Braze Stock Declines Following Quarterly Report
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2 days ago
0mins
Source: Fool
- Quarterly Performance Overview: Braze's Q1 report revealed adjusted earnings of $0.10 per share on sales of $211 million, exceeding Wall Street's forecast by $5.8 million; however, the stock still fell by 4.2%.
- Sales Outlook Raised: The company raised its full-year sales target to between $895 million and $899 million, suggesting an annual growth of approximately 22%, indicating confidence in future performance, yet the market reaction was negative.
- Gross Margin Decline: Despite a year-over-year revenue increase of about 30%, the adjusted gross margin fell from 69.3% to 67.4%, raising investor concerns about profitability, which contributed to a 9.4% intraday drop in stock price.
- Market Reaction Analysis: The decline in Braze's stock price, despite the S&P 500 rising 0.6% and the Nasdaq Composite up 0.9%, reflects investor caution regarding the company's future profitability, potentially impacting market confidence.
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Analyst Views on BRZE
Wall Street analysts forecast BRZE stock price to rise
16 Analyst Rating
16 Buy
0 Hold
0 Sell
Strong Buy
Current: 23.360
Low
38.00
Averages
45.00
High
53.00
Current: 23.360
Low
38.00
Averages
45.00
High
53.00
About BRZE
Braze, Inc. operates a customer engagement platform that enables brands to be engaging. The Company's platform offers first-party context, transforms context with composable intelligence (models, agents, and operators), and delivers relevant interactions across channels. It provides professional services which enable customers to go onboard and use its platform, including certain professional services such as email deliverability support and technical support staff. Its Industry solutions include retail & ecommerce, financial services, travel & hospitality, media & entertainment, gaming, on demand, and QSR. Its products include BrazeAI and Braze Data Platform. Its BrazeAI features include BrazeAI decisioning studio, agent console, operator, liquid assistant and AI copywriter, personalized variant, BrazeAI item recommendations, BrazeAI predictive suite, and MCP server. Its BrazeAI Decisioning Studio is a multi-agent decisioning engine that personalizes communication.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Braze Stock Declines Following Quarterly Report
- Quarterly Performance Overview: Braze's Q1 report revealed adjusted earnings of $0.10 per share on sales of $211 million, exceeding Wall Street's forecast by $5.8 million; however, the stock still fell by 4.2%.
- Sales Outlook Raised: The company raised its full-year sales target to between $895 million and $899 million, suggesting an annual growth of approximately 22%, indicating confidence in future performance, yet the market reaction was negative.
- Gross Margin Decline: Despite a year-over-year revenue increase of about 30%, the adjusted gross margin fell from 69.3% to 67.4%, raising investor concerns about profitability, which contributed to a 9.4% intraday drop in stock price.
- Market Reaction Analysis: The decline in Braze's stock price, despite the S&P 500 rising 0.6% and the Nasdaq Composite up 0.9%, reflects investor caution regarding the company's future profitability, potentially impacting market confidence.
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Braze Inc. Reports 30% Revenue Growth in Q1 Earnings
- Significant Revenue Growth: Braze Inc. reported Q1 revenue of $211 million, reflecting a 30% year-over-year increase, marking the fourth consecutive quarter of accelerating organic revenue growth, indicating strong market demand and business expansion capabilities.
- Record Free Cash Flow: The company achieved a record free cash flow of $27 million in the quarter, demonstrating robust cash generation capabilities that provide ample funding for future investments and expansion.
- Strong Customer Growth: Braze saw a net increase of 104 customers sequentially, up 16% year-over-year, with a 33% increase in large customers spending over $500,000 annually, reflecting the company's growing appeal among high-value client segments.
- Early Adoption of AI Tools: Braze is actively promoting its AI tools, such as BrazeAI Operator and BrazeAI Console, which enhance customer engagement and provide the company with a stronger competitive edge in the market.
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Braze, Inc. Reports Strong Q1 Fiscal 2027 Earnings with Revenue Growth
- Significant Revenue Growth: Braze reported $211 million in revenue for Q1, marking a 30% year-over-year increase and a 3% quarter-over-quarter rise, indicating strong market performance that is likely to enhance shareholder confidence and market share.
- Record Cash Flow: The company achieved a record free cash flow of $27 million this quarter, highlighting successful financial management and operational efficiency, which strengthens its financial flexibility for future investments and expansions.
- Expanded Customer Base: The number of large customers grew by 33% year-over-year to 349, demonstrating Braze's competitiveness and appeal in the enterprise market, further solidifying its position in the rapidly evolving digital marketing sector.
- Optimistic Outlook: Management expects Q2 revenue to range between $219.5 million and $220.5 million, with full-year revenue guidance raised to $895 million to $899 million, reflecting confidence in future growth and the effectiveness of strategic planning.
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Braze (BRZE) Q1 2027 Earnings Transcript
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Braze Stock Declines Following Quarterly Report
- Quarterly Performance Overview: Braze's Q1 report revealed adjusted earnings of $0.10 per share on sales of $211 million, exceeding Wall Street's forecast by $5.8 million; however, the stock still fell by 4.2%.
- Sales Outlook Raised: The company raised its full-year sales target to between $895 million and $899 million, suggesting an annual growth of approximately 22%, indicating confidence in future performance, yet the market reaction was negative.
- Gross Margin Decline: Despite a year-over-year revenue increase of about 30%, the adjusted gross margin fell from 69.3% to 67.4%, raising investor concerns about profitability, which contributed to a 9.4% intraday drop in stock price.
- Market Reaction Analysis: The decline in Braze's stock price, despite the S&P 500 rising 0.6% and the Nasdaq Composite up 0.9%, reflects investor caution regarding the company's future profitability, potentially impacting market confidence.
See More
IBM to Invest Over $10 Billion in Quantum Computing
- Quantum Computing Investment: IBM disclosed in a regulatory filing that it will invest over $10 billion in quantum computing over the next five years, a move expected to enhance the company's competitiveness in cutting-edge technology and solidify its market leadership.
- Chipmaker Stock Surge: Arm Holdings' shares jumped over 15% after Mizuho raised its price target from $290 to $360, anticipating strong growth from internal CPU demand in 2027, which boosts market confidence in its future performance.
- Rail Merger Halted: Shares of Norfolk Southern and Union Pacific fell about 4% after the Surface Transportation Board halted its review of the proposed $71.5 billion merger, indicating regulatory concerns that could impact future market consolidation.
- Cloud Platform Performance: Snowflake's stock soared 37%, with expectations for a second-quarter adjusted operating margin of 12.5%, exceeding analysts' forecast of 11.9%, demonstrating its strong growth potential in the cloud computing market.
See More
Significant Stock Movements for Multiple Companies
- Dollar Tree Earnings Beat: Dollar Tree reported adjusted earnings of $1.74 per share for Q1, exceeding analyst expectations of $1.53, leading to an over 11% stock surge, while the partnership with DoorDash enhances its competitive edge through on-demand delivery.
- Salesforce Guidance Adjustment: Salesforce guided for current-quarter revenue between $11.27 billion and $11.35 billion, falling short of the $11.36 billion expected by analysts, resulting in a 1% stock decline; however, the raised full-year earnings guidance indicates confidence in future growth.
- Agilent Raises Earnings Outlook: Agilent Technologies increased its full-year adjusted earnings guidance to between $6 and $6.10 per share, surpassing previous estimates of $5.90 to $6.04, causing a 9% stock increase that reflects strong performance in the healthcare equipment sector.
- Snowflake Soars: Snowflake plans to invest $6 billion in Amazon Web Services over five years and reported Q1 adjusted earnings of $0.39 per share and revenue of $1.39 billion, both exceeding market expectations, resulting in a nearly 37% stock increase.
See More
Braze Inc. Reports 30% Revenue Growth in Q1 Earnings
- Significant Revenue Growth: Braze Inc. reported Q1 revenue of $211 million, reflecting a 30% year-over-year increase, marking the fourth consecutive quarter of accelerating organic revenue growth, indicating strong market demand and business expansion capabilities.
- Record Free Cash Flow: The company achieved a record free cash flow of $27 million in the quarter, demonstrating robust cash generation capabilities that provide ample funding for future investments and expansion.
- Strong Customer Growth: Braze saw a net increase of 104 customers sequentially, up 16% year-over-year, with a 33% increase in large customers spending over $500,000 annually, reflecting the company's growing appeal among high-value client segments.
- Early Adoption of AI Tools: Braze is actively promoting its AI tools, such as BrazeAI Operator and BrazeAI Console, which enhance customer engagement and provide the company with a stronger competitive edge in the market.
See More
Braze, Inc. Reports Strong Q1 Fiscal 2027 Earnings with Revenue Growth
- Significant Revenue Growth: Braze reported $211 million in revenue for Q1, marking a 30% year-over-year increase and a 3% quarter-over-quarter rise, indicating strong market performance that is likely to enhance shareholder confidence and market share.
- Record Cash Flow: The company achieved a record free cash flow of $27 million this quarter, highlighting successful financial management and operational efficiency, which strengthens its financial flexibility for future investments and expansions.
- Expanded Customer Base: The number of large customers grew by 33% year-over-year to 349, demonstrating Braze's competitiveness and appeal in the enterprise market, further solidifying its position in the rapidly evolving digital marketing sector.
- Optimistic Outlook: Management expects Q2 revenue to range between $219.5 million and $220.5 million, with full-year revenue guidance raised to $895 million to $899 million, reflecting confidence in future growth and the effectiveness of strategic planning.
See More
Braze (BRZE) Q1 2027 Earnings Transcript
See More
