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Braze IPO

How to trade on Braze’s IPO

US customer engagement software company Braze (formerly Appboy) is planning to debut on the Nasdaq exchange later this year. Learn about the company’s history, financials, and potential valuation, and register for our IPO newsletter to receive a notification when you can start spread betting or trading CFDs on our Braze share price.

UK flag logo
FCA regulated
FSCS logo
Segregated funds
LSE logo
LSE listed

Late 2021

Braze going public

$850m+

Braze’s valuation

$150.2m

Braze’s 2021 HY revenue

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What type of company is Braze?

Founded in 2011 and based in New York, Braze provides a leading cloud-based customer engagement platform that powers interactions between brands and consumers. Its platform allows brands to process customer data in real time, interact through social media and web chat, carry out individualized marketing campaigns, and other CRM (customer relationship management) activities.

Braze helps over 1,000 brands in over 50 countries with its multi-channel approach, and has partnerships with established companies such as Snowflake, Amazon Web Services (AWS), and Looker. It boasts an 840% return on investment (ROI) with a 3-month payback duration and has 3 billion monthly active users worldwide.

When is Braze’s IPO date?

Braze hasn’t shared an official IPO date yet, but it’s expected at some point in late 2021 or early 2022. The company plans to list on the Nasdaq exchange in New York using the stock symbol ‘BRZE’.

If you’re interested in receiving a notification for when Braze has finally listed on the stock market and you potentially want to take a position on our derivative share price, then sign up using the form below. We’ll also notify you of other upcoming IPOs in 2021​ that may be of interest.

Braze’s valuation and share price

The company hasn’t yet set an estimated share price, as this will be revealed closer to the IPO date.

Braze was most recently valued at $850m in September 2018 after a funding round that earned the company $80m, according to PitchBook. In total, it has raised around $175m as a private company. Some of its largest investors are Battery Ventures and Iconiq Capital. However, Braze could be valued at much higher figure, given that over the past three years, the company has seen a jump in revenues and user base, which we’ll explain in further detail in the financials section.

How to trade on Braze stock

1. Open an account

Get started by spread betting or trading CFDs on Braze’s competitors while you wait, using a live or demo account.

2. Register your interest

By entering your email into the sign-up form on this page, we’ll notify you when Braze has listed and our derivative is available to trade.

3. Pick a strategy

Choose whether you want to go long (buy) or go short (sell). Please note that some trading restrictions may apply on initial trading.

4. Manage your risk

Explore our range of stop-loss orders, including traditional, trailing, and GSLOs, in order to prevent your trades from slippage or volatility.

How has Braze been performing financially?

According to Braze’s S-1 filing with the Securities and Exchange Commission (SEC), revenues for fiscal-year 2021 stood at $150.2m, up from $96.4m in the previous year. However, net losses were slightly higher in 2021 at $31.43m from $31.36m in 2020, which could be attributed in part to the Covid-19 pandemic. The company also reported an annual recurring revenue above $200m in 2021, which is double its recorded figure in 2019.

93% of Braze’s revenue comes from subscription-based packages. The company claims to have interactions with 3.3 billion monthly active users via customer apps, websites and other digital interfaces. This shows a jump from its figure of 2.3 billion in 2020 and 1.6 billion in 2019.

Please remember that past performance is not a reliable indicator of future results.

Why may investors be interested in Braze’s IPO?

Braze is part of a growing industry revolving around customer and marketing-focused software, which Internal Data Corporation (IDC) says could reach almost $20bn in value by 2024. This may attract more investor buzz around the sector, signalling a potentially promising future for the company.

Many of Braze’s direct competitors aren’t yet publicly traded, such as Iterable, MoEngage, CleverTap, Leanplum, and Airship, meaning that Braze may have a slight edge within the industry. However, several of these companies have reportedly filed for IPOs or are in the process of raising funds for the near future, so Braze may have more competition to come.

Braze has a diverse portfolio of brands that use the company for their operations, including IBM, Grubhub, PayPal, HBP, Sephora, and Burger King. This shows that Braze is a suitable partner for companies from a wide range of industries and sizes.

Why may investors be deterred by Braze’s IPO?

Although Braze has experienced revenue growth in both 2020 and 2021 from previous years, it’s still not profitable, which is evidenced by its significant net losses. Therefore, the company may have a long way to go before its profits start to outweigh its losses. Investors may be hopeful, given that revenue has increased by almost 60% this year already.

Braze hasn’t carried out a funding round since 2018 (that we know of), so we don’t have a more recent accurate valuation. The company may well be estimated at a much higher figure than $850m.

Trade on Braze’s competitors

Avaya
- All clients
100%
Long

100% of CMC client accounts with open positions on Avaya expect the price to rise.

Intuit
- All clients
100%
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100% of CMC client accounts with open positions on Intuit expect the price to rise.

HubSpot
- All clients
100%
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100% of CMC client accounts with open positions on HubSpot expect the price to rise.

Adobe
- All clients
96%
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96% of CMC client accounts with open positions on Adobe expect the price to rise.

Client sentiment is provided by CMC Markets for general information only, is historical in nature and is not intended to provide any form of trading or investment advice – it must not form the basis of your trading or investment decisions.

FAQS

Who are the underwriters for Braze’s IPO?

Goldman Sachs, JP Morgan Chase and Barclays are all acting as joint underwriters for the initial public offering (IPO). Learn more about the IPO process.

What industry does Braze belong to?

As Braze offers cloud-based solutions and hosts a web-based platform, the company belongs to the software and services industry within the wider informational technology sector. Read more about stock market sectors.

Disclaimer: CMC Markets is an execution-only service provider. The material (whether or not it states any opinions) is for general information purposes only, and does not take into account your personal circumstances or objectives. Nothing in this material is (or should be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by CMC Markets or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although we are not specifically prevented from dealing before providing this material, we do not seek to take advantage of the material prior to its dissemination.

Download our app to trade on IPOs on-the-go

Download our mobile app for iOS or Android to get started. Once Braze has listed on the Nasdaq exchange, you will be able to spread bet or trade CFDs on our Braze share price.

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