1. Salesforce Marketing Cloud for the real-time, mobile customer journey.

2. HubSpot's marketing automation, but for deeply personalized, real-time, multi-channel experiences.

• Braze Customer Engagement Platform: A comprehensive platform providing interactions between consumers and brands worldwide.
• Braze Software Development Kits (SDKs): Tools for automated data ingestion and the delivery of mobile/web notifications and in-app messages.
• REST API: Enables importing or exporting data and triggering workflows between Braze and existing technology stacks.
• Partner Cohort Syncing: Allows brands to synchronize user segments directly from integrated partners.
• Segmentation and Segment Insights: Products used to define reusable consumer segments, analyze their performance, and understand contributing factors.
• Predictive Suite: Features that help identify groups of consumers with critical business value through predictive analytics.
• Canvas: An orchestration tool for designing multi-step, cross-channel customer journeys, such as onboarding and nurture campaigns.
• Campaigns: Functionality for sending targeted single-channel or multi-channel messages to specific user segments.

Major Customers of Braze (BRZE)

Braze, Inc. primarily sells its customer engagement platform to other companies (B2B) worldwide, enabling these brands to interact with their consumers. While Braze does not publicly disclose a definitive list of its "major" customers by revenue contribution, its platform is utilized by a wide range of well-known global brands. Based on publicly available information and case studies, some prominent customer companies include:

• Starbucks (SBUX)
• T-Mobile (TMUS)
• Pinterest (PINS)
• Etsy (ETSY)
• Gap (GPS)
• Domino's (DPZ)
• Warner Bros. Discovery (WBD) - for brands like Max (formerly HBO Max)
• Restaurant Brands International (RBI) - for brands like Burger King

• Amazon Web Services (AMZN)

Key Risks for Braze (BRZE)

1. Data Privacy, AI Regulation, and Cybersecurity Risks: As a customer engagement platform that processes vast amounts of sensitive consumer data, Braze is highly exposed to evolving global data privacy regulations (such as GDPR and various state-level US laws) and the inherent risks associated with Artificial Intelligence (AI) ethics, bias, and accuracy. New or evolving laws could necessitate costly changes to its platform and business model. Furthermore, the company faces significant cybersecurity threats; data breaches or privacy violations could lead to substantial legal liabilities, regulatory fines, and severe reputational damage, eroding customer trust.
2. Intense Competition and Challenges to Achieving Consistent Profitability: Braze operates in a highly competitive market against established giants like Adobe and Salesforce, as well as agile, specialized platforms. This intense competition necessitates substantial investment in sales and marketing, which contributes to persistent operating losses despite strong revenue growth. While Braze has shown progress in achieving non-GAAP net income, it continues to report GAAP net losses, indicating a challenge in converting top-line growth into sustainable profitability at scale amidst market pressures. Economic downturns could also lead to businesses cutting marketing budgets, further impacting Braze's revenue growth and profitability.
3. Rapid Advancements and Disruption from Generative AI: The swift evolution of AI, particularly generative AI, presents both opportunities and significant threats to Braze. While Braze is investing in AI capabilities through initiatives like BrazeAI and acquisitions, it faces increasing competition from both large tech companies and nimble startups specializing in AI-driven marketing solutions. If competitors develop more comprehensive and cost-effective AI-powered engagement solutions, or if large language model providers expand their functionalities, Braze could struggle to maintain its competitive edge and justify its premium market positioning. There is also a risk of generative AI "hollowing out" parts of its platform over time.

The clear emerging threat for Braze is the rapid advancement and integration of **Generative Artificial Intelligence (AI) and autonomous marketing agents** into competing platforms or as standalone solutions.

Braze's core offering involves providing tools for brands to manage customer data, segment audiences, personalize messages, and orchestrate multi-step, cross-channel customer journeys (e.g., using its "Canvas" tool). This largely relies on marketers using Braze's platform to design and execute these strategies.

However, the emergence of sophisticated generative AI models and intelligent automation has the potential to fundamentally disrupt this paradigm:

• Automated Content Creation: Generative AI can autonomously create highly personalized and contextually relevant marketing content (messages, creatives, calls-to-action) at scale, potentially reducing the manual effort currently required within platforms like Braze for content development.
• Autonomous Journey Design and Optimization: AI-driven systems could evolve to automatically design, adapt, and optimize entire customer journeys, dynamically adjusting based on real-time customer behavior and predictive analytics. This could diminish the need for marketers to manually "map out" journeys using tools like Braze's Canvas.
• Hyper-Personalization and Predictive Intelligence: AI can offer a deeper level of individualized personalization and predictive capabilities that go beyond current segmentation and propensity scoring, potentially making existing classification and personalization tools seem less advanced.

If major marketing cloud providers (e.g., Salesforce, Adobe) or new pure-play AI companies integrate these advanced, autonomous AI capabilities directly into their offerings, they could shift the value proposition from a "platform for marketers to build engagement" to an "intelligent agent that executes and optimizes engagement automatically." This could challenge Braze's current value proposition as a best-of-breed toolset, making its functionalities less central or unique if AI can perform these tasks more efficiently and effectively.

Braze (symbol: BRZE) operates in significant and growing addressable markets for its customer engagement platform and related services.

Customer Engagement Platform/Solutions Market

• The global total addressable market (TAM) for customer engagement platforms was valued at $16 billion, with Gartner projecting a nearly 10% annual growth rate for several years.
• Another estimate places Braze's total addressable market at $29 billion.
• The global customer engagement solutions market was estimated at $24.36 billion in 2025 and is projected to reach $30 billion by 2028.
• More recent projections indicate the global customer engagement solutions market was $29.39 billion in 2025 and is expected to grow to approximately $86.39 billion by 2035.
• In North America, the customer engagement solutions market was valued at $9.17 billion in 2025, with projections to reach around $28.04 billion by 2035. The U.S. customer engagement solution market held a dominant revenue share of 71.5% in North America in 2023.
• Another source estimates the global customer engagement solutions market size at $24.1 billion in 2024, poised to grow to $68.46 billion by 2033.

Marketing Automation Market

• The global marketing automation market was valued at $6.5 billion in 2024 and is projected to grow to $19.38 billion by 2033.
• Another report estimated the global marketing automation market size at $6.65 billion in 2024, with a projection to reach $15.58 billion by 2030.
• A different analysis projects the global marketing automation market to reach $81.01 billion by 2030, increasing from $47.02 billion in 2025.
• North America leads the marketing automation industry, holding the largest revenue share of 43.6% in 2024.

Braze (BRZE) is expected to drive future revenue growth over the next 2-3 years through several key strategies:

• New Customer Acquisition and Existing Customer Expansion: Braze consistently demonstrates growth in its customer base and the ability to expand contracts with existing clients. The company reported its strongest quarter of customer additions in three years, adding 106 net new customers sequentially in Q3 FY2026, reaching a total of 2,528. Furthermore, enterprise customers (those with over $500,000 Annual Recurring Revenue or ARR) surged by 29% year-over-year to 303 in Q3 FY2026, contributing 63% to total ARR. This growth is further supported by a dollar-based net retention rate of 109% in Q3, indicating that existing customers are increasing their spending with Braze.
• AI-Powered Product Innovation and Adoption: Braze is strategically investing in and leveraging artificial intelligence to enhance its customer engagement platform and create new revenue streams. The company's investments in advanced AI and machine learning, including Project Catalyst and the acquisition of OfferFit, are expected to be key growth drivers. AI capabilities like Braze AI Decisioning Studio contributed $4.8 million in revenue in a recent quarter. Braze plans to launch new AI products like Agent Console, an AI bot builder, which will be monetized through a credit-based model for each interaction, representing a new monetization strategy for AI-driven services.
• Global Market Expansion: Expanding its international footprint is another significant driver for Braze. Revenue from outside the US accounted for 44% of total revenue in Q3 FY2024, showing a consistent increase. Braze's international revenue grew to $267.0 million, highlighting the company's efforts to expand its global presence. The company continues to invest in headcount to support ongoing global expansion.
• Capitalizing on the Legacy Vendor Replacement Cycle: Braze is benefiting from a trend where enterprises are replacing older, legacy marketing clouds with more modern, AI-driven omnichannel customer engagement solutions. This "legacy vendor replacement cycle and consolidation trend" is a significant factor in the strength of Braze's enterprise business, as customers prefer Braze's AI-driven platform.

Share Repurchases

• Braze has reported minimal share repurchases over the last 3-5 years, with share buybacks totaling $0.00 in recent periods and approximately $165,000 in 2024.

Share Issuance

• The number of outstanding shares for Braze increased from approximately 90.25 million in 2021 to 107.627 million as of March 2026 (representing the end of fiscal year 2025/beginning of fiscal year 2026).
• Stock-based compensation has been a significant component of share issuance, rising from $7.54 million in fiscal year 2021 to $115.14 million in fiscal year 2025.
• Cash from financing activities peaked at $463.3 million during Q1 2022, likely reflecting capital raised through equity offerings following its 2021 IPO.

Outbound Investments

• Braze made payments for business acquisitions of $91.29 million in fiscal year 2025.
• In fiscal year 2023, the company recorded $16.32 million in payments for business acquisitions.
• Additionally, Braze reported significant "Purchases of Investments," which are typically financial investments, amounting to $217.98 million in fiscal year 2025, $248.06 million in fiscal year 2024, and $638.22 million in fiscal year 2023.

Capital Expenditures

• Capital expenditures amounted to $13.23 million in fiscal year 2025, $9.76 million in fiscal year 2024, and $15.45 million in fiscal year 2023.
• The primary focus of these capital expenditures is on funding long-term assets and infrastructure.