Shares of Braze, Inc. (BRZE) surged 15.89% in after-hours trading on Thursday following the company's release of better-than-expected fourth-quarter results and the announcement of a strategic acquisition in the AI space.

Braze, a customer engagement platform provider, reported Q4 revenue of $160.4 million, surpassing analyst estimates of $155.7 million. The company's adjusted earnings per share came in at $0.12, significantly beating the expected $0.05. This strong financial performance demonstrated Braze's continued growth and improving profitability.

Adding to investor enthusiasm, Braze announced it has agreed to acquire OfferFit, an AI decisioning company, for $325 million. This acquisition is expected to enhance Braze's AI capabilities in customer engagement, potentially driving future growth. The deal will be paid through a combination of cash and Braze Class A stock, subject to customary closing conditions.

Braze also provided a positive outlook for the first quarter and full fiscal year 2026, further boosting investor confidence. The company expects Q1 revenue between $158 million and $159 million, indicating continued strong growth. This combination of strong results, strategic AI acquisition, and positive guidance appears to be driving the significant after-hours stock price increase.