Braze dropped 19% on a 26% growth quarter, then AWS put its sellers behind it
Amazon's sales force now has incentives to pitch Braze, and customers can buy it against existing AWS commitments. The stock has climbed about 18% since September 9 on a deal that carries no disclosed revenue figure.
Vincent Jiang · 3 min read
A beat got sold and a deal got bought
On September 9, Braze+1.14% — Braze, up 1.14 percent today reported revenue of $227.2 million for the quarter ended July 31, up 26.2% year over year and ahead of the $220.3 million consensus 27. The stock fell 18.9% that day, to $24.54, punished by a third-quarter profit forecast that came in light 3. Three weeks later, at a Las Vegas customer conference, the company signed a strategic collaboration agreement with Amazon Web Services, and the shares jumped 9.4% in a single session 14. By October 9 the stock closed at $29.06, roughly 18% above its September 9 close and still about 20% below its December 2025 high of $36.19 94.
The product is Amazon's sales force
The agreement, announced September 29 at Forge, integrates Amazon+3.31% — Amazon, up 3.31 percent today Bedrock into BrazeAI Agent Console, Braze's agent orchestration layer 1. The money is in distribution, not models. Braze's own earnings release describes a three-year construct that unlocks a dedicated co-sell motion and incentives for AWS sellers to bring Braze into their accounts 2. Customers can buy Braze through AWS Marketplace against existing AWS commitments; Braze says Marketplace procurement grew more than 80% year over year, and that the first half of this fiscal year transacted more than all of fiscal 2025 1.
Same growth, opposite stock years
Klaviyo−0.74% — Klaviyo, down 0.74 percent today, a rival engagement platform, posted the same 26% revenue growth this quarter and raised full-year guidance, yet its shares were down 51% year to date as of September 18, while Braze's were down 27% and Similarweb, growing 9%, was up 11% 6. Wall Street stopped paying for Braze's growth rate and started paying for Amazon's address book.
Same 26% growth, opposite years: Klaviyo fell twice as hard as Braze
Data
| YTD share change | |
|---|---|
| Braze (BRZE) | -27% |
| Klaviyo (KVYO) | -51% |
| Similarweb (SMWB) | 11% |
The quarter that got sold
Braze revenue growth sank to 19.6% in fiscal 2025, then rebuilt to 26% into the AWS deal
Data
| Revenue | |
|---|---|
| Q1 '24 | $135.46M |
| Q2 '24 | $145.5M |
| Q3 '24 | $152.05M |
| Q4 '24 | $160.4M |
| Q1 '25 | $162.06M |
| Q2 '25 | $180.11M |
| Q3 '25 | $190.84M |
| Q4 '25 | $205.17M |
| Q1 '26 | $211M |
| Q2 '26 | $227.23M |
The numbers beneath the re-rating: 112% net retention among customers above $500,000 in annual recurring revenue, record second-quarter free cash flow of $21.7 million, and BrazeAI Decisioning Studio billing $6.6 million, up 136% year over year, per Citizens 27. The platform processed 25.8 trillion data points and 10.2 trillion API calls in calendar 2025, figures Braze reports as unaudited operational data 1.
No revenue number attached
Neither company attached a revenue figure to the agreement. Full-year guidance rose to $910 million to $913 million, from $895 million to $899 million, about 2% at the midpoint 29. Raymond James raised its target to $33 after the September sell-off and called the platform a secular winner 3; Cantor Fitzgerald holds $38 and Citizens $35 47. Needham's Scott Berg, who named Braze a top end-of-year software pick, argues Meta's−0.41% — Meta, down 0.41 percent today Enterprise Platform never competed with vendors like it in the first place 5.
Watch the Marketplace line
The December-quarter report is the test: whether Marketplace momentum holds under the agreement, and whether organic growth, 24.4% against 26.2% reported, closes the gap left by the OfferFit acquisition 7. Bundesliga is the showcase customer 1. If Amazon's sellers are moving product, it shows up in Marketplace first.
Deepdive
AI-generated from this story and its cited sources. Not investment advice.
