Shares of Braze, Inc. (NASDAQ: BRZE) surged 11.69% in after-hours trading on Thursday following the company's release of better-than-expected fourth-quarter results, announcement of a strategic acquisition, and positive outlook for the upcoming fiscal year.

The customer engagement platform provider reported impressive Q4 fiscal 2025 financial results, surpassing analyst expectations. Braze's revenue for the quarter reached $160.4 million, beating the consensus estimate of $155.7 million. The company's adjusted earnings per share came in at $0.12, significantly outperforming the expected $0.05. This strong performance was driven by new customer acquisitions, upsells, and renewals, resulting in a 22.5% year-over-year revenue growth.

Adding to investor enthusiasm, Braze announced its agreement to acquire OfferFit, an AI decisioning company, for $325 million. The acquisition, to be paid through a combination of cash and Braze Class A stock, is expected to enhance Braze's AI capabilities in customer engagement. CEO Bill Magnuson expressed optimism about the deal, stating, "We look forward to bringing our complementary products and teams together to drive the evolution of Customer Engagement."

Further boosting investor confidence, Braze provided a positive outlook for the first quarter and full fiscal year 2026. The company expects Q1 revenue between $158 million and $159 million, indicating continued strong growth. For the full fiscal year 2026, Braze forecasts revenue in the range of $686 million to $691 million, surpassing analyst expectations of $688.07 million.

The combination of strong Q4 results, strategic AI acquisition, and optimistic guidance appears to be driving the significant after-hours stock price increase. Investors are likely encouraged by Braze's ability to exceed expectations and its proactive steps to strengthen its position in the competitive customer engagement market through AI-driven solutions.