Braze Market conflates classification shift with mix deterioration; we remain OW see potential pullback as a buying opportunity

研报英文原文证据摘录

Braze Market conflates classification shift with mix deterioration; we remain OW see potential pullback as a buying opportunity

J P M O R G A N North America Equity Research

27 May 2026

Braze

Market conflates classification shift with mix Overweight

deterioration; we remain OW see potential pullback as a BRZE, BRZE US

buying opportunity Price (27 May 26):$24.58

Price Target (Dec-26):$33.00

Vertical SaaS & HealthTech

Alexei Gogolev AC

(1-212) 622-9391

alexei.gogolev@jpmorgan.com

Destiny Jackson

Braze kicked off FY27 with a clean “beat-and-raise”; revenue was 3% above (1-212) 622-4360

destiny.jackson@jpmorgan.com

consensus (up ~30% yoy and 27% yoy on organic basis). The company continued

Ella Smithto invest into expanding BrazeAI portfolio and showing improving retention/

(1-212) 622-2451

enterprise mix. However, the stock is down more than 10% after hours as investors ella.smith@jpmchase.com

grapple with the fact that much of the upside appeared to be professional services-

Isabella A Camaj

driven versus subscription. On the call, management addressed this directly, noting (1-212) 834-2379

the step-up was largely a packaging/SKU change (more explicit line items for bella.camaj@jpmorgan.com

customer success entitlements that were previously bundled/allocated within J.P. Morgan Securities LLC

subscription). CFO emphasized that ~99% of total revenue and 85% professional

services revenue is recurring and recognized ratably like subscription. We see no

Key Changes (FYE Jan)fundamental headwinds to demand and view the change as classification shift

rather than a true mix deterioration. We view any potential share weakness at Prev Cur Δ

Adj. EBITDA - 27E ($ mn) 81 86 5.2%

opening related to mix deterioration confusion as a buying opportunity, Adj.