. As of April 30, 2023, the company’s dollar-based net retention rate was 122% for all its customers, and 124% for customers with an ARR of $500,000 or more.
Braze believes that there is an opportunity for substantial growth in the future by expanding its customer base in industries where it has a strong presence, such as retail, eCommerce, media, entertainment, and on-demand services. The company plans to capitalize on the ongoing digital transformation in regulated industries like healthcare and financial services to boost the adoption of its technology.
Furthermore, Braze is focused on investing in research and development to sustain innovation and maintain its competitive edge. For instance, the company has been enhancing its artificial intelligence capabilities to enable brands to better analyze and act on customer data and expand its channel offerings.
Following its recent success, in June 2023, Braze completed the acquisition of North Star Y Pty Ltd, which resulted in the company issuing 190,283 shares of its Class A common stock. This acquisition is part of the company’s strategy to continue expanding its customer engagement platform and deliver even more value to its clients.
In conclusion, Braze, Inc has shown impressive financial growth in the recent quarter, driven by a strong customer base and a commitment to innovation. With the acquisition of North Star Y Pty Ltd and a focus on expanding in multiple industries and geographies, the company is well-positioned to continue its growth trajectory in the coming years.
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