Impressive Q1 Results Trigger a Boost in Braze's Stock Price
Shares of Braze (NASDAQ: BRZE) saw a substantial uptick of over 9% in pre-market trading on Friday, following the tech giant's announcement of better-than-expected Q1 results and a bullish adjustment of its Guidance. The EPS stood at ($0.13), beating the consensus estimate of ($0.18). In addition, revenue experienced a 31.3% YoY growth, reaching $101.8 million - this figure surpassed the consensus estimate of $98.99M. The growth is attributed primarily to acquiring new customers, upsells, and renewals.
CEO Bill Magnuson Expresses Confidence in Braze's Performance
Braze's CEO, Bill Magnuson, commented on the company's solid start to fiscal 2024, attributing the impressive results to robust demand for the Braze Customer Engagement Platform. His optimism was echoed in the company's performance and future expectations.
Braze's Future Projections Indicate Strong Market Presence
Braze's projections for Q2/24 and the full year also indicate the company's strength in the market. For Q2/24, the company anticipates an EPS of ($0.13)-($0.14), which is better than the consensus of ($0.16), and a revenue range of $108-$109M, surpassing the consensus estimate of $107.18M. For the full year, Braze forecasts an EPS of ($0.51)-($0.55), in comparison to the consensus of ($0.55), and revenue between $442.5-$446.5M, which is above the consensus estimate of $436.43M.
Analysts Highlight Braze's Strong Execution Amid Challenging Environment
Analysts from Oppenheimer and TD Cowen had positive comments on Braze's performance. Oppenheimer analysts pointed out that this was the second consecutive quarter of strong execution by Braze, even in the face of a challenging operating environment. On the other hand, TD Cowen analysts indicated that Braze is well-positioned to take advantage of a "legacy replacement cycle," stating that Braze has stabilized growth execution, is reaping benefits from vendor consolidation and legacy replacements, and anticipates numerous new GenAI innovations coming into the platform.
