Braze said sales rose and its loss narrowed in the fourth quarter, fueled by new business wins, contract renewals and upselling to existing clients.

Braze shares rose 10% in overnight trading to $40.24. Through Thursday's close, the stock had lost 27.4% over the past year.

The customer-engagement platform company had a loss of $17.2 million, or 17 cents a share, in the three months ended Jan. 31, compared with a loss of $28.3 million, or 29 cents a share, a year earlier.

Stripping out one-time items, earnings per share were 12 cents, above estimates for adjusted earnings of 5 cents a share, according to analysts polled by FactSet.

Revenue rose to $160.4 million from $131 million a year ago. Analysts expected $155.7 million, a little higher than the midpoint of the company's guidance.

New customers as well as upsells and renewals with existing clients drove the revenue increase, the company said, pointing to significant deals with clients like America's Test Kitchen, QDOBA Mexican Eats and Springer Nature.

The company's total customer count rose to 2,296 as of Jan. 31, from 2,044 a year earlier.

For fiscal 2026, the New York-based company guided for revenue between $686 million and $691 million and adjusted earnings of 31 cents to 35 cents a share. Analysts expected revenue of $688.2 million and earnings of 28 cents a share on an adjusted basis.

For the first quarter, Braze forecast adjusted per share earnings between 4 cents and 5 cents and revenue between $158 million and $159 million. Analysts were looking for adjusted earnings of 4 cents a share and revenue of $158.4 million.

The results come as the company continues to invest in artificial intelligence, with plans to acquire OfferFit, an AI decisioning company, for $325 million in cash and stock. The acquisition is expected to close in the quarter ended July 31.