William Blair initiated research coverage of Braze, Inc. (BRZE $66.95). Braze is a leading customer engagement platform that deploys a streaming data architecture to orchestrate, personalize, and deliver marketing campaigns to customers.
Analysts Arjun Bhatia and Bhavan Suri estimate the company can generate revenue of $220 million in 2021 and $310 million in 2022 and believe the company is well positioned to be a sustainable 40%-plus grower.
“Braze enables brands to deliver personalized interactions with their customers at scale across multiple channels,” Bhatia said. “Braze’s data ingestion and management capabilities are core to its differentiation. Nearly all customers use the Braze software development kit to ingest first-party data from their consumer-facing mobile app or website. This embeddability heightens its importance within a customer’s tech stack and increases its stickiness, in our view. Braze has also built its platform using a proprietary streaming data architecture, which enables brands to act on real-time end-user actions and data. By separating the engagement/action layer from other layers, Braze has created a cross-channel solution that ensures platform features are deployed across channels, makes omnichannel orchestration more seamless, and ensures new features instantly benefit all channels when released.”
Suri said, “We believe Braze should benefit from several trends over the coming years as it aims to capture what we estimate is a $29 billion total addressable market. These tailwinds include a shift in focus to first-party customer data, the increasing importance of customer experience, growth of mobile from both digitally native and traditional businesses, and the proliferation of customer engagement channels.”
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Current Ratings Distribution (as of 12/12/21)
Outperform (Buy): 77%
Market Perform (Hold): 23%
Underperform (Sell): 1%
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Market Perform (Hold): 11%
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