Braze Inc (NASDAQ:BRZE), the leading customer engagement platform that empowers brands to Be Absolutely Engaging, stock rose 8.87% (As on March 28, 11:14:36 AM UTC-4, Source: Google Finance) after the company posted better than expected results for the fourth quarter of FY25. Subscription revenue in the quarter was $153.9 million compared to $125.9 million in the fourth quarter of the fiscal year ended January 31, 2024, and professional services and other revenue was $6.5 million compared to $5.1 million in the fourth quarter of the fiscal year ended January 31, 2024. Remaining performance obligations as of January 31, 2025 was $793.1 million, of which $505.2 million is current, which the company defines as less than one year. Non-GAAP gross margin was 69.9% compared to 67.9% in the fourth quarter of the fiscal year ended January 31, 2024. Dollar-based net retention for all customers for the trailing 12 months ended January 31, 2025 and January 31, 2024 was 111% and 117%, respectively; dollar-based net retention for customers with annual recurring revenue (ARR) of $500,000 or more was 114% compared to 120% in the fiscal year ended January 31, 2024. Total customers increased to 2,296 as of January 31, 2025 from 2,044 as of January 31, 2024; 247 of our customers had ARR of $500,000 or more as of January 31, 2025, compared to 202 customers as of January 31, 2024.

Meanwhile, the company has entered into a definitive agreement to acquire OfferFit, an AI decisioning company, for $325 million, subject to customary closing adjustments. Once the deal is closed, the company can leverage expertise from the OfferFit team alongside current Project Catalyst development to collectively drive more sophisticated experimentation and deliver 1:1 personalization for all aspects of a customer experience. Under the terms of the agreement, Braze will acquire OfferFit for $325 million, in a combination of cash and Braze Class A common stock. Subject to customary closing conditions, the acquisition is expected to close in the fiscal quarter ending July 31, 2025.

BRZE in the fourth quarter of FY25 has reported the adjusted earnings per share of 12 cents, beating the analysts’ estimates for the adjusted earnings per share of 5 cents, according to the Zacks Consensus Estimate. The company had reported the adjusted revenue growth of 22.5 percent to $160.4 million in the fourth quarter of FY25, beating the analysts’ estimates for revenue by 3.10%. This is driven primarily by new customers, upsells, and renewals.