Braze, Inc. (NASDAQ: BRZE) shares surged 15.89% in after-hours trading following the release of its fourth-quarter fiscal 2025 results and the announcement of a strategic acquisition.
The customer engagement platform provider reported Q4 revenue of $160.4 million, surpassing analysts' estimates of $155.7 million. Adjusted earnings per share came in at $0.12, beating the expected $0.05. The company's strong performance was driven by new customer acquisitions, upsells, and renewals, resulting in a 22.5% year-over-year revenue growth.
Adding to the positive sentiment, Braze announced it has agreed to acquire OfferFit, an AI decisioning company, for $325 million. The acquisition, to be paid through a combination of cash and Braze Class A shares, is expected to enhance Braze's AI capabilities in customer engagement. CEO Bill Magnuson stated, "We look forward to bringing our complementary products and teams together to drive the evolution of Customer Engagement."
Furthermore, Braze provided an optimistic outlook for Q1 fiscal 2026, projecting revenue between $158 million and $159 million. The company also issued full-year fiscal 2026 guidance, forecasting revenue in the range of $686 million to $691 million, indicating continued growth momentum.