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Braze (BRZE) Reports Q4: Everything You Need To Know Ahead Of Earnings


Anthony Lee /
2023/03/29 3:31 am EDT

Customer engagement software provider Braze (NASDAQ:BRZE) will be reporting earnings tomorrow after market hours. Here's what to look for.

Last quarter Braze reported revenues of $93.1 million, up 45.6% year on year, beating analyst revenue expectations by 2.78%. It was a solid quarter for the company, with exceptional revenue growth and accelerating customer growth. The company added 116 customers to a total of 1,715.

Is Braze buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting Braze's revenue to grow 36% year on year to $95.8 million, slowing down from the 64.1% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.19 per share.

Braze Total Revenue

Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company has a history of exceeding Wall St's expectations, beating revenue estimates every single time over the past two years on average by 7.27%.

Looking at Braze's peers in the sales and marketing software segment, some of them have already reported Q4 earnings results, giving us a hint of what we can expect. Upland Software delivered top-line growth of 4.07% year on year, beating analyst estimates by 2.65% and Sprout Social reported revenues up 30.8% year on year, missing analyst estimates by 0.29%. Upland Software traded flat on the results, Sprout Social was up 7.4%. Read our full analysis of Upland Software's results here and Sprout Social's results here.

There has been a stampede out of high valuation technology stocks and while some of the  software stocks have fared somewhat better, they have not been spared, with share price declining 2.89% over the last month. Braze is down 1.47% during the same time, and is heading into the earnings with analyst price target of $38.7, compared to share price of $30.25.

One way to find opportunities in the market is to watch for generational shifts in the economy. Almost every company is slowly finding itself becoming a technology company and facing cybersecurity risks and as a result, the demand for cloud-native cybersecurity is skyrocketing. This company is leading a massive technological shift in the industry and with revenue growth of 70% year on year and best-in-class SaaS metrics it should definitely be on your radar.

The author has no position in any of the stocks mentioned.