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Braze Vs. Twilio: 2 Winning Customer Engagement Platforms, One Winning Stock

Apr. 05, 2022 9:30 AM ETBraze, Inc. (BRZE), TWLO13 Comments

Summary

  • Braze is a rapidly-growing, modern customer engagement platform that empowers brands by helping them deliver personalized customer experiences.
  • Braze is disrupting legacy customer engagement solutions by focusing on the entirety of a customer's journey, which is imperative in today's omnichannel digital world.
  • In this note, we will study Braze's platform, analyze its financial statements, and deduce its valuation.
  • Braze is built on top of Twilio, and Twilio has now launched Engage, a direct competitor for Braze. My bet is on Jeff and Twilio to dominate customer engagement market over the long term.
  • Also, Twilio is more attractively priced than Braze. I am bullish on Braze (long-term), but I am buying more Twilio at these levels.
  • I do much more than just articles at Beating the Market: Members get access to model portfolios, regular updates, a chat room, and more. Learn More »
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Investment Thesis

Braze (NASDAQ:BRZE) is a modern customer engagement platform that powers personalized, customer-centric interactions between consumers and brands.

Braze's platform empowers brands to listen to their customers better, understand them more deeply and act on that understanding

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This article was written by

Ahan Vashi profile picture
6.67K Followers

Ahan Vashi has 10+ years of investing experience with a professional background in equity research, private equity, and software engineering. He holds a Master of Quantitative Finance from Rutgers and a Bachelor of Technology in Electronics and Communication Engineering.

Ahan leads The Quantamental Investor, a community pursuing financial freedom through bold, active investing with proactive risk management. Features include highly-concentrated, risk-optimized model portfolios that meet investor needs across different stages of the investor lifecycle, access to proprietary software tools, and group chats. Learn more..

Analyst’s Disclosure: I/we have a beneficial long position in the shares of TWLO either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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Comments (13)

Ahan Vashi profile picture
It's Official. My marketplace service - "The Quantamental Investor" - is live:
seekingalpha.com/...
T
"Key Takeaway: I rate Braze a buy at $40, but I am not deploying capital here as I like Twilio better. I rate Twilio a strong buy at $170."
Well this hasn't aged well. BRAZE is at $32 from $40 and Twillio is at $70 from $170?
H
Thoughts on TWLO buying out BRZE? Seems like a quick win.
Ahan Vashi profile picture
@Hell0Hell0HeyHell0 BRZE's founder is 34, I can't see him selling out unless Braze starts to struggle against Engage (or other competitors)
D
@Ahan Vashi See, to me, a 34-y-o thinks, "Do I really want to be doing this for 30+ more years? If I cashed out, I could start five more companies before I'm 50!"
Ahan Vashi profile picture
@Danjw2 No offense, but I wouldn't want to partner with that kind of a founder/CEO,i.e., I wouldn't invest alongside such a founder. Generational wealth could only be built by staying invested for long periods of time, and this rule applies to founders too. Also, there are very few people who have built multiple great companies.
lsmtihcom profile picture
Very interesting article, I like the depth. Havent had time to read it all but will come back to it.
k
Interesting article. It's always useful to discuss a name and competitors; appreciate the insights and analysis.
D
Kinda confusing to have 90% of the article be a discussion of BRZE, yet the key takeaway to be TWLO is the better buy.
Ahan Vashi profile picture
@Danjw2 Our work on Twilio is available exclusively at Beating The Market: seekingalpha.com/...
You could read it using our 2-week free trial.
c
@Ahan Vashi
Thanks for the intro to BRZE. I didn't see it, can you offer a couple of use cases for BRZE/Engage? I mean, CPaaS/APIs are easy to understand... customer data (and Segment) is easy enough... but moving up-stack to high value CX SaaS is more difficult to understand (especially since TWLO hasn't yet really done it, or it's customers aren't exactly doing it) and a couple use cases would help to educate on the point. Thx!
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