The widespread digital transformation and growing demand for IT solutions have set the stage for emerging technology companies to expand, and many are taking the IPO route to take their businesses to the next level.
Braze, Inc., a New York-based customer engagement platform, is all set to become a public entity through an initial public offering. The company is looking to list its shares on the Nasdaq stock exchange under the ticker symbol BRZE, after obtaining regulatory approval. The number of shares being offered and the price range will be announced at a later date. The lead underwriters in the offering are Goldman Sachs, JP Morgan, and Barclays.
So far, the company has empowered more than 1,000 brands in about 50 countries and serves a diverse clientele, ranging from Domino’s Pizza, Inc. (NYSE: DPZ) to PayPal-owned Venmo. It enabled interactions with 3.3 billion monthly active users through various digital interfaces in July 2021.
Founded in 2011, braze had a total of 870 full-time employees as of July 2021. Its centralized consumer database allows companies to streamline their marketing activities and reach the target audience with precision. The messaging system allows consumers and their preferred brands to interact with each other effectively.
Under the subscription model, the company charges fees based on customers’ upfront commitment to a specific number of monthly active users. It also offers certain professional services like email deliverability support and dedicated technical support staff, which help customers onboard and use our platform effectively.
In fiscal 2021, Braze generated total revenues of $150.2 million, up 56% from the prior year. It incurred a loss of $31.8 million or $1.96 per share during the year, which is broadly unchanged from the loss reported in 2020.
The focus of the management’s growth strategy is on expanding customer base in new areas as well as in areas where the company already has a strong presence — including retail, eCommerce, media, and on-demand services — capitalizing on the COVID-driven digital transformation. Also, plans are afoot to expand internationally, by enhancing market penetration in regions like Europe and Asia-Pacific and leveraging the greenfield opportunity in areas like Latin America.
Though digital customer engagement is a relatively new concept that is still evolving, competition is increasing. Braze will have to compete with big names like Oracle Corporation (NYSE: ORCL) and Adobe Inc. (NASDAQ: ADBE) to expand its market share. It goes without saying that the company needs to ensure competitive pricing and quality services. Meanwhile, initiatives like investments in product development and expansion of functionality will put pressure on liquidity going forward.
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