What To Expect From Braze’s (BRZE) Q2 Earnings

In this article:
BRZE Cover Image
What To Expect From Braze’s (BRZE) Q2 Earnings

Customer engagement software provider Braze (NASDAQ:BRZE) will be reporting earnings tomorrow after the bell. Here’s what to look for.

Braze beat analysts’ revenue expectations by 2.9% last quarter, reporting revenues of $135.5 million, up 33.1% year on year. It was a very strong quarter for the company, with an impressive beat of analysts’ billings estimates and accelerating customer growth. It added 58 customers to reach a total of 2,102.

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 22.8% year on year to $141.3 million, slowing from the 33.6% increase it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.03 per share.

Braze Total Revenue
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 4.3% on average.

Looking at Braze’s peers in the sales and marketing software segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Sprout Social delivered year-on-year revenue growth of 25.3%, meeting analysts’ expectations, and Upland reported a revenue decline of 6.9%, topping estimates by 2.3%. Sprout Social traded down 12% following the results while Upland was up 8.5%.

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

There has been positive sentiment among investors in the sales and marketing software segment, with share prices up 6.4% on average over the last month. Braze is up 17.3% during the same time and is heading into earnings with an average analyst price target of $60.8 (compared to the current share price of $43.64).

When a company has more cash than it knows what to do with, buying back its own shares can make a lot of sense–as long as the price is right. Luckily, we’ve found one, a low-priced stock that is gushing free cash flow AND buying back shares. Click here to claim your Special Free Report on a fallen angel growth story that is already recovering from a setback.

Advertisement