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.
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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.
