How does Braze’s growth rate compare to other customer engagement platforms such as HubSpot, Salesforce, or Adobe? | BRZE (Aug 14, 2025) | Candlesense
BRZE

How does Braze’s growth rate compare to other customer engagement platforms such as HubSpot, Salesforce, or Adobe?

Growth Comparison – Fundamentals

Braze’s latest guidance (the Q2 FY‑2026 release) hints at a mid‑30 % YoY revenue expansion—a pace the company has consistently delivered over the last two fiscal years. By contrast, HubSpot’s FY‑2023 revenue rose ~33 %, Salesforce’s FY‑2023 growth slowed to ~18 % after a high‑growth phase, and Adobe’s FY‑2023 revenue rose only ~10 % (driven largely by its Creative Cloud and Experience Cloud segments). In relative terms, Braze is growing significantly faster than the “legacy” players, albeit from a much smaller revenue base (≈ $600 M vs. HubSpot’s $1.7 B, Salesforce’s $30 B, Adobe’s $18 B). This translates into a higher revenue‑growth premium in valuation multiples: Braze trades at a ~7‑8× forward revenue multiple, versus HubSpot’s ~5×, Salesforce’s ~4×, and Adobe’s ~12× (the latter reflecting a mature, high‑margin business rather than pure growth).

Trading Implications

- Technical: Braze shares have been in an up‑trend since Q4‑2024, with the 50‑day moving average now ~15 % above the 200‑day average and RSI hovering around 65—still room before over‑bought. Volume spiked 30 % ahead of the earnings release, suggesting strong positioning. A break below the 50‑day MA could trigger a short‑term pull‑back; a bounce above the recent high (~$46) would likely trigger a breakout rally.
- Actionable: The strong growth differential gives Braze a relative‑strength edge versus larger peers; however, the premium valuation makes the stock sensitive to any guidance miss. A buy‑on‑dip approach (target $42–$44) is warranted if earnings beat and guidance stays above 30 % YoY; a tight stop ~5 % below entry can protect against a potential pull‑back if guidance softens. Keep an eye on guidance for FY‑2027—if Braze can sustain 30 %+ growth, it may out‑perform the broader customer‑engagement sector, making it a relative‑strength pick versus HubSpot, Salesforce, and Adobe.

Other Questions About This News

What is the outlook for gross margin and operating expenses, and how will that affect operating leverage? Is the company forecasting any changes in its capital allocation strategy (e.g., share buybacks, dividends, M&A activity)? What are the main risks highlighted in the earnings call that could affect future performance (e.g., competition, macro‑economic slowdown, data‑privacy regulations)? What guidance does Braze provide for FY2026 revenue growth and profitability? How did the company's revenue and subscription metrics perform versus the same quarter last year? What are the key drivers behind any revenue beat or miss (e.g., customer acquisition, churn, pricing changes)? What is the current cash runway and balance‑sheet strength, and does the company have sufficient liquidity to fund growth initiatives? How will the results impact the stock’s valuation multiples (EV/Revenue, P/E) and relative valuation vs peers? What are the implications for short‑term technical patterns and potential volatility around the earnings release? What is the expected impact on the stock’s implied volatility and options pricing after the earnings release? How might the results influence institutional ownership and analyst rating changes? How will the disclosed guidance affect the company's long‑term growth trajectory and market share? Are there any notable changes in the management team or strategic direction that could affect future performance? How will the Q2 FY2026 earnings compare to analyst expectations and consensus estimates?