Earnings To Watch: Braze (BRZE) Reports Q3 Results Tomorrow

Kayode Omotosho /
2023/12/05 2:01 am EST

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

Last quarter Braze reported revenues of $115.1 million, up 33.6% year on year, beating analyst revenue expectations by 5.9%. It was a solid quarter for the company, with revenue and free cash flow exceeding expectation, driven by better-than-expected subscription revenue. Looking ahead, it raised its full-year revenue guidance, which came in higher than Wall Street's estimates. On the other hand, its net revenue retention slightly declined. The company added 92 customers to a total of 1,958.

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 26% year on year to $117.3 million, slowing down from the 45.6% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.13 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 6%.

Looking at Braze's peers in the sales and marketing software segment, some of them have already reported Q3 earnings results, giving us a hint of what we can expect. Upland's revenues decreased 6.8% year on year, beating analyst estimates by 1.4% and Sprout Social reported revenues up 31% year on year, exceeding estimates by 1.6%. Upland traded flat on the results, and Sprout Social was up 16.9%.

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

There has been positive sentiment among investors in the sales and marketing software segment, with the stocks up on average 14.7% over the last month. Braze is up 26% during the same time, and is heading into the earnings with analyst price target of $57.2, compared to share price of $56.68.

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