Independent research on the U.S. markets, Baptista Research

Baptista Research

Independent research on the U.S. markets

Baptista Research is an independent financial research house focused on the U.S. markets. We provide equity research as well as credit research reports on the top-listed U.S. companies with most of our focus on technology, consumer goods and services, automobiles, industrials, oil and gas, pharma, and healthcare. Our research has served more than 3000 institutional investors including mutual funds, hedge funds, banks, family offices, and various buy-side firms. We operate a research subscription service where institutions, as well as retail investors, can have priority access to all our research. We also have a wide distribution of our research reports across some of the top global financial platforms. Apart from equity research and credit research, we also provide advisory services with respect to mergers & acquisitions (M&A), private equity/ venture capital fundraising, valuation reports, and investment management services for corporates.
Baptista Research is owned and managed by Ishan Majumdar, an ex-Venture Capitalist/ Investment Banker, a Chartered Accountant, and a Masters’ degree holder in Management from HEC Paris. Ishan has nearly a decade of experience in Mergers and Acquisitions, Leveraged Buyouts (LBOs), Venture Capital Investing, Corporate Strategy, and Valuation in front-office roles at the likes of BNP Paribas CIB, Credit Agricole CIB, Groupe Danone, and TIW Private Equity. He has worked on and closed multiple acquisition deals, leveraged buyouts, and start-up investment transactions.

Equity Bottom-Up

<ul><li>Braze Inc. had a productive Q4 for the fiscal year 2024, reporting robust revenue growth and notable leaps in operational efficiency.</li><li>The company generated $131 million in revenue, up 33% year-over-year and 6% quarter over-quarter.</li><li>It is important to mention that these figures were achieved despite macroeconomic headwinds and tight scrutiny of budgets, reflecting the high ROI and enduring value of Braze's customer engagement platform.</li></ul>

Braze Inc. had a productive Q4 for the fiscal year 2024, reporting robust revenue growth and notable leaps in operational efficiency.The company generated $131 million in revenue, up 33% year-over-year and 6% quarter over-quarter.It is important to mention that these figures were achieved despite macroeconomic headwinds and tight scrutiny of budgets, reflecting the high ROI and enduring value of Braze's customer engagement platform.

Braze Inc.: First-Party Data Investment As An Important Business Model! - Major Drivers

<ul><li>This is our first report on customer engagement platform operator, Braze Inc.</li><li>The company's Q3 2024 earnings highlighted consistent YoY growth, despite a challenging macroeconomic environment, with its operating efficiency throughout the business.</li><li>Non-GAAP gross margin improved by 170 basis points YoY, and non-GAAP operating margin exceeded last year's third quarter by 1,100 basis points.</li></ul>

This is our first report on customer engagement platform operator, Braze Inc.The company's Q3 2024 earnings highlighted consistent YoY growth, despite a challenging macroeconomic environment, with its operating efficiency throughout the business.Non-GAAP gross margin improved by 170 basis points YoY, and non-GAAP operating margin exceeded last year's third quarter by 1,100 basis points.

Braze Inc: Initiation of Coverage - Discover How Braze's Innovative Approach Is Setting New Industry Standards - Major Drivers

Covering IPOs, Healthcare and Technology Stocks

Andrei Zakharov

<ul>
<li>Braze, a leading customer engagement cloud-based platform provider, outperformed its key competitors, Adobe and Salesforce, on a year-to-date basis. </li>
<li>Braze shares massively outperformed, with shares up ~67% over the year versus a ~28% gain on the NASDAQ. However, the stock is still below the IPO price of $65/share. </li>
<li>Reported y/y revenue growth has decelerated from 58% in FY22 to 49% in FY23, and management has guided ~27% y/y revenue growth in FY24. </li>
</ul>


Braze, a leading customer engagement cloud-based platform provider, outperformed its key competitors, Adobe and Salesforce, on a year-to-date basis. 
Braze shares massively outperformed, with shares up ~67% over the year versus a ~28% gain on the NASDAQ. However, the stock is still below the IPO price of $65/share. 
Reported y/y revenue growth has decelerated from 58% in FY22 to 49% in FY23, and management has guided ~27% y/y revenue growth in FY24. 


Braze: Potential For A More Profitable SaaS Company By FY25, But Macro Is Still Challenging

Japan Specialist

Mark Chadwick

<ul>
<li>Appier's stock initially surged 20% following strong Q2 results but later declined 25%, influenced by small-cap stock volatility, AI-induced valuations, and e-commerce sensitivity.</li>
<li>The AI company's competitive position remains strong compared to Braze; the differing stock price performance and valuation suggests significant upside.</li>
<li>Appier's thesis remains intact and we expect the company to benefit from key trends in consumer marketing, first-party data and AI solutions.</li>
</ul>


Appier's stock initially surged 20% following strong Q2 results but later declined 25%, influenced by small-cap stock volatility, AI-induced valuations, and e-commerce sensitivity.
The AI company's competitive position remains strong compared to Braze; the differing stock price performance and valuation suggests significant upside.
Appier's thesis remains intact and we expect the company to benefit from key trends in consumer marketing, first-party data and AI solutions.


Equity Capital Markets

<ul>
<li>Klaviyo, a Shopify-powered marketing automation platform provider for SMBs, mid-market, and B2B companies, filed to go public and plans to list on the New York Stock Exchange.</li>
<li>The fast-growing company was backed by Summit Partners, Shopify, and top-tier VC firms, including Accomplice, Accel, Sands Capital Ventures, Astral Capital, Cross Creek, and W Ventures.</li>
<li>Klaviyo is expected to IPO next week. S-1/A put the price range at $25-$27, implying a market cap of $6.5B at the midpoint, or $8.4B on a fully diluted basis. </li>
</ul>


Klaviyo, a Shopify-powered marketing automation platform provider for SMBs, mid-market, and B2B companies, filed to go public and plans to list on the New York Stock Exchange.
The fast-growing company was backed by Summit Partners, Shopify, and top-tier VC firms, including Accomplice, Accel, Sands Capital Ventures, Astral Capital, Cross Creek, and W Ventures.
Klaviyo is expected to IPO next week. S-1/A put the price range at $25-$27, implying a market cap of $6.5B at the midpoint, or $8.4B on a fully diluted basis. 


Klaviyo IPO Preview and Valuation Analysis: A Fast-Growing Marketing Automation Unicorn

United States

Braze, Inc. operates as a cloud-based software company. The Company develops customer engagement software that businesses use for multi-channel marketing. Braze serves retail and e-commerce, media, entertainment, financial, travel, and hospitality industries worldwide.

Braze Inc (BRZE US)

Braze Inc.: First-Party Data Investment As An Important Business Model! - Major Drivers

Braze Inc. had a productive Q4 for the fiscal year 2024, reporting robust revenue growth and notable leaps in operational efficiency. The company...

Baptista Research

Braze Inc: Initiation of Coverage - Discover How Braze's Innovative Approach Is Setting New Industry Standards - Major Drivers

This is our first report on customer engagement platform operator, Braze Inc. The company's Q3 2024 earnings highlighted consistent YoY growth,...

Baptista Research

Braze: Potential For A More Profitable SaaS Company By FY25, But Macro Is Still Challenging

Braze shares could outperform its peers in 2023, and the company’s management sees signs of stabilization. I see shares as undervalued and would be...

Andrei Zakharov

Appier (4180) | The Ups and Downs

Appier's stock has declined due to small-cap stock volatility and AI-induced valuations, despite its strong competitive position and potential...

Mark Chadwick

Klaviyo IPO Preview and Valuation Analysis: A Fast-Growing Marketing Automation Unicorn

Klaviyo, a fast-growing marketing automation unicorn, filed to go public and may raise ~$286M. IPO valuation looks attractive, and I see 30%+...

Andrei Zakharov

Braze Inc.: First-Party Data Investment As An Important Business Model! - Major Drivers

Braze Inc. had a productive Q4 for the fiscal year 2024, reporting robust revenue growth and notable leaps in operational efficiency. The company...

Baptista Research

Braze Inc: Initiation of Coverage - Discover How Braze's Innovative Approach Is Setting New Industry Standards - Major Drivers

This is our first report on customer engagement platform operator, Braze Inc. The company's Q3 2024 earnings highlighted consistent YoY growth,...

Baptista Research

Braze: Potential For A More Profitable SaaS Company By FY25, But Macro Is Still Challenging

Braze shares could outperform its peers in 2023, and the company’s management sees signs of stabilization. I see shares as undervalued and would be...

Andrei Zakharov

Appier (4180) | The Ups and Downs

​Appier's stock has declined due to small-cap stock volatility and AI-induced valuations, despite its strong competitive position and potential...

Mark Chadwick

Klaviyo IPO Preview and Valuation Analysis: A Fast-Growing Marketing Automation Unicorn

Klaviyo, a fast-growing marketing automation unicorn, filed to go public and may raise ~$286M. IPO valuation looks attractive, and I see 30%+...

Andrei Zakharov

Appier's stock has declined due to small-cap stock volatility and AI-induced valuations, despite its strong competitive position and potential...