What Happened:
Shares of customer engagement software provider Braze (NASDAQ:BRZE) jumped 9.06% in the pre-market session after the company reported an impressive "beat and raise" quarter. First quarter results exceeded analysts' expectations for key top-line metrics, including revenue, subscription revenue, and calculated billings. Notably, calculated billings saw a nice beat of nearly 10%. The company also posted better-than-expected profits, with gross margin, operating income, and earnings per share all topping analysts' projections. Customer growth also accelerated. Looking ahead, Braze provided strong guidance with revenue guidance for the next quarter exceeding Consensus. The full-year guidance was also raised and came in above expectations. Similarly, operating loss guidance for the next quarter and full year beat. On the other hand, there was a deterioration in revenue retention rate. Regardless, it was still a strong quarter with a clear outperformance of key metrics and a bullish guidance.
What is the market telling us:
Braze's shares are very volatile and over the last year have had 47 moves greater than 5%. In context of that, today's move is indicating the market considers this news meaningful but not something that would fundamentally change its perception of the business.
Braze is up 50% since the beginning of the year, but at $38.90 per share it is still trading 23.6% below its 52-week high of $50.93 from August 2022. Investors who bought $1,000 worth of Braze's shares at the IPO in November 2021 would now be looking at an investment worth $413.87.
Is now the time to buy Braze? Access our full analysis of the earnings results here, it's free.