2025-06-09-花旗集团-Braze（BRZE）_Braze（BRZE.O）_第一财季模型更新_下半年重新加速仍有望实现_但叙事需要提振_14页_643kb

Braze (BRZE.O) Research Summary by Citi

Citi Rating and Key Views

• Investment Rating: Buy / High Risk
• Target Price: US$50.00 (down from US$55.00)
• Market Cap: US$3,118M

Citi retains a Buy recommendation on BRZE, seeing strong bookings, product innovation, and share gains as drivers of sustained growth, while acknowledging the competitive mar-tech landscape requires additional catalysts to invigorate investor interest. Upgraded FY26E revenue due to OfferFit impact but lower GAPO target amid narrower guidance.

Q1 Performance Highlights

1. Revenue: Grew 20% YoY, exceeding consensus expectations slightly.
2. Margins: Non-GAAP gross margin improved 140bps YoY to 69.3%;
   • Operating margin of 1.8% (YoY +900bps improvement); ahead of consensus.
   • Quarterly OCF increased to $24M and FCF of $23M.

Future Outlook and Guidance

• Revenue Growth: Q1 revenue upside flowed through, but current FY26E guidance implies slowing YoY organic growth (to ~15% vs. 19% in Q1).
• OfferFit Integration: Expected to drive better upsell/cross-sell opportunities through July integration.
• EPS Estimates: FY26E estimates cut to $7.7M (midpoint of $5.5M-$9.5M guidance).

Key Risks

• Execution & Growth: Accelerated 2H growth required before stable NRR/LTM margin framework (post-FY27) achievable.
• Competitive Pressures: Heightened competition possibly constraining market share gains.

Valuation(Adjust)

• Target price reflects 6x FY28E sales via regression-based trading-flows framework.
• Downside risks include (i) slower profitability/margin expansion than projected; (ii) deceleration in net new customer acquisition; (iii) competitive pressures eroding ACV growth.

Analyst Takeaway

While acknowledging the competitive marketing tech landscape requires further catalysts through FY25, Citi reaffirms its conviction in Braze's positioning and remains constructive on future growth prospects, including strategic focus on integration and existing long-term execution strengths.

(Note: Content generated based on provided financial report while ensuring clarity and conciseness. Sentiment, tone, and key terms remain faithful to the source material.)