Braze Stock (NASDAQ:BRZE) Gained on Q1 Beat, Better Guidance
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Braze Stock (NASDAQ:BRZE) Gained on Q1 Beat, Better Guidance

Story Highlights

Braze’s impressive performance in the fiscal first quarter and an upward revision of its Fiscal 2024 guidance seem to have boosted investors’ confidence in the stock.

 

 

Shares of Braze (NASDAQ:BRZE) jumped about 9% in yesterday’s extended trading session. Investors responded positively to the company’s fiscal first-quarter results, which surpassed expectations, as well as the improved guidance for Fiscal 2024.

The cloud-based software company provides a customer engagement platform that powers customer-centric interactions between consumers and brands.

Revenues increased 31.3% year-over-year to $101.8 million and came above the Street’s expectations of $98.8 million. Meanwhile, the company delivered an adjusted loss of $0.13 per share, versus the consensus estimate of a loss of $0.18 per share. Also, it came below the prior-year loss of $0.19 per share.

In terms of key metrics, Braze achieved dollar-based net retention of 122% for the trailing 12 months (ended April 30, 2023), compared with 127% in the same period last year. Additionally, BRZE’s total customers in the reported quarter rose 24% to 1,866. Out of the total customer count, 164 customers had an ARR of over $500,000, compared to 129 customers as of April 30, 2022.

Braze Raises Fiscal 2024 Outlook

For FY24, BRZE forecasts revenues to be within the $442.5-$446.5 million range, higher than the $433-$438 million estimated earlier. Also, the company expects adjusted net loss to be within the $0.51-$0.55 per share range versus the $0.55-$0.59 per share range stated previously.

For the fiscal second quarter, the adjusted loss is likely to range between $0.13 per share and $0.14 per share. At the same time, revenues are projected to be in the range of $108 million to $109 million.

Is Braze a Buy or Sell?

BRZE’s focus on value-based selling and vendor consolidation bodes well for its long-term growth. Also, management’s optimism about the company’s near-term performance, despite a challenging macro scenario, is encouraging.

Out of the 11 top analysts who recently rated BRZE stock, 10 assigned a Buy rating and one suggested a Hold. Overall, top analysts are optimistic about Braze with a Strong Buy consensus rating. Moreover, the consensus 12-month price target of all top analysts of $40.18 implies an upside potential of 18.4% at present. 

It is noteworthy that these top analysts have an impressive history of helping investors generate massive returns from their recommendations. Moreover, each analyst has a remarkable success rate.

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