Earnings To Watch: Braze (BRZE) Reports Q1 Results Tomorrow

Anthony Lee /
2024/06/05 3:01 am EDT

Customer engagement software provider Braze (NASDAQ:BRZE) will be reporting results tomorrow after the bell. Here's what you need to know.

Braze beat analysts' revenue expectations by 5.1% last quarter, reporting revenues of $131 million, up 32.7% year on year. It was a decent quarter for the company, with an impressive beat of analysts' ARR (annual recurring revenue) estimates but management forecasting growth to slow. It added 33 customers to reach a total of 2,044.

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

This quarter, analysts are expecting Braze's revenue to grow 29.4% year on year to $131.7 million, slowing from the 31.3% increase it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.10 per share.

Braze Total Revenue

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Braze has a history of exceeding Wall Street's expectations, beating revenue estimates every single time over the past two years by 4.8% on average.

Looking at Braze's peers in the sales and marketing software segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Upland's revenues decreased 8.2% year on year, beating analysts' expectations by 3.5%, and Sprout Social reported revenues up 28.7%, in line with consensus estimates. Upland traded up 27.7% following the results while Sprout Social was down 40.1%.

Read our full analysis of Upland's results here and Sprout Social's results here.

Inflation progressed towards the Fed's 2% goal at the end of 2023, leading to strong stock market performance. The start of 2024 has been a bumpier ride as the market switches between optimism and pessimism around rate cuts thanks to mixed inflation data, and while some of the sales and marketing software stocks have fared somewhat better, they have not been spared, with share prices down 6.6% on average over the last month. Braze is down 12.1% during the same time and is heading into earnings with an average analyst price target of $63 (compared to the current share price of $36.99).

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